HOUSTON-Investor interest in the Bayou City’s office market has increased dramatically over the past 12 months, and recent trades not only indicate the interest is widespread, but robust enough to push down cap rates.

For example, KBS Real Estate Investment Trust II acquired Two WestLake Park just days ago for an undisclosed amount. The 17-story, 455,142-square-foot office tower in the Katy Freeway/Energy Corridor submarket is the first KBS purchase in the market since September 2007.

Younan Properties Inc. sold the class A office building, which is 97% leased to 12 tenants including ConocoPhillps Company, Amoco Properties, Merrill Lynch, Raymond James Financial and Marubeni-Itochu. Danny Miller and Trent Agnew of HFF’s local office represented Younan.