HOUSTON-Buchanan Street Partners has made its first office acquisition here since 2007, paying $26.25 million for Buildings 3 and 4 of Beltway 8 Corporate Centre. The Newport Beach, CA-based investor bought the 261,413-square-foot, class A office buildings from a joint venture comprised of Panattoni Development Co. and Metro National Companies.
“We believe we bought the property well below replacement cost,” says Tim Ballard, the firm’s president and chief investment officer. He estimates it would cost nearly $175 per square foot to construct a similar building. Using those metrics, the replacement value for Buildings 3 and 4 would be $45.7 million.
Ballard tells GlobeSt.com that Buildings 3 and 4 were initially marketed as a package with another building in Beltway 8 Corporate Centre, all of which are located along Beltway 8 in the Techway Corridor. A local CBRE team led by Tom Lynch marketed the portfolio.
However, Buchanan Street was interested only in Buildings 3 and 4. “The other building was fully leased and more of a core investment,” Ballard explains. “Buildings 3 and 4, on the other hand, are more opportunistic because of the vacancies.”
Combined, Buildings 3 and 4 are 76% occupied. Tenants include Allstate Insurance Corp., Cameron International and Mercer Consulting. Ballard says Buchanan Street will likely invest another $20 per square foot in the vacant space because it is in shell condition.
“We thought buying a building with some vacancy was a good idea because of all the things we see going on with the tenant base in Houston,” Ballard explains. “We already have significant levels of interest in the vacant space, and unlike what we saw a year ago when tenants were making leasing decisions because of consolidation or to take advantage of economics, now we’re seeing them leasing space for growth.”
With the acquisition, Buchanan Street Partners’ local office portfolio now consists of nearly 700,000 square feet, according to “We are very bullish on future of Houston,” Ballard concludes.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
