Boca Raton, Florida-based CP Group has acquired Five Post Oak Park in the Galleria/Uptown submarket in Houston.

The Class-A, 567K SF, 28-story office tower was built in 1982 and is located within the 43-acre Post Oak Park business park. The acquisition was completed as a joint venture, with funds managed by Miami-based Rialto Capital Management.

CP Group said in a press release that it intends to modernize the building’s lobby, which will include the addition of a new coffee shop and restaurant space. There are also plans for developing an outdoor patio connecting to adjacent green space.

Five Post Oak Park is CP Group’s first property in the Houston market since 2014, when it sold off Lakes on Post Oak, a three-building office development in the Galleria/Uptown submarket.

Houston’s office market is one of the most challenged in the country, with a vacancy rate of about 23%, according to the latest Q2 2021 office market report from Colliers International. The energy downturn in 2020, coupled with the coronavirus pandemic, has sent the city’s total vacancy rate to new highs.

CP Group Senior Vice President Brett Reese told Bisnow that the weakness of Houston’s office market is precisely why the firm decided to invest in the property.

“We’re buying a quality asset in a quality location with an abundance of amenities, and we believe there is a dislocation in the capital markets,” Reese said. “Many buyers are not currently pursuing deals in Houston, which is creating what we feel are great opportunities.”

Reese said that CP Group believes that the Galleria/Uptown submarket is the most desirable submarket in Houston, as it falls within the top 20 business districts by office square footage.

Transwestern Executive Vice President David Baker is leading Five Post Oak Park’s office leasing team. The property is just over 50% leased.