DBSI Housing's acquisition is a six-year-old, three-building project on 7.4 acres along Park Row in the Park Ten master-planned development in the far west submarket. Larry Marks, Betz's senior vice president, tells GlobeSt.com that the seller developed the asset as an investment with the intent to sell it after it was leased up.
Marks says the class A Business Center at Park Ten was on the market about a year because the deal involved some debt assumption with an above-market interest rate when it came to market. "Even with the existing debt, the purchaser was able to get very attractive returns based on the economics of the deal," Marks says of a property that had one contract fall out.
The buildings are designed with 28,800 sf, 41,400 sf and 45,000 sf. The top space takers are Borden Chemical, Westinghouse Process Controls and Nissey. The 17-tenant roster has three leases expiring this year and next with four rolling in 2006 and the balance not coming due until 2007 through 2010, says the deal's lone broker.
Marks attributes the project's 100% occupancy to its Energy Corridor positioning, where an estimated 55,000 people come to work each day. The Park Ten development is situated at the intersection of Texas 6 and Katy Freeway.
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