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CDK Realty Advisors Sells Dallas Office Building 12-7-06

CDK Realty Advisors has sold the 130,000 sq. ft. Landmark building located in the historic West End district of Dallas. The buyer, Argus Realty Investors, of San Clemente, California invests in revitalized office properties located in emerging urban markets.

The asset, acquired by CDK in 2004, was the former regional headquarters of the FBI. The building interior was demolished, upgraded, and transformed into an urban loft-style office building with an open interior environment containing 15-foot ceilings. After the transformation, occupancy increased from 13% to 97% in under 12 months.

“This is a magnificent transformation of a 100-year-old building that had become bland, boring, government offices” explained J. Drever, Argus Realty’s senior vice president of acquisitions. “But CDK tore down walls, restored the original maple floors, exposed the brick walls and concrete columns, practically doubling the ceiling height on every floor by removing the eight-foot false ceilings, leaving the newly installed overhead heating and air-conditioning duct work, lighting and cabling in full view.”

This investment produced a net IRR of 37% for one of CDK’s clients.