SUGAR LAND, TX-Buchanan Street Partners has purchased the two-building Offices at Kensington here. KBS REIT, the seller, had purchased the 170,774-square-foot property at Highway 6 and US Highway 59 for $27.9 million in March 2007.

The new sales price has not yet been made public. When bought in 2007, the 14-year-old complex was 85% leased. Buchanan has purchased the site at 90% occupied. Tenants include Morgan Stanley, Progressive Insurance, Atos Origin, Humana Health and Fidelity National Title. The property is part of the 9,700-acre First Colony master-planned community.

Bob Peterson, managing director of Buchanan, tells GlobeSt.com that he was attracted to the building because of strong employment numbers in the Houston market and an office market that has seen vacancy cut in half during the past year as demand has outpaced supply. “This is just a good opportunity for us to capitalize on the growth there,” Peterson says. “We believe that a favorable basis, which equates to about 65% of estimated replacement cost, will protect investment returns even as the market strengthens to allow for new development.”

The Newport Beach-based Buchanan has made 22 investments in Texas in the past six year. These deals include nine office investments totaling $510 million.