HOUSTON – Elite Street Capital, a Houston-based real estate firm, has purchased 2100 West Loop South, a 162,336-square-foot office tower located in Houston’s Galleria submarket near San Felipe Road. The acquisition strengthens Elite Street Capital’s expanding commercial portfolio in a market showing renewed investor interest.
HFF represented the sellers, Buchanan Street Partners and CarVal Investors, and facilitated the transaction on behalf of Elite Street Capital, which is led by CEO Yoni Sade. The purchase reflects the firm’s strategy of acquiring well-located, high-quality assets in major Texas markets.
Elite Street Capital is known for its significant multifamily holdings across Texas and the southeastern United States, and it operates a luxury custom homebuilding division out of Houston. This acquisition expands the firm’s presence in Houston’s commercial real estate sector.
The 16-story office building at 2100 West Loop South underwent renovations in 2014 and is currently 88.7 percent leased, offering stable in-place income and upside potential through leasing and asset management initiatives.
The HFF investment sales team representing the sellers included senior managing director H. Dan Miller and senior director Martin Hogan. “Office investors have returned to Houston in a big way,” Miller said, noting that year-to-date transaction volume was more than five times the level seen in 2016.
According to a recent Avison Young study, Houston’s investment sales activity at midyear rose roughly 300 percent compared with the first half of 2016, pushing the city to fourth place nationally for investment sales volume.
To finance the acquisition, Elite Street Capital secured a five-year, fixed-rate loan at 4.25 percent through Greystone, arranged by HFF’s debt placement team. HFF representatives on the financing included senior managing director Matt Kafka and director Michael Johnson.
Buchanan Street Partners, founded in 1999 and based in Newport Beach, California, is a nationally recognized real estate investment management firm that partnered with CarVal Investors for the disposition of the property.