P
iedmont Office Realty Trust has exited its investment in the former CVS Health Tower in Irving after eight years, selling it to Capital Commercial Investments for significantly less than its last trade value. The Atlanta-based REIT sold the 315,000-square-foot office property at 750 West John Carpenter Freeway to Austin-based CCI for $23 million, or $73 per square foot, marking a 54% discount from the $49.6 million Piedmont paid in 2016.

    The acquisition was part of a package deal that included a Houston Energy Corridor office building sold at a 63% discount. CCI, led by founder and president Doug Agarwal, has been buying undervalued properties in the Texas office market for years. The company also acquired Exxon's former Irving campus in 2022.

    The West John Carpenter building is currently 46% occupied, with CVS Health as one of its remaining tenants. Despite renewing its lease through 2028, CVS has been reducing its office presence due to cost-cutting measures and laid off over 150 employees at the location last year.

    Agarwal sees opportunity in the struggling Dallas-Fort Worth office market, particularly near the expanding Dallas-Fort Worth International Airport. He believes that rents won't rise above $10 per square foot for three more years, making it an attractive time to invest. Other investors, such as SkyWalker Property Partners and Bradford Companies, are also ramping up their investments in distressed properties across North Texas.