Denver-Based Firm Acquires Sugar Land Office Building For $27.4M
A Denver-based real estate firm has re-entered the Houston market.
Northstar Commercial Partners purchased 77 Sugar Creek Center Blvd., Sugar Land, for $27.4M, according to a press release. Built in 1999, the property is on more than 6 acres and features covered and surface-level parking.
The six-story, Class-A office building is 91% leased and offers a diverse tenant mix of midsize companies with over 35 tenants. Occupancy will drop to 80% due to State Farm vacating 9,500 SF earlier this month and a law firm returning 2,440 SF in October.
"I love the Texas market, specifically in and around the Houston area," Northstar Commercial Partners founder and CEO Brian Watson said in the release. "This is a vast and expanding market that many are projecting to surpass Chicago as the third largest city in the United States. Specifically, the Sugar Creek property is a solid building with a covered parking structure that we plan to continue leasing to quality tenants in a competitive market."
Sugar Land is one of the fastest-growing suburbs in the country. Companies from oil and gas producers to technology providers call the submarket home. Since 2010, the Sugar Land population has grown by 45%, and the annual household income is 60% higher than the Houston metro average at $151K.
"Fast-growing communities have been a key to Northstar's success, especially as it relates to our prior office acquisitions," Watson said. "I'm especially excited about our new Sugar Creek property, because we have the ability to continue growing in Texas. I love the idea that Northstar will be able to facilitate job growth and opportunity in the Houston market. We look forward to working with tenants and brokers in the area to bring the property up to full occupancy in the coming months."
This deal marks the fifth transaction for Northstar in Texas. The company acquired a 370K SF industrial warehouse at 1601 Gillingham Lane, Sugar Land, in 2009 then sold it for $16.5M in 2014. It also purchased and then in 2012 sold a property in Plano, Houston in 2013 and Arlington in 2018.