HOUSTON-Boxer Property has acquired two class B office buildings totaling 259,854 square feet out of foreclosure for an undisclosed amount.

The properties, 9950 Westpark and 10333 Harwin, were sold by LNR Partners Inc. The special servicer took back the 1980s-era assets from Bresler & Reiner Inc., a private real estate investor based in Rockville, MD, last summer. HFF senior managing directors Dan Miller and Robert Williamson led the investment sales team on behalf of LNR Partners.

Bresler & Reiner acquired both buildings in 2006 from Boxer Property. It paid 9950 Westpark in 2006 for approximately $70 per square foot at 70% occupancy. The firm bought 10333 Harwin at the same time for $86 per square foot at 72% occupancy.

The original loan balance for the Westpark property was just under $6.4 million, while the original loan balance for the Harwin asset was about $10.6 million. The asking price for the Westpark building was $5 million or $45 per square foot, and the asking price for the Harwin building was $5.2 million or $35 per square foot.

At those prices, 9950 Westpark offered a stabilized cap rate of 14%, and 10333 Harwin offered a stabilized cap rate of 14.2%. “The Houston market is still very solid for the most part – there haven’t been that many office buildings that have gone REO,” Williamson tells GlobeSt. “For the handful that has gone REO, there has been a lot of investor interest.”

Situated on the edge of the Westchase District in west Houston, both 9950 Westpark and 10333 Harwin are located near the Gessner Road and Westpark Tollway intersection. The 111,159-square-foot Westpark property is 69% leased and is situated on 2.3 acres on the north side of the Westpark Tollway.  The Harwin building, located on the south side of Westpark Tollway, offers 148,695 square feet and is 46% occupied.

Both buildings have received significant renovations including upgrades to the lobby, restrooms, and common areas, as well as roof replacements. In addition, most of the vacancies have new carpet and paint so tenants can move in with almost no downtime.

Williamson says Boxer Property was one of several private buyers that competed for the assets. “They had a history with the assets, and LNR had appointed the company the leasing and management, but they had to compete like all the other buyers,” he notes, adding that Boxer Property was an all-cash buyer.

This year alone, Boxer Property has acquired over 1.4 million square feet of office and has been awarded leasing and management assignments from other property owners in excess of 1.5 million square feet across the nation. It now manages and leases more than 12 million square feet.