Houston-Area Office Building Trades for $27M

Northstar Commercial Partners bought a 143,000-square-foot Class A asset in Sugar Land, Texas, from Velocis. The property was roughly 7.5 percent vacant at the time of sale.
Two Sugar Creek, Sugar Land, Texas
77 Sugar Creek Blvd. Image courtesy of Velocis

Northstar Commercial Partners announced it has acquired 77 Sugar Creek Blvd., a 143,000-square-foot Class A office building in the Houston suburb of Sugar Land, Texas, for $27.4 million. Private equity real estate manager Velocis previously owned the six-story property, which it had acquired from TA Associates Realty in October 2017.

More than 35 tenants with mid-sized premises occupy the 1998-built property, previously known as Two Sugar Creek. The building, which offers floor plates of 23,839 square feet, has a vacancy rate of approximately 7.5 percent. The asset sits on more than 6 acres of land and offers covered and surface-level parking.

Prior owners include Grubb & Ellis—which sold the building to TA Associates Realty in 2011—and Transwestern—which offloaded the property in 2004.

The competitive Sugar Land market is home to an array of tenants in sectors ranging from technology to oil and gas production. Glazer Properties bought up the 193,998-square-foot office building One Sugar Creek Center just down the street from Equus Capital Partners in May.