$77M AstroWorld Sale Creates Questions

With Conroe-based Angel McIver Interests announced as the buyer and a planned June closing, AstroWorld's future isn't a whole lot more clear, though many tell GlobeSt.com that at a going rate of $17 per sf, vertical development would generate the best return on investment. "I think it would be some good office, maybe medically related that could occur there, and an element of retail," says Bill Heavin, senior vice president, Grubb & Ellis Co.'s Houston office. The vertical element, he adds, might involve some low- to mid-rise residential or office development. "It's an ideal mixed-use piece of property."

Rusty Tamlyn sees the location as a good site for office or retail development, but points out that the south loop area hasn't been strong historically in terms of the office market. "Much of the stuff down there is B and C quality," says Tamlyn, principal and director of investment sales with Trammell Crow Co.'s Houston office.

The announced potential buyer also raised some eyebrows. "I'd assumed it would be the usual suspects stepping up," Heavin adds. "Or that someone would come from Las Vegas or California or the East Coast with an opportunity to buy into the Houston scene in a big way."

Tamlyn points out, however, that McIver has been selling assets in Conroe for some time and has the resources to both acquire and develop the site. "That's a good piece of property with big numbers, and it will have a lot of development," he adds. "They're prepared for this."

The Houston offices of Cushman & Wakefield Texas Inc. and the Staubach Co. are brokering the transaction. None of the principals in the deal were available for comment by press time.