The fully leased, six-story office building at 1255 Enclave Pkwy. has been held in a tenants-in-common arrangement since REIT I acquired it in April 2004 as the flagship purchase for its launch. The Dallas-based REIT owned 36.31% and the balance was held by investors in Behringer Harvard Holdings Inc., according to an SEC filing. In releasing the news, the REIT says the overall yield for the hold exceeded 80% and the annualized cash-on-cash return was 19%, representing a leveraged internal rate of return of more than 17%.

In 2004, the REIT paid $28.6 million or $167 per sf for the class A office building, making the close with a loan from State Farm Life Insurance Co. In the REIT's last quarterly report, the Enclave on the Lake had a $6.9-million loan resting against it. In Greater Houston, class A office sales have been drawing close to $200 per sf due to the upbeat economy that once again is running contrary to the US trend.

The building's sole tenant is SBM Atlantia Inc., a subsidiary of Netherlands-based SBM Offshore Inc. The oil and gas company has 3.8 years left on its lease, based on SEC information. The REIT has reported that its earned $33.4 million in lease revenue since it bought the building.