"The seller realized the cap rates were in his favor. And with interest rates going up, he figured it was time to sell," says Trent Siskron, investment associate with NAI Houston, who represented the seller, Sweetwater Sugarland Partners LP of Los Angeles. While the sales price could not be obtained, area sources explain some buildings in the same area can go for as much as $150 per sf. Siskron cautions, however, that comps are difficult to come by in the area. "This is a different property with a different feel and landscaping to it," he explains.
The Office at Sweetwater, located on 7.5 acres at 4645-4665 Sweetwater Blvd., was acquired by the seller in 2001 for an intended long-term hold. "There were multiple renovations over the life of the property, but overall it was in good shape," Siskron tells GlobeSt.com.
The broker says the asset's 100% occupancy was a strong attraction for the buyer. The tenant roster contains medical and professional businesses. While some leases are set to expire in the coming year, Siskron indicated that the roll, overall, was not a concern for the buyer, who offered mostly cash and floated a small loan for the balance. The buyer's broker was Rob Chandler of NAI Houston.
Siskron says the seller does have other assets in the area. "He's planning to hang onto those for awhile," he adds.
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