Hartman Acquires 3 Houston Offices In $20M Deal
Houston-based Hartman REIT is raising its commitment to the Bayou City with three new office acquisitions totaling 254K SF, according to an 8-K filed with the Securities and Exchange Commission. The three properties were acquired from Houston Portfolio LLC, an unrelated third party, for a purchase price of $20.55M, exclusive of closing costs.
Two of the office buildings are close to each other in Houston’s Energy Corridor while the third is near Willowbrook Mall north of Houston. No improvements are planned at the Class-B office assets, all built in 1982. Stream Realty is the registered listing agent for all three properties.
The largest building, 1400 Broadfield Blvd., is a six-story, 102K SF office in the Energy Corridor. As of Oct. 1, the Broadfield Building was 70.1% occupied by 13 tenants. Strategy Engineering & Consulting anchors the building.
The 16420 Park Ten Building is a five-story office offering 84K SF, 53.6% of which is occupied. Liberty Lift Solutions occupies 13.1% of the total rental square footage of the property, according to SEC filings. The smallest of the trio, the three-story 67.5K SF office building commonly referred to as the 7915 FM 1960 Building, was 41.9% occupied at the time of sale. No tenant occupies more than 10% of the building.
Office sales have been few and far between in Houston, registering just $210.5M over the third quarter, down 87% year over year and trending for the lowest annual volume since 2016, according to Transwestern. With several trophy towers listed on the market, those numbers could be drastically impacted by a single deal.