A Houston-based private equity firm just bought its third Houston office property and doubled its assets under management in less than a year.
DML Capital bought 1800 Bering, a 10-story Class-A office building west of Houston’s Galleria area, from KBS. This boosts DML Capital’s AUM to $600M, up from $300M in April, according to JLL.
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The firm, whose three principals are Sajjid Dawood, Saleem Lakhani and Anil Mohammed, bought its first office property, the Offices at Kensington in Sugar Land, in February 2024, according to JLL. DML also invests in retail properties.
The 171K SF 1800 Bering is on Bering Drive between San Felipe Street and Westheimer Road. KBS bought the building in 2014 and upgraded it during its ownership with improvements to the lobbies, new elevator cabs, updated signage and a landscaping redesign.
“This property stood out due to its strong positioning and the quality of ownership behind it,” Mohammed said in a statement. “KBS’ hands‑on investment management and strategic improvements created a clear value proposition that resonated with us as long‑term owners.”
In June, DML Capital bought Reserve at Westchase, a 195K SF office property at 3250 Briarpark Drive in West Houston. In August, it bought 3555 Timmons, a 227K SF office building in Greenway Plaza. JLL advised DML and arranged financing in all three office acquisitions.
JLL’s debt advisory team representing DML Capital for 1800 Bering was led by Michael Johnson and Michael King. They secured a three-year acquisition loan with an insurance company.
JLL Capital Markets’ Kevin McConn and Marty Hogan represented KBS and procured the buyer.
“Houston has been one of the most active office markets in the country over the past year,” McConn said in a statement. “Investors are drawn to the strength of the city, the underlying office fundamentals and the once in a generation opportunity to invest at a lower cost basis.”
Greenberg Traurig attorneys Bruce Fischer and Howard Chu, along with paralegal Amanda Kennedy, represented KBS as legal counsel.
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