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Morgan Stanley Sells 540,560-SF Office Trio

HOUSTON-A class B package in the Houston Galleria submarket passes to Unilev Capital as part of the seller's normal portfolio pruning. Industry sources say the final price fell between $80 per sf to $90 per sf.

By Jennifer Brenner Andrade | Updated on November 24, 2003

HOUSTON-After receiving 22 offers, the Morgan Stanley Real Estate Fund in New York City has sold three office buildings, totaling 540,560 sf, in the Houston Galleria submarket to Unilev Capital Corp. of Beverly Hills, CA. Industry sources say the final price hovered between $80 per sf to $90 per sf.

The buildings went on the market in April. David Chuoke with the local office of Cushman & Wakefield of Texas Inc. tells GlobeSt.com that the June bid deadline brought in offers from three REITs as well as pension funds and private investors. He believes the interest in the portfolio was “driven by the quality of the location,” all class B buildings along streets with name recognition. The buyer secured financing from GMAC Capital to close the transaction.

The sold properties are the 198,428-sf 6363 Woodway Dr., which is 90% occupied; 163,071-sf 7500 San Felipe St., 82% leased; and 179,061-sf 1616 Voss Rd., 79% filled. The three parcels equate to 8.4 acres in one of the city’s most prestigious submarkets, but one that admittedly has suffered throughout the downturn.

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