Weekly Real Estate News
Summary
Shorenstein announced November 13 its purchase of International Plaza 3, a 356,000-square-foot Dallas office tower that is approximately 85% leased. The company's property register lists the acquisition date as November 12. Financial terms were not disclosed.
Shorenstein has added another large Dallas office building to its portfolio, extending a buying strategy focused on well-located properties even as the national office market remains uneven. The company announced November 13 that it acquired International Plaza 3, a roughly 356,000-square-foot tower along the Dallas North Tollway.
Shorenstein’s announcement identifies the deal as its fifth Dallas acquisition in two years. The firm’s property register lists the underlying acquisition date as November 12, one day before the public announcement. The purchase price and financing structure were not disclosed.
A neighboring investment strengthens the strategy
The 13-story International Plaza 3 sits beside International Plaza 2, which Shorenstein acquired in September 2024. The company intends to connect the buildings’ amenity offerings, potentially giving tenants access to additional dining and event facilities while adding new amenities at the newly acquired tower.
International Plaza 3 is approximately 85% leased, according to the seller-side announcement, with tenants including Wells Fargo Wealth Management, MassMutual and Colliers. The weighted average remaining lease term is approximately six years. Those measures suggest an existing income stream, although neither property-level net operating income nor the tenants’ complete lease schedules were released.
What the acquisition says about office investing
The transaction illustrates how some institutional buyers are distinguishing higher-quality, amenity-rich buildings from less competitive office stock. Shorenstein says its relevant Lower Tollway competitive set is roughly 94% leased and that asking rents have climbed substantially since its initial investment in the submarket. Those are company-supplied market assessments, not independently verified nationwide office trends.
For lenders and brokers, the question is whether concentrated ownership and upgraded amenities can sustain rent growth without disproportionate capital expenditure. The acquired building recently underwent renovations, but Shorenstein plans additional work, including a tenant lounge and wellness-related improvements.
What to watch next
The purchase price, financing terms, tenant retention and leasing of the remaining vacant space will determine the deal’s economic success. The company’s stated rent-growth expectations are prospective, not guaranteed results. The acquisition is completed, but its projected operating improvements remain to be demonstrated.
Related WRE coverage: American Realty Investors’ recent property and earnings update.
Illustrative Dallas office photograph: Jack / Unsplash. Not International Plaza 3.
