"This building's in an excellent submarket, one that's demonstrated tremendous strength of positive absorption and demand rate," Zaya Younan, chairman and CEO of the Los Angeles-based Younan Properties, says about his latest acquisition, 9801 Westheimer Rd. The building is 100% leased, but Younan tells GlobeSt.com that the potential roll in the next several years will provide a huge upside. "It averages out to about 15% a year, which is perfect for the market to absorb and perfect for the landlord to manage and re-lease," he says.
Younan adds that tenants' lease rates, on average, are 25% below the market, which is $28.92 per sf in Westchase. Younan's team will manage the 25-year-old asset, keeping PM Realty of Houston in place to lease it. The lead tenants are URS Corp., Cumulus Media Inc. and World Cinema. Ken Page, executive director with Cushman & Wakefield of Texas Inc., represented the seller of record, 9801 Westchase Ltd. of Houston.
Since June, Younan has now bought three office buildings in the region. The other properties are a 172,739-sf building at 6464 Savoy Dr. and 156,572-sf Northbelt Corporate Center at 2350 N. Sam Houston Pkwy. In the next month, Younan plans to close on Two Westlake Park at 580 Westlake Park Blvd. And, the buyer adds, two others are under contract, with their closings scheduled for early fall.
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