Holliday Fenoglio Fowler's players for the financing, Cortney R. Cole and H. Scott Galloway, did not respond to numerous telephone calls for comment by press time. Lend Lease, which acquired the asset in 1999, put the property on the market in February at an asking price of $36 million.
According to yesterday's Holliday Fenoglio Fowler press release, Granite Properties leveraged a five-year, adjustable-rate loan with the asset. Nationwide Life Insurance Co. provided the capital.
In a February interview, Jeff Hollinden, also of Houston's Holliday office, told GlobeSt.com that the property was part of Lend Lease's value enhancement fund, which buys, enhances and sells for a profit. Lend Lease used physical upgrades to add value to the holding. Hollinden, the listing agent, said he believed the strong tenant roster and low lease rollover would help secure a buyer. According to Harris County, the office property is assessed at $32 million.
Cole took that prophecy a step further, stating in Holliday Fenoglio Fowler's release yesterday that "the property's strong credit tenancy, combined with its prime location contributed to closing this transaction in a timely fashion."
The building was constructed in 1981 and renovated in 1989. PD Holdings, Newfield Exploration, Chrysler Motors Corp. and Ford Motor Credit top out the tenant roster on the 91%-occupied building in the Greenspoint submarket of Houston.
The submarket's office buildings have held their value remarkably well despite a deterioration of residential and retail sectors. Greenspoint is the city's fourth-largest submarket with its 11-million-sf office inventory. Absorption has been negative this year, as have most of the other submarkets. With absorption at only a negative 41,757 sf, Greenspoint is holding its own when measured against areas with more promising surroundings.
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