The six-story building, located at 5850 San Felipe St., had an assumable CMBS loan of $5.1 million at a below-market interest rate. A subsidiary of American Spectrum Realty Inc. sold the building, generating proceeds of approximately $5.2 million, which will be used to pay down the company's outstanding debt.
Built in 1978, 5850 San Felipe was 95 percent occupied at the time of sale. Texas Petroleum Investment Co. International is the largest tenant, occupying about 28 percent of the building, while Abby Office Centers, an executive office center provider, fills another 17 percent. The asking lease rate for the building is $21.50 per square foot, full service.
Henry Hagendorf and Beth Young of Grubb & Ellis Co. represented the seller. Pamela Tranpark of Victory Realty Solutions represented the buyer in Houston.
Hagendorf tells GlobeSt. that the building received 10 offers – all except one from Texas-based investors. "The building received a lot of interest because of its Class A location," he points out, adding that the building also boasts a stable rent roll.
The assumable CMBS loan was another plus for the buyer, Hagendorf says. "The ability to assume the loan at below market interest rate with no secondary financing made the deal very attractive," he explains.
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