Jeff Hollinden of the Houston office of Holliday Fenoglio Fowler LP tells GlobeSt.com that the property was part of Lend Lease's value enhancement fund, which buys, enhances and sells for a profit. Lend Lease used physical upgrades to add value to the holding, built in 1981 and renovated in 1989. The office building is located at 363 North Belt Parkway in the high-demand Greenspoint submarket near the George Bush Intercontinental Airport.
The 363 North Belt currently is 86% occupied, with 54,453 sf available. Hollinden strongly believes the asset will appeal to the current investment market. Unlike years past, today's investment market wants to tap stable well-occupied product rather than properties with a lot of leasing upside potential, he says, adding "big increases in rents have hit a plateau."
Strong credit tenancy with little rollover is favored more so now than ever. The Lend Lease holding has tenants such Newfield Exploration, PD Holdings Inc, Insource Technology Corp. and Abby Office Centers and, more importantly, a lease expiration schedule averaging 4% to 5% until 2006.
Hollinden and Holliday Fenoglio Fowler's James E. Savage are marketing the structure. Holliday Fenoglio is a subsidiary of Lend Lease.
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