The buyer isn't saying what he paid for the class A and Bbuildings in the Energy Corridor and Westchase submarkets, but areaexperts say similar properties trade for $72 per sf to $75 per sf.Brian Hennessey, managing director of acquisitions and dispositionsfor EquityOption Properties, says market fundamentals and upsidewere the underlying reasons for acquiring the assets from locallybased BMS Management Inc.

The portfolio is 80% occupied, across the board. Hennessey saysin-place rents are a minimum of 20% to 25% below market. "Withrental rates rising in Houston, we plan to bump the rents once theleases roll over," he tells GlobeSt.com.

In addition, Hennessey says the Woodland Hills, CA-based buyerplans to put $1 million into renovating common areas andlandscaping. The company also has retained local firm, Moody RambinInterests, to lease and manage the portfolio. The seller, whocouldn't be reached for comment, had been managing theproperties.