Galleria IV Rendering

bought in March 2006

Fortis bought the Galleria prizes in November 2006, pushing occupancy to 98% and rates to $28 per sf to $30 per sf. Alvarado says the majority of leases is below market, with upcoming 10% to 15% annual rolls for three, possibly four years.

The 25-story Galleria I, situated at 13355 Noel Rd., totals 468,750 sf. The 24-story Galleria II at 13455 Noel Rd. has 430,045 sf. And, the 26-story Galleria II, at 13155 Noel Rd., has 519,675 sf. "The additional development potential for Galleria IV is considered one of the most compelling proposals in the market," Stone says in a press release.

Crews says the selling points of below-market in-place rents and vacancy at JPMorgan International Plaza III "allows a new owner to capitalize on market-leading absorption trends and rapidly improving rental rates."

There is no edict from Fortis to sell before year's end. "But we are going to run a pretty fast-tracked process," Alvarado stresses.

Chicago-based Equity Office Properties and Crescent Real Estate Equities Co. of Fort Worth have hawked large portfolios at record or near-record prices in the city. But, as Alvarado points out, the assets have gone to multiple buyers. He says the Fortis sale is a prime candidate for a single buyer due to asset quality and the JLL international directors' circle, of which seven are dedicated to the capital markets team. "This is a portfolio that should receive significant interest from international buyers," he contends. "This could set a record."

Instant Insights /

Fortis Pushes 2M-SF Plus of Trophies to Market

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