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You Might See Yao Ming From Here

Houston Multifamily

Fuller Realty bought 9801 Westheimer, a 211k SF office tower in Westchase. Maybe it was drawn to the location—it's got a lovely view of Yao Ming's old home. (You never know when he'll be feeling nostalgic and stop by.)

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HFF director Marty Hogan and senior managing director Danny Miller repped seller Younan Properties and said the building offered a fantastic value-add opportunity. It's 86% occupied, leaving room for lease-up, but even better are the rents, which are well below market rate. (We're talking $19.50/SF gross in place versus $18 net current rates, a $6 to $7 delta.) That's one reason why they had a solid amount of interest, despite a big hurdle: The asset came with a CMBS loan assumption that was 50% of the purchase price. (The dreaded CMBS, the most feared pirate on the open market.)

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Danny tells us the property also comes with room for future development fronting Westheimer. (The building sits on 5.4 acres... that's a sizable amount of leg room.) We should see some mega closings from these two soon: They've got Energy Crossing I and II, Two Westlake, 10333 Richmond, and two of the Lakes on Post Oak buildings on the market.