"They moved to the building in July, and once they were in, realized they needed more space," Jon Silberman, co-managing partner of NAI Houston, tells GlobeSt.com. Located at 777 N. Eldridge Parkway, One Eldridge Place is part of a two-building complex totaling 518,740 sf and a quoted rate of $23.50 per sf. The deal with Pegasus--involving a lease of less than 10 years--boosts the 21-year-old building's occupancy to 84%.
Doug Little of locally based PM Realty Group, who represented the building owner in the transaction, says Pegasus received a "substantial build-out allowance" for expansion as well as contributing a significant amount of its own money into refurbishing the space.
Through an earlier lease deal finalized in the spring, Pegasus took possession of the third and sixth floors through two transactions: a direct lease with KBS and a sublease with IBM. The third lease signed in as many months gives Pegasus the seventh floor, which Little says had been Global Santa Fe's offices at one time. "It's been vacant for awhile," he adds.
In the meantime, Little says that, in an attempt to make the leases congruent, a small extension on sublease term was added. "We basically extended the sublease to co-term with the direct lease so everything could be renegotiated simultaneously," he says. Silberman points out that, for now, Pegasus is through with expansions, though he can't speak to the future. "They'll be there for a long time," he says, "so anything is possible."
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