Brett Moody, chairman and CEO of Moody National Cos., says thedealmakers were the like-new finish-out and solid upside potential."We set aside $2 million for additional TIs and leasingcommissions, but the building is in excellent shape," says Moody,whose company acquired the asset at 15710 JFK Blvd. from KBS RealtyAdvisors of Newport Beach, CA.

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On the tenant side, Weatherford International Ltd., FMCTechnologies Inc. and Kraton Polymers US LLC take up 70% of the1985-constructed building with long-term leases averaging 10 years.Moody tells GlobeSt.com that the remaining tenancy has three- tofive-year leases. Moody National will manage the 90%-leasedbuilding and outsource the leasing assignment.

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"The majority of the building was leased out in the $19 per sfrange. Class A space of this caliber is $21 per sf in thissubmarket," Moody says. As leases roll over the next five years, hesays rents could be bumped as high as $23 per sf if the market anddemand live up to expectations. "We saw minimal rents withlong-term leases in place from the three long-term companies," heexplains, "and when the majority of the other leases roll, there'sour increase."

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Moody National is picking up the acquisition pace, with moreclosings in the Houston area planned before this quarter ends. Thecompany also is seeking class A assets on the East and Westcoasts.

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Teddy Dykoski, Moody National's acquisitions associate,negotiated the buy side. Ken Page, senior director with Cushman& Wakefield of Texas Inc., represented KBS Realty Advisors.

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