West Loop South office building
and has plans to upgrade it.
HOUSTON-Less than four months after coming to market, the 400,000-square-foot 1800 West Loop South has been snapped up by KBS Strategic REIT Inc. The Newport Beach, CA investor acquired the 88%-leased building from Easton Group, Chuck Cobb, Jorge Perez and Pearlmark Real Estate Partners LLC.
Though the sales price was undisclosed, sources report KBS paying $68.5 million, plus closing costs, for the asset.
The 21-story office building is located in the Galleria submarket just off Interstate 610. According to KBS, the REIT’s plans are to improve and modernize the building, which will include an upgrade of the lobby and elevators. “We are pleased to acquire another quality Houston asset,” noted Jeff Rader, vice president of KBS Capital Advisors in a press release. “Houston is among the best performing markets in the country and we believe that strong oil prices, an increasingly diversified local economy, and the lack of new office development will contribute to significant demand over the long haul.”
Russell Ingrum, Jared Chua, Bernard Branca, Gary Carr and John Alvarado with CBRE represented the seller in the transaction. During a previous interview with GlobeSt.com, Ingrum indicated that the office building offers good upside through a balanced roll and below-market rents.
KBS-affiliated companies own four other Houston-area properties for a total of more than 1.3 million square feet. They are Ten West Corporate Center, a 199,001-square-foot office building in the Katy Freeway/Energy Corridor submarket, the 454,843-square-foot Two Westlake Park complex, Clay Crossing, a 222,750-square-foot industrial campus, and the 70,474-square-foot 8300 FM 1960 building.