New owners plan major overhaul after acquiring distressed Dallas office buildings
Gulf Coast Western (GCW) has formed a partnership with Enverra Real Estate Partners to acquire Parkway Office Center North and South through their affiliate Parkway Towers, LLC. These two, nine-story towers on Dallas’ North Tollway, totaling 230,000 square feet, will undergo substantial renovations after years of underinvestment. The transaction closed Sept. 3.
Gulf Coast Western, a diversified oil and gas exploration company founded in 1970 and owned by Matt Fleeger, is the longtime and largest tenant in the building. Fleeger is looking to take advantage of the depressed office values and has committed significant investment capital to fund the acquisition and return the office buildings he’s occupied for over 12 years to class A standards that match his firm’s reputation and meet the needs of modern tenants.
“We’re committed to revitalizing this asset,” said Fleeger. “Immediate improvements will include facade, garage and landscaping enhancements, 38,000 SF of spec suites, significant improvements to the existing lobbies, cafe and common areas, and the addition of tenant amenities such as a fitness facility, tenant lounge, large tenant conference room and a golf simulator.”
Enverra is a new player in the commercial real estate market based in Dallas. The firm is led by Tommy Spinosa who has held significant roles at Bridge Investment Group, CP Group and a JV partnership with Fortress Investment Group, as well as Enverra partner Macki McKim, who will focus on expanding the firm’s footprint in Texas. McKim has spent much of his career in institutional office investment sales, most recently with JLL.
“This property aligns well with our broader Sunbelt strategy and investment approach to reposition underperforming assets in high-potential growth markets,” said Spinosa, Managing Partner of Enverra. “The attractive basis at acquisition will allow the partnership to reinvest heavily into the buildings and offer compelling tenant concessions, driving the property back to stabilization. Our goal is to reintroduce institutional-quality asset and property management to these buildings and extend that standard to future acquisitions.”
Adds McKim, “We’re thrilled to have our initial deal in our hometown of Dallas. Parkway Office Center is ideally situated in a submarket that has experienced robust growth in recent years. Companies have chosen this area not only for its strategic location within DFW but also because of the top-tier public schools and attractive amenities that surround it. This property is perfectly positioned to appeal to decision-makers, young professionals and the robust employment base from both Dallas proper and the high-growth suburbs.”
The property has been dramatically underperforming its peer-set and the partnership believes that leasing velocity will increase with the capital investment into the asset coupled with the significant tenant improvement dollars available to attract new tenants. Floor plates range from 12K to 14K square feet, making them ideal for smaller companies who might be able to lease a whole floor. McKim says the property will also appeal to smaller tenants such as energy, accounting, private equity and financial services firms.
JLL represented the seller, Principal Financial, the property’s previous lender who sold their interest in the loan. The partnership acquired the loan and foreclosed on the previous borrower.
About Enverra Real Estate Partners
Enverra Real Estate Partners is a vertically integrated real estate investor and operator, specializing in institutional quality and size office and multi-family investment opportunities across the thriving Sunbelt region, visit https://enverrarep.com/.
