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HOUSTON-Malladi Partners of Houston has rolled in its first office building to a mixed commercial portfolio, convincing the Newport Beach, CA-based Koll Bren Schreiber Realty Advisors to part with a 79,000-sf holding along Southwest Freeway. The seller, like some of its counterparts, most often keeps building sales under wraps.

Malladi’s acquisition is the two-story, 84%-occupied 9100 Southwest Freeway. The tenant directory includes Harvest Financial and Dale Carnegie.

M.J. Reddy of Malladi Partners confirmed the sale to GlobeSt.com and explained it was bought as a long-term investment. Reddy says the building’s suites are geared to tenants in the 800-sf to 5,000-sf category. The plan, naturally, is to improve occupancy.

Reddy says the purchase is Malladi’s first foray into the office market. The firm owns 750,000 sf of retail product, 750 apartments and 300 acres, now being developed. Reddy says the company felt the time was right to get into office product because the market is soft.

Koll Bren Schreiber acquired the building, constructed in 1977, just four years ago. John Dailey, vice president with Houston’s PM Realty Group, says it was not on the market. He says Malladi Partners approached PM Realty Group when it wanted to buy an office building in that part of town. Daily, in turn, asked Koll Bren Schreiber if there was any interest in selling.

Though the price is hushed, Dailey says the offer was reasonable and the deal fit into the Koll Bren Schreiber’s exit strategy for the asset. According to Harris County tax records, the building is assessed at $2.6 million.

Reddy and Dailey represented their respective firms in the deal. With the sale, Koll Bren Schreiber’s Houston portfolio now has 3.5 million sf in 33 office, retail and office/warehouse properties. The company owns 11.8 million sf in Texas.

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