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Landmark North Dallas office towers are next in line for a redo

Investor KBS is renovating its properties in Preston Center and elsewhere in North Texas

A North Dallas office tower complex is the latest local property to get a major makeover.

The renovation of the three-building Preston Commons high-rises on Preston Road is part of owner KBS’ plans to upgrade several of its North Texas properties.

“We have a history of always reinvesting in our properties, said Brett Merz, senior vice president and KBS’ Dallas market leader. “We are embarking on the renovations to meet the demands of today’s tenants.”

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California-based KBS REIT bought the Preston Commons office buildings in 2013, along with the nearby Sterling Plaza tower. The almost 430,000-square-foot office campus is one of the largest in Dallas’ popular Preston Center district, with buildings constructed in 1958 and 1986.

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The campus was renovated in 2010 and again when KBS acquired the properties in 2013.

Now KBS is spending more than $10 million to give the property an even bigger redo — inside and out.

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“We view it as an iconic project within Preston Center and Dallas,” Merz said. “It’s important to make an investment and modernize it.”

Dallas architect Corgan is overseeing the remodeling.

KBS has already redone the lobby of the oldest building, at 8111 Preston Road, and is moving on to the lobby areas in the two western towers.

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“It includes multiple new seating and lounge areas,” Merz said. “We will be creating much more of a hospitable environment.”

The renovations will also add a conference center with a training room that can accommodate as many as 50 people.

New rotunda lounge area at Preston Commons in North Dallas.
New rotunda lounge area at Preston Commons in North Dallas.(KBS)

But it’s outside the buildings that KBS is making the biggest changes, with spaces for workers in the towers to take a break.

“We are scraping the two existing outdoor courtyards and creating a new parklike experience,” Merz said. “There will be a variety of seating areas with new landscaping.

“There will be two outdoor conference areas, and there will be a new outdoor kitchen area,” he said. “The outdoor areas are going to include a recreational turf section that will have a putting green and an area for outdoor exercise classes.”

Merz said the work will be done in phases and should be completed by the end of the year.

Preston Commons is about 80% leased with tenants including JPMorgan Chase, Wells Fargo and BB&T.

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“One of the reasons for the renovation is to help us retain all of our existing customers and attract new customers as well,” Merz said.

That’s an approach that KBS is taking with several of its Dallas-area office buildings.

The investor just completed upgrades to its Legacy Town Center building in West Plano. And KBS is working on a second redo of the landmark Providence Towers buildings on the Dallas North Tollway in Farmers Branch.

“When we purchased it in 2009, we invested about $3 million,” Merz said. “We think it’s time to further modernize it.”

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The 18-story, silver-glass Highland Park Place tower KBS owns in Dallas’ Knox Street district is also on the list for a remolding.

“We are focused on renovating the lobby first as well as considering other renovations that will be transformational for the property,” Merz said. “We love the asset and the location and are really excited about everything going on in that part Dallas.”

KBS is one of the largest office building owners in North Texas and one of the biggest real estate investors in the U.S. Last year, the company had more than $11.6 billion in properties around the country. It’s one of the top 10 office owners internationally.

One of the planned courtyard redos at the Preston Commons complex.
One of the planned courtyard redos at the Preston Commons complex.(KBS)