Global Firm to Relocate, Expand its North Texas Headquarters
Darling Ingredients Leases 95,000-SF MacArthur Center I Bldg. in Irving, Plans to Move by the End of the Year
Irving-based Darling Ingredients Inc. has made a significant expansion in North Texas by deciding to lease the entirety of an office building in Irving, TX,'s Las Colinas neighborhood.
With the move, the organic ingredient producer (NYSE: DAR) would relocate from roughly 59,000 square feet of office space along O'Connor Ridge Blvd. to a three-story, 95,322-square-foot office building, named MacArthur Center I, at 5601 North MacArthur Blvd. in Irving.
Darling had been seeking a single-tenant building in Irving, its longtime home, said Bill McClung, an executive managing director at Cushman & Wakefield's Dallas office.
"They were looking at buildings where they could be the prominent tenant," McClung told CoStar News. "When this building, which had been upgraded, became available, it was a good fit for them."
McClung, along with Cushman & Wakefield's Robbie Baty, represented Darling Ingredients in its real estate search.
Even though the company had several options in Las Colinas, McClung said single-tenant buildings of this quality can be rare.
"We thoroughly researched the market, and when you look for this special type of building, it's a tight market," he said, adding Las Colinas has a 13.9 percent vacancy rate.
"The market has definitely tightened up in the last several years, and we see the market continuing to look strongly at Las Colinas," McClung said.
The longtime real estate broker said the Dallas-Fort Worth real estate market may have another strong year or two left of activity.
In 2016, Massachusetts-based private equity firm Brookwood Financial Partners LLC acquired the building in a $54.5 million portfolio acquisition. The investment firm decided to upgrade the office building in a multimillion-dollar makeover once its former occupant, OneSource Virtual, decided to relocate to the Cypress Waters mixed-use development.
For Brookwood executives, they knew it would be a large block of space to backfill upon OneSource Virtual's departure, but they had planned on upgrading it and making it attractive to a single tenant - which they did, said Kurt Zernich, the firm's senior managing director, director of asset management and general counsel.
Darling Ingredients plans to relocate from The Overlook at 251 O'Connor Ridge Blvd. in Irving by the end of the year.