ONE HANOVER • DALLAS ,TX
New York Life (Ownership) with Stream Realty Partners — a spec suite strategy, a reimagined arrival experience, and AI-targeted reach to the brokers and tenants most likely to fit.
Situation
As the lender, New York Life completed a judicial foreclosure on One Hanover (16633 N Dallas Pky) in December 2023, after they had lost all confidence in their borrower’s ability to execute the business plan outlined in 2017. The durable occupancy of the building was 39.6 percent at the time New York Life (“Ownership”) turned to Stream to counsel them on a go-forward plan.
In lieu of selling the building at a loss relative to their debt basis, Stream created a business plan which included a flexible spec suite strategy on the 19,965 RSF of shell vacancy on the 4th floor and a low cost, high impact common area cosmetic renovation plan to improve the arrival experience for tenants.
Action
Stream immediately got on the offensive to curate a building specific marketing plan which highlighted the strength of the new ownership structure following the judicial foreclosure. This campaign included targeted email blasts, short form video content for social media, and dozens of conversations with brokers who are most active in the submarket.
Ownership invested $1.1M, $55 per RSF, to design and construct a flexible spec suite plan that could accommodate up to 3 tenants. These flexible spec suites catered to the tenant demand seeking to be operational quickly but desiring to personalize their office space, given that the Landlord constructed the spaces with no demising walls and underwrote an additional $15 per RSF in Tenant Improvement Allowance to offer these users.
Immediately following the delivery of the spec suite campaign, Stream and the Ownership began developing a common area enhancement strategy, which ultimately led to a cosmetic reimagination and expansion of the building lobby to include the refreshed lounge-style collaboration space. In total, $1.5 million was spent to enhance the rst impression upon arrival to the building.
In their words
“RealtyAds was a key part of our leasing plan at One Hanover. Its AI was uniquely positioned to help us educate prospective tenants and brokers about the change in ownership and forthcoming capital renovations. This consistent and frequent outreach on social channels helped our team redefine the negative narrative of the building following the foreclosure.”
Results
Within 12 months following delivery, Stream had multiple tenants competing for these spaces, such that all of the delivered spaces were leased and Stream had secured an additional 16,211 RSF of preleases for a future round of exible spec suites on the 5th oor of the building, immediately increasing occupancy to 57.6 percent.
Additionally, Stream leveraged the nish conditions on the 4th oor and the forthcoming common area cosmetic renovation plan to procure a 19,781 SF anchor tenant who executed a new 7-year lease agreement at the building. Currently, One Hanover is 67.9 percent leased.
Asking Rental Rates have grown by over 30% in the past 2.5 years from $21.00/SF + NNN to $28.00/SF + NNN.
Next Steps
New York Life has elected to bring One Hanover (16633 N Dallas Pky) to the of ce investment sales market. Newmark has been tasked to sell the asset to a new buyer.
