Investors bought a string of Houston office properties with widely varying occupancy levels, including the two-building Park Towers campus in the Galleria area.
Houston-based Interra Capital Group bought the 90% occupied, 552K SF campus from Regent Properties, according to a JLL press release, which brokered all three sales.
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Online auctions also resulted in the sales of 3000 Post Oak Blvd., a vacant, foreclosed-on Uptown property, and a 20% occupied office building at 2350 N. Sam Houston Parkway E.
“Large deal activity is back; there have been 10 office asset sales over $100 million in the last 18 months alone,” JLL Capital Markets Managing Director Rick Goings said in a statement regarding Park Towers.
Since January 2023, 105 Houston office building trades have occurred, with activity increasing dramatically in the last two years, Goings said in a LinkedIn post.
“Park Towers represented an exceptional opportunity to acquire a premier Galleria office asset with attractive in-place cash flow at a basis well below replacement cost,” he added.
The two 18-story buildings at 1233 and 1333 W. Loop S. were built in 1972 and renovated significantly between 2016 and 2022.
"Park Towers is exactly the kind of opportunity Interra was built to pursue: a well-located, well-leased Class A asset in the heart of Houston's Galleria with a strong, diversified tenant base," Interra Capital Group CEO Jack Polatsek said in a statement.
Houston-based boutique private equity firm Interra Capital Group became the new owner of Greenway Plaza, the prominent 53-acre mixed-use office campus in Houston’s Inner Loop, in April, after it had been in a yearslong receivership.
JLL’s Goings, Kevin McConn and Jonathan Napper represented Regent in the Park Towers sale. JLL also worked on behalf of the buyer to secure acquisition financing through Morgan Stanley, with Susan Hill leading debt advisory efforts for Interra Capital Group.
Interra Capital Group retained Transwestern for leasing services, led by Jack Scharnberg and Doug Little.
Meanwhile, an entity called 3000 Post Oak Realty LLC purchased the 433K SF, 19-story 3000 Post Oak, according to Realty News Report. The seller was LNR Property, a special servicing subsidiary of Starwood Property Trust.
The building, constructed in 1979 and once known as Bechtel Tower, was left vacant when Bechtel Energy moved out in late 2024 to a downsized space in Westchase's CityWestPlace. A representative of the former owners, a consortium of Asian investors, told Bisnow in April that they had exhausted all possible repositioning opportunities and planned to let foreclosure proceed.
The building sold through an online auction on the RealInsight Marketplace platform, according to JLL, which did not disclose the purchaser's identity but called the building “a rare opportunity for value-add repositioning in Houston's most prestigious office submarket.”
JLL's Capital Markets Investment Sales and Advisory team representing the seller was led by Goings, Marty Hogan, Jeff Hollinden and Max Myers.
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A publicly traded REIT used the same online marketplace platform to sell 2350 N. Sam Houston Parkway E. to a private investor, according to JLL. The auction generated “significant market interest.”
The 10-story, 20% occupied building is in North Houston, just south of George Bush Intercontinental Airport, and was built in 1982 and renovated in 2018.
JLL's Capital Markets Investment Sales and Advisory team, which represented the seller, was led by Hogan and Burke Tilton.
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