BGK Opens '08 With Back-to-Back Office Buys

Pamela Porter, senior vice president for BGK Group, says Canyon Hills at 11211 Taylor Draper Lane is as much of a good fit for the company's acquisition criteria as was the 224,630-sf Kirkwood Atrium II at 11767 Katy Freeway in Houston. At 89% occupancy, the 10-year-old Canyon Hills offers some upside potential as well as being a stable asset, Porter tells GlobeSt.com about the purchase from Franklin Street Properties Corp. of Wakefield, MA.

"We like a nice, balanced roll schedule," Porter explains. "Both this and the Kirkwood Atrium deal had that, and in both deals, we thought rents were below market."

Situated on close to three acres, Canyon Hills' tenants include Edward Jones & Co., Bankers Life & Casualty Co., CACI Technologies Inc. and State Farm Mutual Insurance Co. Robert E. Williamson and Jeffrey Hollinden, managing directors with Holliday Fenoglio Fowler LP's Houston office, represented the seller.

Porter says BGK also is trying to increase its presence in Central Texas. "Austin has the characteristics we like--employment and population growth and a good business environment," she says. All four Texas metros are on the company's radar screen.

Porter says BGK Group plans to invest $300 million to $500 million in acquisitions nationwide in 2008. "Our preference is multi-tenant office although we do have some flex and industrial properties," she says. Other criteria are assets built after 1980 and prices predominately in the $5-million to $40-million range although the company will consider large portfolios.