Category: Press Releases

ARLINGTON, Texas – Skywalker Property Partners has parted with one of its most prized office properties, Highlands Tower, in an off-market transaction with Arlington Orthopedic Associates.

The highly visible asset is a 73,859-sf five-story office building at 701 Highlander Blvd., a class A project set on 5.24 acres at the Interstate 20-Matlock Road intersection in south Arlington. The seller of record is This Land is Highland LLC, a single-purpose entity of Skywalker Property’s When Opportunity Knocks investment fund.

“We’re particularly proud of Highlands Tower so it was a difficult decision to sell it,” says William Welder, acquisitions associate for locally based Skywalker Property Partners.

The seller has invested more than $2 million into renovating the 1980s-era multi-tenant office building in the past five years, taking an inside-out approach to upgrade the mechanical systems, lobby, elevator cabs, common areas and landscaping. Highlands Tower is adjacent to Baylor Scott White Orthopedic & Spine Hospital and across the street from the 825,000-sf mixed-use Arlington Highlands. Also close by are the 1.5-msf Parks Mall, USMD Hospital at Arlington and Texas Rehabilitation Hospital of Arlington

“We thought a medical group would be a great potential buyer, given the dense concentration of shopping, dining and neighboring hospitals,” says Gary Walker, founder and president of Skywalker Property Partners.

AOA’s current location is less than two miles from Highlands Tower, offering overflow and expansion space for support and medical services. The multi-tenant project is nearly 66% leased to leading tenants like PNC Bank (formerly BBVA Compass), Keller Williams and an affiliate, H3 Texas LLC.

“Highlands Tower will remain multi-tenant for the foreseeable future while the buyer develops a long-term occupancy strategy,” Welder says.

Keller Williams signed a new long-term lease for 12,518 sf a few months before Skywalker approached AOA about purchasing the building. Tenant improvements were completed in September to the real estate firm’s fourth-floor office.

“Because of our prior relationship with AOA, I was aware of the need for administrative and support space as well as its plans to grow,” Walker says.

Dr. Eric Wieser negotiated directly with Skywalker Property on behalf of AOA Arlington MOB LLC, the buyer of record. Jason Signor of Big Sky Medical served as the buyer’s consultant.

“Highlands Tower is beautiful and a great location. It took a special buyer to get it away from us,” Welder says. “We believe it’s a perfect fit for them.”

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FOR ADDITIONAL INFORMATION:

William Welder, 817-898-0244

Gary Walker, 817-898-0303

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Skywalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a $200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkywalkerProperty.com

FORT WORTH – Skywalker Property Partners has sold a fully leased medical office project in southwest Fort Worth to Ridgeline Capital Partners LLC.

Completed in the spring, the 20,200-sf structure was built on the last commercial tract in the Edwards family’s Clearfork West development. Located at 5612 Edwards Ranch Rd., the two-story MOB was developed by Skywalker Property through its tenant partnership program.

“We were seeking valuations to ready it for market when offers began rolling in. It was under contract before we got it listed,” says Gary Walker, founder and president of North Texas-based Skywalker Property Partners. “Investment demand for medical office properties is at an all-time high.”

Dr. Nathan Lesley of the Hand to Shoulder Center is Skywalker’s partner in the project and the building’s primary occupant. The balance of the structure is leased to Dr. Amber Lesley, a primary care physician with Texas Healthcare and Lesley’s wife, and their associates.

The two-story structure represents Skywalker’s first foray into ground-up development for the tenant partnership program. “The Lesleys started out by pre-leasing part of the building and quickly expanded after a few months at this location,” Walker explains.

The just-sold 1.8-acre property is part of an emerging MOB corridor located within the historic boundary of the former 7,000-acre Edwards Ranch. The area is master planned for 3.2 million sf of office, retail and restaurant space, 2,500 multifamily units and high-end estate homes.

Skywalker’s William Welder, an acquisitions associate, represented the seller of record, I Can See Clearfork Now LLC, a single-purpose entity of Skywalker’s When Opportunity Knocks investment fund. Representing the Dallas-based buyer were Elliot LaBreche and Abigail Kind of the Easton Group.

“Skywalker’s tenant partnership program offered us the most expedient way to expand our practices, including the addition of a physical therapy center,” Lesley says. “By investing in the project, we were able to create equity as part of the process.”

