"Goddard bought the building two years ago when it was just 30% occupied with plans to do some work on it, lease it up and sell it," says Danny Miller, senior vice president in Houston for CB Richard Ellis Inc. He represented buyer and seller in the transaction.
Goddard Investment Group did extensive renovations to the property, including building a parking garage. "They bought it to create value and now the new buyers are buying it for the stable cash flow," Miller explains. "Domain Properties will be a long-term holder." Currently, the building leases for $16.50 per sf to $17 per sf and houses a variety of small, regional tenants.
Miller tells GlobeSt.com that the 89%-leased building generated eight offers--all from private buyers across the nation. Built in 1982, the building is situated on 3.5 acres at the intersection of Beltway 8 and Imperial Valley Drive in the northeast part of Houston. "It has great visibility and investors liked the location, which is near (George BushIntercontinental) Airport," he says.
Houston-based Yancey-Hausman had been handling leasing and management for Goddard Investment Group, but Domain Properties plans to take it over for now and consider outsourcing the duties in the future, Miller says. The company, which owns other office assets in Houston, obtained new financing to make the close.
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