“Some people might have thought that Boxer won the deal because of their relationship with LNR, but they made the best offer,” Gallagher tells GlobeSt. “Boxer was able to pay a higher price because of the efficient way they runs their buildings.

Gallagher says 14405 Walters Rd. received a lot of investor interest because it was in very good condition and needed very little deferred maintenance. The elevators and sprinkler systems have been modernized, and the building boasts a new HVAC system and roof.

Additionally, the property, although distressed, is generating cash flow. It was 57% leased at the time of sale, with a quoted rental rate of $14 per square foot, gross. Since the sale, Boxer has reduced the asking rate to $13 per square foot, gross, and the property is now 61% occupied.

In addition to 14405 Walters Rd., Boxer Property recently has acquired two Houston office buildings totaling 259,854 square feet. The properties, 9950 Westpark and 10333 Harwin, also were sold out of foreclosure by LNR. Bresler & Reiner acquired both buildings in 2006 from Boxer Property.

This year alone, Boxer Property has acquired more than 1.6 million square feet of office and has been awarded leasing and management assignments from other property owners in excess of 1.5 million square feet across the nation. It now manages and leases more than 12 million square feet.