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HOUSTON-Attracted by the value-add opportunity, a Miami investment group has paid $6.4 million for One Northchase Park in the northwestern submarket. The 85,213-sf, class B building, sold by Caldwell Watson Real Estate Group, is 60% occupied.

Jaguar Investments Ltd. LLP secured a $4.5-million, non-recourse loan from Dallas-based Silvergate Bank to acquire the property at 4201 FM 1960 W. One Northchase Park. The three-year loan, representing 70% of the asset’s value, has a floating rate interest over Libor.

“Upon review, Silvergate Bank liked the overall dynamics of the transaction and moved toward a timely review of the property and quick closing,” Ross Lyle, vice president of Silvergate Bank, tells GlobeSt.com. The loan structure also allows a flexible prepaymentoption and future advances for leasing costs to increase occupancy.

Jaguar plans to make minor renovations to the property, says Live Oak Capital Ltd.’s James Richards. He adds lenders were attracted to the frontage along FM 1960, the strong office market and upside in the lease-up. Richards teamed with Tip Strickland to arrange the acquisition financing.

Situated on 3.5 acres, One Northchase Park was built in 1985. The building houses a mix of national and local tenants like French Engineering, Royal Oaks Bank, Heritage Health Services and GMAC Commercial Mortgage. The building has an average rent of $14.30 per sf, according to Richards.

The new owner is looking at a significant roll in leases for two years. According to Richards, 10.8% of the pacts roll in 2006 and 9.6% expire the following year. Then, he says, another 14% come due in 2010 and 9.8% in 2011 and again in 2012.

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