Younan Inks $47M Deal for 371,125 SF of Office

HOUSTON-Younan Properties Inc. has added the 253,125-sf 1700 W. Loop South and 118,000-sf Shepherd Place to its portfolio for a combined $47 million. The transaction puts the Los Angeles-based investment group in charge of 1.3 million sf in the city, with hopes to acquire 3.5 million more by mid-2008.

Younan Properties bought the 14-story Shepherd Place at 2323 S. Shepherd St. in the River Oaks submarket and the 15-story 1700 West Loop South in the Galleria from Chicago-based CMD Realty Investors Inc. The plan is to invest another $1 million into renovating the class B office assets.

Zaya S. Younan, chairman and CEO, says the upside potential was the attraction to buy the 1980s-era buildings. “When Shepherd Place was put under contract, it was 80% occupied and we ended up closing it at 95% occupancy,” he says. He tells GlobeSt.com that the new leases were signed for $23 per sf or $1.40 per sf more than Shepherd Place’s quote in recent months.