Dallas-based August Real Estate Co. has announced the acquisition of Lakewood Tower, a nine-story, 120,000-square-foot office building in the Lakewood community of East Dallas.
Located in Dallas’ affluent Lakewood neighborhood, the building is situated on over 3.5 acres and includes abundant surface parking and an adjacent five-level parking garage. The walkable location provides convenient access to restaurant and retail amenities within Lakewood Village and close proximity to Lakewood Country Club. Currently 97% leased, the building has achieved a very strong historical occupancy rate averaging over 90% throughout the past decade. The diverse rent roll is well distributed across industries including real estate, healthcare, professional services and finance companies, highlighted by long-time tenants Wells Fargo, Briggs Freeman and Baylor Scott & White.
“We’re excited to acquire such a special property within the Lakewood community,” said Evan August, August Real Estate Co. co-founder. “As Dallas natives with a local investment strategy, we’re committed to the improvement and longevity of Lakewood and East Dallas more broadly. Lakewood Tower is an excellent opportunity to expand our portfolio while contributing to the area’s growth through thoughtful building improvements over time. We look forward to expanding the amenity offering, elevating the finishes to Class A and implementing a hospitality-level of service for our customers.”
August Real Estate Co. purchased Lakewood Tower from a partnership controlled by Caddo Holdings. A Caddo affiliate will retain ownership of the adjacent four-story building, which is the newest location for the Caddo Office Reimagined brand, a flexible workspace concept focusing on private office suites.
“Caddo and its principals have had an ongoing commitment to Lakewood,” said Tim Slaughter, a Caddo partner. “We have continued that commitment by making a long-term investment in our Caddo Office Reimagined Lakewood location. We are pleased to now have a community-focused neighboring property owner in August Real Estate Co. It is exciting to see August add to its holdings in the Lakewood and East Dallas area.”
“This transaction provided a rare opportunity to acquire an iconic property in East Dallas,” said Jordan August, August Real Estate Co. co-founder. “With two other nearby assets, the historic Continental Gin Building and 333 1st Avenue, Lakewood Tower is a continuation of our expansion within the area and builds upon our strategic approach of acquiring properties for the long-term, creating lasting assets that are a part of the surrounding community.”
August Real Estate Co. established its presence in Dallas with the acquisition and restoration of the historic Continental Gin Building and 333 1st Avenue, both in Deep Ellum. The newly delivered renovations at the pair of buildings have been well received by the community resulting in record-fast lease-up stabilization. August Real Estate Co. has remained committed to restoring, rather than redeveloping, historical buildings and ensuring its portfolio of assets serves a purpose within the community. The company’s Lakewood acquisition is part of a planned expansion across East Dallas.
“We are proud to have been part of the sale of such an iconic property as Lakewood Tower,” said Evan Stone, Managing Partner at Goodwin Advisors. “The Caddo Team was an excellent steward of the property over its two ownerships and repositioned it for the future. Now it is in the long-term hands of August Real Estate, and it will be exciting to see them execute on their plans and take the property to the next level.”
Goodwin Advisors’ Evan Stone represented Caddo Holdings in the sale. Veritex Bank will provide the acquisition financing for August Real Estate Co. sourced by Adam Mengacci with Hamilton Realty Finance.