Montgomery Street Partners, J. Small Investments and an affiliate of Lyda Hill Philanthropies have secured more than $72 million in financing for the $110 million redevelopment of a 135,000-square-foot office property in Dallas.
InterBank provided a five-year, $61.4 million construction note, while Nuveen Green Capital originated a 30-year, $11.4 million C-PACE loan, public records show. JLL Capital Markets arranged the financing.
Originally completed at 3020 Pegasus Park Drive as a call center building, the asset will be transformed into a research and development facility. It is set to feature pre-built lab spec suites ranging from 4,526 to 7,722 square feet and centralized lab services. The property will have a parking ratio of 2.5 per 1,000 square feet, a renovated main lobby area and modern HVAC and electrical systems.
The two-story building is part of the 25-acre Pegasus Park, so its tenants will have access to campus amenities including a fitness center, conference center, brewery with a restaurant and taproom, indoor and outdoor lounge and outdoor firepits. Future on-site connections will extend to the Trinity Stand Trail, Katy Trail and Trinity River walking and biking paths.
The Bridge Labs at Pegasus Park is already 30 percent preleased and expected to open by the third quarter of 2024. Perkins & Will is designing the facility while Swinerton serves as contractor with the help of Project Management Advisors. JLL is the property’s leasing agent, according to DMagazine.
Senior Managing Director Jim Curtin and Senior Director Andrew Gray led the JLL Capital Markets team which represented the borrower. Formerly at JLL and now with Hamilton Partners, Jason Piering also worked as part of the financing team.
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Located between the Design District and the Southwestern Medical District, Pegasus Park is anchored by academic tenants including UT Southwestern, which signed a 180,000-square-foot lease at the property in early 2022, SMU and BioLab. The Advanced Research Projects Agency for Health recently announced that the campus will house its Customer Experience hub.
Pegasus Park is the first campus of its kind in the area. Downtown Dallas is roughly 6 miles away and Interstate 35 offers nearby transportation access along with DART bus stops and railway stations.
The Bridge Labs’ developers selected the Dallas location considering such factors as affordability, access to a wide talent-pool, capital availability and proximity to STEM and health-care higher education institutions. Universities growing the life science market in the area include the University of Texas Southwestern Medical Center and the University of North Texas Health Sciences Center in Fort Worth.
The Dallas market achieved the eighth largest amount of venture capital funding in the nation between 2018 and 2022, according to a CBRE report. Considering the nearby educational institutions and inward migration to the area, the metro’s life sciences labor pool has grown by 17 percent since 2019.