In a joint venture partnership, Pillar Commercial and Hall Capital have acquired the 120,170 RSF Class A office building, One Bethany East. The property opened in 2018 and is located in Allen, Texas immediately adjacent to the Watters Creek Convention Center and Delta Hotel by Marriott. It is also directly across the street from the Watters Creek at Montgomery Farms mixed-use development.
“One Bethany East is a premier Class A office project with strong tenancy,” said Manny Ybarra, Founder & CEO of Pillar Commercial. “It is representative of the City of Allen’s impressive work to grow its corporate tax base with high-quality office and mixed-use developments.”
Pillar Commercial completed the acquisition through Pillar Real Estate Fund I (PREF I), a fully-discretionary investment vehicle focused on office and industrial properties throughout the state of Texas. One Bethany East is the fund’s fourth investment.
Pillar Commercial plans on relocating its corporate office to One Bethany East from Preston Center in the 2nd quarter of 2021.
Hall Capital is a 100-year old family-owned private investment company headquartered in Oklahoma City that actively invests in automotive and real estate.
“This investment fits perfectly for our latest real estate fund,” said Kirk Hall, Vice Chairman of Hall Capital. “Fund II targets stabilized office and industrial throughout the southeastern United States, Oklahoma & Texas. One Bethany East fits that criteria perfectly.”
“We have been talking to Manny about investment opportunities since we made our first office investment in Uptown Dallas years ago,” said Clay Moss, Managing Director and COO of Real Estate for Hall Capital. “We’ve become friends and look forward to becoming partners on One Bethany East.”
One Bethany East was built by Kaizen Development Partners and is home to a number of high-profile tenants including, the Credit Union of Texas, Boss Fight and the Allen Economic Development Corporation. The property includes a state-of-art fitness center, meeting space and tenant lounge. There is a connected four-level parking structure with almost 600-spaces.
“We ran a very exhaustive process to find the most responsible buyer for One Bethany East,” said Derrick Evers, Managing Director and CEO of Kaizen Development Partners. “Our mission, if we were ever to sell one of our buildings, is to find a group of likeminded individuals to carry forward high standards for our tenants and the City of Allen. Pillar Commercial I’m proud to say exceeded expectations”
The city of Allen is an emerging hub for corporate relocations, and over the past ten years has become a leader within the North Texas region in terms of business base expansion, residential development, and cultural arts. The city has experienced tremendous growth as evidenced by the doubling of the population over the past 20 years, and a 70% growth in workforce in just the last decade.
MetLife Investment Management provided senior debt financing to the Pillar/Hall partnership. Brian Carlton and De’On Collins with JLL brokered the debt on behalf of the buyer. Jack Crews and Parker McCormack with JLL represented the seller, Kaizen Development Partners.