As soon as the ink dried, Asset Plus took over leasing andmanagement after waiting out a 10-month acquisition process andpicking up the deal when an $8.3-million contract fell out for15915 Katy Freeway, James Doerr, vice president of acquisitions andasset management for Asset Plus, tells GlobeSt.com. "It sold to usfor significantly less than what they originally wanted," he says."We're going into it with a three- to five-year hold. We arelooking forward to turning it around and repositioning it andhopefully selling it for a little profit." During the wait,occupancy dropped from 88% to 78%, he says.

Doerr says the turnaround plan will bring about $250,000 inrenovations to a 21-year-old office building with freewayvisibility and access that's only going to get better as Interstate10 construction pushes from the front of the six-story buildinginto the CBD. He says the freeway widening to 24 lanes and the20-mile ride to the downtown will only add to the attractiveness ofoffice leasing in the Park 10/Energy Corridor submarket of WestHouston.

Transwestern Investment bought the 15915 Katy Freeway building,positioned on 3.6 acres, in 1998. The brokerage affiliate,Transwestern Commercial Services, was cutting recent deals as highas $18 per sf, but Doerr says the new ticket will be $17 per sfgross.American Habilitation Services Inc., one of the nation'slargest service providers for people with developmentaldisabilities, is the lead tenant, with 17,000 sf carved out for itsheadquarters. The roster of general office users has some near-termroll in the leases, Doerr says.