In an SEC filing outlining the 2200 W. Loop South deal, theacquisition from CCD Acquisitions LLC was funded through anon-going public offering and a seven-year, $17.4-million loancarrying a 5.89% fixed-rate interest. Tenants' aggregate base rentis $3.9 million per year, with 6.2 years as the weighted averagetime left on leases. The new owner plans to make cosmetic upgradesto the building, which is situated on 4.27 acres.

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Rodney Richerson, senior vice president with KBS CapitalAdvisors of Newport Beach, CA, says the building's occupancy,tenants and location were the primary driving factors behind thebuy. Tenaris Global Services USA Corp. and Morgan Stanley DW Inc.occupy 64% of the building. Furthermore, he says "we really likejust about every submarket between Downtown and the EnergyCorridor."

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The 35-year-old asset's acquisition follows on the heels of KBS'$27-million buy of a 234,231-sf office building at 3355 W. Alabamain the Greenway Plaza submarket, which is located about 2.5 milesnorthwest of its newest purchase.

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Richerson says Houston continues to be one of the company'stargets for investment. "As a company overall, we're investing alot more money in assets than we did in the past. So far this year,we've spent about $1.6 billion," he tells GlobeSt.com. "With theHouston real estate market so strong right now thanks tounprecedented growth in the energy business, we're hoping to domore."

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Richerson points out that KBS typically holds onto propertiesfor five years, which is the plan for 2200 W. Loop South. However,he says "we'll hold an asset longer, if appropriate, particularlyif a value-add opportunity fits well into our business plan."

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KBS was represented in-house by Bill Rogalla, senior vicepresident. Houston-based Holliday Fenoglio Fowler LP's seniordirector H. Dan Miller and associate director Martin Hoganrepresented CCD Acquisitions. Doug Little, executive vice presidentof Houston-based PM Realty Group, and Mike Hackett, a vicepresident, will lease and manage 2200 W. Loop South for the newowner.

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