Office Investor Appetite Appears to be Increasing

HOUSTON—Northborough Tower, a 14-story class-A office property is located at 100 Glenborough. An undisclosed buyer recently purchased the single-tenant 206,553-square-foot building in the North District submarket. Although the purchase price was undisclosed, Northborough Tower was an opportunity to acquire a vacant building at pricing substantially below replacement cost.

The office building was completed in 1983 and renovated in 1991. The building was 99% leased to Noble Energy at the time of sale, but Noble Energy does not occupy the space.

The property is ideal for large users or smaller tenants seeking a strategic and cost-effective location in north Houston. Northborough Tower has been institutionally maintained with significant capital investments including elevator modernization, upgraded EMS system and ADA-compliant restrooms, and it also provides a favorable parking ratio of 4.22 per 1,000. The office tower is equipped with Logiplex card-key security system and video monitoring with card access to the building, garage and elevators, GlobeSt.com learns.

Transwestern brokered the disposition of the building. Leah Gallagher, Michelle Wogan and Hale Umstattd represented the undisclosed seller in the transaction.

“The investor appetite for office acquisitions in Houston, even in high vacancy submarkets, appears to be increasing,” Gallagher tells GlobeSt.com. “When we re-launched the offering for Northborough Tower on January 23, we called for offers just a few days later and received multiple offers from credible and capable buyers. The interest and activity on Northborough Tower ranged from groups that already own assets in the submarket to those looking to enter Houston at a low basis.”

The building is located on the north side of Glenborough Drive and the 2.3 acre surface lot is located on the south side of Glenborough Drive. The property is just west of Interstate 45 and one-half mile north of Beltway 8 (North Sam Houston Parkway) in the Greenspoint/North Belt office market.

HOUSTON—Northborough Tower, a 14-story class-A office property is located at 100 Glenborough. An undisclosed buyer recently purchased the single-tenant 206,553-square-foot building in the North District submarket. Although the purchase price was undisclosed, Northborough Tower was an opportunity to acquire a vacant building at pricing substantially below replacement cost.

The office building was completed in 1983 and renovated in 1991. The building was 99% leased to Noble Energy at the time of sale, but Noble Energy does not occupy the space.

The property is ideal for large users or smaller tenants seeking a strategic and cost-effective location in north Houston. Northborough Tower has been institutionally maintained with significant capital investments including elevator modernization, upgraded EMS system and ADA-compliant restrooms, and it also provides a favorable parking ratio of 4.22 per 1,000. The office tower is equipped with Logiplex card-key security system and video monitoring with card access to the building, garage and elevators, GlobeSt.com learns.

Transwestern brokered the disposition of the building. Leah Gallagher, Michelle Wogan and Hale Umstattd represented the undisclosed seller in the transaction.

“The investor appetite for office acquisitions in Houston, even in high vacancy submarkets, appears to be increasing,” Gallagher tells GlobeSt.com. “When we re-launched the offering for Northborough Tower on January 23, we called for offers just a few days later and received multiple offers from credible and capable buyers. The interest and activity on Northborough Tower ranged from groups that already own assets in the submarket to those looking to enter Houston at a low basis.”

The building is located on the north side of Glenborough Drive and the 2.3 acre surface lot is located on the south side of Glenborough Drive. The property is just west of Interstate 45 and one-half mile north of Beltway 8 (North Sam Houston Parkway) in the Greenspoint/North Belt office market.