Buchanan Street Partners buys 2-building office complex in Richardson
By Candace Carlisle | Staff Writer
Newport Beach, California-based Buchanan Street Partners has bought a two-building office complex in Richardson, the real estate investment firm's second deal in the North Texas area this year.
Terms of the acquisition were undisclosed.
Buchanan Street was attracted to the office complex at 3001 and 3101 E. President George Bush Turnpike because of its proximity to and relative affordability compared with other northern suburban markets, said Matt Haugen, the firm's assistant vice president.
"The Far North Dallas submarket has been experiencing strong positive absorption and growth in rental rates causing a wider-than-normal price gap compared to Richardson," Haugen said in a written statement.
Richardson's average lease rate is $19.26 per square foot, which is affordable compared with lease rates in the Far North Dallas submarket with an average lease rate of $22.46 per square foot, according to CBRE research. The average lease rate in Dallas is $21.68 per square foot, according to the research.That submarket includes West Plano and Frisco along the Dallas North Tollway, where Toyota's new North American campus is underway. Other corporate tenants, such as Liberty Mutual Insurance and FedEx Office, also will be located within the submarket, which is causing a run on real estate.
The Richardson property — called Richardson Office Center I and II — totals 238,301 square feet of office space. Buchanan Street Partners plans to make some minor upgrades to the property's lobbies and exteriors of the buildings. The property is 90 percent leased to tenants including Boeing, Avnet and Genpact.
Buchanan represented itself in the deal. CBRE's Gary Carr and Robert Hill represented the seller.
Haugen also said the property's proximity to the nearby $1.5 billion CityLine development will help attract corporate tenants.
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