HOUSTON-AEW Capital Management acquired the 350,000-square-foot Eldridge Oaks from partners Cornerstone Real Estate Advisors LLC and Transwestern. As part of the transaction, the Boston buyer acquired an adjacent 7-acre parcel, which could hold an 350,000-square-foot office building.
The four-year-old Eldridge Oaks at 1080 Eldridge Pkwy. in the Energy Corridor submarket was 100% leased at the time of sale. The sales price was not disclosed, however, similar class A, newer buildings in the west Houston submarket have traded for approximately $300 per square foot.
Transwestern managing director of investment services Ken Page, who partnered with Transwestern's vice president of investment services Scott Myers to represent the seller, tells GlobeSt.com that the office building was widely marketed and attracted a great deal of institutional investor interest. AEW Capital emerged from the buyer pool due to its qualifications, due diligence and surety of closing, Page comments.
"A lot of buyers want to be in Houston, want to be in the Energy Corridor and want class A there," Page remarks, going on to say that the reason for the high interest is that vacancies continue to fall in that submarket. "It has to do with the energy story here in Houston, and who's headquartered out there," he adds.
That submarket is seeing a great deal of construction activity, with Conoco Phillips preparing to move into the currently under construction Energy Centers Three and Four. Hines, in the meantime, is adding to Shell Oil Co.'s Woodcreek campus with an additional two-building, 672,000-square-foot expansion. Others are going north as well, and Page says the square footage that's coming out of the ground in far west Houston is already substantially preleased.
"There's so much momentum out there, people are drawn to that," he adds.
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