Younan Continues to Trim Leverage with Sale of Houston Asset
By Barbra Murray, Contributing Editor
Taking another big step forward in deleveraging its portfolio, Younan Properties Inc. has sold 1700 West Loop South in Houston to ROC Bridge Partners L.L.C. Younan has been in a selling state of mind, but it didn’t have to market the premier 272,100-square-foot office property, as ROC Bridge knocked on the real estate investment and management company’s door with an offer.
Younan had owned the 14-story property since acquiring it with joint venture partner Passco Companies L.L.C. in 2007 for approximately $35.5 million, according to a document filed with the U.S. Securities and Exchange Commission. This time around, both seller and buyer are remaining mum on the price tag; however, Zaya Younan, chairman and CEO of Younan, conceded that “this asset sold above its purchase price and traded at an impressive 6.0 cap rate.” Avison Young represented Younan in the transaction.
Located in the thriving Galleria/West Loop submarket, 1700 West Loop South, also previously known as Younan West Loop South, first opened its doors in 1978 and has since maintained its Class A luster through renovations, the last of which occurred in 2006. The building is home to a number of tenants, including Burns & McDonnell, an engineering and architecture firm that increased the size of its digs from approximately 38,900 square feet to 59,200 square feet last September.
The sale of 1700 West Loop South marks Younan’s third office disposition this year. In June, the company sold Four Forest Plaza in Dallas to Adler Realty Investments and in April, it completed the sale of 200 N. LaSalle in Chicago to the Omni Group. Excluding 1700 West Loop South, over the last year, Younan has sold properties in transactions totaling $400 million and managed to deleverage its portfolio by 30 percent.