CLEAR LAKE, TX-A San Diego investor shifting his roots eastward entered the Houston market with an acquisition of the 140,609-sf Gemini Park. Buyer Ross Nicholson paid seller Clear Lake Properties Joint Venture just shy of the $7.5-million ask for the three-building office/warehouse portfolio at 905-930 Gemini St.
"The buyer exchanged out of some property in San Diego, and used those funds to come into this one," comments John Ferruzzo, principal with NAI Houston. Ferruzzo, who brokered the transaction, indicates Nicholson is planning on buying more in Houston, but nothing is in the pipeline now.
The three-building complex was built in the late 1970s and early 1980s, and is 97% occupied. Ferruzzo tells GlobeSt.com that the property last year hovered at 50% occupancy, but NAI Houston, which had the leasing assignment, stabilized it. As a result, there will be little change in the roll within the next year, and staggered expirations will occur between 2007 and 2012. "This is a stabilized property, but rental rates are below market, and there's some upside potential," he adds. "That's what attracted the buyer."
NAI Houston senior associates Darren O'Conor and Travis Land assisted Ferruzzo in the transaction. Nichols will oversee leasing and management activities.
The Canadian-based seller disposed of Gemini Park after a 15-year hold due to a market pull out. The seller's other real estate holdings include a 71,380-sf office building at 1300 Bay Area Blvd. in Clear Lake and land in the Galleria submarket. Neither property is being actively marketed at this time.
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