HOUSTON—KBS Real Estate Investment Trust II has sold its Two Westlake Park office building in the Energy Corridor submarket here. Headquartered in Newport Beach, CA, KBS REIT II didn’t disclose the buyer or the sales price; Real Capital Analytics says locally based Hicks Ventures paid $120 million, or $264 per square foot, for the 455,476-square-foot property.
KBS REIT II paid $80.5 million in February 2011 to acquire Two Westlake, originally developed in 1982 within the 58-acre Westlake Park, from Younan Properties, which in turn had bought it for $77 million in September 2007. It underwent a renovation in 2012, with 67,334 square feet of underperforming retail condominium space transformed into office.
Currently the property is 100% leased, with ConocoPhillips the largest tenant in a 200,000-square-foot triple-net lease. Other major tenants include BP and Merrill Lynch. “Two WestLake stands as an example of a successful asset in a thriving Houston market that transformed underutilized square footage into revenue-generating office space, while also solving any existing and future tenant’s plans for expansion,” says Gio Cordoves, SVP and market leader at KBS.
In June, GlobeSt.com reported that KBS REIT II bought the 171,510-square-foot 1800 Bering from Fuller Realty Partners. The purchase price was not disclosed; the property was rumored to have traded for $27.8 million. Locally, the REIT also owns the 400,101-square-foot 1800 West Loop South, the 199,001-square-foot Ten West Corporate Center and the 313,873-square-foot West Loop I and II office complex.