Editor’s Note: This story has been revised from an earlier version to accurately reflect the name of Perkins Rowe’s owner.
The Texas-based investment firm that acquired Perkins Rowe about 18 months ago and spent untold millions on improvements to the mixed-use development is putting the property on the market.
A spokeswoman for Stirling Properties, which manages Perkins Rowe for owner TPG Special Situations Partners (TSSP), confirms the 710,896-square-foot development is for sale. HFF Dallas, a national commercial real estate brokerage firm, is listing the property. There is no asking price, according to Stirling spokeswoman Donna Taylor.
TSSP acquired Perkins Rowe in late 2013 from lenders, who had taken the property back earlier that year from developer Tommy Spinosa after a protracted legal battle. No sale price was disclosed at the time, but since then TSSP has invested heavily in building out unfinished apartments, completing the parking garage and a rooftop swimming pool, and upgrading office and retail space. TSSP also spent $2 million in October 2014 purchasing from Spinosa the cooling plant that supplies chilled water to the air conditioners for Perkins Rowe tenants.
Stirling, meanwhile, has attracted new retail and office tenants to the development. Perkins Rowe’s 128,180 square feet of office space is 94% leased, and its 375,120 square feet of retail space is more than 85% leased, Taylor recently told Daily Report. In addition to the office and retail space, Perkins Rowe has 87 condo units and 546 apartments, 408 of which are under construction.
Industry experts aren’t surprised the property is for sale. Local appraiser Wesley Moore says it only makes sense the investors would want to sell Perkins Rowe, given the improvements they’ve made to the property and the strength of the local market. Last year, for instance, the Acadian Village shopping center sold for more than $32 million.
“This is just a natural stage in the development’s history,” says Moore, of Cook, Moore & Associates. “They picked up a deal and fixed it up and now they’re hoping to make a profit on it. It’s just like people do with houses—with just a lot more zeroes involved.”
How many more zeroes the development will fetch is a question Moore isn’t prepared to answer. He predicts it will be “well north” of $100 million, but cannot say whether that means $150 million or as much as $200 million.
“You’re talking about a mixed-use development with lots of pieces and parts and a story that is constantly evolving so it’s really hard to say,” he says. “But it is a highly marketable property on a national scale. You’ll have a lot of people catching first-class flights down here to come see it.”
—Stephanie Riegel
