Parmenter Realty Partners Buys The Tower at Cityplace

Miami-based Parmenter Realty Partners announced this week that it had purchased The Tower at Cityplace in Dallas, Texas, marking the company's tenth investment in Parmenter Realty Fund IV. While the final purchase price was not disclosed, HFF, which sold the building on behalf of the owner, Dallas-based CPT Fee Owner LP, announced that it has arranged $100 million in financing for the property through GE Capital Real Estate, the proceeds of which were used to acquire the asset with a future funding component for leasing and capital expenditures. According to a Dallas Morning News report, real estate brokers speculate that the building went for more than $135 million.

"We are pleased to add The Tower at Cityplace to our Parmenter Realty Fund IV portfolio," said Darryl Parmenter, Chairman and CEO of Parmenter Realty Partners. "This iconic building was built with the highest design quality and standards and is the perfect asset to round up Fund IV before we launch our Parmenter Realty Fund V in January 2014."

The 1.3 million-square-foot office tower was originally built in 1988 less than a mile north of downtown Dallas and the Arts District. As part of the purchase, Parmenter Realty Partners plans to develop 600,000 square feet of restaurants, shops and residential space surrounding the 42-story office and retail tower at 2711 N. Haskell Avenue. Parmenter said it also plans to implement a comprehensive capital improvement program consisting of the renovation of the building's common areas as well as completing other capital projects to enhance the property's trophy stature.

"Uptown's vacancy rate currently stands at 11 percent and is projected to be single digit by the end of the year," said Spence Sowa, Senior Vice President of Acquisitions at Parmenter Realty Partners. "With limited new construction in the surrounding submarkets and an increasing demand for a live-work-play environment, The Tower at Cityplace is strategically positioned to take advantage of the growing market trend."

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