The sales price was undisclosed per confidentiality agreements. Harris Central Appraisal District values the twin facilities in the southwest submarket at $10.6 million. Meanwhile, quality class B office in the area can trade for anywhere between $60 and $75 per sf.
H. Dan Miller, senior managing director with Holliday Fenoglio Fowler LP's Houston office tells GlobeSt.com that the Newport Beach, CA seller disposed of the 81%-leased asset as part of its continual portfolio upgrade strategy. Miller, who shared the buildings' marketing assignment with HFF associate director Martin T. Hogan says there was no marketing period.
"We didn't even put a book together," he explains. "We were familiar with the buyer, knew this fit his profile, so we called him and made a deal."
Miller acknowledges the property was under contract almost immediately. But escrow dragged on as a loan was sought. "The buyer is extremely well-qualified and well-capitalized," he says. "But it was tough finding and getting a lender to do the deal." Susan Hill, managing director with HFF's Dallas office arranged the financing.
Hogan says there is no major roll in the tenant base, which consists mostly of smaller businesses and government agencies. The building won't require much in the way of upgrades or fixes either. "These were owned by KBS, for some time," Hogan adds. "They take very good care of their assets."
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