Buys Tanglewood Office Building: Private Equity Firm

In Houston, DML Capital, a private equity firm based in Sugar Land, has added an office building to its portfolio with the purchase of 1800 Bering.

The 10-story building was purchased from KBS, which completed a number of improvements to the property during its ownership. Kevin McConn and Marty Hogan of JLL Capital Markets represented the seller.

Located in the Tanglewood area west of the Galleria, 1800 Bering was built in the early 1980s. The 171,510-SF building is 83% leased to a diverse rent roll of tenants, as stated by JLL. The building is situated between San Felipe and Westheimer near several affluent neighborhoods.

“Houston has been one of the most active office markets in the country over the past year,” said McConn. “Investors are drawn to the strength of the city, the underlying office fundamentals and the once in a generation opportunity to invest at a lower cost basis.”

The 1800 Bering building was purchased in 2011 by Fuller Realty Advisors, which later sold it. The seller in the 2011 deal was he seller, Coast Range Investments of San Francisco, was represented by Rudy Hubbard, Paul House and Leah Gallagher of JLL.

In the last two years, several major office building sales have occurred in the Tanglewood/Galleria area.

Last year, Dallas-based pipeline company Energy Transfer purchased 5555 San Felipe in the Galleria submarket. A few years ago, Sovereign Partners purchased the 46-story San Felipe Plaza office building on San Felipe at Augusta.

The sale comes as Houston’s office vacancy rate dipped to 26.3% in 2025, slightly lower than the previous year as leasing activity improved, as stated by Partners Real Estate.

KBS, which purchased the building in 2014, completed upgrades to the lobbies, added new elevator cabs, and refreshed the common areas and landscaping. Amenities include an on‑site micro market, tenant lounge, conference center, and outdoor patio.

JLL’s debt advisory team led by Michael Johnson and Michael King arranged a three-year purchase loan with an insurance company for the buyer.

“The debt capital markets are back open for office and there is no lack of liquidity for well-located, well-maintained assets such as 1800 Bering,” added Johnson. “We ran a competitive process and garnered quite a bit of interest from a variety of groups that were eager to lend in the Houston market.”

Based in Newport Beach, Calif., KBS was founded by Peter Bren and Chuck Schreiber in 1992. KBS has invested in nearly 1,700 multifamily, industrial, office, and retail assets since inception.