Gary Walker, president of SCM Real Estate Services, tells GlobeSt.com that the partnership got "pretty close" to the $1.2-million ask for 6750 Locke Ave., fully leased to a national marketing research firm. Walker says the sale is the first of two in Texas to the 1031 exchange investor, who's deploying gain from a multifamily property transaction in California. The investor also has a property under contract in Houston, according to Walker.
Shortly after Walker and the Locke Rocks partnership bought the class B building, the US Department of Health and Human Services walked out the door in a highly publicized move about black mold. Walker says a quick fix remedied the leaking window and the walkout enabled him to backfill with a market-rate tenant, DSS Research.
The three-story building, developed 19 years ago on a half-acre tract, was on the market nine months. Walker says several investors expressed interest, but were concerned about the tenant's lease, which has 2.5 years left on the term for a headquarters location. Walker, whose firm will continue to manage the asset, says "in all likelihood, the tenant is going to stay." He and SCM's Theron Bryant brokered the sale in direct talks with the buyer.
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