Confidentiality agreements prohibited mentions of ask or final prices for the class B building at 13100 Northwest Freeway, say the companies. However, similar properties in the area have sold between $80 and $95 per sf. The Harris County Tax Assessment District values the 1982-constructed building at $8.47 million. "The final price was somewhat less than the market range because a major tenant was vacating. The property had to be re-leased," says Rudy Hubbard, managing director of Transwestern's Gulf Coast Investment Services Group.
Hubbard, who with Transwestern's Leah Gallagher represented the seller, indicates the tenant's departure was one reason why the seller wanted to dispose of the building. "They'd retenanted the building once, lost a major tenant, and saw a major opportunity not to have to spend major TI dollars getting another tenant in," Hubbard tells GlobeSt.com. "There is a lot of value-add money out there paying close to core-plus prices, so this was good, from the seller's perspective."
Plus the seller wanted to take advantage of capital markets, especially with the current low interest rates. But the buyer is getting a decent deal with the property too, Hubbard notes. "The buyer is planning to make some capital improvements, plus the leases are all relatively short-term. This is a good opportunity for the buyer. They can re-lease the space at higher rates," he says
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