Transwestern Investment Group, through its real estate investment fund Diversified International Partners Fund, has sold a seven-story office building in Fort Worth, Texas. According to Tarrant County public records, the University of North Texas System in Denton, Texas, purchased the 122,828-square-foot property.
The Class A office building at 550 Bailey Ave. used to be home to Bombay Co., a home furnishings company. The company shuttered in 2008, eventually relaunching, but moved out of the building that then underwent a major renovation from 2008 to 2009. The building now features a three-story lobby with glass, stone and bamboo accents, covered parking and renovated common spaces and elevators.
The final upgrades to the common areas were completed during the seller’s ownership. Richard Yeh, Transwestern’s managing director, told Commercial Property Executive that the renovations were done to modernize the property, since it was built in 1984. Currently, the office is home to approximately 20 tenants at a 76 percent occupancy rate, Yeh added.
Jim Sager, Transwestern Commercial Services’ vice president, represented the seller, who will occupy the building. CBRE’s Gary Carr, John Alvarado and Robert Hill provided disposition services. Transwestern has also invested in other southwestern states, like its recent joint venture purchase of a Phoenix office building.
The Dallas/Fort Worth office market is expected to stay strong with more demand for high quality buildings with modern standards, according to Cushman & Wakefield’s second quarter report on the area.
The overall Dallas/Fort Worth office sector dipped slightly to a 19 percent occupancy rate for its second quarter of the year, but it is expected to fall, the report notes. In comparison, the occupancy rate for just Fort Worth came in at 14 percent. The report also found that Class A office buildings saw strong quarterly numbers, with 1.8 million square feet of net absorption, while Class B and C fell 1.6 million square feet, showing the tenant demand for well-placed, modern offices.