1425 N Dallas Ave - Office FOR SALE


Lancaster, TX 75134
$2,700,000 USD
310-261-8428
1425 N Dallas Ave, Lancaster, TX for Sale
$2,700,000 USD
Office - FOR SALE
1/11
null | 9% Cap Rate

1425 N Dallas Ave
Lancaster, TX 75134


HIGHLIGHTS

  • Value-Add Opportunity: Incredible upside potential with 19% vacancy ready for strategic lease-up and property repositioning
  • Strategic Location: Highly visible along N Dallas Avenue with direct access to major highways and DFW transportation corridors
  • Quality Asset: High quality construction in rapidly growing area with strong parking ratio of 3.21 spaces per 1,000 SF
  • Prime Amenities: Abundance of dining, lodging, and entertainment options in immediate proximity supporting tenant satisfaction
  • Strong Parking: (3.21 / 1,000 SF), uncommon for comparable assets
  • Fourth Floor: ±6,800 SF, unfinished, elevator served, plumbing roughed in

OVERVIEW

DWG Capital Group is pleased to present the opportunity to acquire 1425 N Dallas Avenue, a 9% cap in-place, 12% stabilized return on cost, cash-flowing multi-tenant office asset anchored by Regions Bank in the heart of the Dallas–Fort Worth metroplex, one of the fastest-growing and most economically diverse regions in the United States. The ±34,650 SF four-story building sits on ±3.92 acres along highly visible North Dallas Avenue. 2026 rent roll totals $465,003 of scheduled annual rent across approximately 28 tenants, up materially from prior marketing as four new tenants were signed in 2026 alone, adding roughly $43,200 of annual rent. Occupancy now stands at 81.1% excluding the unfinished fourth floor, up from 60.9% previously. Regions Bank's share of scheduled rent has also come down to 52%, reflecting a more diversified, more de-risked income stream than the building offered a year ago. Income Profile & Upside Mechanics The offering provides immediate in-place cash flow with defined, remaining upside. First floor availability, continued mark-to-market on below-market legacy rents, and the ±6,800 SF unfinished fourth floor, elevator served with plumbing rough-in already in place, are the three levers the next owner has to work with. Executive suites on the third floor are already achieving $30 to $40/SF, well above legacy rents elsewhere in the building, demonstrating the rent growth available on lease-up and renewal. Updated Income & Value Support Per the September 1, 2026 rent roll, in-place NOI is approximately $243,662, supporting the $2,700,000 offering price at a true 9.0% going-in cap rate, or approximately $78/SF. On a stabilized basis, with the remaining ±12,301 SF leased to market, NOI grows to approximately $312,200, a 12% return on cost against the $2.70M entry basis, roughly $68,500 of annual NOI growth from today. Applying a future market cap rate of 8.0% to that stabilized NOI implies an exit value of approximately $3.9M, creating roughly $1.2M of value through leasing and stabilization execution. All income and expense figures are best-estimate underwriting based on information provided and are subject to buyer's independent verification during diligence (rent roll/leases, operating statements, reimbursements, trailing expenses, and any non-recurring items), and should not be relied upon as a representation or warranty of actual results. Anchor Tenancy – Regions Bank Regions Bank (NYSE: RF) has anchored the property since 2005 and occupies 9,506 SF under a lease through June 2030 at $242,403 of current annual rent, now 52% of scheduled income. Ownership reports that Regions is planning to refurbish and update its space and, based on its relationship and discussions with the bank, believes this branch to be Regions' most profitable location in North Texas and a primary banking location in Lancaster. These statements reflect ownership's direct dialogue with Regions rather than published bank disclosure, and provide a strong indication of the anchor's long-term commitment to the location. Key Investment Metrics Building Size: ±34,650 SF Land: ±3.92 Acres Current Scheduled Annual Rent: $465,003 across ±28 tenants Occupancy: 81.1% excluding 4th floor (65.5% of total building area) In-Place Cap Rate: 9.0% on ~$243,662 of NOI Stabilized Return on Cost: ~12% on ~$312,200 of NOI Fourth Floor: ±6,800 SF, unfinished, elevator served, plumbing roughed in; estimated buildout $150,000–$200,000 Parking: 122 surface spaces | 3.21 / 1,000 SF Construction: Masonry / Concrete | Year Built: 1974 Strategic DFW Location Prominent frontage and signage along N Dallas Avenue with direct access to I-35E, I-20, and US-67, supporting strong commute patterns and regional connectivity. Lancaster and the broader southern Dallas submarket continue to benefit from sustained corporate migration, population growth, and a pro-business operating environment. The building remains the largest office property serving East Lancaster's expanding warehouse and logistics base. Investment Rationale True 9% cap on updated in-place NOI, now supported by a $465,003 scheduled rent roll Occupancy up to 81.1% excluding the fourth floor, on the back of four new 2026 leases Regions concentration reduced to 52% of scheduled rent, a more diversified income base Fourth floor vacancy remains a clean, defined lease-up opportunity with infrastructure already in place 12% stabilized return on cost, with $1.2M+ of value creation potential at an 8% exit cap Regions Bank anchor through June 2030, on-site since 2005, reportedly its most profitable North Texas location Strong parking (3.21 / 1,000 SF), uncommon for comparable assets DFW macro tailwinds and long-term growth trajectorycan immediately generate cash flow while executing a clear, achievable value-add business plan.

FOR SALE DETAILS

PRICE

$2,700,000 USD

PRICE/SF

$71 USD /SF

CAP RATE

9%

% LEASED

-

TENANCY

Multiple

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY TYPE

Office

ADD'L SUBTYPES

Bank, Loft/Creative Space, Office/Residential

TOTAL BUILDING SIZE

-

STORIES

4

BUILDING CLASS

B

YEAR BUILT

1974

SPRINKLERS

-

PARKING SPACES

122

LAND DETAILS

LAND ACRES

3.92 AC

LAND SF

170,755 SF

ZONING

R

APN/PARCEL ID

65087402710040000,65087402710040900

ASK ABOUT THIS PROPERTY

Judd DunningDWG CAPITAL GROUP ( Formerly NGKF/ARA)More Info
310-261-8428

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Judd DunningDWG CAPITAL GROUP ( Formerly NGKF/ARA)More Info
310-261-8428

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.