Investor Flips the Land Under Two Collin County Office Building Purchases

An investor that just purchased two Collin County office buildings has already resold the properties.But the deal was for the land under the buildings, not the offices.Admiral Capital Group of New York last month purchased the Parkwood Place office building in Plano's Legacy business park and the Duke Bridges III building in Frisco.Now another investor - real estate investment trust Safehold Inc. - has bought the land under the buildings.Admiral Capital has signed a long-term lease with Safehold and will pay rent on the property under its new buildings.It's a way for the investor to capitalize the purchase and spread the cost over years of land lease payments, real estate brokers say."We are pleased to provide our innovative modern ground lease capital to facilitate Admiral Capital's acquisitions," Tim Doherty, Safehold co-head of investments, said in a statement. "And, in the process, expand our presence in Texas which represents one of our key target markets."Safehold signed a 99-year ground lease with Admiral Capital for the properties.The ground lease deals are Safehold's specialty, "by providing a new and better way for owners to unlock the value of the land beneath their buildings."Admiral Capital Group -- founded in partnership with NBA star player David "the Admiral" Robinson -- bought the 98,750-square-foot Parkwood Place offices on Democracy Drive east of the Dallas North Tollway from California investor KBS.Admiral Capital Group bought the 161,000-square-foot Duke Bridges III building in Frisco also near the tollway.The buildings were acquired for Admiral Capital's A2R investment fund.The private real estate investment firm is headed by Robinson and his partner Dan Bassichis. Robinson played 14 years for the San Antonio Spurs and is in the Basketball Hall of Fame.  Continue reading...