HOUSTON-Lowe Enterprises Real Estate Group and Newport Beach, CA-based Buchanan Street Partners, teaming for the first time, have acquired the 404,415-sf 3D/International Tower, a class A building in the Galleria submarket. Comparable recent sales have brought $120 per sf to $125 per sf in the region.

Transwestern Investment Co. LLC of Chicago is the seller of 1900 W. Loop South, assessed at $42 million by Harris County. The final price of the 90%-leased high rise is not readily available due to Texas’ non-disclosure law.

Stephen Nesterak, Lowe’s president of the central region for the Los Angeles-based Lowe’s, tells GlobeSt.com that asset quality, location and availability for less than the $300-plus replacement cost were the dealmakers. “In other markets, building from the ground-up has been difficult because of construction costs and the entitlement process. That was a big motivating factor on this one,” he says, adding that there is little, if any land left in the Galleria submarket to build. He says the joint venture plans to invest an additional $1.5 million into upgrades, including a lobby facelift.

“We bought the Hotel Icon six months ago and were in the process of considering other deals,” Nesterak says. “Buchanan has made investments separately in the market. When we went to them with this product, they echoed our sentiments about the view of the Houston office market.”

Built in 1979 on a 6.1-acre tract, 3D/International Tower will continue to be leased and managed by Transwestern Houston. Rudy Hubbard, managing director of Transwestern, represented the seller, which had acquired the high rise in 2002.

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