As reported in the Dallas Business Journal by DBJ Staff
Two Class B buildings on West Mockingbird recently changed hands. The properties at 1250 W. Mockingbird and 1300 W. Mockingbird were sold to two different owners for undisclosed prices.
The 120,000-square-foot 1250 W. Mockingbird was sold to Boston-based Albany Road Real Estate. The property, which has been fully renovated and had previously experienced long-term ownership since 2007 (during which the occupancy level never fell below 90%.), was 94% occupied at the sale.
Justin Smith of Dallas-based TXRE Properties was the selling broker on the building.
This purchase by Albany Road compliments a previous 2020 investment in the West Love submarket for the Class A 450,000 square foot Mockingbird Towers. That property is 96% occupied currently.
The 155,000-square-foot Class B office building at 1300 W. Mockingbird was sold by the Dallas-based Ricchi Group to Dallas County. Kolby Dickerson of TXRE Properties was the selling broker, while Lawrence Gardner of Frisco-based OMS Strategic Advisors represented the buyer.
The property was 84% occupied at the time of sale and Dallas County — which already occupies over half the building — intends to occupy the remainder of the building.
The current market for Class B and C buildings
Amid the national “flight to quality” trend, many wonder about the future of older, less-amenitized space.
Flight to quality generally refers to companies seeking newer space with more amenities, but that can mean different things to different clients. It can mean having a mixed-use, walkable environment, and outdoor amenities have become extremely important for some.
In December, the Dallas Business Journal talked to Cannon Camp, senior vice president at JLL Fort Worth, about why he believes class B and C properties fare better in Fort Worth than other metro areas.
“I think the main driver is that a lot of these companies are trying to get people and employees to come back to the office,” he said. “And I think to entice them to do that. They’re going to go into nicer space.”
Camp said Class B and C property owners are having to think outside the box and do things a little differently in this current environment.
“Everybody is marketing property differently today. … Anywhere owners can create outdoor space, we’re seeing that happen. We’re seeing common area renovations building lobbies. Air filtration is another thing that we’re seeing owners look into. They’re making improvements for sure. The new projects are already programming those types of spaces. They’re already heavily amenitized.
“It’s the older product that was maybe built in the ‘80s, and they didn’t have that in mind when they were developing it. Maybe because occupancy has been pretty steady, and they just didn’t need to. But now we’re seeing a lot more do it.”
Correction: Because of incorrect information provided in a news release, the previous version of this story stated that City of Dallas purchased 1300 W. Mockingbird. Dallas County purchased the property.