FARMERS BRANCH, Texas In an ongoing disposition of its North Dallas campus, Maxim Integrated Products Inc. has sold its only office property with Midway Road frontage in the Metropolitan Addison submarket to a newly formed real estate company, Proton Partners LP.
The two single-story brick buildings, totaling 37,771 sf, are situated at 14330 Midway Rd. at a signal intersection with Proton Drive, a driving force for the 3.3-acre tract's future redevelopment potential.
"I had a lot of interest in these buildings from investors, but we were under contract," says Leigh C. Richter, senior vice president of Dallas-based Bradford Commercial Real Estate Services. "It's a great location. Of all the Maxim properties, it's the only one with Midway Road exposure."
The local buyer kept to the closing schedule of a 60-day look and 30-day close, taking the deed with 1031 exchange funds and bank financing. "The buyer performed a very thorough due diligence. We were very close price-wise," Richter adds.
Proton Partners is planning to lease and manage its new holding: an 18,847-sf building, which is 50% leased, and an 18,924-sf structure that's 80% occupied. A portion of the vacant space in the smaller building will be occupied by the new owner, who also is eyeing interior and exterior improvements to the property. The buyer has retained Utility Systems Solutions Inc., an energy saving company based in Dallas, to upgrade the property's energy efficiency using "green" technology.
Proton's play gets underway with 15 tenants, representing a diverse mix of professional services and sales offices. Greg McLane, senior vice president of Swearingen Realty Group LLC in Dallas, represented the buyer of the 35-year-old buildings.
The piecemeal sales of 13 vintage buildings began last fall after Maxim relocated its research and development division to a brand-new 138,000-sf class A office building set on 18.5 acres of its original 45-acre campus. The California-based company inherited the campus situated just north of LBJ Freeway and within blocks of the North Dallas Tollway in 2001 when it acquired Dallas Semiconductor Corp.
To maximize its yield and facilitate the disposition, Maxim had invested in separately platting the 1970s- and 1980s-era buildings before bringing them to market. Richter is nearing the finish line on the assignment, with one property under contract and three listings each with two buildings that are drawing strong interest from users and investors alike.
May 13, 2013