ADDISON, Texas - Closing the book on a foreclosure, Regions Bank has sold the 79,481-sf Westgrove Air Plaza on airport-leased land to North Texas-based
Guardian Texas Management LLC in an all-cash transaction.
"The big challenge is it's on leased land and the lease only has nine years and eight months remaining on the original 40-year term," says Leigh C.
Richter, senior vice president of Dallas-based Bradford Commercial Real Estate Services.
Efforts to extend the lease at 4570 Westgrove Rd. included two Addison City Council hearings and a tabled motion although Guardian is an established
airport tenant with a fee-simple lease in the immediate area. The Westgrove Air Plaza lease encompasses 5.37 acres, of which 1.4 acres is a vacant tract at
the corner of Westgrove and Addison roads.
"The buyer wanted it anyway. He agreed to buy as-is, where-is," says Richter, who negotiated directly with the buyer. The building consists of 47,536 sf of
class B office space and 31,945 sf in three hangar spaces with runway access. Built in 1985, the structure is subject to substantial city-recommended
upgrades because it is located within the airport's designated planned development.
The two-story building, now housing 15 tenants, is 50% vacant. "With its affiliated companies, Guardian can fill up the building," Richter explains.
Finish-out work has already begun on the office space.
"Guardian was the logical buyer. We had one other serious group, but most people didn't like the term left on the lease," Richter says.
August 27, 2012