Shorenstein Acquires 300 KSF Dallas Office Tower

Shorenstein Investment Advisers has acquired Sherry Lane Place, a 300,000-square-foot office tower in Dallas’s Preston Center submarket.

According to Yardi Matrix, the previous owner was CBRE Investment Management, which had purchased the asset from J.P. Morgan Asset Management in 2021 for $108.7 million. The most recent sale price was not disclosed.

Sherry Lane Place is a 20-story Class AA office tower that delivered in 1982 and recently underwent a comprehensive renovation, encompassing upgrades to its conference facilities, tenant lounge, café and fitness center. The property is 93 percent leased, with a weighted average lease term of about 6.6 years.

Shorenstein plans further improvements to the property, including the addition of wellness amenities and a bar lounge, enhancements to the lobby and upgrades to outdoor seating areas.

Gradual improvements in the Metroplex

This acquisition was Shorenstein’s fourth in the Dallas area over the past two years. The company reported that it currently owns nearly 20 percent of Preston Center’s Class A office inventory.

In June, Shorenstein Properties acquired The Tennyson, a two-building, 273,574-square-foot office campus in Plano, Texas, from Spear Street Capital. Newmark arranged the sale on behalf of the seller and secured the acquisition funding on behalf of the buyer.

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The Dallas-Fort Worth Metroplex’s office market continues to see declining vacancy, with total vacancy dropping to 25.1 percent, a year-over-year fall of 90 basis points, according to a second-quarter report from Kidder Mathews.

Direct asking rents and total net absorption are both up, as construction deliveries are more than 90 percent lower than a year ago, although 2.9 million square feet of office space is in the pipeline.