"They have tenants with specific needs and they find properties that they can buy that will accommodate the tenants," Chris Kugle, a broker with NAI Houston, says about the 3724 Dacoma Dr. sale. "Having that one tenant lined up sealed the deal."
According to Kugle, comparable assets have sold in the mid-$40 per sf range. But in staying true to Texas' non-disclosure regulations, the agreed-to price isn't readily available. According to the Harris County Appraisal District, the building's assessed value is roughly $1 million. Kugle represented the seller, Wilshire Travel, a division of Houston-based Universal Computer Science Inc.
Kugle tells GlobeSt.com that Wilshire Travel had occupied the building since the late 1980s, outgrew it and decided to put it on the market. "It was on the market for about six months and generated a lot of interest," Kugle says. "But, the building was old and needed some work and it just took the right buyer." Not only was the interior dated, but the mechanical system and roof need to be repaired or replaced, he says.
Built in 1976, the building is located in the Brookhollow Business Park, sandwiched between the central and near northwest submarkets with easy access to US Highway 290 and Loop 610. "Tenants who are located in the business park usually want to stay because it's so centrally located and close to downtown," Kugle says.
Kugle is working on leasing the remaining 20,000 sf, which boasts a 3,500-sf raised computer floor. The building owner, he says, is willing to customize the build-out and toss in a building sign for a new tenant. The building's quoted rent is $7.80 per sf annually.
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