HOUSTON—Despite recording negative net absorption of approximately 90,000 square feet, leasing activity in the northwest office submarket totaled 723,000 square feet in 2017. This represents the submarket's highest leasing activity since 2014, according to JLL research. This and other factors are leading to significant interest in Houston from a broad range of investors, many of whom are seeking attractive fundamentals and solid value-add opportunities in well-located submarkets.

A recent example is When Opportunity Knocks LLC's purchase of the eight-story 141,480-square-foot office building, One Northwind Plaza at 7600 W. Tidwell Rd., from Aegon Asset Management. The price was undisclosed.

Clint Holland of SkyWalker Property Partners represented the buyer. Rudy Hubbard, Kevin McConn and Rick Goings of JLL represented the seller.

“In the case of One Northwind Plaza, recent capital improvements, a diverse tenant base and the anticipated benefits of the Highway 290 expansion made this an appealing offering,” said Goings.

Built in 1980, the class-B office building has undergone a variety of capital improvements since 2010 including upgrades to its lobby, elevators, breezeway, lighting and building systems. Amenities of the building include a conference center, deli, on-site management, 24-hour security, dedicated two-story parking garage with covered access to the building, and access to numerous restaurants, hotels and retail.

“As many markets reach peak-level pricing, we're seeing a refocusing of capital into value-add deals,” Goings tells GlobeSt.com. “Investors typically add value by making physical improvements to a property, enhancing the leasing and management, or betting on improving market fundamentals. One Northwind Plaza checked all three of these boxes.”

Located in the northwest office submarket, One Northwind Plaza has high visibility and access to West Tidwell Road and Hollister Street, major thoroughfares in the submarket, as well as US Highway 290.