"The acquisition of this property enables Koll/PER to acquire a core asset with strong returns, one that is consistent with the mix of our partnership's current portfolio of multi-tenant, light industrial and suburban/garden office space," says Koll Co. acquisitions manager Eric Andris. "We've been actively looking for deals in the Houston market and this project was targeted as one of our favorite flex projects in Houston."
The complex at 5353-73 W. Sam Houston Pkwy. N. is located in northwest submarket, which Andris calls one of the fastest growing in Houston, with a base of over 105 million sf of industrial space. It also is in the center of the Techway Corridor and just north of the Energy Corridor, which he says have been two of the market's fastest-growing business sectors. In addition, the complex, which was built in two phases from 2005 to 2007, offers freeway visibility and easy access to the toll road.
Consisting of 18 tenant spaces, Park Place 8 is 92% leased. Major tenants include Amerisciences, BP Microsystems, Cintas, Morrison Homes, Patterson Dental and Ryland Homes.
The joint venture between Newport Beach, CA-based Koll Co. and the Public Employee Retirement System of Idaho had in-house brokers negotiating the acquisition. Granite Properties was represented by Thomas Lynch of CB Richard Ellis, who brought the property to Koll's attention. "Tom does an excellent job of marketing this product type to the appropriate buyers," Andris says.
Although terms of the transaction were not disclosed, the four buildings are assessed at $14.4 million, according to the Harris Central Appraisal District. The Koll Co. exec tells GlobeSt.com that a similar class A flex project in northwest Houston would be very hard to duplicate at an equivalent price in today's market, given the increased land prices.
Andris says apart from being interrupted by Hurricane Ike, the transaction and closing went very smoothly. "Granite Properties did an excellent job in helping us get through the due diligence and closing. It was one of the smoothest transactions I've be a part of," he remarks.
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