Allianz Real Estate, acting on behalf of Allianz Group companies, has provided a loan to Granite Properties, Inc. to refinance three of its prime properties in the Dallas-Fort Worth area in Texas. Two of the properties are located in Dallas, one in Southlake and they have a total gross leasable area (GLA) of 562,000 sq. ft.
The three Granite Properties office buildings benefit from an excellent location. They sit near highways providing direct access to downtown Dallas and are part of a robust demographic residential area and other prominent commercial nodes. In addition, the properties have a strong tenant base as well as high occupancy rates. Two of the properties have undergone renovation works in 2017 while the third one was newly built that same year.
Dallas is the fourth largest metropolitan statistical area in terms of population. It has a diversified economy that benefits from an affordable cost of living and business costs, from its location in the center of the country, as well as its large and well-educated workforce.
This new deal underscores the firm’s focus on investing in core plus assets located in dynamic secondary markets, as well as its interest to build strong relationships alongside like-minded partners. At the same time, it brings an upside in revenues as occupancy rates increase and consist of stable cash flows over the long term.
“We are delighted to build a new relationship with a prime partner such as Granite Properties, Inc. Despite the challenging environment we are facing, we continue to look closely at investment opportunities that offer long-term and attractive returns in secondary markets such as Dallas, that have proven to be dynamic growth centers bringing additional opportunities,” said Mike Cale, Co-head of US Debt, Allianz Real Estate.
“We’re excited about building a relationship with Allianz and closing this loan on three of our office buildings. We’re confident about the long-term viability of these assets and this loan helps ensure they will be a long-term piece of our Dallas portfolio,” said Will Hendrickson, Senior Managing Director, Granite Properties.
