Situated on 6.4 acres at 5400 Westheimer Court, the 614,000-sf,nine-story office building was purchased by 5400 Westheimer HoldingLP, a private investor from Los Angeles. It is net leased to DukeEnergy for the next 15 years.

"We received multiple offers for the building, which is azero-cash property," says John Glassmoyer, a senior vice presidentwith CB Richard Ellis Inc.'s Phoenix office, tells GlobeSt.com. TheCBRE team running the deal included H. Dan Miller in Houston,Russell Ingrum in Dallas and Jeffrey Thomas in Seattle.

Glassmoyer says investors are typically interested in zero-cashflow deals because of their tax benefits, which are achievedthrough cost segregation studies. "It's amazing how strong theinterest is for these zero-cash flow properties," he says, notingpassive loss buyers and 1031 exchange investors are particularlyinterested in such properties. "Typically buyers put in a low downpayment--10 to 14% over the debt--for zero-cash flow deals and areable to achieve debt replacement from a small amount ofequity."