HOUSTON-A Southern California investor begins its Texas acquisition strategy with a 347,412-sf, five-building office portfolio. The buyer plans to amass one million sf of office product in local submarkets by the end of this year before turning its focus to Dallas, San Antonio and Austin.

The buyer isn’t saying what he paid for the class A and B buildings in the Energy Corridor and Westchase submarkets, but area experts say similar properties trade for $72 per sf to $75 per sf. Brian Hennessey, managing director of acquisitions and dispositions for EquityOption Properties, says market fundamentals and upside were the underlying reasons for acquiring the assets from locally based BMS Management Inc.

The portfolio is 80% occupied, across the board. Hennessey says in-place rents are a minimum of 20% to 25% below market. “With rental rates rising in Houston, we plan to bump the rents once the leases roll over,” he tells GlobeSt.com.

In addition, Hennessey says the Woodland Hills, CA-based buyer plans to put $1 million into renovating common areas and landscaping. The company also has retained local firm, Moody Rambin Interests, to lease and manage the portfolio. The seller, who couldn’t be reached for comment, had been managing the properties.

Hennessey says EquityOption is looking to acquire class A and class B properties with 70% to 90% occupancy. “We think Texas, for the foreseeable future, is experiencing good job and population growth,” he adds.

The just-acquired assets average 25 years old. The properties are a 100,054-sf building at 1250 Woodbranch Park Dr.; 65,900-sf One Woodbranch Centre at 11931 Wickchester Lane; a 61,458-sf structure at 10200 Richmond Ave.; and Woodchase One at 2950 S. Gessner Rd. and Woodchase Two at 3030 S. Gessner Rd., totaling 120,000 sf.

Danny Miller in the Houston office of Holliday Fenoglio Fowler LP represented the seller. Countrywide Financial Corp. of Calabasas, CA provided acquisition financing.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.