NEW YORK--Just over a year after acquiring the class A office property at 2200 West Loop South in Houston's Galleria submarket, New York-based APF Properties has sold the 94 percent occupied 200,000-square-foot property to the building's main office tenant, Tenaris.

APF Properties targeted the Houston market for investment based on the area's status as one of the leading population and employment growth cities in the U.S. Acquired for approximately $37 million in August 2013, the asset had an 8.3 percent cap rate and was well positioned for future growth with over 75 percent of its below-market leases set to expire by the end of 2017.

APF's initial plan was to seek an institutional joint venture partner and unlock the additional value of the asset over the next four or five years. The asset was encumbered by an existing long-term mortgage through 2022.