LOS ANGELES, CA (May 24, 2007) Younan Properties, Inc. (YPI) announced today that it has finalized its acquisition of One Dallas Centre, at 350 N. St. Paul Street on the southern edge of the Arts District in Dallas' central business district (CBD). The 615,000-square-foot, 30-story Class A high-rise brings YPI's Dallas assets to nearly seven million square feet close to 10 percent of the city's Class A office space and its nationwide holdings to more than nine million square feet. Younan is now one of the largest owners of Class A space in the state of Texas and the top office landlord in Dallas.
YPI represented itself in the transaction. Evan Stone, managing director of Jones Lang LaSalle Inc. in Dallas represented the seller, Colonnade Properties.
Zaya Younan and his team are true professionals, who consistently did what they said they were going to do. As a result, we had an on-time and smooth closing of this transaction. It has been a pleasure working with them, Stone commented. YPI's plans for improving this Class A asset, combined with the firm's hands-on, tenant-focused operating strategy, should put the building right on track as a top notch downtown property.
YPI plans call for a $20 million renovation that will give the downtown high-rise a new identity and personality, reflecting a name change to Patriot Tower. The transformed property will feature a 10,000-square-foot lobby war museum with exhibits paying tribute to all the men and women who have sacrificed their lives serving their country, from the American Revolution to the present-day Iraq War.
We are passionate about this project, as we feel that all Americans should pause more in their daily lives to think about the brave men and women who have made the ultimate sacrifice to protect the democratic values on which this country is founded, said Zaya S. Younan, Chairman and CEO of Younan Properties, Inc. Dallas is the ideal location for this museum, as Texas has more active military personnel than any other state in the U.S. We will be honoring them, along with all who have served their country over the past two and a half centuries.
Younan noted that YPI will recruit a history professor from a Dallas university to make Patriot Tower displays as informative and educational as possible. This will be an educational project and a great attraction for tenants, visitors and all who do business in this landmark property, who will be able to pay tribute to American soldiers and gain lessons in the history of our country, from 1775 to the present.
In addition to the lobby museum, YPI plans call for extensive interior and exterior renovations, including common area enhancements, new landscaping and a complete mechanical upgrade, that will boost occupancy and bring the building back to the Class A+ standards for which Younan is known. Greyhound Lines is currently the lead tenant in the skyscraper, which is now 40% occupied.
This is a beautiful structure that will be totally transformed with the Younan touch.' Our plans call for operational and cosmetic improvements that will return One Dallas Center to first-class condition inside and out, enabling us to attract top corporate tenants as we lease up the building, Younan said.
Designed by world-renowned architectural firm I.M. Pei & Partners, One Dallas Center is among Dallas' tallest skyscrapers, with a unique diamond shape rising 448 feet high on the city's skyline. Two distinctive V-shape cutouts accentuate the building geometry and multiply the number of corner offices. An attached 10-story parking structure provides the highest ratio of parking in the entire Dallas CBD market.
Built in 1980 of aluminum spandrel with gray glass bands, One Dallas Center offers an ideal downtown location adjacent to Dallas Area Rapid Transit's St. Paul Light Rail station, a central hub of the city's public transportation system. It also boasts connections with Dallas' underground tunnel system, which runs throughout the CBD and features a wide array of retail shopping and dining venues. The Universities Center at Dallas, offering access to public upper-division and graduate-level education from seven universities and colleges, is within walking distance.
One Dallas Center marks YPI's third downtown Dallas acquisition in the past year. Earlier this year, the fast-growing firm added the 50-story Thanksgiving Tower to its portfolio of high-rise office properties, which also includes KPMG Centre in downtown Dallas. YPI also owns Energy Square I, Energy Square II and Energy Square III in Dallas' North Central Expressway submarket, and Galleria Plaza, Lakeside Square, Four Forest Plaza, 9400 Plaza, Eighty-Eighty Central, North Central Plaza, Graystone Centre and Meridian Center in the city's suburbs.
We remain bullish about Dallas' office market and confident that all of our properties here will continue to outperform others in the submarkets they're located in, said Younan, noting that YPI also has ambitious acquisition plans for Houston. The firm is currently under contract to purchase two Houston office properties: Northbelt Corporate Center, a high-identity asset that is strategically located on North Sam Houston Parkway in the highly desirable Greenspoint/Northbelt submarket, and 6464 Savoy, a mid-rise offering direct access to U.S. Highway 59, ideally suited for tenants that seek a smaller atmosphere and exceptional amenities. Both deals are expected to close in mid-June.
In addition to focusing on office markets in Texas, Younan Properties is aggressively targeting Chicago as it aims to become the nation's largest privately-held commercial real estate investment firm. Its $1.5 billion portfolio currently includes assets in Arizona, Florida, Illinois and Texas.
Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $1.5 billion in real estate holdings since its inception in 2002.
About Younan Properties, Inc.
Headquartered in Los Angeles, CA, Younan Properties, Inc., a real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. As one of the fastest growing, privately held real estate investment groups in the country, the company is especially adept at turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan Properties creates immediate value. In fact, the company has delivered to its investors an average leveraged IRR of 65% on properties sold to date.
Since founding the company in 2002, Zaya S. Younan has accumulated a nine million-square-foot portfolio of well-located Class A office buildings valued at more than $1.5 billion in key markets within Arizona, Florida, Illinois and Texas.
Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.