DALLAS — Hines – in a new joint venture with institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, the acquisition of The Plaza at Legacy. Formerly known as Computer Associates, the seven-story, 215,499-square-foot office building is located in the LegacyBusinessPark, in the Far North Dallas submarket of Plano, Texas.
A future development site, an adjacent 12-acre corner land parcel along Legacy Drive was part of the purchase. Hines Dallas Vice President Ran Holman said the parcel can accommodate a 300,000 sf office development.
Computer Associates (aka “CA Technologies”) recently reconfigured their space and renewed for an additional 10-year term to now occupy approximately 43 percent of the leased space (77,000 square feet, with an expansion right for approximately 16,000 square feet), leaving approximately 120,000 square feet available for immediate multi-tenant use.
As a result of CA Technologies’ reconfiguration, the venture plans to reposition the building from single-tenant to multi-tenant office use. Plans include: reconfiguring and upgrading the lobby; adding a new deli/sundry shop; adding a fitness and conference center; and upgrading common areas finishes on each floor. U.S. Bank is providing the financing for the retrofit.
“U.S. Bank is proud to support Hines & J.P. Morgan by providing a creative financing solution that allows the partnership to take advantage of the growing opportunity in theDallasmarket,” said U.S. Bank Dallas Senior Vice President Greg Kaye. “This kind of transaction is right in our sweet spot and is representative of U.S. Bank’s continued commitment to commercial real estate businesses throughout the Texas market and across the nation.”
Renovations will be complete by year end, and Hines is actively co-marketing the remaining space exclusively with Cassidy Turley.
Jones Lang LaSalle’s Houston Real Estate Investment Banking team acted as Hines exclusive advisor in arranging both the joint venture equity and the debt.
The office building was developed in 2001 by Hines as a build-to-suit for Computer Associates. In 2004, Hines sold the asset to ING-Clarion, and continued to manage the property until 2006.