As the economy continues to strengthen, the Plano submarket is primed to release new office product. Other Metroplex submarkets could also add to their development pipelines.
“The DFW metro area has now recouped over 160 percent of the jobs lost during the recession, the second-largest percentage in the nation behind Houston,” said Jeff Ellerman, a vice chairman with CBRE Group Inc. in Dallas, in a release. “As a direct effect, Class A vacancies have tightened by 1.4 percent in the last year despite the expansion in construction activity. Demand throughout suburban submarkets continues to rise; areas like Las Colinas and Uptown/Turtle Creek have seen as much as a 5.5 percent vacancy reduction in Class A inventory just over the last 12 months.”
Working on behalf of Granite Properties Inc., HFF has arranged $120 million in cross-collateralized financing for Granite Park I, II and III , three Class double-A office towers within the mixed-use Granite Park development in Plano.
HFF placed the 10-year, fixed-rate loan with MetLife Real Estate Investors. Funds from this transaction were used to refinance an existing loan with the lender, according to official statements.
Located at the intersection of the Dallas North Tollway and State Highway 121, the 90-acre development features 873,636 square feet of office space and 45,137 square feet of retail space that is connected to the parking garage of one of the buildings. The three office buildings that served as collateral for the loan were completed in phases between 1999 and 2006 and are 95 percent leased.
Granite Park One and Granite Park Two were awarded Gold LEED certification for Existing Buildings in fall 2010, and Granite Park Three was awarded Silver LEED for Existing Buildings in summer 2011.
Construction is currently underway on a fourth office building, as well as a 300-key hotel. Completion of the $150 million project is scheduled for mid-2014.
Ultimately, Granite Park will include more than 2.5 million square feet of office space, along with luxury hospitality units, retail shops and a variety of restaurants.
Photo credit: Granite Park