(DALLAS) – The Dallas office of Hines, the international real estate firm, announced today that in a new joint venture with institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, the acquisition of The Plaza at Legacy.
Formerly known as Computer Associates, the seven-story, 215,499-square-foot office building is located in the Legacy Business Park, in the Far North Dallas submarket of Plano, Texas.
The acquisition also included an adjacent 12-acre corner land parcel along Legacy Drive.
Jones Lang LaSalle's Houston Real Estate Investment Banking team acted as Hines exclusive advisor in arranging both the joint venture equity and the debt.
The office building was developed in 2001 by Hines as a build-to-suit for Computer Associates.
In 2004, Hines sold the asset to ING-Clarion, and continued to manage the property until 2006.
Hines Dallas Vice President Ran Holman remarked, “Since Hines developed the asset, we know it inside and out, and with this opportunity to reposition it for multi-tenant use, we believe it will be well-received in the market.”
The Hines and J.P. Morgan Asset Management venture has an immediate leasing opportunity of more than 120,000 square of existing, contiguous Class A office space in Legacy. Additionally, with the 12-acre site, we have the ability to accommodate up to a 300,000-square-foot corporate build-to-suit on the corner of Legacy and Hedgcoxe. Legacy is now an apex submarket. It has become what the Tollway/635 submarket was in the 80s and 90s – it defines the north end of the Tollway and has unparalleled access and reach to a wide array of labor, housing, transportation, technology and quality of life amenities,” Holman added.
Computer Associates (aka “CA Technologies”) recently reconfigured their space and renewed for an additional 10-year term to now occupy approximately 43 percent of the leased space (77,000 square feet, with an expansion right for approximately 16,000 square feet), leaving
approximately 120,000 square feet available for
immediate multi-tenant use.
As a result of CA Technologies’ reconfiguration, the venture plans to reposition the building from single-tenant to multi-tenant office use.
reconfiguring and upgrading the lobby; adding a new deli/sundry shop; adding a fitness and conference center; and upgrading common areas finishes on each floor.
U.S. Bank is providing the financing for the retrofit.
“U.S. Bank is proud to support Hines & J.P. Morgan by providing a creative financing solution that allows the partnership to take advantage of the growing opportunity in the Dallas market,” said U.S. Bank Dallas Senior Vice President Greg Kaye. “This kind of transaction is right in our sweet spot and is representative of U.S. Bank’s continued commitment to commercial real estate businesses throughout the Texas market and across the nation.”
Renovations will be complete by year end, and Hines is actively co-marketing the remaining space exclusively with Cassidy Turley.
About J.P. Morgan Asset Management – Global Real Assets
J.P. Morgan Asset Management – Global Real Assets has approximately $57.5 billion in assets under management and 405 professionals in the U.S., Europe and Asia, as of September 30, 2011.
With a 40-plus-year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad
capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure, maritime/transport and energy strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $340 billion in assets as of Dec. 31, 2011, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,085 banking offices in 25 states and 5,053 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com.
Hines has been continuously active in Dallas for 35 years. Development projects include: the Galleria, a 3.2 million-square-foot mixed-use center; Galleria North, a multi-use complex comprised of two office buildings and a retail center; the Plaza at Legacy office building in Plano; and One Victory Park. In 2006, the firm purchased 600 acres of land in Las Colinas. A portion of the land has been sold to other developers with the balance held for investment and development by Hines.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,147 properties representing more than 462 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.
With offices in 108 cities in 18 countries, and controlled assets valued at approximately $23.4 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems.
Visit www.hines.com for more information.