HOUSTON – (Realty News Report) – The CityNorth 1 building is listed for sale at $100 per square foot, totaling $25,352,600.
“If you were to build a new structure of this size with comparable features from the ground up, replacement costs would likely range from $300 to $350 per square foot,” says Keith E. Lloyd of Marcus & Millichap, who is marketing the property. “At this price, it’s an exceptional value in the current market.”
Lloyd, an experienced Houston broker, notes the property presents an attractive opportunity for an owner-occupier seeking long-term office space.
Corporations Buying Buildings Rather Than Leasing
Several corporations are actively searching the Houston area for office campuses to purchase while market prices remain low, Lloyd says. “In the last 30 days I’ve seen two separate broker requirements from large companies that explicitly want to buy office buildings rather than lease,” he adds.
The vacant CityNorth 1 building is ready for an owner/operator to design and fit out to their specifications, according to Marcus & Millichap.
“CityNorth 1 has solid structure and plenty of potential for interior upgrades and finish changes,” Lloyd says. “With more companies returning employees to office settings, this is a rare chance to create a workplace tailored to your staff’s needs.”
Overall, Houston’s office market remains soft due to the pandemic and a slowdown in the energy sector. In February, Houston’s office vacancy rate reached 23.5 percent—the highest in the nation—according to data from Yardi Systems’ CommercialEdge.
The 12-story CityNorth 1 building at 233 Benmar Drive is part of CityNorth, a 2.1 million-square-foot office park formerly known as Greenspoint Place. Friendswood Development, once the real estate division of Exxon, originally developed Greenspoint Place. In 2017, an investment group led by Lincoln Property Company and H.I.G. Realty Partners acquired the campus, completed an $80 million renovation and rebranded it as CityNorth.
Located in an Opportunity Zone, CityNorth 1 sits east of Interstate 45, near Beltway 8 and close to George Bush Intercontinental Airport.
April 13, 2021 Realty News Report Copyright 2021
File: Office Building For Sale for $25,352,600
For more on Texas real estate, see the book Houston 2020: America’s Boom Town — An Extreme Close Up by Ralph Bivins.