Dallas Chase Ends With 11-Year, Trophy Office Lease

DALLAS-In a gold key-turning deal, Remington Hotel Corp. has reserved 30,133 sf in Centura Tower I after pitting two trophies against each other for the 11-year win. JPMorgan International Plaza ended up the bridesmaid.

The Dallas-based hotel group was in the market nearly a year, confining the search to the creme de la creme along the Dallas North Tollway. Remington, which floated an IPO in recent months, was looking to trade up from a Centura Tower I neighbor, Pacific Center, and roll in some room to grow. The Centura deal delivers first-generation space for the entire 11th floor and part of the eighth in a three-year-old, 412,000-sf building with a quoted rate of $23.50 per sf plus electric.

“For this transaction, this deal is a win-win,” Dale Ray, vice president and leasing director for Jones Lang LaSalle in Dallas, tells GlobeSt.com. “They got the terms and TI package that they were looking for and we got what is going to be a full floor-plus tenant for the long term.”

Ray credits the Centura win to its location with easy freeway access, 93% column-free floor plates and the direct connection between building atrium and parking garage. The reality of the economics is “a standard market play,” he says, acknowledging some free rent, expansion options and a good rate. In return, the building owner, Regis Property Management Inc. of Dallas, got a solid flat rate for the full term. Ray brought the building assignment and the working deal with him last month when he left Capstar Commercial Real Estate Services for the Jones Lang LaSalle title.

Remington takes up residency in March as Centura’s second-largest tenant. The 15-story tower at 14185 Dallas Parkway edges to 70% occupancy, with 85,000 sf or the top three floors available. Chris Mason of Jackson Cooksey in Dallas represented the hotel group, which penned the lease within days of announcing a restructuring. Remington, a manager of 40 hotels in the US, is an independent real estate investment and management company.