"The acquisition of this property enables Koll/PER to acquire acore asset with strong returns, one that is consistent with the mixof our partnership's current portfolio of multi-tenant, lightindustrial and suburban/garden office space," says Koll Co.acquisitions manager Eric Andris. "We've been actively looking fordeals in the Houston market and this project was targeted as one ofour favorite flex projects in Houston."

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The complex at 5353-73 W. Sam Houston Pkwy. N. is located innorthwest submarket, which Andris calls one of the fastest growingin Houston, with a base of over 105 million sf of industrial space.It also is in the center of the Techway Corridor and just north ofthe Energy Corridor, which he says have been two of the market'sfastest-growing business sectors. In addition, the complex, whichwas built in two phases from 2005 to 2007, offers freewayvisibility and easy access to the toll road.

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Consisting of 18 tenant spaces, Park Place 8 is 92% leased.Major tenants include Amerisciences, BP Microsystems, Cintas,Morrison Homes, Patterson Dental and Ryland Homes.

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The joint venture between Newport Beach, CA-based Koll Co. andthe Public Employee Retirement System of Idaho had in-house brokersnegotiating the acquisition. Granite Properties was represented byThomas Lynch of CB Richard Ellis, who brought the property toKoll's attention. "Tom does an excellent job of marketing thisproduct type to the appropriate buyers," Andris says.

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Although terms of the transaction were not disclosed, the fourbuildings are assessed at $14.4 million, according to the HarrisCentral Appraisal District. The Koll Co. exec tells GlobeSt.comthat a similar class A flex project in northwest Houston would bevery hard to duplicate at an equivalent price in today's market,given the increased land prices.

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Andris says apart from being interrupted by Hurricane Ike, thetransaction and closing went very smoothly. "Granite Properties didan excellent job in helping us get through the due diligence andclosing. It was one of the smoothest transactions I've be a partof," he remarks.

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