Preston Commons, a three-building, 427,799-square-foot office campus in Dallas' coveted Preston Center neighborhood, sold in what was one of the region's most impactful real estate deals last year.
Energy Transfer acquired the office campus for around $150 million in November from KBS REIT III, according to public filings from the real estate investment trust. The deal has earned a 2025 CoStar Impact Award for sale of the year in the Dallas-Fort Worth region, as judged by a panel of real estate professionals familiar with the market.
The campus was 93% occupied at the time of the deal's closing. KBS REIT III had invested about $24 million to renovate the buildings in the campus located minutes from the Dallas North Tollway and Northwest Highway. Preston Commons' high occupancy rate attracted institutional investors, which is located near one of Dallas' most affluent neighborhoods and is known as one of the city's most sought-after office markets.
The buyer, Energy Transfer, owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 125,000 miles of pipeline and associated energy infrastructure. Last year, Energt Transfer, which has offices in the Preston Commons office complex, acquired WTG Midstream Holdings LLC in a transaction valued at approximately $3.25 billion from affiliates of Stonepeak, the Davis Estate and Diamondback Energy, Inc.
About the deal: KBS REIT III sold the three-building Preston Commons office campus that consists of three office buildings at 8111 Preston Road, 8115 Preston Road and 8117 Preston Road in November to Energy Transfer.
What the judges said: Partners Real Estate's Steve Triolet said the sale of Preston Commons "underscores the enduring demand for Class A office assets in prime locations." Joseph Cahoon of Southern Methodist University's Folsom Institute for Real Estate said in "an era where many consider new investments in office assets to be taboo," this trade was evidence of the strength of the Dallas office market.
They made it happen: The four-broker Newmark team that marketed the portfolio was led by Vice Chairmen Chris Murphy, Robert Hill and Gary Carr with Associate Austin Sheahan. Dan Harris, managing director with Stream Realty Partners, represented the buyer.
CoStar Market Manager Dennis Sallows contributed to this report.