Principal Real Estate bought the
145,000-SF 2001 Timberloch Place.

THE WOODLANDS, TX-Principal Real Estate Investors acquired the 145,580-square-foot 2001 Timberloch Place, a 1980-constructed building with pending value-add opportunities. The seller was CBRE Global Investors, which advised on behalf of the California State Teachers’ Retirement System (CalSTRS).

The office building is situated on 8 acres in the mixed-use Town Center of The Woodlands. The property was remodeled in 2007, and is 100% leased to Repsol USA and Entergy Services.

“While 100% leased at the time of sale, it is expected that a 90,000-square-foot tenant will vacate in April 2015 representing a rare opportunity to purchase a value-add office building in Houston’s best performing submarket,” noted Dan Miller, senior managing director with HFF in a press release about the transaction. Miller and HFF colleague, associate director Trent Agnew, led the sales team that represented the seller in the transaction.

The Woodlands is a tight office market. Colliers International’s Q3 office market research report points to a 5.8% vacancy in the submarket. The submarket has close to 7 million square feet in office space, with approximately 437,000 square feet vacant. The bulk of the available space is among class B buildings.