HOUSTON-Boxer Property has purchased two more office buildings,bringing its total acquisition activity for 2010 to 14 propertiestotaling 3 million square feet. This year marks the busiest buyingyear for the local firm, and it expects 2011 to offer similaropportunities, according to Andre Pereira, who shares the firm’sacquisitions responsibilities with David Kayle.

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The newest purchases include a 107,087-square-foot officebuilding at 75 Executive Dr. in the Chicago suburb of Aurora, IL,and Park on the Bayou, a 159,563-square-foot office building at2500 East TC Jester in Houston.

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“Both of these properties are in our wheelhouse because theyneed to be leased,” Kayle tells GlobeSt.com. Boxer acquired bothproperties for an undisclosed amount, paying cash for theassets.

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Boxer bought the Aurora property from LNR, a special servicerthat has foreclosed on the class B building. NAI’s Arthur Burrowsmarketed the property and represented LNR.

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The property represents the firm’s first investment in Illinois,although it does manage a property in Skokie, IL, on behalf ofanother owner. “The fact that we already have a presence throughour third-party management made it a lot easier to transition intothe market from ownership side,” Kayle says.

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Pereira adds: “This is a good quality, B asset in a decentsubmarket right by Fox Valley Mall. We felt that we’d be able toimplement our smaller tenant model in that market and be able togain some traction. We bought the building at a low enough basis itwas a good deal for us.”

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Boxer competed with other potential buyers to acquire Park onthe Bayou, which was formerly occupied by the Federal Bureau ofInvestigation (FBI) for more than 16 years. The property, whichoffers a campus-like setting with views of downtown, also includesa five-story, 486-space parking garage.

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Rusty Tamlyn and Trent Agnew in HFF’s local office marketed theproperty on behalf of the seller, ING Clarion Partners, theinvestment management arm of ING Real Estate InvestmentManagement.

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“I am not sure there were a tremendous number of buyers lookingat the building because it needs to have a group like us to turn itaround and lease it up or an owner with a single-tenant in hand tobackfill it,” Pereira tells GlobeSt.com. He says Boxer has alreadysigned two leases totaling about 5,000 square feet for Park on theBayou.

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Kayle says Boxer will spend several million dollars to updateand update both buildings, as well as re-tenant them. “We have areally good understanding of what it will take to stabilize thebuilding and how to do that economically,” he contends. “Theacquisition price is the ticket for admission rather than the finalnumber. You can easily spend an amount to fill the building that isequal to the purchase price of it.”

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