Younan Properties bought the 14-story Shepherd Place at 2323 S.Shepherd St. in the River Oaks submarket and the 15-story 1700 WestLoop South in the Galleria from Chicago-based CMD Realty InvestorsInc. The plan is to invest another $1 million into renovating theclass B office assets.

Zaya S. Younan, chairman and CEO, says the upside potential wasthe attraction to buy the 1980s-era buildings. "When Shepherd Placewas put under contract, it was 80% occupied and we ended up closingit at 95% occupancy," he says. He tells GlobeSt.com that the newleases were signed for $23 per sf or $1.40 per sf more thanShepherd Place's quote in recent months.

"When you see that type of rent growth in such a short period,it's telling me we're right to be buying more aggressively," Younansays. PM Realty Group of Houston will continue to lease ShepherdPlace while Transwestern's local team is staying in place at the95%-leased 1700 W. Loop South.