Rusty Tamlyn, senior managing director with Holliday FenoglioFowler LP's Houston office, says the 26-year-old asset on 363 N.Sam Houston Parkway attracted a great deal of interest from privatecompanies and institutional investors. For one thing, the 19-storyasset in the Greenspoint submarket was stable at 95% occupancy,with its lead tenant, Newfield Exploration Co., entrenched throughlong-term lease. In addition, bidders liked the conversion of leaserates from gross to triple net, a trend that is impacting much ofthe Houston office market.

The growing cost of new building construction also prompted alot of interest. "The replacement costs on something like this arehuge; this building would cost $200 per sf to reproduce," saysTamlyn, who with HFF's senior managing director Dan Miller and PaulBennett, in-house representative with the Plano-based GraniteProperties, handled 363 North Belt's listing and marketing efforts.Tamlyn tells GlobeSt.com that the North Belt's submarket on thearea's north side has a 4% vacancy rate for A-class buildings."This one was stable, with long-term credit tenant Newfield takingup 40% of the space," Tamlyn adds.

He says the new owner has no plans to infuse huge amounts ofcapital in the building, as it isn't necessarily. The building wasrenovated in 2002, though the elevators might be upgraded at somepoint. Local company Moody Rambin Interests will take control ofleasing from Granite Properties. "Granite doesn't handlethird-party leasing," Tamlyn says.