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HOUSTON-Diamonds may be a girl’s best friend, but it was the diamond dealers and other merchant jeweler tenants in the 119,334-sf Greenrich Office Building that prompted a local real estate company, Creekstone Partners LLC, to buy it. The buyer has closed the deal with $7 million of acquisition financing.

Creekstone Partners’ president Michael Preston tells GlobeSt.com that Greenrich Office Building at 6222 Richmond Ave. will be the firm’s first tenant-in-common offering as an individual sponsor. He says the acquisition was appealing because it’s an unusual tenant base of mostly diamond and jewelry traders. The 1.7-acre property also is close to the Galleria. “They do a lot of business with the merchants there and a lot of trading among themselves,” he says.

Preston says an extra $818,000 will be invested into capital improvements to the garage, roof and HVAC system. The ultimate goal is to spruce up the 90%-occupied building and lease the remaining space during the next year. Creekstone Management will lease and oversee the property. “We’re talking to two or three prospects right now,” Preston says, “and a couple of tenants for renewal and expansion.” He adds that the roll is staggered, with most tenants having five-year leases.

A mortgage banker from Harbor Capital Group in Houston arranged the financing through Pittsburgh-based PNC Bank. The 22-year-old building, assessed at $9.2 million, sold at a 10% cap rate based on the purchase price, according to Preston.

Greg Nelson of Triad Realty Group’s Houston office represented the seller, Diapori Realty Inc. of Athens. Preston says the transaction represents Diapori’s last asset in the US, but it is in the market for more American real estate.

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