PRP Real Assets and Riyad Capital have refinanced 777 Hidden Ridge, a large single-tenant office asset in Irving, Texas, with a new $250 million CMBS loan. The 1.1 million-square-foot property adds another sizeable transaction to the suburban Dallas office debt market as ownership replaces existing long-term financing.
According to reporting cited from Commercial Search, Bank of America originated the new loan. The financing is structured as a two-year, interest-only note and includes three separate one-year extension options, providing the borrowers with up to five years of total term if all options are exercised. The deal shifts the capital stack away from the previous long-dated mortgage, while keeping a substantial amount of senior debt on the property.
The prior financing on 777 Hidden Ridge consisted of a $253.8 million note issued in 2019 by Citizens Financial Group, with a scheduled maturity in 2029. The new CMBS execution thus replaces a sizable portion of that debt package several years ahead of the original loan’s maturity, giving ownership additional flexibility in managing the asset and its capital structure.
The building was completed in 2019 by KDC and Verizon as a build-to-suit project for Pioneer Natural Resources USA Inc. PRP Real Assets and Riyad Capital acquired the property later that same year, positioning themselves as long-term owners of a modern, large-format office facility within the Irving market. The asset was originally conceived as a bespoke corporate environment tailored to a single major tenant.
Pioneer signed a 20-year, triple-net lease at 777 Hidden Ridge commencing in 2019 and extending through 2039. The lease includes no early termination provisions and no other contractual rights for the remainder of the term, which keeps cash flow obligations in place despite subsequent changes in occupancy. Pioneer has since vacated the building but remains fully responsible for rent and other lease obligations for the duration of the agreement.
With the tenant no longer occupying the premises, Pioneer is actively seeking to sublease the space. Any successful sublease arrangement would occur under the umbrella of the existing long-term triple-net structure, preserving the original lease framework while potentially bringing new users into the building.
The 10-story property offers a full suite of amenities intended to support a large corporate user base. On-site features include a conference center, fitness facility, coffee shop, childcare services, a medical clinic and a six-story parking garage providing 2,569 parking spaces. These amenities are designed to enhance the workplace environment and support both employee convenience and large-scale operational needs.
