The Grubb & Ellis Co. Houston team of Martin O'Malley and Henry Santamaria, both senior vice presidents, brokered the sale of the 21-year-old building that is positioned in the FM 1960 submarket. O'Malley tells GlobeSt.com that the building was riding at 95% occupancy when they started to market the building. Shortly thereafter, Royce Homes, which occupies about 40% of Falling Creek One, announced plans to build an owner-occupied building near Beltway 8 and the Sam Houston Race Park. The exit of a major tenant brought the $4.5 million asking price down to $3.5 million.

Stream Realty Partners of Dallas is the seller of record. Stream had acquired the building on behalf of an investment fund and intended to use the acquisition as its entry into the Houston market. That plan was halted after the Falling Creek One purchase due to staffing changes. Houston portfolio acquisitions never resumed and Stream decided to sell the lone holding, says O'Malley.

CNC Investments was a natural target since it owns the adjacent building and several other office buildings in the submarket, says O'Malley. He says a dozen phone calls later had CNC considering the purchase.