Piedmont Office Realty Trust has completed the acquisition of Dallas’ distinctive Galleria office towers. The three buildings commanded $396 million, marking the largest Dallas-Fort Worth office sale of the year so far. CBRE Global Investors was the seller. The transaction also included associated parking garages, as well as a 1.9-acre parcel of land located at the intersection of Noel and Alpha roads.
One, Two and Three Galleria together encompass more than 1.4 million square feet of Class A North Central Dallas office space. CBRE had purchased the property in 2015 for $300 million; in 2017, it completed a $25 million upgrade and cosmetic renovations program. As a result, all three buildings are now LEED-certified. At the time of sale, the towers were more than 90% leased, with tenants including Hospital Corp. of America; planning and design engineering consultancy firm Kimley-Horn; media marketing company Ansira Partners; and Amazon.
Galleria Dallas – Property Profile
The three office buildings are seamlessly integrated into the Galleria master-planned development through sky bridges that lead into the mixed-use amenity base. The complex includes Galleria Dallas—a 1.5-million-square-foot, super-regional shopping mall and a 448-key Westin hotel.
- Address: 13355 Noel Road, Dallas
- Size: 25 stories; 464,030 total square feet
- Spaces: floorplates are roughly 24,000 square feet
- Perks: on-site conference center, fitness center, controlled access and multi-level parking with 1,392 spaces
- Address: 13455 Noel Road, Dallas
- Size: 24 stories; 432,481 total square feet
- Spaces: floorplates are roughly 23,500 square feet;
- Perks: on-site conference center, access to fitness center at One Galleria and multi-level parking with 1,297 spaces
- Address: 13155 Noel Road, Dallas
- Size: 26 stories; 533,419 total square feet
- Spaces: floorplates are roughly 22,300 square feet
- Perks: on-site conference center, access to fitness center at One Galleria, street exposure to Dallas North Tollway and Lyndon B. Johnson Freeway, and multi-level parking with 1,600 spaces
Piedmont Now Owns Entire Galleria Portfolio
Last year, the REIT paid $231 million for two Galleria towers in Atlanta—the Galleria 400 and Galleria 600. According to Commercial Property Executive, this deal also included a 10-acre parcel of land with a development potential of 1 million square feet. At that time, the real estate investment trust already owned Galleria 100—a 415,000-square-foot, Class A office building in Atlanta—as well as Galleria 200 and Galleria 300.
The trust’s recent Dallas acquisition marks the first time that the entire Galleria portfolio has been under one ownership.
Property images courtesy of Yardi Matrix.