By Lisa Brown
DALLAS—The law expiration is drawing more corporate users seeking proximity to the airport and executive housing communities such as Bluffview and Preston Hollow.
According to Buchanan Street Partners, Dallas Love Field experienced an 87% increase in passenger traffic year-over-year in September 2015. This increased activity followed the October 2014 expiration of the Wright Amendment, a 1979 federal law that limited long‑haul flights out of the airport.
Bluffview Towers, a 196,356-square-foot two-building office property adjacent to Love Field Airport has been acquired by Buchanan Street. The Love Field traffic bump-up prompted Buchanan to purchase the buildings for an undisclosed amount from Commercial Developments International (CDI).
“We have noticed a significant change in the area surrounding Love Field. The surge in traffic and business at the airport was a major factor in the buildings’ purchase,” said Matt Haugen, vice president at Buchanan Street Partners. “We anticipate local expansion as corporations view this area as a more preferred location, both for daily commutes and accessibility to the airport for business travel.”
Bluffview Towers is located at 3860 and 3890 West Northwest Hwy., near the affluent Bluffview and Preston Hollow neighborhoods, within three miles of Preston Center, an 800,000-square-foot retail and dining center. Bluffview Towers is currently 82% occupied with several long-term tenants. The property features an Embassy Suites hotel on site, which was not included in the purchase. Buchanan Street has plans for lobby improvements and tenant common area upgrades to bring the project up to class-A standards.
Haugen tells GlobeSt.com: “Additionally, the rapidly growing rental rates in Uptown and Preston Center have caused the options around Love Field and specifically Bluffview Towers to become an attractive option for users that want to locate in the area for a more affordable price. We are going to reposition these buildings and bring them up to a first-class standard. It seems these two buildings have flown under the real estate community’s radar, and we plan to leverage the growth at Love Field to elevate the building and put it on the map as another Buchanan Street building in Dallas. We believe in the Dallas market.”
The Wright Amendment limited flights between Love Field to airports only within Texas and its four neighboring states: Arkansas, Louisiana, New Mexico and Oklahoma. Its expiration allows flights into Love Field from major cities such as New York, Denver, Los Angeles and Washington, DC. It is expected to draw more corporate users seeking proximity to the airport and executive housing communities such as Bluffview and Preston Hollow.
The Bluffview Towers purchase marks Buchanan’s fourth acquisition in the Greater Dallas area in the last 16 months. Buchanan Street also recently purchased several other buildings that are poised for growth as a result of positive absorption and infrastructure improvements. The properties include Tollway Plaza, a prominent two-building property in Addison, TX, Richardson Office Center I & II in Far North Dallas and Granite Tower in Northwest Dallas along LBJ Freeway.
Jack Crews, Evan Stone and Lauren Zimmer of JLL represented CDI in the transaction, while Buchanan Street represented itself.