The property abuts the Galleria J.W. Marriott and is located north of Westheimer on Sage Road. "This is a significant property," says G. Craig La Follette of CB Richard Ellis to GlobeSt.com, "because in the last three months the Galleria has seen a 10.5% rent increase." A $14-million asking price, or $45.91 per sf, with 6.5% cap rate has been attached to the property.
Rental rates in the city as a whole reached just over 2% last year. According to LaFollette, the Galleria submarket is an extremely hot market to be in and the closer a property is to the premier Galleria shopping mall, the better. Plantation Market, says LaFollette, is 150 yards from the Galleria. The property is being marketed as a development site, but the apartment complex on the property has a positive cash flow after expenses and before debt, LaFollette tells GlobeSt.com.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
