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HOUSTON-A Southern California private investor has acquired the 54,165-sf Parkway Tower, a 65%-occupied medical office building sold on a 10 cap. The asking price was about $2.9 million.

Buyer of record, 150 Parkway Medical Plaza LP, is aggressively buying value-add properties, Larry Marks of Houston’s Betz Commercial Brokerage Inc. tells GlobeSt.com. The tower at 150 W. Parker Rd. definitely meets the criteria. Marks says the seller, Parkway Tower PLL, is considering a return to California and wanted to sell rather than re-lease and renovate one more time.

According to Marks, the structure was built in 1972 by a group of physicians. In 1996, it was acquired by a family investment group. The property was in disrepair and just 75% occupied, with most of the physician tenants renting on a month-to-month basis. About $100,000 went into upgrades as the owner set about securing long-term leases. At one point, occupancy reached 90% and then gradually fell. The seller was again facing a renovation, Marks says.

Unlike the seller, the 2002 buyer has hired a third-party management company. It’s also gaming out a renovation, but Marks isn’t privy to those plans.

The eight-story office building is located in what Marks terms a medical quadrant near Interstate 45 in Houston’s northern tier. Across the street is the 160-bed, acute-care Doctors Hospital Parkway. An 85,000-sf, class A medical office building and a 80,000-sf, class C one are nearby as is Triumph Hospital.

Marks represented the seller. Nic Tatevossian of Real Estate Pro represented the buyer. Kimberly Ikner-Cleveland of Chicago Title Greenway and Rose Chen of Metro Bank also had a hand in the deal.

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