Taconic Looks To Unload North Dallas Office Building

A North Dallas office building has hit the market, testing investors’ interest in North Texas office assets while providing a clearer outlook on a market that’s still struggling in the aftermath of the pandemic.

New York-based Taconic Capital Advisors has hired JLL brokers to sell the 15-story, 388,430-square-foot International Plaza II at 14221 Dallas Parkway, the Dallas Business Journal reported.

An asking price has not been disclosed. While most office properties these days are selling for far less than when they last traded — in part because of remote-work trends driving up vacancies and crushing property values — a few aspects of International Plaza II are working in Taconic’s favor.

The building is 94 percent leased, up considerably from the Dallas-Fort Worth average of about 79 percent, according to Cushman & Wakefield. Similar buildings along the Dallas North Tollway have an average occupancy rate of 81 percent, according to real estate firm Partners.

The building has lured several new tenants in recent years, including event services firm Freeman, Interstate Batteries and accounting and advisory firm Forvis, which signed a 30,650-square-foot lease last year, the outlet reported.

Taconic had a big hole to fill when it bought the property in 2018, after JPMorgan Chase and Fannie Mae vacated the site, creating the largest chunk of empty office space in Dallas-Fort Worth at the time.

Following its acquisition, Taconic spent more than $26 million on renovations and upgrades. The project, completed in 2020, was especially timely as companies have begun favoring updated, amenity-filled office space to overcome the remote-work era and lure employees back to the office.

Taconic also purchased International Plaza I in 2019 but sold it to a New York-based LLC in 2021. The other building at the complex is separately owned, as well.

—Quinn Donoghue