Dallas' San Jacinto Tower to Change Ownership

A Canadian investor has agreed to pay $56.3 million for downtown Dallas' San Jacinto Tower.

The 33-story office tower at Ross Avenue and Pearl Street is being sold by a New York investment partnership to IPC (U.S.) REIT Inc. of Toronto.

The new owners plan to spend more than $2 million to upgrade and market the office tower, which is 65 percent leased.

"We see this acquisition as a unique opportunity for the REIT to acquire a trophy office property in an excellent location," Vinay Kapoor, the REIT's president and chief executive, said in an announcement.

San Jacinto Tower, which was built in 1983, has tenants that include Ernst & Young, Clark Consulting and Merrill Lynch.

The building has been on the market for more than a year, and several potential transactions have fallen through. Holliday Fenoglio Fowler LP was marketing the building.

The acquisition is being financed with a $45 million mortgage provided by Barclays Capital.

The REIT also said that it's in discussions to sell a 10 percent interest in the building to a local investor. Officials with the Toronto firm could not be reached for more details.

When the Dallas purchase is completed, the real estate investor says, it will own 34 buildings in the United States containing more than 8.3 million square feet.