Real estate firm United Development Co., in partnership with Lone Star Self Storage, has purchased an office park in North Dallas with plans to demolish a portion of it and build a self-storage facility. The three-building Park Forest Office Complex at 3530 Forest Lane is just south of Interstate 635.
The $10 million project involves tearing down two 10,000-square-foot buildings and constructing a 60,000-square-foot storage structure in their place. The demolition is scheduled to occur in early 2018, while the storage facility is slated to open next fall. The existing three-story office building will be used to house the businesses formerly operating out of the removed buildings, according to the source.
Built in 1969, Park Forest comprises 90,000 square feet of building space on 4 acres. United purchased the site from a Miami-based investor who renovated the complex two years ago, the source reported.
"It was zoned for the storage," said Biff McGuire, CEO of United. "Look at all the houses around there; it's a perfect spot for self-storage. And we are going to make improvements to the office building."
The acquisition was brokered by Tom Strohbehn, senior financial analyst for Cushman & Wakefield, and William B. Adams, a broker with Falcon Realty Advisors. Southwest Bank of Fort Worth, Texas, is financing the project.
Headquartered in Southlake, Texas, United was founded in 2007. The firm has managed more than $500 million in real estate investments.
Lone Star Self Storage is a family-owned company with six facilities in Garland, Lewisville, Mesquite, Plano and Rowlett, Texas.
Founded in 1917, Cushman & Wakefield offers a complete range of services for all property types including consulting and appraisal, corporate services, debt and equity financing, investment banking, leasing, and sales and acquisitions.
Based in Dallas, Falcon works with retail, restaurant and entertainment tenants in real estate strategy, construction and development.