An Austin-based private equity firm that has made a name for itself buying up mostly vacant offices made its second investment in the Energy Corridor office market this year with the purchase of Energy Crossing II.
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JLL announced Thursday that Capital Commercial Investments Inc. bought the 327K SF Energy Crossing II, about three months after the firm bought The Offices at Greenhouse, a 203K SF building also in the Energy Corridor.
Energy Crossing II is an eight-story, Class-A office completed in 2014, according to JLL. The JLL Capital Markets investment sales and advisory team, led by Kevin McConn and Rick Goings, represented the undisclosed seller.
The sale price also wasn't disclosed, but Harris Central Appraisal District valued the building at $60.4M this year.
Energy Crossing II is only 30% occupied, so it has space available to accommodate a variety of configurations for tenants, according to a news release. The building is at 15011 Katy Freeway, near Interstate 10 in the Energy Corridor District.
The district is part of the West Houston submarket that has captured an outsized portion of leasing activity this year.
“West Houston has been recognized as the number one leasing submarket in the nation, fueled by the diverse economy consisting of energy, life sciences, manufacturing, logistics and aerospace companies,” JLL said in the release.
After purchasing The Offices at Greenhouse, CCI leaders said they were attracted to the building’s location, visibility and walkable amenities.
“We are extremely excited about the prime location near Katy ISD,” CCI founder and President Doug Agarwal said in a statement about The Offices at Greenhouse acquisition. “Employers recognize that employees prefer to avoid a 45-minute commute to the Galleria area and the influx of tenants entering this market make it an exceptionally attractive opportunity.”
Energy Crossing II is about 4 miles east of The Offices at Greenhouse. CCI has focused on the recovery of the suburban office markets in Dallas and Houston, acquiring six properties across those markets this year, it said.
Capital Commercial Investments last month bought a discounted Irving office building from Piedmont Office Realty Trust.
The firm has a portfolio of 12.1M SF, which is projected to grow to 13.1M SF by the end of the first quarter.
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