Hartman Acquires Houston Energy Corridor Office

The REIT paid more than $5 million for the six-story property, which underwent cosmetic renovations under the previous ownership in 2013.
11211 Katy Freeway

Hartman Income REIT has completed the acquisition of a nearly 78,000-square-foot office building in Houston’s Energy Corridor. San Antonio-based Cotter & Sons sold the asset for $5.1 million, according to Yardi Matrix data.

Located at 11211 Katy Freeway on a 2.6-acre site, the six-story property was completed in 1976 and underwent cosmetic improvements in 2013, the same data provider shows. Amenities include controlled access and a total of 167 parking spaces, with a parking ratio of 2.2 spaces per 1,000 square feet. Additionally, the asset features 2,000 square feet of retail space and is 68 percent leased to tenants such as Farmers Insurance, Texas Health School, Jones Engineering Solutions, Genesis Merchant Solutions and DexaFit.

“The acquisition of 11211 Katy Freeway is a great addition to our office portfolio in Houston. The Katy Freeway West submarket, which includes the Energy Corridor, has been the economic engine of West Houston for several years. This area has solid economic fundamentals and remains attractive to many businesses,” David Wheeler, Hartman’s chief investment officer, said in prepared remarks.

The property is part of the Katy Freeway West submarket, the metro’s second-largest office submarket. Major energy companies in the area include Shell Oil, ConocoPhillips, Citgo and BP America. Last week, Granite Properties also invested in the Energy Corridor. The company acquired Eldridge Place, a three-tower office complex, for $78.4 million.

Image courtesy of Yardi Matrix