Hangover Opportunity Fund has sold the 110,651-sf Bowen Chase Bank Building to a local investment group, turning over the deed as occupancy edges toward 100% in the repositioned and upgraded property.
Located at 1301 S. Bowen Rd. in Arlington, the class B office building is situated on nearly seven acres at the bull's eye of a major commercial corridor on the city's west side. The fund has invested nearly $1.2 million into the property since its acquisition in January 2014, the bulk of which was spent on installing a high-efficiency, digitally controlled HVAC system and lighting changes. The end result of the high-tech improvements has been an energy savings of 80 cents per sf on electrical bills.
"This was a complex and costly project, but with the energy-efficient upgrades we made, we have ensured this property's future for the long term. Also, tenants have responded enthusiastically to the improved comfort and control of their office environment," says Carol Sosebee, COO of Arlington-based Coldwell Banker Commercial Alliance DFW.
As part of the repositioning strategy, the fund also has made significant improvements to the common areas, elevator cabs and landscaping. The upgrades at the 34-year-old building have factored heavily into tenants' decisions to renew, expand and attract new ones. Now 94.4% occupied, the property has been leased and managed by Coldwell Banker Commercial Alliance DFW during the fund's hold.
"We have leases in the pipeline to take the building to 100%," says Clint Holland, acquisitions director for SkyWalker Property Partners, the fund's manager. "This easily could have been a long-term hold, but Hangover Opportunity Fund is maturing and it was just time to sell."
Creighton Stark of Colliers International and Gary Walker, managing principal of Coldwell Banker Commercial Alliance DFW, represented the seller.
When the asset hit the market, the drawing card for investors was its average remaining lease term of seven years. Five offers quickly rolled in for the 17-tenant property, with Duncan Holdings of Arlington placing the winning offer.
"To buyers, the average remaining lease term was particularly appealing and so was the creditworthiness of our tenants," Holland adds. "We had offers from in- and out-of-state investors, but we thought it was good to have an active local owner for continuity for the tenants."
The largest tenant is the State of Texas, which houses a handful of agencies in 48,206 sf on several floors of the four-story building. Keller Williams, the second-largest tenant, occupies 16,375 sf. A full-service Chase Bank and ATM area serves as the lobby centerpiece.
Matt Carthey of Holt Lunsford Commercial represented the buyer. Start to finish, the transaction closed within 45 days.
SALE
Hangover Opportunity Fund has sold the 110,651-sf Bowen Chase Bank Building on 3.9 acres at 1301 S. Bowen Rd., Arlington, to Duncan Holdings. Creighton Stark of Colliers International and Gary Walker of Coldwell Banker Commercial Alliance DFW, represented the seller. Matt Carthey of Holt Lunsford Commercial represented the buyer.
SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of the Hangover Opportunity Fund LLC, formed in 2010 to build a $100 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $1 million to $10 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.
