HOUSTON – (Realty News Report) – Nitya Capital, a Houston-based real estate investment firm led by Swapnil Agarwal, has acquired Chasewood Technology Park, a four-building office campus totaling 463,969 square feet in northwest Houston.
Nitya Capital has been actively expanding its portfolio. Less than a month earlier the firm purchased One Westchase Center, a major office tower on Westheimer Road.
Chasewood Technology Park sits along State Highway 249 in a submarket that grew around the former Compaq headquarters, a prominent computer manufacturer founded in 1982.
The campus comprises One, Two, Three and Four Chasewood, located at 20333, 20405, 20445 and 20329 State Highway 249, respectively.
Financing for Nitya Capital’s acquisition included a $46 million loan provided by Morgan Stanley, with JLL Capital Markets arranging the financing. The purchase price was not disclosed.
JLL represented the seller, GenCap Group, and also procured the buyer.
The Compaq Area
The 10.4-acre Chasewood campus is positioned near the intersection of State Highway 249 and Louetta Road, roughly midway between the Grand Parkway and the Sam Houston Tollway.
The multi-story office buildings at Chasewood Technology Park are 92.9 percent leased to a diversified mix of tenants across oil and gas, consulting, technology, engineering, architecture, healthcare and food service sectors.
GenCap Group assembled the four-building portfolio over an extended period. Their ownership history at Chasewood dates back more than two decades.
GenCap’s initial investment was the acquisition of Two Chasewood in 1997, followed by the purchase of One Chasewood and the development of Three Chasewood in the late 1990s. Four Chasewood was developed and completed around the start of the 2008 financial crisis and reached more than 85 percent occupancy within a year.
“This type of strong demand has been typical during our holding period,” said Paul Vangrieken, Executive Vice President with GenCap Group. “Despite the many challenges, these assets have continuously outperformed the market thanks to a strong ownership sponsor and the dedication of the Transwestern leasing and management team.”
GenCap Group sold the portfolio because one of its partners, an undisclosed Dutch pension fund, is divesting all U.S. holdings.
GenCap Group is an independent real estate investment advisor and operator based in Dallas.
The JLL Capital Markets team representing GenCap was led by Director Rick Goings and Analyst Ethan Goldberg. Financing efforts were led by JLL Capital Markets’ John Ream and Laura Sellingsloh.
Drought of Deals Over?
“This portfolio is among the first large office trades to occur in the Houston market since COVID-19 hit the U.S.,” Goings said. “The pandemic created numerous challenges in bringing this deal across the finish line, but we had the right assets, the right tenancy and the right buyer to get it done. The prior owners did a great job in positioning these buildings to withstand macro-economic events and Nitya understood that value proposition.”
Historically known for multifamily investments focused on workforce housing, Nitya Capital’s portfolio includes roughly 17,300 multifamily units across Texas and other states. In recent years the firm has diversified, and now owns over 1 million square feet of office space, approximately 400,000 square feet of retail, and hundreds of single-family homes.
Founder Swapnil Agarwal immigrated from India at age 15 and settled in Houston with a working-class family. As a youth he delivered flyers in the Westchase area and later set a personal goal to own the One Westchase building—an ambition he ultimately achieved.
Agarwal has received national recognition for his entrepreneurial achievements, including the EY Entrepreneur of the Year award in 2017.
Nitya Capital also owns the 200,000-square-foot Nitya Tower, formerly Norfolk Tower, near the Southwest Freeway and Greenbriar in Houston’s Inner Loop.
Nitya Capital Buys Another Office Building
Nitya Capital’s acquisitions of the Chasewood properties and One Westchase Center come as the Houston office market faces notable challenges.
Citywide office vacancy has reached a two-decade high—exceeding 22 percent—according to a recent survey by NAI Partners.
Houston’s office sector has been affected by pandemic-related disruptions and by contractions in the energy industry, including a sharp decline in oil prices and reduced drilling activity.
Overall, office investment activity in Houston was subdued in 2020.
Sept. 11, 2020 Realty News Report Copyright 2020
File: Nitya Capital Buys Another Office Building
File: Chasewood Technology Park. Highway 249. Compaq. 463,969 SF. Northwest Houston. Nitya Capital Buys Another Office Building
Photo credit: Mabry Campbell
