Moody Acquires 165,399-SF, Value-Add Office

Moody National Cos. has bought 2100 W. Loop South from a local limited partnership, getting an asset now assessed at $10 million by Harris County's appraisal district. Although the acquisition cost isn't available, industry sources say class B-plus space typically trades for $90 per sf to $110 per sf.

"We purchased this at far less than replacement cost," says Kyle Bebee, director of real estate and investment for the local buyer. "Once we're completed with the finish-outs, this should be positioned to capture class A rents."

Bebee tells GlobeSt.com that the building's current rents are 20% to 25% below the submarket's average of $21 per sf. With an estimated 8% roll in leases this year along with roughly 10% of the space already vacant, he says Moody is confident the investment's upside potential will come to fruition.

"We're talking to a number of different tenants," Bebee says, "and are a ways along on talking with a couple of national banks for potential lobby and headquarters space." The building's existing roster includes EMS Pipeline Services, TelWest Network Services Corp., Layton Energy Corp. and Imedia.it Inc.

Moody National, which was self-represented, will handle leasing and management. Danny Miller with Holliday Fenoglio Fowler LP's Houston office represented the seller. Financing was obtained through the Dallas office of the Royal Bank of Canada.