A Colorado investor has snapped up one of the largest office buildings along Dallas’ North Central Expressway for $26.1 million.
Real Capital Solutions has acquired Walnut Glen, an 18-story class-A office building at 8144 Walnut Hill Lane, the firm announced Monday.
The more than 464,000-square-foot building is 49% leased, real estate firm JLL said. The purchase price is more than a 64% discount compared to the property’s 2016 sale for $73 million, Real Capital Solutions said.
Intercontinental Real Estate Corp. of Boston previously owned the tower. It purchased the property from a local investment group almost a decade ago.
The Dallas Central Appraisal District most recently valued the property at $72.2 million for tax purposes.
Built in the late 1980s, the office building had a huge glass atrium facing the expressway.
Real Capital Solutions said in a statement it plans to invest in improvements to the building’s lobby, fitness center and conference center. The firm also plans to introduce move-in-ready office suites to support leasing activity.
The firm declined to disclose an exact dollar amount, but said they plan to invest substantially into the building.
“Walnut Glen checks every box for us — scale, location and a clear path to value creation,” Adam Abeln, chief acquisitions officer for Real Capital Solutions, said in a statement. “It’s a well-located building where smart capital and active management can drive long-term value. Dallas remains one of the most resilient and attractive office markets in the country and this acquisition reflects our long-term conviction in the market.”
The purchase marks Real Capital Solutions’ second in Dallas. The firm announced last December that it acquired Tower at Park Lane (8650 North Central Expressway) for $66 million.
Real Capital Solutions said its investments reflect its confidence in North Texas’ “long-term fundamentals, including population growth, corporate relocations and sustained demand from professional services, health care and financial tenants.”
Cushman & Wakefield has been tapped to handle leasing and property management of Walnut Glen. JLL’s Jonathan Napper was the investment sales broker.
Dallas-Fort Worth leads the nation in office demand, outpacing New York and Houston, according to recent CoStar data.
Net absorption totaled 3.3 million square feet through this year’s third quarter, representing 0.8% of total inventory — the largest share in the country. Net absorption measures the total square footage of leases minus space vacated over a period of time.
Traditional office demand in D-FW is on track for its strongest year since 2019, according to the report.
