SkyWalker Property Partners has acquired a partially developed medical and office condominium park in Collin County and sold a 100-percent-leased MOB property in Hood County.
The acquisition is Crescent Parc at 1400 N. Coit Road in McKinney, Texas, which has 61 medical and office condominiums in various stages of completion. The 13.2-acre project was bought out of bankruptcy and now is parked in the portfolio of When Opportunity Knocks LLC.
The just-sold property is a 5,865-square-foot, two-tenant medical office building on 0.6 acres at 1308 Paluxy Road in Granbury, Texas, which had been part of the Cash Flow Fever Fund LLC portfolio for two years.
The Granbury project is an outlier in comparison to balance of the fund’s portfolio as well as its sister funds, which are managed by North Texas-based SkyWalker Property Partners. Before marketing could begin, a full-price offer rolled in from a California investor with 1031 exchange funds to deploy.
“It was the quickest deal I’ve seen. It closed in 20 days,” said Clint Holland, SkyWalker Property’s acquisitions director, who negotiated the sale on behalf of the seller of record, Granbury Illusion LLC.
The Granbury buyer is IPX 1031 Investment Property Exchange Services Inc., intermediary for the Scanlin 1989 Trust. Randy White, an independent broker from Fort Worth, represented the buyer.
The Crescent Parc transaction was vastly different. SkyWalker Property was up against at least 15 other potential buyers for the well-located development, which was sold by David Wallace, the Chapter II trustee appointed by the U.S. Bankruptcy Court for the Eastern District of Texas. Mart Martindale of Edge Realty Partners represented the seller.
Crescent Parc was seized by bankruptcy court in early 2019 after its former developer was indicted by the SEC. When construction was halted, Phase I had 14 buildings with 61 office condos, totaling 86,954 square feet, in various stages of completion. Phase II, totaling 6.5 acres, had utility lines in place and dirt prepped to develop another 11 buildings. At the time, 30 pre-sale contracts had been signed, some of which were already at the title company.
With the acquisition now closed, SkyWalker Property has ramped up construction on the 14 shells to create turn-key buildings for sale or lease. The structures average 8,222 square feet.
“The challenge has been rebuilding relationships with the previously interested buyers,” Holland said. “I’m optimistic we’ll have these 30 sales completed within a month.”
Crescent Parc is located near the intersection of Coit Road and East University Drive/US Hwy. 380 at the kissing point of Prosper, Frisco and McKinney. A vacant tract of land, which is predestined for retail build-out, is the only barrier between the freeway and the office park. Also close by is the Dallas North Tollway and Preston Road. The development is surrounded by single-family communities.
“We are right in the middle of the growth path. It’s an A+ location,” said Holland, who negotiated the acquisition for the buyer of record, McKinney Sunrise LLC.
Of equal importance is the product type—single-story buildings with individual HVAC systems, tailor-made designs for medical and office users. Texas Health Frisco, a full-service acute-care hospital, is less than 4.5 miles away.
Holland said 95 percent of the buyers to date are investors, who are signing one-year leasing agreements with Joe Martinez and Tonya La Barbara of Legacy Commercial Realty in nearby Oak Point for their buildings.
“We think it is the perfect COVID-type of property. Users have full control of their spaces, including whether to open their doors or not,” Holland said. “It’s great timing to bring this kind of product online.”