Uptown’s Park Towers Gets Scooped Up for $89M
Regent Properties acquired the class-A office project comprised of two 18-story towers over shared structured parking that was redeveloped in 2000 and renovated in 2017.
HOUSTON—In a value-add play, Los Angeles-based Regent Properties recently acquired Park Towers, a 545,242-square-foot office property in the Uptown submarket for $89.5 million. The class-A office project was redeveloped in 2000 and renovated in 2017.
The development is comprised of two 18-story towers over shared structured parking located at the northeast corner of I-610/West Loop and Post Oak Boulevard. There is approximately 270,000 square feet of office space for lease including a contiguous block that contains 120,000 square feet. Its location provides access to Memorial Park, and Uptown shopping and dining options.
“This project is a perfect example of the firm’s strategy of identifying and executing on value-add investment opportunities with long-term growth potential,” says Eric Fleiss, CEO of Regent.
Park Towers has been infused with $12.8 million of capital to create a tenant experience with amenities that include a fitness center, conference center and a luxury concierge-style lobby. The recent modernization featured lobby and corridor finishes, new restrooms, destination dispatch elevators and system upgrades that merited a LEED EB Gold and Energy Star certifications.
“On top of the upgrades which have already been completed at the project, we intend to implement the type of changes which have built Regent’s reputation throughout the Sunbelt,” Fleiss continues. “For example, we will be bringing exciting new food service amenities to the project as well as our well-known hands-on management approach. Our investment outlook for Park Towers is further bolstered by its prime location and the fundamental economic attributes of Houston specifically and Texas generally.”
In addition, Park Towers boasts 360-degree views of Uptown, Memorial Park and the downtown skyline from its 22,250-square-foot rectangular floorplates. Park Towers is strategically located in the center of Houston’s most affluent neighborhoods (River Oaks, The Memorial Villages, West University Place and Bellaire) and benefits from freeway access/visibility.
Transwestern Commercial Services will provide agency leasing services to Regent. Transwestern’s team includes Doug Little, David Baker, Kelli Gault and Jack Scharnberg.
“It is approximately 50% leased today with significant leasing activity in the works,” Sam Kraus, senior vice president and head of acquisitions at Regent Properties, tells GlobeSt.com. “We are seeing significant demand from small, medium and large tenants. Tenants span a range of industries including finance, insurance, real estate, professional services, business services and energy companies.”
Second quarter activity saw more of the same flat notes from the office market, as total availability and direct vacancy continued to rise, while asking rates and occupancy fell, according to a Transwestern second-quarter office report. Absorption for the quarter appears strong on the surface, coming in at 684,000 square feet, however, this rings somewhat hollow as the delivery of Bank of America Tower in the CBD accounted for the majority of the figure. Despite record high availability market-wide, new construction continues to be on the minds of large space occupiers, the report observes.