Chicago-based Mesirow Financial announced this week that it has acquired the 1.15 million square foot regional headquarters for Verizon in Irving, Texas in a sale-leaseback deal worth $344 million, one of the largest real estate deals in North Texas this year. Mesirow Financial’s Sale-Leaseback Capital group in partnership with Kawa Capital financed the purchase in collaboration with Mesirow Financial’s Credit Tenant Lease and Institutional Sales and Trading groups. Under the terms of the deal, Verizon will lease back the full property for 20 years with optional extensions. Cushman & Wakefield served as Verizon’s real estate adviser on the transaction.
“This transaction once again signifies the strong collaboration between our capital markets businesses. We continue to enhance our full-service platform in acquiring single-tenant properties on a national basis, complemented by our strong capabilities in mezzanine and senior debt placement,” said Richard Price, chairman and chief executive officer of Mesirow Financial, in a press release.
“This transaction provides our company with immediate financial benefits and does so in a way that supports our continuing interests in the development of Las Colinas. The extension of our tenancy through a sale and restructured lease affirms the value we see of having located in such a dynamic area for so many years,” added John Vazquez, senior vice president and head of global real estate for Verizon.
The 51.2 acre campus on Hidden Ridge Drive near State Highway 114 was built in 1991 and sits adjacent to a planned $1 billion mixed-use project dubbed Hidden Ridge, to be developed by KDC and include offices, a new commuter rail station, shops and a hotel. Mesirow Financial plans to invest $20 million to upgrade the parking and facilities at Verizon in the next three years, according to a Dallas Business Journal article. Last May, Mesirow Financial acquired Verizon’s campus in New Jersey, which was valued at $650 million, which are among the two largest non-government single asset credit tenant lease deals ever consummated, said Stephen Jacobson, a senior managing director of Mesirow’s credit tenant leaseback and structured debt products group.