Bisnow Exclusive: Tanglewood Buys Commerce Green One
Tanglewood Property Group closed out 2014 by purchasing Commerce Green One. With two other office acquisitions last year, the firm increased its Houston footprint by 40%.
Tanglewood’s portfolio now tops 1.5M SF of office product. President Henry Hagendorf (pictured with acquisitions manager Cliff Rudolph; they worked the deal together) tells us Tanglewood has been targeting office properties with upside opportunity (either in vacancy or below market rents), great locations (this year, it bought in the Galleria, Sugar Land and on Beltway 8), and solid tenant bases. Commerce Green One, the latest addition, is a 110k SF property in Sugar Land Center. It’s 84% leased with no near-term expirations. Henry tells us the challenge was timing—the deal closed Dec. 30, and it was hard to lock in financing over Christmas.
Tanglewood was in expansion mode last year; besides purchasing the three buildings totaling 400k SF (including 5300 West Sam Houston Parkway N and 2000 Bering), it was a close second on several other properties (if you can’t get first place, a participation medal ain’t bad). He hopes to be active in acquisitions again in 2015, but will be more cautious because of the uncertainty in the energy markets. In addition to Houston, Tanglewood will be looking to diversify in other Texas markets. It’s also been leasing up its portfolio—the team signed 150k SF of leases in 5444 Westheimer last year, bringing it to 82% leased.