HOUSTON--Angelic Real Estate has arranged the financing on 4801 Woodway, a 220,583-square-foot office building on the north side of The Galleria in the Riverway submarket. The building was 48 percent occupied at the time of acquisition, and midway through a multimillion dollar renovation program that will position it as a class A quality option for tenants in that area. The property was purchased from a special servicer, having been foreclosed on from a previous tenant in common (TIC) ownership.  

“The buyer can now just continue the exact same upgrade program, with the same finishes, and it will complete a totally first-class building interior,” Gabriel Silverstein, president of Angelic, told GlobeSt.com. “If the special servicer had merely done what we all often refer to as 'lipstick on the pig' cosmetic cover-ups, the buyer would have been stuck with the conundrum of tearing it all back out to do it right, starting over or continuing building to a lesser quality product. The buyer gets to benefit from having a building whose renovation is not only already half done, but is showing-reading today to demonstrate to prospective tenants how nice it will be when completed.”

The building's large floor plates and two parking garages offer large tenants unique options, but two interior, upper-floor atriums allow smaller tenants to still work well in the floor plan. The property is immediately proximate to the 610 loop and to all the Galleria-area amenities that tenants want.  

“I expect our buyer to lease this up very effectively in this market,” says Silverstein, who led the financing, along with Angelic's Louis D'Lando. “The loan provides a substantial 'good news' facility for the borrower to fund tenant improvements and leasing commissions, the greatest hindrance to leasing that the building had faced with the previous TIC ownership.”

"The property is in a fantastic location and at a cost basis that allows our buyer to very aggressively compete for tenants that don't want to pay the kind of rates that class A office buildings are commanding in the Galleria area.”

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