HOUSTON-Rainier Capital Management LP, a tenant-in-common investment group based in Dallas, has bought Northbelt Office Center III and IV in an off-market transaction with Dallas-based developer Myers & Crow Co. Ltd. The two-year-old office buildings contain 107,200 sf of class A space.

J. Kenneth Dunn, president of Rainier Capital, says the buildings, located at 600 and 700 N. Sam Houston Parkway, traded in the range of $10 million to $20 million. According to the Harris County Appraisal District, the buildings are assessed at nearly $6 million.

The office buildings are situated on 10.4 acres along Beltway 8 in the Greenspoint submarket. Northbelt Office Center III is an ell-shaped building with 55,700 sf. It is fully occupied by the United States Postal Service. Northbelt Office Center IV, also an ell-shaped, totals 51,500 sf. The Blue Bell, PA-based Unisys Corp. leases more than half of the structure, with the balance of the space still in shell shape.

Dunn tells GlobeSt.com that Rainier pursued the deal for more than eight months before closing on the buildings. “It’s a stable investment and the yield works for our investors,” he says, explaining that the investment company provides an 8%-plus return.

Moreover, Dunn anticipates some upside from leasing the vacant space. The space currently leases for $13 per sf, triple net. Myers & Crow will continue to handle the leasing and management of the buildings. Rainier obtaining debt financing from the Boston-based John Hancock Life Insurance Co. to acquire the buildings.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.