Clarion Nabs 272 KSF Office Building in Houston
- Dec 06, 2012
Clarion Partners, of New York, has acquired Westchase Park, a six-story, 272,300-square-foot Class A office building in Houston’s Westchase submarket, Clarion announced yesterday. The seller, Simmons Vedder Partners, of Houston and Austin, and O’Connor Capital Partners, of New York, was represented by a team from the Houston office of Holliday Fenoglio Fowler, led by senior managing directors Rusty Tamlyn and Jeff Hollinden and associate director Trent Agnew. The price was not disclosed.
The building, completed in 2009, is one of the newest office properties in the Westchase submarket and is 98.3 percent occupied. Fifty-two percent of the tenants, which include ABB and MetLife, are investment-grade tenants with an average lease term of eight years remaining, according to HFF.
Westchase Park’s amenities include a fitness center, 24-hour security, a large building conference room and a 1,089-space parking garage. The building has been awarded a LEED Gold designation for core and shell and LEED Platinum for certain tenant improvements. It’s sited on the Sam Houston Parkway near Westpark Tollway, U.S. 59 and I-10.
The property sits on 8.2 acres of land, but the deal included an additional 7 acres of adjacent land. Brian Watkins, a Clarion Partners managing director and the lead acquisitions officer for Westchase Park, said that strong demand for office space in this submarket, along with limited comparable competitive space, means that Clarion intends to develop a comparable building on the extra land.
“We’re very bullish on the Houston office market,” particularly in the Westchase submarket, “ Chuck Kemp of Clarion Partners, the property’s asset manager, told Commercial Property Executive.
Prospective tenants totaling between 3.5 million and 4 million square feet of demand are currently looking for space in the Westchase District, he said.
As a result, Kemp said, Clarion anticipates that the approximately 300,000-square-foot second building could attract tenants looking for 100,000 square feet of contiguous space, up to the whole building. Currently, he said, Clarion is assembling a development team and exploring preliminary designs.