GenCap Group Sells Houston Office Park
- Sep 14, 2020
The GenCap Group has sold Chasewood Technology Park, a 463,969-square-foot office campus in Houston. JLL Capital Market’s Rick Goings and Ethan Goldberg represented GenCap and procured the buyer, Nitya Capital. Goings also recently arranged the sale of another Houston office tower in January.
A JLL Capital Markets team led by John Ream and Laura Sellingsloh also arranged a 10-year fixed-rate loan for $46 million for Nitya that was provided by Morgan Stanley. According to JLL, GenCap is only selling the portfolio because one of the partners, an undisclosed Dutch pension fund, is selling out its U.S. assets.
Located along State Highway 249, Chasewood Technology Park includes four buildings. The six-story One Chasewood and the eight-story Two Chasewood were built in the 1980s, while the four-story Three Chasewood and five-story Four Chasewood were built in 2000 and 2008, respectively.
The 10.4-acre site also includes a tenant lounge, a fitness center, an on-site deli, a conference center, a full-service bank, delivery drop boxes, after-hours card-key access and two parking garages. The office park is 92.9 percent leased and has attracted a variety of tenants from different industries including from oil and gas, consulting, technology, engineering, architecture, health care and food services.
Paul Vangrieken, executive vice president at GenCap, said in prepared remarks that the company has seen high demand from tenants throughout its ownership of the office park, which has over-performed in its market.
Repositioning over 20 years
GenCap’s history with Chasewood Technology Park dates back to 1997, when the company first invested in the property through the purchase of Two Chasewood. The acquisition was part of a larger strategy to reposition the office park from the two existing Class B office buildings into a more desirable four-building Class A asset for the local market.
In the late ’90s, GenCap furthered its ownership into Chasewood Technology Park by acquiring One Chasewood and developing Three Chasewood. Roughly a decade later, GenCap rounded out the office park with the development of Four Chasewood, which was completed around the start of the 2008 financial crisis. Despite the difficult situation, GenCap brought Four Chasewood to an occupancy of more than 85 percent within a year. According to GenCap, the office park has attracted many tenants over the years including Regus, Samsung, the U.S. Navy and more.