Newmark Facilitates Sale of 427,799-SF Office Campus in Dallas' Sought-After Preston Center Submarket

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Rhea-AI Summary

Newmark has facilitated the sale of Preston Commons, a three-building, 427,799-square-foot office campus in Dallas' Preston Center submarket. The property, which is 93% leased, represents the largest office sale in Texas in 2024. The campus has received $24 million in capital investments over the last decade for luxury renovations and enhancements. Located at 8111, 8115, and 8117 Preston Road, the property features high-end amenities including a modern tenant lounge, state-of-the-art board room, upscale restaurant, and outdoor recreational space.

Positive

Property is 93% leased, indicating strong occupancy
$24 million in yield-generating capital investments over the past decade
Largest office sale transaction in Texas for 2024
Prime location in sought-after Preston Center submarket

Negative

Transaction completed amid challenging office investment market conditions

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11/21/2024 - 12:30 PM

Transaction Marks Largest Office Sale¹ in Texas in 2024

DALLAS, Nov. 21, 2024 /PRNewswire/ -- Newmark announces it has arranged the sale of Preston Commons, a three-building, 427,799-square-foot office campus located in Dallas' coveted Preston Center submarket. Newmark Vice Chairmen Robert Hill, Chris Murphy and Gary Carr represented the seller in the transaction.

Preston Commons is 93% leased to a distinguished roster of tenants. Over the last decade, approximately $24 million in yield-generating capital has been invested into the campus to support luxury renovations and building enhancements. The campus is positioned within walking distance of Dallas' most desirable shops and restaurants, further enhancing its appeal within the Preston Center submarket.

"Against a backdrop of challenging office investment market rhetoric, the sale of Preston Commons proved that liquidity remains for Dallas' premier assets," said Murphy. "We are proud to have worked closely with key clients to achieve the largest office sale by volume in the state of Texas for the second year in a row."

Preston Commons boasts an array of high-end amenities, including a modern tenant lounge, a state-of-the-art board room, an on-site upscale restaurant and an abundance of outdoor recreational space. The campus is located at 8111, 8115 and 8117 Preston Road, situated minutes from the Dallas North Tollway, Northwest Highway and is bordered by the city's most affluent neighborhoods.

"Despite some of the office sector and capital markets headwinds, we are proud to have been able to achieve a successful outcome for a long-term client," said Hill. "By working closely together from start to finish – identifying the right buyer and managing the intricacies of a challenging market – we were able to deliver results that closely align with their strategic goals."

The sale of Preston Commons builds on the Newmark team's track record of handling marquee assignments. In 2023, the team, in cooperation with Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairman Ken White and Divisional Head of International Capital Markets Alex Foshay, completed the sale of CityLine, marking the largest office sale by consideration and square footage in Texas for that year. Newmark Directors Josh Francis and Henry Cassiday, among others, provided debt capital markets advisory in executing the sale of CityLine.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2024, Newmark generated revenues of approximately $2.6 billion. As of that same date, Newmark's company-owned offices, together with its business partners, operated from nearly 170 offices with more than 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

¹ Real Capital Analytics data

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SOURCE Newmark Group, Inc.

FAQ

What is the size of the Preston Commons office campus sold by Newmark (NMRK)?

Preston Commons is a 427,799-square-foot office campus consisting of three buildings.

What is the current occupancy rate of Preston Commons in Dallas?

Preston Commons is 93% leased to a roster of tenants.

How much capital investment has been made in Preston Commons over the past decade?

Approximately $24 million in yield-generating capital has been invested into the campus over the last decade for luxury renovations and building enhancements.

Where is Preston Commons located in Dallas?

Preston Commons is located at 8111, 8115 and 8117 Preston Road in Dallas' Preston Center submarket, near the Dallas North Tollway and Northwest Highway.