• Value-Add Office/Flex Portfolio Located in Core Infill Dallas Locations
• Proximate to Dallas Love Field, Stemmons Freeway, Downtown Dallas and the Dallas Medical District
• Average Market Rent of $19.66 per Foot Provides Buyer with a Roadmap to Enhancing Value and Creating an Exit Strategy
• Going in Cap Rate of 8.79% Unleveraged at Below Replacement Cost of $67.34 Price per Foot
• Ease of Access: Each Unit with a Dedicated Entrance and Parking Spaces Create an Advantage Comparative to Mid-High-Rise Office Buildings

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the Regal Plaza/Empire Commerce Center Portfolio offered at $7.1 million, $67.34 per square foot, and 8.37 percent cap rate at the current 75 percent occupancy. The subject multi-tenant assets are substantially below replacement cost and provide a solid stable income stream with substantial upside, due to the rising rental rates and increasing occupancy of the submarket. As the design district rates increase, tenants and owners are moving north to properties like Regal Plaza/Empire Commerce Center. As the rental rates convert to NN, the cash flow is expected to increase by approximately 48 percent in five years.

Both assets are Dallas infill locations and are in close proximity to Dallas Love Field Airport, Stemmons Freeway, Dallas Medical District, and DFW International Airport. The average market rent of $19.66 with annual rental growth of 2.52 percent should provide ample future income. The assets provide an opportunity for long-term real estate appreciation and rent growth. Priced below replacement cost, a potential buyer has ample ability to grow rents and enhance value over the long-term.

Empire Commerce Center consists of two buildings at 1140 and 1150 Empire Central Place, totaling 44,537 square feet. The two single-story assets feature multiple direct entrances, and provide easy access to Interstate 35 East and 183 via Empire Central. The buildings were built in 1982 with substantial updates completed in the last few years and monument/building signage available. The buildings are 100 percent HVAC, provide ample surface parking with a 3.2 per 1,000 parking ratio, and have an on-site deli and 24-hour access.

Regal Plaza at 1499 Regal Row, Dallas, Texas consists of four single-story office showroom assets totaling 60,904 square feet. The multi-tenant buildings are situated on four acres in Dallas Proper. The buildings surround a large common area courtyard. The rent roll includes a diverse mix of retail, office, and flex tenants, and the property has been well-maintained with recent façade and other updates. The asset has easy access to both Interstate 35 East and 183 and good visibility within the Brookhollow/Stemmons Corridor. The assets were built in 1978, recently remodeled, and have substantial curb appeal with improvements to landscaping and parking restriping.