CBS Tower :

Total square feet: 247,947 Total SF

12001 N. Central Expressway
Dallas, Texas 75243

Property Description

Panther provided approximately 92.69% of the total equity for the purchase of CBS (Coit) Tower, a13-story value-add office building totaling 247,947 square feet with five levels structured parking above ground and three levels underground parking, located in an established and desirable North Central Expressway submarket of Dallas, Texas.

Acquisition Process

In September of 2018, ATCAP closed this office opportunity from a multifamily group out of California with this being their only office asset. The seller purchased the building in 2007 by foreclosing on a previously acquired note. They have leased up and provided necessary tenant finish dollars. The Seller had not provided capital expenditure monies such as elevator repairs/replacement, lobby, corridor and bathroom updates, and chiller replacement thereby creating the value-add opportunity. Despite the lack of common area updates, the property was 95% occupied thus validating the building’s desirable location. The building manager was not on-site full-time, which is a source of consistent complaints fromtenants.

ATCAP was and remains a tenant in CBS Tower and took a hands-on approach to implementingthe comprehensive capital expenditure plan to greatly improving the tenant experience including upgraded elevators, HVAC systems, and common areas including a 2nd floor tenant lounge and delicatessen. With below market, in-place rents, and sub-standard, inattentive property management, the Property offered excellent value-add opportunity through the retention/renewal of existing tenants and the renewal of near-term expiring leases at the then market rent.

Property History

Occupancy remained strong at 94-95% throughout the first 2 years of ownership and began paying distributions at a 10%+ coupon rate ahead of projections.

The Global pandemic (COVID-19) began and dominated 2020 with CDC recommendations for quarantine and shutdown during the peak of outbreaks. This followed with travel ban, billions of dollars in federal funding to fight the disease’s spread, and government relief checks issued. Panther and ATCAP opted to suspend distributions for the first quarter due to uncertainty during Covid outbreak. Distributions resumed at a 10.4% coupon for the 2nd and 3rd quarters, and a partial catch distribution was made in the 4th quarter of 13.87%. In spite of many concerns, occupancy remained stabilized at 90.00% at year end Post covid, occupancy continued to decline as companies implemented work from home platform or hybrid version, tenants went out of business, and downsized suite sizes.

In September 2023, ATCAP was able to successfully modify the loan with the lender, KKR, receiving a 3-year extension and lowered fixed interest rate of 3% in exchange for a partial paydown of the principal balance and future sharing of tenant improvements (lender – 60% / investors – 40%). ATCAP made a capital call in conjunction with the loan modification and Panther Limited Partners funded their pro rata amount. At the time, leasing activity was improving, but since then it has fluctuated with an overall downward sloping trend.

Final Outcome

In September 2025, the building’s occupancy had furthered declined to 46% occupied and its operations did not cover debt service. With this information in hand, the lender (KKR) requested that we order a broker opinion of value (BOV), which was provided by CBRE. The BOV ascribed a value of $74 per square foot (PSF), which was less than the principal balance of the loan ($102 PSF) and thus also our investment basis ($130 PSF). KKR ultimately sold the property at a loss which also wiped out all remaining equity.

Panther LP’s ultimately received distributions equivalent to 0.23x of original investment or 0.19x of total investment, inclusive of the capital call but unfortunately resulted in a partial loss of limited partners original equity.