Walker and his team had been searching for existing buildings to retrofit for Lesley when the site became available. “The location and rents worked for our partner’s practice, which is the primary goal of the program. We solved his space needs and he also got to share in the disposition upside,” Walker says.

Skywalker Property’s tenant partnership program is marking its seventh year. “We’ve partnered with diverse industries, including medical, oil and gas, logistics and residential brokerage companies,” Walker says. “It’s been mutually successful time after time.”

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FOR ADDITIONAL INFORMATION:

Gary Walker, 817-898-0303

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Skywalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a $200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkywalkerProperty.com

ARLINGTON, Texas – With the market actively pursuing sales, Skywalker Property Partners has sold a hat trick of commercial assets in Texas and New Mexico in back-to-back closings as part of a portfolio-churning for one of its funds, When Opportunity Knocks LLC.

“It’s a favorable time for us to sell. There are not a lot of properties like these on the market at this time,” says Clint Holland, acquisitions director for the North Texas-based Skywalker Property.

The Texas disposition is a 113,406-sf office flex property on 4.7 acres at 6001 Campus Circle Dr. W. in Irving’s Las Colinas Business Park. It was formerly a Fidelity Investments’ data center, which was retooled by the seller to include warehouse space as part of a value-add strategy for its repositioning.

“We demo’d about 35% of the interior to add warehouse space because we recognized how robust the market is for industrial and then offered it for sale or lease,” Holland says.

Vesgro Corp. of Plano, Texas, quickly has scooped up the property for its new manufacturing location in Dallas/Fort Worth. Vacant at sale time, the building features 55,863 sf of data center/support space with heavy power and fiber connectivity; 31,652 sf of warehouse area with a 24-foot clear height; and 25,891 sf of office suites.

Zane Marcell, Chris Stout and Melissa Holland of JLL represented the seller of record, Tech the Halls LLC. The buyer’s broker was Brett Lewis of Lee & Associates DFW.

“Campus Circle is well-suited for an owner/occupant. It made sense for us to sell it to a user and exit the investment,” Holland says.

The New Mexico disposition is a 23,300-sf multi-tenant office building on 1.5 acres at 2945 Rodeo Park Dr. E., which is near the St. Francis Drive-Interstate 25 interchange in Santa Fe. The just-sold asset was the fund’s first investment outside Texas.

Cole Flanagan of Flanagan Investment Real Estate in Santa Fe represented the seller in a direct deal with Urd Verdandi Skuld LLC, a private investor from California, who got an 86%-leased two-story building at a prime location in the city. The tenant roster includes the U.S.

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Department of Energy and Benchmark Human Services, which recently renewed 3,115 sf and 3,886, respectively.

About three months ago, Skywalker sold a third asset from the fund’s 11-property portfolio – a former Luby’s, totaling 7,220 sf, on a 1.8-acre pad site at 2124 Boca Chica Blvd. in Brownsville, Texas. Brownsville Speckles LLC acquired the retail project, which is adjacent to an H-E-B grocery store, in a direct deal with Skywalker Property.

“We had three projects in a strong position to sell. The market reacted quickly as we had anticipated,” Holland says. “It’s an active market.”

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FOR ADDITIONAL INFORMATION:

Clint Holland, 817-898-0303

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Skywalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a $200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkywalkerProperty.com

WACO, Texas – SRH Hospitality Holdings Inc., a veteran developer of top-tier hospitality brands, and Skywalker Property Partners LLC will break ground in mid-August on an AC Hotel by Marriott, the first full-service hotel to be developed in downtown Waco since the early 1980s.

The 182-key AC Hotel Waco is slated to deliver in spring 2023 in the prestigious Magnolia Silos District, which is a designated Qualified Opportunity Zone for investment purposes. To help make the project a reality, the city has partnered with SRH by providing project-related incentives exceeding $13 million over a 10-year period. The incentives are primarily self-fulfilling and will be generated by the AC Hotel.

Centrally located in the downtown, the 2.5-acre infill site is bordered by Mary Avenue, which is envisioned as the city’s “festival street,” South 6th Street and Jackson Avenue. The SRH project will be located directly across the street from Chip and Joanna Gaines’ Magnolia Market at the Silos, less than seven-tenths of a mile from Baylor University and close to several major mixed-use developments that are now underway or in planning stages.

