Chestnut Development Partners entered the Dallas market with an investment in a partnership that acquired two three-story office buildings in Irving, Tex. The property, totaling 95,875 square feet and currently 85% leased, is located in Decker Hills Office Park in Las Colinas. This is Chestnut’s first investment in Texas and alongside Red River Asset Management, LLC of New York, NY.
“Real estate is about people,” said Bruce Stern of Red River Asset Management, “and this deal happened because of relationships. All of the real estate professionals involved in the transaction know each other, we trust each other and were able to put together a complex deal based on handshakes. In the future we want to explore more deals with Chestnut. ”
Because of a lack of new office construction and increased economic growth in the Dallas market, the office market has strengthened as evidenced by increasing rental rates and declining vacancy. Red River and Chestnut plan to embark upon a capital improvement program to upgrade the building systems and enhance aesthetic appeal. Plans include renovating the lobbies and restrooms with the intent to attract small-to-medium size tenants who value access to DFW Airport and yet appreciate the aesthetic and functional aspects of the property.
Financing was provided by ViewPoint Bank. The loan was arranged through Angelic Real Estate of New York City.