Koll Pushes Into Houston for $24M-Plus Deal

HOUSTON-The Koll Co., staking its first claim in Greater Houston, has partnered with the Public Employee Retirement System of Idaho to buy 13 office and flex buildings for $24.4 million from Dallas-based Invesco Real Estate. The package was 66% leased at sale time.

Bill Larkin, acquisition and development manager for the Newport Beach-based buyer, says the northwest Houston purchase represents geographic diversification for the investment group, which typically has been focused on West Coast states. The new investment also is in an area that has good growth potential. “The size of the portfolio is a good foothold in the market,” he says. “It also fits our product type, which is generally focused on small tenants.”

Larkin tells GlobeSt.com that the buildings will require upgrades and enhancements, but no major renovations. Additionally, he sees upside in the rent growth in the 1980s-era mix of buildings.