2020 Properties Acquires 225,859 SF From KBS

H. Dan Miller, senior managing director with Holliday Fenoglio Fowler LP's Houston office, tells GlobeSt.com that Cole had his eye on the 64,000-sf Armand Plaza Office Center and 161,859-sf Camino I and II for some time. "John's invested in Clear Lake office properties for awhile and had actually attempted to buy these before," says Miller, who partnered with Martin Hogan, HFF associate director, on behalf of the Newport Beach, CA-based seller. "When they became available, he jumped on them and tied them up."

The sales price wasn't available, but area sources explain that similar office assets have been trading for $70 per sf to $80 per sf. Sitting on nearly 10 acres, the 76,424-sf Camino I at 17629 El Camino Real Blvd. is 96% occupied while its neighbor, the 76,113-sf Camino II at 17625 El Camino Real Blvd. is 86% leased. Armand Plaza Office Center, about a mile away on a six-acre tract at 16441 Space Center Blvd., is 100% occupied. HFF managing director Susan Hill arranged for financing.

"These properties are in really good condition," Miller says. "KBS is an institutional owner and they do an outstanding job of maintaining and keeping their properties up to date." PM Realty Group of Houston did not return telephone calls about the lost leasing assignment prior to deadline.

Miller says KBS Realty owned the assets since 1998. He says the seller is in the process of upgrading its portfolio to class A assets, with two other class B office assets are on the market in the region--89,614-sf and 89,568-sf buildings at 8866 Gulf Freeway and 8876 Gulf Freeway, respectively.