SkyWalker Property Partners has secured a trio of leases, totaling 12,886 sf, amid plans to kick off the next phase of upgrades to Highlands Tower, a 73,451-sf class A office building in Arlington's Interstate 20 corridor.
Texas Title has leased 3,992 sf of prime first-floor space at 701 Highlander Blvd. for its newest office in Dallas/Fort Worth. Tenant finish-out is just getting started. Occupancy is planned for early October.
The deal stack also includes BBVA Compass Bank's long-term renewal for its 4,662 sf of first-floor office and retail space, and Pioneer Realty Capital's expansion to 4,232 sf after one year in the project. It has gained 1,879 sf of extra operating space and relocated within the building. The company has just completed its move into an extensively renovated office on the third floor.
Renee Efimoff, senior vice president of locally based SCM Real Estate Services, and Tim Kaiser, SkyWalker Property's director of asset management, represented the ownership in direct negotiations with Texas Title and Pioneer Realty Capital. Representing Compass Bank were Rich Flaten and Jenna Gilbert of CBRE.
"The building's prime location and renovations to its common areas and main lobby are driving strong interest in Highlands Tower," Efimoff says.
SkyWalker Property Partners' fund, When Opportunity Knocks LLC, is marking its third year as property owner. At least $500,000 has been invested into upgrading the late 1980s-era structure since its acquisition. The project now sports a new monument sign and a refreshed lobby with a digital directory and updated lighting. Cosmetic improvements are being done in stages and will ramp up again at September's end. The next focus will be elevator cabs and common areas on the now-vacant 16,506-sf fourth floor, the office tower's largest contiguous block of available space.
"We knew early on that major renovations were needed. Existing tenants have been pleased with the results and are renewing their leases," Efimoff says. "Our leasing activity has picked up significantly. Several new prospects are in active negotiations for office space in this well-located and freshly renovated project." Occupancy currently is 74%, up from 44% at acquisition time.
The five-story building's tenant base is a mix of financial services and general business. Amenities are woven into its location, situated within walking distance of the 750,000-sf Arlington Highlands and the 1.5 million-sf Parks Mall at Arlington. Undeveloped out-parcels are a rarity in the submarket.
"It's a strong location. It's surrounded by restaurants and retail, mostly national brands," Kaiser says. "It's one of the most convenient and nicest, if not the nicest, office locations in Arlington's I-20 corridor."
SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a $200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.
