Dallas, Texas

Energy Square

Type
Acquisition for Redevelopment
Square Feet
1,121,173 SF
Asset
Office
Strategy
Value-Add

The redevelopment of Energy Square transformed four disjointed, Class-B office buildings into an interconnected, Class A office campus.

In July 2015, a joint venture between USAA Real Estate, GlenStar Properties and a third-party investment partner purchased the three-building Energy Square office campus with the intention of executing a small renovation to support a mark-to-market investment strategy. The partnership ultimately expanded its scope to acquire the historic Meadows Building and the Village Bakery, thereby assembling a 14 contiguous acre site adjacent to a light-rail station. These acquisitions provided an opportunity to redevelop disjointed buildings into a cohesive, interconnected, campus environment with opportunities for additional density.

The underlying goal of the redevelopment was to create a “sense of place” where the tenants can best position their businesses to recruit the best talent, retain their talent, and maximize the productivity of their talent. In conjunction with Gensler, the physical redevelopment included enhancements to walkability, renovations to lobbies and commons areas, the creation of indoor and outdoor tenant lounges, a new 10,000 square foot fitness center, a new state-of-the art conference facility, and a new pocket park. In addition, improvements were made to the campus’ infrastructure, including back-of-house items and parking garages. Lastly, the redevelopment created future value by unlocking the development potential of the two-acre parcel at the corner of Greenville and University.

Project highlights

  • The value-add investment strategy capitalizes on the market opportunity to create a Class A office campus on Central Expressway positioning the asset to compete with the desirable submarkets of Uptown and Preston Center, but at a meaningful discount in rental rate.
  • The Meadows Building (1955 vintage) underwent a historical restoration.

Status

The redevelopment construction completed in 4Q 2019.

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Location details

6688 North Central Expressway
Dallas TX 75206