Situated on 6.4 acres at 5400 Westheimer Court, the 614,000-sf, nine-story office building was purchased by 5400 Westheimer Holding LP, a private investor from Los Angeles. It is net leased to Duke Energy for the next 15 years.

"We received multiple offers for the building, which is a zero-cash property," says John Glassmoyer, a senior vice president with CB Richard Ellis Inc.'s Phoenix office, tells GlobeSt.com. The CBRE team running the deal included H. Dan Miller in Houston, Russell Ingrum in Dallas and Jeffrey Thomas in Seattle.

Glassmoyer says investors are typically interested in zero-cash flow deals because of their tax benefits, which are achieved through cost segregation studies. "It's amazing how strong the interest is for these zero-cash flow properties," he says, noting passive loss buyers and 1031 exchange investors are particularly interested in such properties. "Typically buyers put in a low down payment--10 to 14% over the debt--for zero-cash flow deals and are able to achieve debt replacement from a small amount of equity."