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HOUSTON-Two years after acquiring the 356,750-sf 2000 West Loop South, Means-Knaus Partners LP and US Advisors LLC are bringing it back to market. During the hold, the partners have extended leases for three lead tenants occupying 70% of the Galleria building.

Locally based Means-Knaus and the Santa Monica, CA-based tenants-in-common group paid $50 million or $140 per sf for the asset. Area experts suggest that class A space in the submarket can sell for $180 per sf to $185 per sf.

“The whole Houston market has gotten stronger during the past 12 to 18 months. Vacancy’s down, demand is stronger and everything’s gotten tighter. It was a good time for them to take their yield and sell the property,” says Jeffrey A. Hollinden, managing partner with Holliday Fenoglio Fowler LP. He and HFF managing director Robert Williamson hold the listing.

Developed in 1970 by Hines, the building underwent renovations in 1992 and 2002. The JV sellers also made some physical upgrades, but their value-add came in the form of extending leases for PACE Entertainment Inc., United American Healthcare Corp. and Clear Channel Communications Inc. through 2016, 2013 and 2014, respectively.

Hollinden tells GlobeSt.com that the 97%-leased building is being marketed to institutional investors, fund advisers, REITs and TICs nationwide. The call for offers will be made in 30 to 45 days. Given the timetable, he expects a closing will take place in mid- to late July.

“We expect a lot of interest in this,” Hollinden adds. “There are a lot of new investors outside the state looking at Houston.”

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