Shorenstein Expands Portfolio with Sterling Plaza Acquisition
Shorenstein's Strategic Acquisition of Sterling Plaza
Shorenstein Investment Advisers, known for its commitment to high-quality office spaces, has announced a significant addition to its portfolio with the acquisition of Sterling Plaza, a 320,000 square-foot Class A office tower. This acquisition signifies Shorenstein's ongoing strategy of investing in premier properties situated in lucrative markets across the United States.
Significance of Sterling Plaza Acquisition
Sterling Plaza is a remarkable 19-story building located in the highly sought-after Preston Center area. This neighborhood is characterized by its walkable, mixed-use environment and is surrounded by upscale residential housing. Currently, Sterling Plaza boasts an occupancy rate of 89%, thanks to recent renovations that have modernized the building's amenities. These enhancements include a state-of-the-art conference center, a fully equipped fitness center complete with showers and lockers, and an upscale lounge for tenants.
Future Developments at the Property
Looking ahead, Shorenstein has exciting plans to further develop Sterling Plaza. This includes revitalizing the lobby and entry areas, enhancing the café, and transforming outdoor spaces into communal areas that offer a welcoming, hospitality-oriented atmosphere. Their approach is not just about upgrading the physical space; it's about creating a vibrant tenant experience through thoughtful services and programming.
The Economic Landscape of Preston Center
Preston Center stands out as one of the most dynamic office markets. It currently has an exceptionally low availability rate of just 4.3%. This figure is expected to decrease even further, especially after the recent acquisition of a substantial office property by an owner-user, which will remove several properties from the rental market. Such a tight market, combined with robust demand from tenants, creates a fertile ground for rental price growth.
Shorenstein's Vision and Market Insights
Despite the national trend of increasing office vacancies, Shorenstein is identifying advantageous investment opportunities. According to Colby Wick, Managing Director at Shorenstein, there are notable market pockets where demand has rebounded to pre-pandemic levels. The conditions in Preston Center are particularly compelling, with rising rents and strong tenant interest, making it an ideal location for further investment.
Recent Investment Trends
This acquisition represents Shorenstein's second notable investment in the Dallas market recently, following their previous acquisition of International Plaza II. The Lower Tollway area, where that property is located, has demonstrated significant price increases, with rents rising over 25% in the past year. Shorenstein's investments post a clear message about their commitment to acquiring top-tier office assets, contributing to over $1 billion in transactions recently closed, with more acquisitions planned.
About Shorenstein
Shorenstein is a prominent investment advisor that owns and operates various high-quality office, residential, and mixed-use properties nationally. With offices in major cities, the company has successfully acquired over $19.6 billion in assets since 1992. Their investment strategy encompasses a range of structures, including direct asset purchases and creative financing solutions, ensuring they capitalize on market trends that promise substantial returns.
Contact Information
For further inquiries regarding this acquisition, please reach out to Sarah Salky and Madeline Jones at Joele Frank, Wilkinson Brimmer Katcher, reachable at 212.355.4449.
Frequently Asked Questions
What is Sterling Plaza?
Sterling Plaza is a 320,000 square-foot Class A office building acquired by Shorenstein, located in Preston Center.
What is the current occupancy rate of Sterling Plaza?
The current occupancy rate of Sterling Plaza is 89%.
What future plans does Shorenstein have for Sterling Plaza?
Shorenstein plans to enhance the lobby, café, and outdoor spaces, providing a modern and welcoming experience for tenants.
Why is Preston Center significant?
Preston Center is recognized as a strong-performing submarket with a low availability rate, creating an attractive environment for rental growth.
How much has Shorenstein invested recently?
Shorenstein has closed over $1 billion in transactions and continues to pursue high-quality investments in key markets.
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