Piedmont Office to Pay $400M for Galleria Office Towers

Atlanta, GA-based Piedmont Office Realty Trust Inc. agreed to pay CBRE Global Investors $400 million to acquire the three Galleria Office Towers in North Dallas. The deal on the 1.2-million-square-foot asset is expected to close by the end of Q1 2020. CBRE Global Investors acquired the assets in 2015 for more than $300 million.

JLL marketed the buildings on LBJ Freeway/Interstate 635, which are almost 90% leased. Piedmont indicated it is paying for its new buildings from a $500 million line of credit, and proceeds from the sale of 1901 Market Street in Philadelphia. The three high-rises delivered in the 1980s and 1990s, and during its hold, CBRE Global Investors invested $20 million in capital improvements.

“We are very excited about the start we are seeing for 2020 with a significant acquisition planned in Dallas and continued leasing momentum across the portfolio,” Piedmont’s Brent Smith said in a Q4 2019 filing statement.

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