Dinerstein Sells its HQ Building, Market briefs

In Houston, The Dinerstein Companies, a major multifamily company based in Houston, has sold its headquarters building, a seven-story office building in the Greenway Plaza submarket.

A 82,692-SF building at 3411 Richmond Avenue, near Buffalo Speedway has been sold to HRGI Development. Photo Courtesy JLL Capital Markets.

Transwestern represented the buyer, HRGI Development, LLC, which is led by Adeeb Dwairy, who is affiliated with Houston Regional Gastroenterology Institute.

The office building was built in 1968 and fully renovated in 1996. The value-add property is 89% leased to tenants, including DMC Builders, a part of the Dinerstein organization, which has developed over 80,000 conventional multifamily apartment units and 50,000 student housing beds nationwide across 26 states.

The office building is across from the one of Houston’s most ambitious new developments, The RO. When complete, The RO is set to include 1.3 million SF of Class AA office space, 738 upscale residential units, 105 boutique hotel keys, 44 branded residences, and 70,000 SF of retail and restaurant space. The RO is being developed by billionaire Dan Friedkin in conjunction with the Transwestern real estate firm.

The seller of the Richmond Avenue building was represented by JLL Capital Markets Managing Director Marty Hogan as well as David Anderson with Cresa. Transwestern Executive Vice President Evelyn Ward and Vice President Paula Musa represented the buyer.

“The sale of 3411 Richmond provides a new owner the opportunity to consolidate their offices into one location and capitalize on the building’s location next to one of the most anticipated redevelopments in the city,” said Hogan. “There has never been a greater opportunity to purchase value-add office properties in the right markets and create exceptional return on your investment.”

Houston’s population has grown 60% since 2010 and another roughly 400,000 residents are forecasted to be added by 2028. The low-cost of living, favorable tax climate and high-quality of life are a strong draw for residents and businesses, with more than 50 corporations headquartered in the city. Chevron recently moved its global headquarters from California to downtown Houston.