Dealmaker: City Office REIT Pays $284M for Office Assets

City Office REIT, Vancouver, B.C., acquired office buildings in Texas and Arizona for $283.5 million.

The real estate investment trust acquired The Terraces at 5960 Berkshire Lane in Dallas for $133.5 million.

The 173,000-square-foot building in the Preston Center submarket delivered in 2017. It is currently 99 percent leased with a weighted-average lease term remaining of nearly 8 years.

City Office REIT CEO James Farrar noted expanding in this high barrier to entry market is a priority for the firm. “The acquisition of The Terraces in Preston Center aligns with our focus on acquiring superior properties with long-term cash flow in the most desirable submarkets,” he said.

In downtown Phoenix, City Office REIT paid $150 million for Block 23, a 307,000 square foot property. JLL, Chicago, represented seller Red Development, Phoenix, in the transaction.

Located at 101 E. Washington St., Block 23 is adjacent to dining, entertainment and transportation. The 2019-vintage property includes a rooftop deck and three high-end food and grocery options. The property is 94 percent leased to mostly investment-grade tenants.