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HOUSTON-After looking 18 months for new office space, the Houston Housing Authority has decided to stay put in 62,736 sf in the Galleria submarket. The agency has signed another 10-year lease for the class B space.

The housing authority has been the lead tenant at 2640 Fountain View Dr. for a decade. “They really looked hard at buying a facility and at other properties in the Downtown market because their customers are all over the city and Downtown is more central,” says Bob Cromwell, a managing director with local firm, Moody Rambin Interests. “At times they had picked a few buildings they were going to buy, but changed their mind during due diligence.”

Cromwell tells GlobeSt.com that the building owner aggressively pursued the housing authority to stay put in the 88,000-sf, four-story structure. “Since they had been there for 10 years, the agency didn’t want to go through the disruption of the move,” he adds. “The landlord was glad to keep them.”

Cromwell says the package didn’t include any free rent, but did provide a TI allowance to upgrade its offices. In comparing the new pact to the old one, the rental increase was “nothing significant,” he says. The deal includes an expansion option on the balance of the 93%-leased building. The housing authority occupies the first, third and fourth floors and part of the second story. According to market sources, tenants pay an average of $12.50 per sf to lease space in the building.

Cromwell teamed with Kris Lilly, also with Moody Rambin, to represent the local building owner, Greater Houston Fountainview LP, which completed renovations to the structure’s elevators, HVAC system and common areas in the first quarter. Pat Pollan of Yancey-Hausman and Doug Elliott of CBRE/Trione & Gordon steered talks for the housing authority.

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