- Koa Partners acquired the 850,000 KSF Urban Towers complex in Irving, Texas.
- More than $40M in upgrades are planned over seven years to modernize amenities.
- Urban Towers is about 68% occupied, with 140,000 SF available and several new leases signed.
- A $20M city incentive ties the property’s parking to the adjacent Toyota Music Factory venue.
North Texas Landmark Sold
CoStar reports that Koa Partners, an Irving-based real estate investment firm, has purchased the two-tower, 850,000 KSF Urban Towers office complex. The seller, Parallel Capital Partners, reached the off-market deal with Koa through a partnership with Gentry Mills Capital. This is Koa’s largest transaction to date, reflecting long-term interest in the property by CEO Harry Lake.
Significant Investment Planned
Koa will invest over $40M in Urban Towers over the next seven years. Planned upgrades include renovations to common areas, amenity enhancements, and updated finishes for tenants. Current amenities feature a 100-person conference center, fitness facility, renovated lobby, and a large tenant courtyard. The complex, last renovated a decade ago, is considered to be in strong condition, with improvements mainly focused on aesthetics and tenant experience.
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Leasing Momentum
Occupancy at Urban Towers stands at 68%, with about 140,000 SF of contiguous space available. Four new leases totaling roughly 50,000 SF have recently closed, including agreements with OnRobot, RLI Insurance, Aquantia, and Shott Beverages. Active negotiations are ongoing for an additional 300,000 SF as leasing activity shows renewed demand in the area. This pickup in leasing aligns with broader signs of pricing stability and improving investor sentiment across the office sector. Anchors include Fortune 500 tenant Celanese, along with Berkley Southwest and Avocados From Mexico.
Incentives and Community Impact
The City of Irving pledged a $20M incentive to Koa Partners. It tied the deal to leasing the parking facility to Toyota Music Factory after office hours. The city expects this agreement to generate over $26M in revenue over the next 30 years. According to local business leaders, Koa Partners’ commitment underscores confidence in the Irving-Las Colinas office market’s ongoing vitality.
