Behringer and Orangestar Announce Sale of Flex Industrial Building in Dallas
Behringer and Orangestar have officially announced the successful disposition of 4880 Alpha Road, a flex industrial/showroom property located in Farmers Branch, Texas, within the dynamic Dallas-Fort Worth (DFW) Metroplex. The property was sold to a publicly-listed wholesale distributor, marking a successful execution of a value-add investment strategy in the Dallas industrial market.
Prime Location in a Thriving Submarket
4880 Alpha Road boasts excellent frontage and visibility along Alpha Road, one of the key corridors within the Metropolitan/Addison submarket. This area is recognized for its strong economic fundamentals, high traffic exposure, and diverse mix of industrial, retail, and commercial tenants. The property’s location has positioned it well to meet the growing demand for flexible industrial and showroom spaces in the region.
According to Michael D. Cohen, CEO and President of Behringer, “4880 Alpha represented an opportunity to capitalize on an attractive DFW Metroplex location and growing demand by tenants for flexible footprints.” The property’s strategic position along a major thoroughfare in Farmers Branch provides tenants and buyers with convenient access to major highways, distribution networks, and the broader Dallas commercial ecosystem.
Strategic Value-Add Investment
The sale of 4880 Alpha Road underscores the effectiveness of value-add investment strategies employed by Behringer and Orangestar. Both companies are Dallas-based family offices that focus on real estate equity investments, particularly properties with the potential for operational improvements and strategic repositioning.
Jay L. Post, Managing Partner and President of Orangestar, emphasized the approach, stating, “We unlocked value by executing a modest but strategic capital outlay over a relatively short hold period, positioning the building for an attractive sale.” By combining targeted improvements with an active leasing strategy, the joint ownership team successfully enhanced the property’s marketability and long-term appeal to potential buyers.
Acquisition and Capital Improvements
Behringer and Orangestar acquired 4880 Alpha Road in July 2023, recognizing its potential as a flex industrial/showroom property with an underutilized footprint. Following the acquisition, the property underwent a series of targeted capital improvements, designed to refresh the building’s aesthetic and functionality while improving tenant experience.
Key upgrades included:
- Exterior and Interior Refreshing: Modernizing the façade and interiors to create a more appealing environment for potential tenants and buyers.
- Enhanced Landscaping: Improving curb appeal with upgraded landscaping and site enhancements.
- Mechanical Upgrades: Addressing HVAC, electrical, and plumbing systems to ensure the property met current operational standards.
These improvements allowed the building to attract a high-quality buyer, demonstrating how relatively small, strategic investments can significantly increase asset value in the industrial market.
Tenant Appeal and Flexibility
The repositioned space at 4880 Alpha Road is particularly attractive because of its flexibility. The property can accommodate a mix of retail/showroom, office, and industrial/storage uses, aligning with the growing trend among tenants seeking multifunctional spaces. This flexibility enhances the property’s competitive advantage in the DFW industrial market, which has experienced robust demand for adaptable industrial facilities in recent years.
Successful Leasing and Sale Execution
The successful disposition of the property was facilitated by STOIC Real Estate Partners, led by Chad Albert and DJ Draper. The firm managed both the leasing campaign and the sales process, ensuring that the property reached the right pool of potential buyers while achieving optimal terms.
STOIC Real Estate Partners’ expertise in marketing, tenant relations, and transactional execution was critical in positioning 4880 Alpha Road as an attractive investment opportunity. By aligning the property’s enhancements with market demand, the team effectively maximized the building’s sale price and overall value.
Demonstrating Market Appetite
The sale of 4880 Alpha Road reflects the continuing appetite for infill industrial properties in Dallas among discerning investors. Infill industrial buildings—those located within established, high-demand urban or suburban areas—have consistently demonstrated strong performance due to their proximity to transportation networks, population centers, and business hubs.
Investors are increasingly drawn to properties like 4880 Alpha Road because they combine strategic location, operational flexibility, and the potential for value creation through improvements or leasing initiatives. The successful sale confirms that well-executed value-add strategies remain highly effective in today’s competitive industrial market.
Looking Ahead
For Behringer and Orangestar, the disposition of 4880 Alpha Road represents another milestone in their ongoing investment strategy, which focuses on acquiring, enhancing, and repositioning commercial properties in high-demand markets. By leveraging local market knowledge and hands-on management, both firms continue to demonstrate their ability to unlock value and execute successful exits in a relatively short holding period.
Michael D. Cohen summed up the achievement, noting that the property represented a rare opportunity to meet growing tenant demand in a prime DFW location. Similarly, Jay L. Post highlighted the efficiency and effectiveness of the investment strategy, which relied on strategic capital improvements, operational enhancements, and active market engagement.
Conclusion
The sale of 4880 Alpha Road illustrates a successful collaboration between two Dallas-based family offices, Behringer and Orangestar, as well as the expertise of STOIC Real Estate Partners in managing complex industrial transactions. By combining strategic acquisition, thoughtful capital improvements, and a targeted sales approach, the property was repositioned to meet market demand and deliver a profitable and timely disposition.
As the Dallas-Fort Worth industrial market continues to grow, properties like 4880 Alpha Road highlight the ongoing opportunities for investors who can identify assets with repositioning potential and execute a well-structured value-add strategy. The transaction reinforces the appeal of infill industrial buildings in key urban and suburban markets and underscores the continued strength and resilience of the DFW industrial sector.
SOURCE LINK: https://www.businesswire.com/