“Waco has evolved into a destination with diverse demand generators from education, business and lifestyle. We see a strong need for an upscale hotel in Waco,” says Paul Barham, CEO of Harrell Hospitality Group, SRH Hospitality’s operating partner and property management firm.

The five-story AC Hotel, totaling 107,700 sf, will feature well-appointed, classic modern suites and a 16,900-sf street-level conference center with break-out rooms and adjoining 4,000-sf poolside terrace. Other amenities are a 7,700-sf ballroom divisible into five salons with ceiling heights of 20 to 22 feet, the highest in Waco’s hospitality inventory; signature restaurant and bar with indoor and outdoor seating; club-level fitness center; and 332-space parking garage. SRH also plans to construct an adjacent two-story, 17,500-sf commercial/retail building with a rooftop terrace.

Rogers-O’Brien Construction Co. is the general contractor. NORR is the architect of record. Interiors were designed by Design Force Corp. and Wild Muse Interiors. Happy State Bank and Petros PACE Finance provided construction financing.

The AC Hotel Waco is the SRH Hospitality’s sixth project in Texas. The Dallas-based development group was founded in 2013 by Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. Skywalker Property Partners has joined the partnership as a sponsor in the Waco project.

“Skywalker has followed the dramatic improvements and growth in downtown Waco. We’ve been underwriting the market and projects for several years,” says Gary Walker, founder of the North Texas-based investment firm and one of two Baylor graduates in the SRH consortium.

AC Hotel Waco will be positioned within three blocks of the city’s convention center, fueling the potential to provide overflow meeting space, host related events and offer additional full-service amenities for convention-goers and tourists alike. The city’s hotel inventory predominately is limited/select service and extended stay, including seven recently completed or under-construction projects.

“Together with the other hotel operators in the market, we want Waco to be seen as the perfect convention, business and leisure destination in Texas,” Barham says.

Waco has emerged from a university-reliant city into a thriving destination due in large part to the Gaines’ investment in the downtown after they became television stars with a cult following of fans and shoppers. Magnolia Market at the Silos, encompassing two blocks, attracts an estimated 30,000 visitors per week. The couple recently acquired a multi-story office building and will be relocating their corporate headquarters to the dynamic lifestyle district.

Nearby, several multimillion-dollar projects are in various stages of development. Baylor University, with a student enrollment exceeding 18,000, is planning to develop a $100 million basketball pavilion, with seating capacity for up to 7,500, and $60 million, 120,000-sf welcome center complex. The construction list also includes the Brazos Riverfront, an active mixed-use waterfront district in the downtown; Julius Kramaric’s expansion of Pivovar, a Czech-inspired brewery, bakery and restaurant; and the Containery, a new shopping and dining venue also in the downtown. Roughly a half-mile from the AC Hotel site are prime attractions like Balcones Distilling, an acclaimed whiskey producer offering tours of its 65,000-sf facility’s historic building; Dr. Pepper Museum & Free Enterprise Institute; Spice Village, a popular boutique shopping destination; and the Brazos River, where outdoor enthusiasts can enjoy boating, canoeing and kayaking.

“Investment by others always makes us feel more confident with our decision to enter a new market,” says Jerry Crenshaw, founder of Rochester Real Estate, the hospitality company’s structuring/finance partner, and Baylor alumnus.

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Add – SRH Hospitality

Contacts:

Paul Barham, 972-788-2220
Jerry Crenshaw, 682-316-2071
Gary Walker, 817-898-0303

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About SRH Hospitality Holdings

SRH Hospitality Holdings is a leading Dallas-based hotel development firm founded in 2013 by principals of Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. SRH Hospitality owns and operates a portfolio of Marriott, Hyatt and Hilton-branded hotels in Cedar Park, Frisco, Galveston, Pflugerville, Southlake and Waco, all in Texas.

About Skywalker Property Partners

Skywalker Proper Partners is a multidisciplinary commercial realty firm expertly proficient in sourcing and executing value-add, new development and high-yield stabilized investments. We invest across multiple asset classes including office, medical, flex, industrial and retail primarily in Texas and the Greater Southwest. Our institutional knowledge, resources, and relationships paired with our hands-on approach to real estate investment management have consistently generated better-than-market returns over the last 20 years.