Led by Fred Schiller of Houston, the partnership, Arena GroupLP, was one of 11 private investors placing offers on property,says Robert Williamson, managing director of Holliday FenoglioFowler LP, who represented Lennar in the transaction along withmanaging director Jeff Hollinden. "It's a pure value-addedopportunity and that's why they were interested," he says.

Located at 7322 and 7324 Southwest Freeway on 9.1 acres, ArenaPlace's twin towers are bisected by a 2,850-seat live performancevenue. Built in 1981 and 1983, Arena Place is 70% leased to tenantslike Mercer Inc., a division of Marsh & McLennan Cos., LTDFinancial Services, MemberWorks Inc. and Westwood College. "If theoccupancy were increased from 70% to 80%, it would be a hugesuccess," Williamson says. Currently, space leases for about $14per sf.

Williamson tells GlobeSt.com that Arena Place sold at a hugediscount to replacement cost. He estimates it would cost $150 persf to $160 per sf to replace the property. "The buyer paid a merefraction of that," he says. According to the Harris CountyAppraisal District, each tower is valued at roughly $12.3million.