HOUSTON-Boxer Property has made its third property acquisitionin the Houston market so far this year, buying 14405 Walters Rd.from special servicer LNR Texas Partners Inc.

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The price was not disclosed, but similar distressed assets aretrading for $30 per square foot to $40 per square and using thosenumbers, the 174,072-square-foot, class B building traded for $5.2million to $7 million.

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Boxer Property previously owned the 10-story building. It soldthe property to Bresler & Reiner Inc., a private real estateinvestor based in Rockville, MD, in 2006. When LNR foreclosed onthe property, the servicer assigned leasing and managementresponsibilities to Boxer Property.

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LNR tapped the Transwestern investment sales team of LeahGallagher and Rudy Hubbard to market the 1980s-era property, whichis located in north Houston about 23 miles from the city center.The building was on the market for four weeks and received sevenoffers.

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“Some people might have thought that Boxer won the deal becauseof their relationship with LNR, but they made the best offer,”Gallagher tells GlobeSt. “Boxer was able to pay a higher pricebecause of the efficient way they runs their buildings.

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Gallagher says 14405 Walters Rd. received a lot of investorinterest because it was in very good condition and needed verylittle deferred maintenance. The elevators and sprinkler systemshave been modernized, and the building boasts a new HVAC system androof.

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Additionally, the property, although distressed, is generatingcash flow. It was 57% leased at the time of sale, with a quotedrental rate of $14 per square foot, gross. Since the sale, Boxerhas reduced the asking rate to $13 per square foot, gross, and theproperty is now 61% occupied.

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In addition to 14405 Walters Rd., Boxer Property recently hasacquired two Houston office buildings totaling 259,854 square feet.The properties, 9950 Westpark and 10333 Harwin, also were sold outof foreclosure by LNR. Bresler & Reiner acquired both buildingsin 2006 from Boxer Property.

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This year alone, Boxer Property has acquired more than 1.6million square feet of office and has been awarded leasing andmanagement assignments from other property owners in excess of 1.5million square feet across the nation. It now manages and leasesmore than 12 million square feet.

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