Houston Office Asset Lands $92M Refinancing

The note, secured by HFF and held by PGIM Real Estate, matures after three years and has a variable interest rate.
3737 Buffalo Speedway in Houston

A joint venture between PM Realty Group and National Real Estate Advisors has taken a $92.4 million refinancing package from PGIM Real Estate Finance for 3737 Buffalo Speedway, a 383,777-square-foot Class AA office tower in Houston. The owner will use the three-year, variable-rate mortgage’s proceeds to pay down existing debt—an $82.8 million construction loan originated by JPMorgan Chase in 2014, according to public records—and to bolster leasing efforts for the high-rise.

Located in Houston’s Greenway/Upper Kirby submarket, the 18-story office asset sits at the corner of Richmond Avenue and Buffalo Speedway, just north of Interstate 69. The city’s downtown lies five miles east of the building.

Green building, modern amenities

Built in 2016, the LEED Silver-certified asset is 73 percent leased to a number of tenants, including Whitley Penn, HCA and FKP Architects. The largest occupant, chemicals firm Solvay, occupies 80,000 square feet in the tower under a 10-year lease agreement, according to Yardi Matrix data. The property includes 8,800 square feet of retail on the first story and a parking garage partially incorporated into the high-rise’s lower floors. Building amenities include a fitness center, a conference center and on-site restaurants.

An HFF team led by Wally Reid and Matthew Putterman secured the loan on behalf of the borrower.

Image via Google Street View