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Foreign Investment Group Takes On 87% Vacant Office Building

HOUSTON-District and Urban Texas of England acquires a 68,994-sf, class B building along North Sam Houston Parkway after a hiatus from buying office product in the city. The 20-year-old building sells for about $33 per sf.

By Jennifer D. Duell | Updated on November 09, 2004

HOUSTON-District and Urban Texas, an investment group from England, has paid close to $33 per sf for the 68,994-sf, class B office building along North Sam Houston Parkway. The 20-year-old building is 87% empty.

“The building is in good condition–it just needs some tenants,” Logan Brown, a senior vice president with Grubb & Ellis Co.’s Houston office, says about 262 N. Sam Houston Parkway. Brown represented the seller, AMP Properties, an affiliate of a Hong Kong-based investment group, and Jerry Ashmore with the Greater Houston Group represented District and Urban Texas.

Brown tells GlobeSt.com that AMP Properties owned the building for 15 years, but refused to be flexible on rental rates and tenant improvements. “As the market went down, the building lost its tenants because the owners demanded a higher than market rent and lower than market TI,” he says. The average rental rate is $12 per sf, full service. The building recently underwent some improvements to the elevators, HVAC system and common areas.

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