Richard A. Nash, president of Easton Group, labels the acquisition as a "tremendous entree into the Galleria marketplace." Though the plan's being fine-tuned, Nash says there will be just enough upgrades to the 22-year-old building to let tenants and townsfolk know that a new owner's in charge. Moderate changes are being planned for the lobby, common areas and landscaping.
Nash won't say if he's holding more Houston contracts, but did say "we plan on acquiring an asset base in that market." Until now, the firm's Texas portfolio primarily consists of class A bulk distribution product in Dallas/Fort Worth.
The 67%-leased 1800 West Loop South had about 40,000 sf of leases set to expire in Easton's first year of ownership, but Crescent's team renewed about 28,000 sf before the closing, according to Nash. Easton hired Greg Jones and Vic Baltov with Cushman & Wakefield of Texas Inc. to lease and manage the building. Nash says the going-forward focus will be on retaining tenants.
Darrell Betts, senior vice president of investments sale in Houston for Grubb & Ellis Co., represented Easton at the bargaining table. Jeff Hollinden, a Holliday Fenoglio Fowler LP senior director in Houston office, steered the deal for Crescent, which collected $28.2 million in net proceeds from the sale. The profit will be applied toward the Fort Worth-based REIT's debt, according to a press release.
Hollinden says the two-acre 1800 West Loop South was on the market about two years ago, but was pulled for nine months when it didn't sell. Easton's interest in the asset peaked after it failed in a bid to acquire the 350,000-sf Two Riverway office building about a year ago when IBM exercised a first right of refusal for the holding.
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