Caddo Holdings gains foothold in North Dallas with office tower buy

An affiliate of Dallas-based Caddo Holdings LLC has bought a North Dallas office tower Friday, with plans to ramp up its future investment efforts in Dallas-Fort Worth.

The real estate investment firm — which is eyeing other well-located office and industrial property in Texas — has bought Preston Plaza, a 260,000-square-foot office tower at 17950 Preston Road for an undisclosed sum.

As part of the deal, Caddo Holdings will spend $4 million in capital improvements to the office tower to boost building’s occupancy. This falls in line with the firm’s overall strategy of repositioning office and industrial properties.

The quality of the building, coupled with the strong demographics surrounding Preston and Frankford roads attracted the investors to Preston Plaza, said Justin Engler, one of Caddo’s partners overseeing property acquisitions for the company.

AFO Capital Ltd. of Fort Worth provided the major equity for the purchase. American Bank of Texas provided debt financing.

Cassidy Turley‘s Beth Lambert and Diego Arroyave arranged the joint venture equity on behalf of Caddo Holdings. The deal attracted investor interest because of the company’s successful track record, said Lambert, a Cassidy Turley executive managing director.

Jack Minter, Creighton Stark and Ben Lurieof Colliers International represented Caddo Holdings in the off-market deal. Caddo Real Estate Services, an affiliated company, will manage the tower.

Kathy PermenterSean Dalton, Heather Shover and Kolby Dickerson of Younger Partners will lease the building.

This purchase is Caddo Holding’s eighth building acquisition, which totals 900,000 square feet. In the past year, Caddo has sold Crosstex Court in Uptown and Lakewood Towers.