The deal's brokers are only identifying the buyer as 5851 Corp. LLC, but did confirm that it's one of the existing tenants in class B asset at 5851 San Felipe St. The building was 60% leased when it was bought from Hill Partners Management Co. from Austin, according to H. Dan Miller with Trammell Crow Co.'s Houston office.
"The new owner has other locations throughout Houston and he'll be consolidating them into that building," Miller says, adding that when the moves are complete that it will effectively be an expansion. He and TCC's Martin T. Hogan represented the seller while the buyer used in-house representation to work out the acquisition terms.
Miller tells GlobeSt.com that the property had been marketed for a short period--approximately three to four months, attracting about a dozen offers. Built in 1979, the office building is assessed at $8.76 million by Harris County. The sale price isn't available, but industry sources say class B office buildings in the Galleria submarket are trading for $90 per sf to $110 per sf depending on occupancy.
Miller isn't certain about the new owner's renovation plans. "He likely intends on upgrading the common areas," he says. "The property needs some capital improvements and I'd assume he'll do that."
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