Younan acquired the 26-year-old building at 2211 Norfolk St. in early 2006 to jump-start a buying spree in the Houston office market. In the past two years, Younan has redone the common areas and lobby and freshened up the façade. Younan also has boosted occupancy to 83% from 75% at the time of its purchase, according to James Adams, senior vice president in Capmark's Houston office. He says other leases are under negotiation, which will take occupancy higher. The loan arranger says there is no significant lease roll in the near future.

Adams says one major appeal is the asset's location, which is not to far from Texas Medical Center. "This building plays to medium-size tenants, such as law firms and medical sales companies," he says, adding there are small business operators on the tenant roster as well. "This is good for tenants who don't have to be in the Medical Center, but need access to it and other hospitals around Houston."

While the location has appeal so does the owner. "Younan is a good operator and aggressive with re-tenanting a building or leasing it up," Adams tells GlobeSt.com.

Younan's three-year interim financing has a 75% loan-to-value ratio and a floating rate over Libor. Adams says the Capmark loan program is geared toward shorter loans, typically for value-add opportunities. He says Younan will continue upgrading hallways and common areas when leases do roll.

Meanwhile, Capmark is working with Younan Properties about potential acquisitions in Houston. However, Adams cautions that the negotiations and details are very preliminary.