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Forest Green

Dealmakers Deliberate $35 Per SF for Office Complex

By Connie Gore of GlobeSt.com

Sources confirmed PRG Realty purchased the 193,105sf Forest Green, a class B office tower flanked by four garden-style buildings, for about $35 per sf.
 
PRG Realty declined comment as did the Transwestern Commercial Services Inc. team, which was closing the for Credit Suisse First Boston and its Miami-based servicing agent, Lennar Partners Inc.
 
Forest Green, like many of its neighbors, was battling to overcome vacancy issues that arose during several years of construction for a five-level freeway project. As a result, the complex was 50% leased to service provider-type companies.
 
With the highway construction wrapped up, activity picked up in terms of leasing and sales, LBJ Corridor brokers have been reporting. "All the buildings in this submarket are trading," one insider says. All the buyers were all looking for the upside to come with the completion of the High Five."
 
The centerpiece of the value-add deal, which commanded a renovation, is a 101,388-sf, six-story tower at 11910 Greenville Ave. The 21-year-old building, with a $14.50 per sf quoted rate, had 67,080 sf sitting empty. The tower, sitting on three acres, is now 80% occupied overall including the low-rise buildings in the park.
 
The other Forest Green's structures were built in 1982 on 6.9 acres. The single-story buildings are from 24,160 sf to 27,436 sf, each with open blocks ranging from about 1,200 to 6,021 sf, and a full floor of over 16,000 sf in the tower.

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