HOUSTON – (Realty News Report) – An affiliate of Realty.com, the national residential online search portal, has acquired a 20-story office tower near Greenspoint Mall in north Houston.
The 386,277-square-foot building, which opened in 1982, is located at 363 North Sam Houston Parkway East. Positioned just east of Interstate 45 near Imperial Drive, the property sits in a submarket that may present opportunity for investors seeking value while Houston’s office sector faces a soft patch.
The Greenspoint submarket suffered a notable setback about six years ago when ExxonMobil relocated to a new 3 million-square-foot corporate campus in north Harris County, reducing the area’s large corporate presence and contributing to lower demand for nearby office space.
This acquisition reflects Realty.com’s strategic move into commercial real estate, according to Adam Farrar, chief operating officer of the Houston-based company. “With our recent acquisition of a 400,000-square-foot commercial building in Houston, Texas, we’re making clear that commercial real estate is our next major initiative,” Farrar said in an email.
Realty.com confirmed the purchase but did not disclose the purchase price. The office tower had been owned by an entity controlled by The Khoshbin Co., a California-based firm led by Manuchehr “Manny” Khoshbin. JLL Capital Markets represented the seller, with Senior Directors Martin Hogan and Kevin McConn leading the sale team.
The property features an atrium and underwent recent renovations; company officials indicated additional improvements are planned to modernize the building and enhance tenant appeal.
“This is an exciting first of many moves we’ll be making into the commercial real estate world,” said Lance Custen, president and CEO of Realty.com.
Market data underscores the challenges facing Houston’s office sector. A recent survey by NAI Partners reports the citywide office vacancy rate has climbed to over 22 percent, a 20-year high. The sector has been affected by shifts tied to the coronavirus pandemic as well as headwinds in the energy industry, including a steep drop in oil prices and reduced drilling activity.
Despite these headwinds, investors and owners are positioning for recovery by targeting assets where renovations and repositioning can add value as overall market conditions stabilize.
Aug. 26, 2020 Realty News Report Copyright 2020
File: Greenspoint Office Tower Acquired
File: (2) Manny Khoshbin. Lance Custen. Realty.com. Greenspoint Office Tower. Parking garage with 1,182 spaces. Acquired Aug. 2020
