Transwestern Sells Houston Trophy Asset

A Mexico-based equity fund acquired the recently completed Westway Plaza. At the time of sale, the 313,000-square-foot office building was fully occupied.
Westway Plaza
Westway Plaza

Transwestern Development Co. has sold Westway Plaza, a 313,420-square-foot, Class AA office building in Houston, to The Aztec Fund Inc., a Mexico-based private equity fund. 

Located at 11330 Clay Road, the property is fully leased, with General Electric anchoring the building and Superior Energy Services and TESCO Corp. both taking up space.

“The property has long-term leases to credit tenants with annual escalations. It is 100 percent leased to only three tenants providing stable, predictable cash flow,” Carleton Riser, Transwestern Development Co.’s president, told Commercial Property Executive. “The sale was off-market, but we felt the pricing was attractive and after a period of collecting cash flow, we felt the time was right to sell and redeploy capital into more entrepreneurial investments.”

Completed in 2015, the five-story building boasts efficient floorplates averaging more than 65,800 square feet. It features a double-height lobby, which offers a sophisticated, modern environment that complements the floor-to-ceiling glass windows and 9-foot-6-inch ceiling height. Amenities include a state-of-the-art fitness facility and a full-service deli. The property is also LEED Gold certified. 

Rise of the West Belt Corridor

Westway Plaza is situated on almost 10 acres, offering direct access to the Sam Houston Tollway. It is also close to Interstate 10 and Highway 290. Recent Transwestern data shows the West Belt Corridor is one of the quickest-growing submarkets in Houston, increasing by more than 5.2 million square feet since 2000.

“The location is a bullseye for large corporate users seeking to provide attractive access for an extensive executive workforce,” Riser said. “The central West Sam Houston Tollway location makes it accessible to executive housing in multiple areas in west and north Houston. It is also proximate to the cluster of energy companies in West Houston.”

Riser also noted the highly-qualified labor pool in the area was a big factor in attracting tenants to the building, as was the upcoming expansion of the Grand Parkway, which will further improve access to the area.

According to Riser, the company’s investment philosophy is simply to maximize outcomes. “This means that we pursue the best risk-adjusted returns from our entrepreneurial activities,” he said. “There is no preset hold period, so leasing success and market factors determine our investment timing.”

HFF represented Transwestern Development Co. in the deal, led by the firm’s Senior Managing Director Jeff Hollinden and analyst Dane Petersen.

In March, Ridge Development, the industrial development arm of Transwestern Development Co., acquired a 10.5-acre parcel just southeast of Chicago’s O’Hare airport, on which it plans to build a 178,500-square-foot spec project with 32-foot clear heights.

Image courtesy of Transwestern