HOUSTON-Black Forest Ventures LLC has acquired 17000 Katy Fwy., a three-story, 174,521-square-foot office building in the Energy Corridor, in an all-cash transaction.
The sale price was not disclosed, but similar assets trade for $150 to $200 per square foot. Using those metrics, the class A property sold for $26.2 million to $34.9 million. The local investor bought the class A property from a joint venture comprised of CORE Real Estate and Prudential Real Estate Investors.
Completed in 2007, 17000 Katy Fwy. is fully leased to Mustang Engineering. The property is situated on nearly 10 acres within the Park Ten Office Park on the north side of Interstate 10.
The property was marketed without a list price, according to Trent Agnew, an analyst with HFF’s local office. He marketed the property on behalf of the sellers, along with senior managing directors Rusty Tamlyn and Dan Miller.
“We let the market set the value,” Agnew says. 17000 Katy Fwy. garnered six offers before going under contract to Black Forest Ventures. “We had done business with the Black Forest Ventures before – we sold them 24 Waterway, a mixed-use building in The Woodlands, a couple of years ago,” Agnew says.
Agnew tells GlobeSt. that investors were attracted to Mustang Engineering’s credit and its location within the Energy Corridor. In order to minimize rollover exposure, the company has separate leases for each floor, each with different expiration dates, which gives Black Forest Ventures time to re-tenant the building if Mustang Engineering decides to downsize or vacate the property.
“The credit is about as good as you can get,” Agnew adds, noting that the John Wood Group, an international energy firm. “We’ve done quite a few deals in the Energy Corridor, where there has been a lot of leasing activity.”
Earlier this year, for example, Beacon Investment Properties spent $15.7 million on One Park 10 Plaza, a 162,909-square-foot, class A office building in the Energy Corridor submarket. The Miami-based investor also owns two other office buildings in the Energy Corridor: Atrium at Park 10 and Timberway II.
Currently HFF is marketing another Energy Corridor building: Energy Crossing, 240,000-square-foot, class A building developed by Opus. The property is currently real-estate owned by M&I Bank of Milwaukee.
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