Led by Fred Schiller of Houston, the partnership, Arena Group LP, was one of 11 private investors placing offers on property, says Robert Williamson, managing director of Holliday Fenoglio Fowler LP, who represented Lennar in the transaction along with managing director Jeff Hollinden. "It's a pure value-added opportunity and that's why they were interested," he says.

Located at 7322 and 7324 Southwest Freeway on 9.1 acres, Arena Place's twin towers are bisected by a 2,850-seat live performance venue. Built in 1981 and 1983, Arena Place is 70% leased to tenants like Mercer Inc., a division of Marsh & McLennan Cos., LTD Financial Services, MemberWorks Inc. and Westwood College. "If the occupancy were increased from 70% to 80%, it would be a huge success," Williamson says. Currently, space leases for about $14 per sf.

Williamson tells GlobeSt.com that Arena Place sold at a huge discount to replacement cost. He estimates it would cost $150 per sf to $160 per sf to replace the property. "The buyer paid a mere fraction of that," he says. According to the Harris County Appraisal District, each tower is valued at roughly $12.3 million.