The Forum Office Building is a 22-year-old, three-story structure in the southwest submarket. Martin O'Malley and Kristen Porter, both of the Grubb & Ellis Co., represented Segal in the deal.
Segal says the building has a 26% occupancy rate, which is a perfect fit for the profile he is seeking to acquire. Boxer Properties specializes in taking vacant or nearly vacant buildings, building out speculative units and producing short-term leases for tenants. Boxer tenants often can move in the day leases are signed.
Segal says the Forum will be divided into about 45 offices, ranging in size from 600 sf to 1,600 sf. He likens this leasing method to apartment complexes where pre-packaged units are sold on a short-term basis and at rents below market level. The strategy is to achieve high occupancy.
Segal says the Forum's construction will be completed by mid-June. He is eyeing December for full lease-up.
Broker Kristen Porter tells GlobeSt.com the building should lease quickly due to its proximity to the beltway. She says the beltway is particularly inviting to tenants right now because it is an easily accessible transportation artery.
The 17-year-old Red Oak South building also will be divvied into about 45 offices, offering the same space range. Construction will begin on the vacant building within 30 days, with completion set for early September. Houston-based Indiana Construction is Boxer's main general contractor.
To date, Boxer owns one property each in Connecticut and Long Island, NY; eight each in Dallas and Tulsa, OK; and 45 in Houston. It also is part of a joint venture that owns a 36-story building in Kansas City, MO.
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