Investor Buys Office Building, Market briefs

In The Woodlands, Capital Legacy Partners has purchased the Venture Tech VIII, office building in The Woodlands on the north side of the Houston area.

JLL Capital Markets represented the seller, an affiliate of Rycore Capital, a Houston-based real estate investment manager. The buyer was Capital Legacy Partners, who was represented by Brent Everson.

Built in 1998, Venture Tech VIII is 87.3% leased with a weighted average lease term of 3.9 years. The 70,212-SF office building features 262 total parking spaces

In Venture Tech Viii, a single, story building, 8708 Technology Forest Place is located in the Venture Tech Business Park, near I-45. The building sits on an 8.2-acre site just northwest of The Woodlands Town Center.

The Woodlands is a 28,500-acre large-scale planned community, located 27 miles north of downtown Houston and a 20-minute drive from George Bush Intercontinental Airport.

Despite significant headwinds faced throughout the office leasing market, The Woodlands has consistently proved resilient during times of softer fundamentals.

The Woodlands office market has a 13.9% vacancy rate, which is the lowest vacancy rate in the greater Houston area. The Woodlands area has 14.9 million SF of office space and no new office buildings are currently under construction.

The JLL Capital Markets Investment Sales and Advisory team representing the seller included Managing Directors Marty Hogan and Kevin McConn.

“Venture Tech VIII represents a compelling value-add opportunity within Houston’s premier suburban office submarket,” said Hogan. “The property’s single-story design, strong location and attractive basis below replacement cost position the new owner to successfully execute a lease-up strategy and capture meaningful upside.”