Walton Street Capital L.L.C. has acquired One Westchase Center, a 138,684 m² Class A office building located in the Westchase submarket of Houston, from Granite Properties Inc.. The deal was worth approximately €50.6 million ($70 mln).
The property is 100 % occupied to tenants including EDG Inc., Brown & Gay Engineers, Petrobras America Inc. and U.S. Fire Insurance Co. The current rents are significantly below the current market rate, allowing the new owner to increase the rates in the near future.
The average asking rent for Class A office space in Westchase was €61.34 per m² ($25.89 per square foot) in 2006, according to Grubb & Ellis. According to Grubb & Ellis Co., the Westchase office submarket experienced a net absorption of more than 51,816 m² (170,000 square feet) over the course of 2006. The gain was part of a more widespread uptick in absorption in the Houston metro area at large, which experienced 1.6 million m² (5.2 million square feet) of absorption in 2006, the highest annual net annual absorption gain in nine years.
Source: Commercial Property News