The first phase at 1500 Research Forest Dr. was completed inlate 2004. Members of the selling partnership, Research ForestPartners LP of Houston, will be part of the development team forthe other two phases. A final price wasn't available, but sourcesfamiliar with the deal say comparable transactions are bringingfrom $250 per sf to $350 per sf.

The center, positioned at the Six Pines-Research Forestintersection, was 95% leased at the time of closing. Jeff Beard,president of J. Beard Co. LLC from the Woodlands, says highoccupancy and a low lease roll were key decisionmakers. "Thebuyer's purchase motivation was based on current income andprojected cash flows for the center," he explains to GlobeSt.com."It was well-leased and projected to offer a stabilized cash flowfor a long time."

According to Beard, the second phase--the 12,000-sf ResearchPines Center--will be stabilized and ready for sale later thisyear. Meanwhile in the coming months, work is expected to start ona 23,000-sf third phase, the Plaza at Research & Pinecroft."This was basically a right time for this partnership to sell,"Beard says.