Investors have purchased a string of Houston office properties, including the two-building Park Towers campus in the Galleria area, with occupancy levels ranging from 20% to 90%. The 90% occupied, 552,000-square-foot Park Towers campus was bought by Houston-based Interra Capital Group from Regent Properties, according to a press release by JLL, which brokered the sale.
“Large deal activity is back; there have been 10 office asset sales over $100 million in the last 18 months alone,” JLL Capital Markets Managing Director Rick Goings said in a statement regarding Park Towers. Since January 2023, 105 Houston office building trades have occurred, with activity increasing dramatically in the last two years, Goings said in a LinkedIn post.
Park Towers
Park Towers, located at 1233 and 1333 W. Loop S., consists of two 18-story buildings built in 1972 and renovated between 2016 and 2022. “Park Towers represented an exceptional opportunity to acquire a premier Galleria office asset with attractive in-place cash flow at a basis well below replacement cost,” Goings added.
Interra Capital Group CEO Jack Polatsek stated that Park Towers is exactly the kind of opportunity the company was built to pursue, with a well-located, well-leased Class A asset in the heart of Houston’s Galleria and a strong, diversified tenant base.
Additional Sales
In addition to the Park Towers sale, two other Houston office properties were sold through online auctions. The 19-story, 433,000-square-foot building at 3000 Post Oak Blvd. was purchased by 3000 Post Oak Realty LLC from LNR Property, a special servicing subsidiary of Starwood Property Trust. The building, constructed in 1979 and once known as Bechtel Tower, was left vacant when Bechtel Energy moved out, according to the seller.
A 10-story, 20% occupied building at 2350 N. Sam Houston Parkway E. was also sold to a private investor through an online auction, generating significant market interest. The building, located in North Houston, was built in 1982 and renovated in 2018.
Interra Capital Group retained Transwestern for leasing services, led by Jack Scharnberg and Doug Little. The company also became the new owner of Greenway Plaza, a prominent 53-acre mixed-use office campus in Houston’s Inner Loop, in April.
