Buyer sees major potential in parcel on Dacoma
Rockspring Capital has placed its next bet on a 7-acre parcel at 3900 Dacoma just north of U.S. 290 near Loop 610.
The site, which houses an 80,000-square-foot two-story office building, is just north of Exxon Mobil Corp.’s former 24acre Brookhollow campus where a shopping center by Fidelis Realty Partners is in the works.
“With a great big player like Fidelis in that market, it opens up a lot of opportunities,” said Michael Ross, managing director of Rockspring Capital.
The building, purchased from a Texas investor, most recently served as a call center for AT&T. Rockspring Capital, which acquired the property in a joint venture with other Rockspring funds, plans to own it for a few years before positioning it for other uses.
“We spend a lot of time evaluating areas that seem to be transitioning,” said Michael Ross, a managing director of Rockspring Capital.
The property, in an area with office and light industrial buildings, could ultimately hold townhomes, patio homes, apartments, retail or a mixed-use development. Rockspring Capital may lease out a portion of the building on a short-term basis to generate income or tear it down.
“We like this asset not just because it’s potential to be a covered land play that provides a net positive cash flow to our funds while we hold it, but also for its various future residential and commercial uses,” Rockspring Capital president and CEO Jim McAlister IV said in an announcement.
The deal fits in with Rockspring Capital’s strategy to invest in areas where it believes values are poised to rise. In 2014, the company bought a 4-acre parcel on Yale and North Loop 610 near Garden Oaks. The site, which housed an equipment rental company, is planned for a 365 by Whole Foods.
Rockspring had planned on owning that property for 18 months but it got snapped up in eight months, Ross said. Its investors made a bigger than usual return, since Rockspring paid just under $4.8 million for the property and sold it for nearly $6.7 million. More recently, the company bought 10 acres off Brittmoore and Interstate 10, and is speaking with builders about potential townhome developments.
Adjacent to its new investment closer to U.S. 290, Fidelis Realty Partners, in conjunction with partner Williamsburg Enterprises, plans to add 200,000 square feet of retail and restaurant space to serve residents of Oak Forest and other area neighborhoods. Work is under way to take down 1970s-era office buildings previously occupied by Exxon Mobil.
Matt Herring and Harrison Kane of McAlister Real Estate represented Rockspring Capital in the purchase, while Clark Dalton represented the seller.