J. Kenneth Dunn, president of Rainier Capital, says the buildings, located at 600 and 700 N. Sam Houston Parkway, traded in the range of $10 million to $20 million. According to the Harris County Appraisal District, the buildings are assessed at nearly $6 million.
The office buildings are situated on 10.4 acres along Beltway 8 in the Greenspoint submarket. Northbelt Office Center III is an ell-shaped building with 55,700 sf. It is fully occupied by the United States Postal Service. Northbelt Office Center IV, also an ell-shaped, totals 51,500 sf. The Blue Bell, PA-based Unisys Corp. leases more than half of the structure, with the balance of the space still in shell shape.
Dunn tells GlobeSt.com that Rainier pursued the deal for more than eight months before closing on the buildings. "It's a stable investment and the yield works for our investors," he says, explaining that the investment company provides an 8%-plus return.
Moreover, Dunn anticipates some upside from leasing the vacant space. The space currently leases for $13 per sf, triple net. Myers & Crow will continue to handle the leasing and management of the buildings. Rainier obtaining debt financing from the Boston-based John Hancock Life Insurance Co. to acquire the buildings.
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