PLANO, TEXAS — TIER REIT Inc. (NYSE: TIER) has acquired 5851 Legacy Circle, a 12-story office tower in the Legacy Town Center area of Plano, for $123.3 million. The sale includes the assumption of a $66 million mortgage loan. The seller was not disclosed.
The property, also known as Tower One, is master leased to Encana Corp., which has subleased 88 percent of the property to tenants such as LegacyTexas Bank, U.S. Renal Care and Aimbridge Hospitality. The Class A, 319,000-square-foot property was built in 2012.
Tower One is contiguous to two other land parcels totaling four acres that TIER bought in 2015. The company is building office towers on each of those properties, which will add an additional 570,000 square feet. TIER will rebrand the entire combined development as Legacy District.
“This acquisition complements our existing development parcels and enhances our vision for Legacy District, given its strategic location in the heart of the vibrant live-work-play Legacy submarket,” says Scott Fordham, president and CEO of TIER REIT. “Further, it plants our flag prominently near the exciting new corporate campuses of Toyota, JP Morgan, Liberty Mutual and FedEx Office, which combined should bring over 15,000 new office workers to the submarket.”
In an unrelated transaction, TIER also announced it had completed the sale of its entire portfolio in Louisville, Ky. The sale included five properties totaling 678,000 square feet for $71.5 million. The buyer was not disclosed.
“Our exit from the Louisville market is another important milestone for TIER REIT,” says Fordham. “Our reallocation of capital from Louisville and into Legacy District is another example of our strategic recycling efforts.”
TIER REIT Inc. is a Dallas-based REIT focused on office properties. The company’s stock price closed at $17.60 per share on Monday, June 26, up from $14.41 per share one year ago.
— Jeff Shaw