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Shorenstein's Acquisition of Sterling Plaza: A Strategic Move in Dallas

Shorenstein Investment Advisers, a prominent name in high-quality real estate management, has recently announced its acquisition of Sterling Plaza, a 320,000-square-foot Class A office tower located in the prestigious Preston Center submarket of Dallas, Texas. This landmark acquisition underscores Shorenstein's ongoing commitment to investing in prime properties that exhibit robust growth potential.

Overview of Sterling Plaza and Its Features

Sterling Plaza stands tall with 19 stories and occupies a prime spot within a walkable, mixed-use neighborhood characterized by upscale residential areas. Currently, the building boasts an impressive 89% leasing rate and has recently undergone significant renovations. Notable upgrades include a state-of-the-art conference center, a fully-equipped fitness facility complete with showers and lockers, and a luxurious tenant lounge designed to meet the demands of modern professionals.

Shorenstein's plans for Sterling Plaza go beyond mere acquisition; the firm aims to enhance the property’s entrance, lobby, café, and outdoor communal spaces to create a welcoming, hospitality-inspired environment. The focus on improving tenant experience extends to the introduction of high-touch services and curated programming, which are set to elevate the overall appeal of the office space.

The Strength of Preston Center Submarket

Located in one of the top-performing office submarkets in the U.S., Preston Center boasts an impressive availability rate of just 4.3%. This low availability rate is expected to further decline following a recent acquisition of a large office property that will displace prior tenants in the area. The convergence of limited space and strong demand from tenants suggests a rising trend in rental prices, posing a significant opportunity for growth in this competitive market.

Colby Wick, Managing Director at Shorenstein, remarked, “Despite national office vacancy rates being historically high, we've identified resilience in certain markets where demand has rebounded to pre-pandemic levels.” This statement encapsulates Shorenstein's strategic outlook as they focus on high-performing submarkets, such as Preston Center, that exhibit strong fundamentals.

A Pattern of Growth in Dallas

The acquisition of Sterling Plaza marks Shorenstein's second significant investment in the Dallas market, following their purchase of International Plaza II in the Lower Tollway in 2024. The Lower Tollway has similarly demonstrated exceptional performance, with rents skyrocketing over 25% since Shorenstein's previous acquisition. These moves highlight the firm's aggressive strategy to build a formidable portfolio of premier office assets.

Shorenstein has aggressively pursued top-tier office investments over the last year, with over $1 billion in closed transactions and additional acquisitions already under contract. The Sterling Plaza investment not only reinforces Shorenstein's commitment to premier properties with strong tenant demand but also reflects the firm's confidence in the Dallas market's capacity for long-term growth.

About Shorenstein and Future Plans

Founded in 1992, Shorenstein is a privately-owned investment adviser with a robust portfolio of office, residential, and mixed-use properties across the United States. With headquarters in San Francisco and New York, the firm has successfully acquired assets worth approximately $19.6 billion as of March 2025. Shorenstein employs a vertically integrated approach, leveraging its investment and operating capabilities to identify and seize market opportunities that yield attractive returns.

As Shorenstein continues to navigate the evolving real estate landscape, its strategic acquisitions, especially in high-performing submarkets like Dallas, paint a promising picture for both investors and tenants alike. The future appears bright for Sterling Plaza as it joins the illustrious lineup of Shorenstein’s premium properties, furthering its mission to redefine modern office spaces in thriving markets.

For more information about Shorenstein and its latest investment moves, visit www.shorenstein.com.