New York Life Investors sold the Pinnacle Tower office building in north Dallas after completing a decade-long repositioning effort, according to a March 23 statement. The sale follows significant upgrades and successful leasing that brought occupancy up to 88 percent.
The transaction is notable because it demonstrates how investors are able to revitalize older office properties in a market where vacancy rates remain high. New York Life purchased the building, located at 5005 Lyndon B. Johnson Freeway, in 2016 when it was half empty. A $9 million renovation led by Stream Realty was completed in 2018, which helped attract new tenants.
Orlando-based Estein USA and Chicago-based Vanderbilt Partners acquired the property, with JLL handling leasing for the new owners. Although financial terms were not disclosed, loan documents indicate Goldman Sachs provided a $100 million mortgage for the purchase. Local appraisal records most recently valued Pinnacle Tower at $104.3 million. When New York Life and its partner Encore Enterprises bought it in 2016, they paid an estimated $95 million or about $173 per square foot.
Pinnacle Tower stands at 24 stories and encompasses approximately 550,000 square feet about twelve miles north of downtown Dallas near Galleria Dallas shopping mall.
Despite ongoing challenges from high vacancy rates—27.2 percent across Dallas-Fort Worth at the end of last year—some renovated properties like Pinnacle Tower show that older buildings can still attract investors and tenants.
