An Uptown Houston office building set for the foreclosure auction block at least seven times is being recapitalized and repositioned.
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The 25-story One Riverway was recapitalized by its ownership, an LLC controlled by Israeli real estate company Azrieli Group and Unilev Capital, according to a press release from Stream Realty Partners.
Stream handles leasing for the 507K SF building at 777 S. Post Oak Lane, which had been in special servicing since the summer of 2023.
One Riverway lost a law firm that leased 11% of its space last year, and Unilev failed to make debt service payments on an $80M loan from German American Capital Corp., according to servicer comments. Negotiations continued as the lender dual-tracked foreclosure, meaning it filed to potentially foreclose on the building but remained engaged in other potential solutions.
The recapitalization includes a loan modification and an additional equity contribution, according to Stream. The owners plan to renovate common areas, corridors, restrooms and elevators and build move-in ready spec suites.
Azrieli Group hired Global Fund Investments and Jason Presley to oversee its 3M SF office portfolio in Houston and Austin. An entity controlled by Azrieli Group and Unilev Capital also owns the neighboring Three Riverway, a 398K SF building with no mortgage loans, the release states.
“Recapitalizing One Riverway allows us to move quickly and creatively in a dynamic leasing environment, at a time when competing projects often do not have the capital to transact,” Presley said in the release. “We’re reinvesting in these assets to ensure One and Three Riverway remain a top-tier destination for tenants in Houston’s Galleria area.”
Stream’s Matt Asvestas, Brad Fricks and Danielle Rothchild oversee leasing at the property. One and Three Riverway have spaces from 1,086 SF to 101K SF available, the release states.
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