The seller is a locally based investment group that released a 36-year-old building at 3411 Richmond Ave. with an empty 43,000 sf of contiguous space. Scot Ison with Houston's Axis Property Advisors LLC represented buyer and seller of record, Richmond Tower Associates LP.
Ison tells GlobeSt.com that the sellers purchased the asset in 1996 and put more than $5 million into renovating it. "The property remained 100% leased for five years," he says, "then two major tenants evaporated."
One tenant, AmeriHealth, is no longer in business and the other, American Tower, steadily downsized. By the time the two leases expired last year, the tenants were no longer in business, according to Ison. The building now sits at 52% occupancy with office space leased to Greystar, Landiscor and First American Title Co.
The seller primarily is a multifamily owner; Richmond Tower, its only office property. Although the group ticketed the holding to go, but it never formally made it to market. Ison says one contract fell out and then he took the deal to St. Germain Investments, a firm that he dealt with four years ago when he sold 1035 Dairy Ashford Rd. to them.
Ison says St. Germain will aggressively work to lease up the class B property in a plan for a long-term hold. Axis handled leasing at Richmond Tower under the previous ownership and is remaining in place. The building's quoted rent ranges from $16 per sf to $17 per sf. Williford Property Group, which manages St. Germain's other Houston office asset, will handle the newest portfolio member. Harris County assesses the two-acre property at $5.6 million.
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