SkyWalker Property Partners has parted with one of its most prized office properties, Highlands Tower, in an off-market transaction with Arlington Orthopedic Associates.
The highly visible asset is a 73,859-sf five-story office building at 701 Highlander Blvd., a class A project set on 5.24 acres at the Interstate 20-Matlock Road intersection in south Arlington. The seller of record is This Land is Highland LLC, a single-purpose entity of SkyWalker Property’s When Opportunity Knocks investment fund.
“We’re particularly proud of Highlands Tower so it was a difficult decision to sell it,” says William Welder, acquisitions associate for locally based SkyWalker Property Partners.
The seller has invested more than $2 million into renovating the 1980s-era multi-tenant office building in the past five years, taking an inside-out approach to upgrade the mechanical systems, lobby, elevator cabs, common areas and landscaping. Highlands Tower is adjacent to Baylor Scott White Orthopedic & Spine Hospital and across the street from the 825,000-sf mixed-use Arlington Highlands. Also close by are the 1.5-msf Parks Mall, USMD Hospital at Arlington and Texas Rehabilitation Hospital of Arlington
“We thought a medical group would be a great potential buyer, given the dense concentration of shopping, dining and neighboring hospitals,” says Gary Walker, founder and president of SkyWalker Property Partners.
AOA’s current location is less than two miles from Highlands Tower, offering overflow and expansion space for support and medical services. The multi-tenant project is nearly 66% leased to leading tenants like PNC Bank (formerly BBVA Compass), Keller Williams and an affiliate, H3 Texas LLC.
“Highlands Tower will remain multi-tenant for the foreseeable future while the buyer develops a long-term occupancy strategy,” Welder says.
Keller Williams signed a new long-term lease for 12,518 sf a few months before SkyWalker approached AOA about purchasing the building. Tenant improvements were completed in September to the real estate firm’s fourth-floor office.