The buying entity, Concord Enterprises LLC, purchased the four-year-old building at 4100 Greenbriar Dr. from Houston-based National Realty Group as part of a 1031 exchange. Industry sources say the asset is valued at $3.5 million to $3.8 million.
"With real estate values so high on the West Coast, the buyer decided to sell his assets in Southern California and invest in a safer, more stable market," says Larry Marks, senior vice president with Betz Commercial Brokerage Inc. in Houston.
Built in 2000 on 4.8 acres, Stafford Business Center is 88% occupied and boasts a high percentage of office finish-out. The building rents for more than $10 per sf triple net. "This is National Realty's last remaining asset in Southwest Houston so they decided to sell it," says Marks, the buyer's broker.
Marks tells GlobeSt.com that buyer was so impressed with the building that he placed a letter of intent within three days. "We moved on the building the first day it was on the market," he says.
The SoCal investor plans to hold the building for 10 to 20 years. He tapped his long-time property management company to handle the leasing and management for his first asset in Houston, Marks says. He adds the buyer is actively looking for additional retail andindustrial investment opportunities in southwest Houston with values ranging from $4 million to $8 million. "The buyer would like to buy more properties in southwest Houston so they're not all spread out," Marks says.
Although there was an assumable loan on the property, Concord Enterprises LLC was able to get a new loan because there was no pre-payment penalty, according to Marks. The new loan was arranged by GMAC Commercial Mortgage and funded through a life insurance company.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
