Behringer, Orangestar acquire McKinney Corporate Center in Craig Ranch – Dallas Business Journal – Dallas Business Journal

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Longtime real estate investors Behringer and Orangestar have acquired a high-profile office building in the Craig Ranch development in McKinney.
Dallas-based Behringer and Plano-based Orangestar announced Tuesday their partnership to acquire commercial office properties across Texas’ major metro markets.
The joint venturers’ first acquisition occurred in July 2021 of McKinney Corporate Center I, a three-story multi-tenant Class A office property in the master-planned 2,000-acre Craig Ranch development, the companies said.
The property is next to State Highway 121/Sam Rayburn Tollway and the TPC Craig Ranch golf resort. 
Behringer and Orangestar will seek both boutique and value-added properties in urban and suburban locations, the companies said in a news release announcing the partnership and acquisition. The partners aim to create solutions for niche property sellers grappling with the economic uncertainty of the post-COVID investment environment. 
Behringer and Orangestar are evaluating acquisition opportunities that include the full spectrum of asset profiles, from those in need of minor repositioning or credit enhancement to full property redevelopment.  Both partners bring over three decades of commercial real estate investment experience through a range of market cycles, said Michael Cohen, president and CEO of Behringer.
“This partnership is a milestone for both organizations as we plan to capitalize on not only a unique cultural fit amongst our respective teams but also an investment environment primed to produce the kind of return profile our investors desire,” Cohen said in a news release. “We each bring unique talents and expertise to our partnership. These were clearly demonstrated in our combined effort leading to the acquisition of McKinney Corporate Center.”
The post-pandemic Allen-McKinney office market is surging, offering opportunity for the McKinney Corporate Center, Cohen said.
“We believe Behringer, our experienced partner Orangestar, and our valued private investors will be well-served with this advantaged, below replacement cost acquisition and its potential for rent growth well into the future,” he said.
Jay Post, managing partner of Orangestar, added: “Our venture is uniquely positioned to take advantage of the surging Texas investment market as well as our unique ability to perform for sellers with an agile approach others can’t match. The proof point was our ability to deliver for the seller in McKinney.”
Along with Behringer, Orangestar was attracted to the asset’s position in the burgeoning submarket and believes it will outpace new construction in its ability to serve existing and attract new tenants anxious for the right value, Post said.
“This attractive asset is a welcome addition to our existing strategic commercial office portfolio in the northern Dallas suburbs’ growth corridor,” he said. 
The property contains roughly 120,234 rentable square feet and is 100% leased. The property’s tenant base includes companies from industries representing commercial building supplies, healthcare/insurance tech, home health care, residential mortgage origination, and coworking/executive suites, among others. 
Behringer and Orangestar will share responsibilities for all asset management and property investment decisions.  Orangestar will provide daily property management and Behringer will provide investor relations.
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