The seven-year-old building, situated on nearly 11 acres at 15115 Park Row, is assessed at $18.6 million by Harris County. Local experts say similar buildings are trading for $150 per sf to $175 per sf. Dallas-based Stream's local team assumed the leasing and management duties from Granite. Details about the sale were unavailable by deadline.
Preston Young, co-managing partner with Stream's Houston office, says the 100%-leased building has good upside potential in its lease rates. The building delivered in 2000; leases will begin to roll in 2009. Young stresses it's important to ensure new leases are reflective of the current market. Local market reports put Energy Corridor rates at $26.04 per sf and vacancy at 7.8% for the 16.4-million-sf inventory.
"Due to the appreciation the market has seen during the past couple of years, any lease set prior to that point obviously lends itself for major value enhancement," Young tells GlobeSt.com.
The building's two major tenants are Accenture Ltd. and Mustang Engineering, both of which take up more than two-thirds of the building. Young says Invesco isn't planning any capital improvements to the building.
Park Ten Plaza is Stream Realty's first assignment from Dallas-based Invesco. Young points out that Invesco is always looking for intelligent investments on behalf of its clients. "Houston lately has had a lot of inventory available to fit its parameters," he adds.
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