Dallas office tower sold to Houston property company with long-time oil and gas roots

A real estate firm founded by one of Houston’s storied oil families has purchased a Dallas office building.

Highland Resources Inc. – a property investment and energy firm owned by the family that founded Brown & Root and Texas Eastern Corp – bought the Lakewood Towers project in East Dallas.

The two office buildings near Lakewood County Club were sold by investors who acquired and refurbished the properties starting in 2010.

The Lakewood office complex is Highland Resources’ first Dallas property play.

“To date we haven’t had anything in Dallas,” said CEO Charles Wolcott. “We’ve wanted to have a presence in Dallas and are strong believers in the market.

“We found Lakewood Towers and were impressed with the property.”

Previous owner Caddo Holdings since January had been marketing the building to sell. HFF LP brokered the property sale.

The two buildings were built in the 1970s and 1980s and were totally renovated in 2011. Wells Fargo is the signature tenant in the larger building.

“The occupancy went from 62 percent when we bought it to around 92 percent now,” said Caddo Holdings partner Dustin Schilling.

Highland Resources has hired Caddo Holdings to continue managing the properties. Terms of the sale were not disclosed.

Since the 1980s, Highland Resources has built up a real estate portfolio of more than $275 million. The company is still owned by the family of oil tycoons Herman and George Brown.

“We still have some oil and gas co but are primarily a commercial real estate company,” said Wolcott.

The company has office properties in Houston, Austin and San Antonio.

“We also invest in shopping centers and have interests in multi-family properties,” Wolcott said. “We do residential subdivision development in Houston and Austin.
“One area where we are looking to increase our presence is in office buildings like the Lakewood Towers.”

Highland Resources also has property holdings in Oklahoma, Arkansas and the United Kingdom.