The purchase price isn't being disclosed for the 12-story prizeon 3.5 acres at 10777 Westheimer Rd., but industry experts saysimilar assets in the Westchase submarket have sold for $175 per sfto $195 per sf. Walton Street Capital walked away with the assetbecause of its quick ability to close and previous relationshipwith the seller, according to Robert Williamson, managing directorin Houston for Holliday Fenoglio Fowler LP. In addition toWilliamson, the sales team included HFF managing director JeffKnowles and Granite's investments director Paul Bennett.

Williamson tells GlobeSt.com that "the current rent rates are20% below market" in the fully leased building. In addition, headds Petrobras America Inc. will depart its top floor spot in 2008to move into Granite Westchase II, a 318,000-sf building currentlyunder construction at 10350 Richmond Ave., less than two milesaway. "That will leave about 48,000 sf vacant or about 10% of thebuilding," Williamson says, citing the additional upside in theplay.

However, Williamson says Walton Capital had no difficulty withthe upcoming vacancy because class A office space is in demand inthe Westchase submarket, with vacancies hovering in the sub-6%range. "They also have a little time to find a new tenant," headds.