Triple Net, a 1031 Exchange syndicate based in Santa Ana, CA, acquired the property in a direct deal with the Atlanta-based Goddard Investment Group. H. Dan Miller, first vice president in Houston for CB Richard Ellis Inc., tells GlobeSt.com that he took the acquisition opportunity to Triple Net, knowing it would be interested, to strike a deal before it could be listed. About a year ago, Triple Net paid $9.3 million to Goddard for an 85,923-sf, class B office building at 602 Sawyer St., just west of downtown.
Goddard bought the eight-story building at 2350 Sam Houston Parkway in early 2003 from GMH Capital Partners of Newtown Square, PA. Despite its age, 22 years, the building is in good condition, Miller says.
The 90%-leased asset has the US Customs & Border Protection as the lead tenant, filling about 45,000 sf in a lease good through 2011. With 22,000-sf floor plates, other full-floor tenants are Southwestern Energy and Bredero Price Co. Miller says the roster has expiration dates "across the board," but the top space-takers are tied to long-term leases.
Triple Net's newest buy sits on three acres in a strong submarket. Miller says ExxonMobil Corp.'s 1.5-million-sf footprint in the 11.3-million-sf office inventory creates create "quite a bit of stability."
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