The building was sold by Apcar Investment Partners IV Ltd., an affiliate of Houston-based Asset Plus Corp. Keith Lloyd and Logan Brown, both with Grubb & Ellis Co.'s Houston office, represented the seller.
Lloyd says the property was on the market about 18 months. The office building, situated on about 3.4 acres, originally listed for $3.7 million, but the price fell to $2.8 million as a result of the extended marketing period. At the end of the day, there were five offers placed on the table, with the winner agreeing to pay close to the adjusted asking price. Lloyd says that Asset Plus sold the office holding because it no longer fit the 63-property portfolio in the Southwest US. The property was acquired in 1998.
The office building, constructed in 1972, is assessed at $2.1 million, according to Harris County's Appraisal District. Susan Thomas, with Boxer Property Management, tells GlobeSt.com that deferred maintenance will require the owner to invest in a new roof and parking lot upgrades. The near-term plan also calls for on-site leasing and management, with a focus on bringing up the occupancy, Thomas says. At sale time, occupancy was about 55%, according to Lloyd.
The current $12 per sf will go up, but it's not likely to peak above market rate of $15.98 per sf, adds Thomas, who brokered the acquisition for Boxer. The asset is a perfect match for the firm's buying criteria, which zeroes in on value-add, class B buildings with low occupancies. Boxer Property owns 82 office buildings nationwide, 40 of which are located in Houston.
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