In a significant real estate transaction, Real Capital Solutions has scooped up the Walnut Glen office tower for a mere $26.1 million, a fraction of its 2016 selling price of $73 million. According to the Dallas Business Journal, this 18-story building near Texas Health Presbyterian Dallas and The Hill shopping center encompasses almost 465,000 square feet of space.
The bargain was notable not only for the deep discount but also because of the premium location along Central Expressway. Despite the Dallas Central Appraisal District valuing the property at $72.2 million for tax purposes, Real Capital Solutions took ownership for significantly less, in a sale facilitated by real estate firm JLL, which said the building is currently 49% leased, as reported by The Dallas Morning News.
This isn't Real Capital Solutions' first foray into the Dallas market, with a $66 million purchase of another property, Tower at Park Lane, made last December. The Colorado-based firm plans substantial improvements for Walnut Glen, aiming to enhance the lobby, fitness center, and conference center while also introducing move-in-ready office suites to boost leasing, although they have not disclosed exact investment figures.
"Walnut Glen checks every box for us — scale, location and a clear path to value creation," Adam Abeln, chief acquisitions officer for Real Capital Solutions, said, "It’s a well-located building where smart capital, and active management can drive long-term value. Dallas remains one of the most resilient and attractive office markets in the country and this acquisition reflects our long-term conviction in the market," he told The Dallas Morning News. Cushman & Wakefield has been enlisted to manage leasing and property management of the building.
