Lake Highlands Tower
9330 LBJ Freeway, Dallas, TX 75243
Marketing description
Younger Partners, as exclusive advisor, is pleased to present Lake Highlands Tower ("LHT") a 15-story, 330,000 square-foot, Class A office tower located on heavily traveled LBJ Freeway (IH-635). One of the most prominent figures in the area, the building is characterized by tenant attraction, growth and retention. LHT offers a full suite of amenities demanded by modern office tenants and has been completely renovated and repositioned with a state-of-the-art fitness center, cafe, conference and training center, along with a prominent lobby.
The Property offers current yield at 76% occupancy and the opportunity to realize the continued lease-up of the remaining vacancies that are sized to appeal to the broadest segment of the market's tenancy. The building's 5+ year WALT is anchored by credit tenancy from diverse industry sectors. Benefitted by access to a vast pool of area amenities, existing and potential tenants enjoy a superior workplace experience that helps attract and retain the market's top talent.
Lake Highlands Tower is a landmark that appeals to office tenants seeking efficient space and cost savings in comparison to the higher priced areas that surround it. The vibrant location offers investors access to an infill submarket centrally positioned close to communities with outstanding demographics. A revitalization of the asset has produced higher occupancy and rents. Average new and renewal lease rate have grown substantially and create a dynamic opportunity for mark-to-market renewals. Recent leasing has proven the market at more than $18/sf Plus Electric while average in-place rates sit at $17.83/sf and overall submarket average is $19.42/sf.
Profiling as a value-add investment with tremendous upside, the underlying 8 acre site presents a rare long-term redevelopment opportunity in one of Dallas' most desirable residential corridors. Zoned MU-3, Lake Highlands Tower offers a unique combination of current income, institutional quality, and future optionality.
Available at a fraction to replacement cost, LHT offers investors a competitive acquisition basis that should afford a strong market position relative to the area competitive set.
Investment highlights
- Trophy Hunting: LHT is a rare opportunity to acquire an institutional quality, value-add property in a rapidly ascending submarket. The office tower has been institutionally maintained and offers efficient 22,000-square-foot rectangular floor plates that are complimented by timeless architecture with attractive stone and glass facade. Strong fundamentals in the neighboring submarkets have created existing and future growth opportunities. Rental rates in the Uptown, Preston Center and Central submarkets have spiked and tenants are seeking economic alternatives provided by infill submarkets like LBJ.
- Exceptional Visibility and Access: With more than 210,000 cars passing the building daily, Lake Highlands Tower is unmistakable. The eastern expansion of LBJ Freeway is nearing completion and the improved freeway will allow increased traffic through the area.
- Secure In-Place Cash Flow: 76% leased with strong tenant diversification and the upside of substantial NOI growth (projected at 33% over 4 years) through small tenant leasing and market-to-market renewals. The building's largest tenants have made long term commitments and secure a robust, in-place revenues.
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