101,880-SF Galleria Office Building Trades Hands

HOUSTON-A group of local investors known as 5850 Sierra Holdings LLC has acquired a 101,880-square foot, class B office building in the Galleria area for more than $10 million.

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.