HOUSTON – (Realty News Report) – 1220 Augusta LLC, a Houston-based investment group, has purchased a 112,867-square-foot office building located just west of the Galleria area.
Colliers brokers Christopher D. Winters and Jay Kyle represented the seller in the transaction. The mid-rise building was originally constructed in 1983.
“Despite the challenges faced by the office market over the past year, interest in this property was notably strong,” said Christopher D. Winters, Principal & Director. “The San Felipe/Voss submarket remains attractive to many small and mid-size firms. Its convenient proximity to the Galleria, retail amenities, and upscale residential neighborhoods makes it an appealing relocation option. The new owners plan to occupy part of the building, alongside some existing tenants, while leasing the remaining space.”
1220 Augusta Drive sits within the San Felipe/Voss office submarket, one of Houston’s smaller office districts with roughly 5.4 million square feet of inventory. The current average asking rent in the market is about $26.46 per square foot.
Several other Houston office buildings have traded hands in recent weeks.
David Z. Mafrige Interests recently acquired World Houston Plaza, a 216,889-square-foot office building at 15710 John F. Kennedy Boulevard, through a Ten-X auction.
Braun Enterprises closed on a 90,000-square-foot office property at 7155 Old Katy Road. Colliers’ David L. Carter and Taylor Wright represented the seller, Houston Eye Associates.
Los Angeles-based Younan Properties, which has signaled a growing focus on Houston, purchased a 10-story office building on Westheimer Road—its second recent acquisition in the Houston market.
“This is our second large acquisition in the Houston market in less than two months. We are highly active in the Houston market due to the current market cycle and upside potential during the recovery,” said Zaya S. Younan, Chairman of Younan Properties.
Younan Properties also acquired the 232,000-square-foot Royal Oaks Centre office building in the Westchase District, located at 11490 Westheimer at Woodland Park Drive. The property had been owned by the Hertz Investment Group since 2017; Danny Miller of HDM Realty Advisors represented Hertz in the sale.
Earlier this year, Younan purchased Two Westlake Park, a vacant 17-story, 455,000-square-foot office tower in the Energy Corridor. Bloomberg reported the sales price for Two Westlake Park at $19.25 million.
Overall, Houston’s office investment activity was subdued in 2020, but recent transactions signal renewed investor interest as the market begins to recover.
May 4, 2021 Realty News Report Copyright 2021
File: Houston Office Building Sold
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins.
Photo credit: Colliers