UniLev Capital Takes Riverway Trophy for $70M

Beverly Hills, CA-based UniLev Capital Corp. wasn't the highest bidder for the One Riverway Building, a 25-story, 481,222-sf office tower in the prestigious Galleria district, but the firm's reputation as a solid deal closer swayed the seller, Cigna Corp., to sign off on the property, H. Dan Miller, first vice president with CB Richard Ellis Inc.'s Houston office tells GlobeSt.com. "It's a trophy asset in a triple A location," he says of the tower, which offers unobstructed views of the Downtown from One Riverway Dr. "It's a beautiful building in one of the best locations in the city."

Miller says about a dozen bidders came in with offers in the $60-million-plus range, but it was UniLev's bid, about $1 million below that of a competitor, along with its proven track record for closing on mega purchases, that capped the deal. The new owner, whose principals include Daniel and Raymond Levy, own more than one million sf of real estate in Houston, including the 694,000-sf Baker Cypress Facility, 100,000-sf Fairbanks Plaza and the soon-to-be-built 335,000-sf Cypress Crossing Shopping Center.

One Riverway, however, is their trophy acquisition. With a gleaming mahogany-and-granite interior, penthouse decks and park-like 4.75 acres of prime Downtown land, the building is a much sought-after location for some of the area's top businesses. Currently at 96% occupancy, its tenants include TexasCapital Bank, Northwestern Mutual Insurance and the law firm of Fish and Richardson. The 28-acre site holds four major office buildings, including the Omni Hotel, a widely acclaimed luxury hotel.

The transaction was brokered by CBRE's Houston team. GMAC Commercial Mortgage Corp. senior vice president Ed Zimbler in the Los Angeles and branch manager Jim Adams in Houston arranged a $50-million loan through GMACCM's proprietary lending group.