Dallas' Galleria Towers Sold to CBRE

California-based Cannon Commercial Inc. has sold the three-building Galleria Towers office complex in Dallas, Texas to CBRE Strategic Partners U.S. Value 7, a fund managed by Los Angeles-based CBRE Global Investors. The sale is likely to be the largest in North Texas this year, with a sale price expected to total more than $300 million, according to a Dallas Morning News report today. "This will likely be the largest office sale in D-FW this year," said CBRE's Gary Carr who brokered the transaction along with John Alvarado, Eric Mackey and Robert Hill. "Galleria Towers is one of the most recognizable office projects in the Southwest."

The sale price would closely mirror the $300 million Cannon Commercial paid for the property in May 2008 when it was reportedly fully occupied. Prior to that, Fortis bought the Galleria Towers for $285 million from The Blackstone Group in November 2006, which acquired them from Trizec Properties. Terms of this week's deal have not been disclosed.

"This is a great asset in a great location and it has been like that for a long time," added Walter Bialas, vice president and market research director for JLL's Dallas office. "With the LBJ Expressway construction completing, I think there is a good upside for those assets. They have easy access in a good location with good visibility."

Located at 13355, 13455 and 13155 Noel Road adjacent to the Galleria Mall and built in the 1980s and early 1990s, the 1.4 million square foot Class A office complex was 70% leased at the time of sale, with one large tenant is exiting soon. Colliers International, the leasing broker for the Galleria Towers, has been working with the landlord on plans to re-lease the FedEx Office space, which is expected to leave eight floors totaling about 200,000 square feet at Three Galleria Tower at 13155 Noel Road upon completion of its new headquarters campus in West Plano within the $2 billion, 240-acre Legacy West development. CBRE Global Investors plans to invest heavily in the property adding its signature 5-Star Worldwide service and amenity program, including conference facilities, a fitness center, and enhanced on-site tenant amenities, in each building.

For more news and information visit Blumberg Partners.