Cole Buys New Encana Office Tower for $120M

Cole Real Estate Investments announced this week that it had acquired a newly built Class A office tower in Plano, Texas that was completed earlier this year for $120 million. Cole was represented by Boyd Messmann, senior vice president of acquisitions, office and industrial, in the transaction. Gary Carr, vice chairman in the Dallas office of CBRE Group, brokered the sale. "We didn't widely market the property," Carr said. "There was a tremendous amount of interest because of the quality of the tenant, building and location."

"This latest transaction further illustrates our active portfolio management strategy," said Thomas Roberts, executive vice president and head of real estate investments for Cole Real Estate Investments. "Available proceeds from recent property sales are being invested in a high-quality asset under a long-term lease, providing a strong yield and enhancing portfolio diversification. Those factors, combined with the strategic importance of this facility, attractive location and recent construction, make this an ideal investment while adding a prominent energy sector organization to our growing roster of diversified tenants nationwide."

Located in the Legacy Business Park in Plano, TX, Cole's newest acquisition sits at 5851 Legacy Circle. The 318,600 square foot, 12 story office tower is 100% leased to Encana Oil & Gas Inc., a leading North American energy producer, and serves as the regional headquarters for their Texas and Louisiana operations. The property includes a seven story parking structure, attached by a sky bridge. In May, investor KBS Real Estate paid $113 million, or about $217 per square foot, for three Legacy Town Center office buildings, according to a Dallas Morning News report.

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