Chicago-based CMD Realty Investors LP sold the 90%-leased property, a 1970s-vintage asset with a 1,299-space parking structure. "This is a very good quality building with good credit tenants and a stable rent roll," says Jeff Hollinden, a managing director with Holliday Fenoglio Fowler LP's Houston office.
Partnering with HFF's Robert Williamson, Hollinden tells GlobeSt.com that 2000 West Loop South received 10 offers during its two months on the market. The most interest came from institutional buyers with a few TICs thrown in, he says, but no REITs put in a bid.
The 21-story tower's lead tenant is Clear Channel Communications Inc., which fills 146,000 sf with subsidiaries, Pace Entertainment Inc. and AMFM Inc. The roster also includes United HealthGroup Inc., Vopak Logistics LLC and Frank Crystal & Co. According to Hollinden, less than 20% of the leases roll in the next five years. "This was an opportunity to acquire a well-leased building in the Galleria that doesn't have any rollover until the submarket recovers," he explains. Available space is quoted at $22 per sf.
Renovated in 2002, 2000 West Loop South sits on four acres directly off Loop 610. Hollinden says the interstate construction wasn't a deterrent for bidders. "Even though the Galleria is a little soft right now, it's still favored by investors," he says. Harris County Appraisal District assesses the property at $25.7 million.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
