The 1970s class B building was damaged by Hurricane Ike in September 2008 and tenants began drifting away ever since. "The storm blew out the windows, blew off part of the roof and had some serious issues," comments Rudy Hubbard with Transwestern's Houston office, who represented Berakadia Commercial Mortgage. If that wasn't enough, "it was foreclosed on in spring 2009," Hubbard tells GlobeSt.com. The building has only one tenant that is occupying part of the first floor.

Hubbard, who teamed with Transwestern colleague Leah Gallagher on the transaction, says the asset attracted 10 offers when brought to market last October. Mehta Commercial's pricing and certainty of closing ensured it would end up with the building, which it acquired in an all-cash deal. Hubbard says the new owner has already started making repairs to the building. A press release describing the transaction quoted Sunil Mehta of Mehta Commercial as saying his company is prepared to bring the building to class A standards.

Hubbard explains he wasn't surprised by the amount of interest that the building, busted windows, blown-out roof and all, attracted while it was on the market for a few weeks. "Everyone's interested in something that's distressed these days," he remarks. "And that building was definitely distressed."