Commercial Property Executive
October 19, 2021
By Agota Felhazi
JLL represented the sellers in the transaction of the 120,599-square-foot Class A asset.
A joint venture between Partners Group and Accesso Partners has closed the disposition of 2626 Cole, a 120,599-square-foot Class A office mid-rise in Dallas. Talon Private Capital acquired the multi-tenant asset, and JLL facilitated the transaction on behalf of the seller.
The new owner selected Cushman & Wakefield to oversee property management, while Thirty-Four Commercial will market the asset’s available space.
2626 Cole sits on 1.5 acres at 2626 Cole Ave. within the Metroplex’s Uptown/Oak Lawn submarket, one of the most active in market wide in terms of development, with approximately 1.6 million square feet of office space underway. The sellers acquired the 1983-built boutique office building in 2014 and began rehabilitating the property the following year.
The capital improvement program included updating the lobby and building exterior, adding flexible workspaces, a lounge area and conference rooms, upgrading the HVAC systems with more energy-efficient options as well as creating new spec suites. The nine-story building features 14,217-square-foot floorplates and a parking ratio of 3 spaces per 1,000 square feet.
Tenants WorkSuites, Republic Editorial and Annandale Capital signed new leases at 2626 Cole following the renovation. WorkSuites became the largest tenant, occupying 26,200 square feet. By mid-2019, occupancy had risen 35 percent from its 2018 fourth quarter low of 60 percent. The property was 93 percent leased at the time of the sale.
Office leasing across the metro appears to be showing signs of strength: One major investor, KBS, has taken advantage of lower occupancy during the pandemic to update office assets, noting strong leasing activity as a result.
2626 Cole is less than 2 miles from American Airlines Center and interstates 35E and 345. Downtown Dallas is 2 miles south of the property.