HOUSTON, TX and NEWPORT BEACH, CA--(Marketwire - Mar 19, 2013) - Buchanan Street Partners, a national real estate investment management firm, in partnership with CarVal Investors, a global alternative investment fund manager, has acquired a 16-story office building at 2100 West Loop South in the Galleria submarket of Houston, TX. The building was purchased in an off-market transaction and at an undisclosed price. This is Buchanan Street's third office acquisition in Houston and second with CarVal Investors over the last two years.
The building has a prominent location fronting the West Loop South Freeway (Interstate 610) between San Felipe Street and Westheimer Road. Built in 1974, the 165,399 square-foot-building was 82% leased at below market rents at the time of sale. Buchanan Street plans to invest a substantial amount of new capital for leasing costs and property upgrades.
"This is an attractive investment for Buchanan Street Partners due to the upside potential of this building against the backdrop of strong market fundamentals in the Galleria area," said Tim Ballard, President of Buchanan Street Partners. "Our all-in basis in this investment is approximately 55% of projected replacement cost. We also like how the size of the building's floor plate caters to smaller tenants and provides them with greater building exposure in a premium location."
The Galleria is one of Houston's premier submarkets, offering an abundance of service amenities, including restaurants, retail shopping, hotels and entertainment. The occupancy rate for office buildings in the Galleria has increased from 86% to 90% over the last 18 months.
Buchanan Street plans a number of improvements that include first floor lobby upgrades, exterior painting, parking deck and an upscale entranceway for tenants and their visitors. Building amenities include a seven-story parking structure, 24/7 security with a manned security console in the lobby, after-hours card key access and an on-site deli.
About Buchanan Street Partners
Buchanan Street Partners is a real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors. www.buchananstreet.com.
About CarVal Investors
CarVal Investors is a leading global alternative investment fund manager focused on distressed and credit-intensive assets and market inefficiencies. Since 1987, its experienced team has navigated through ever-changing credit market cycles, opportunistically investing more than $61 billion in 4,220 transactions across 65 countries. The firm's North American Real Estate team pursues value-add and opportunistic investments in the U.S. and Canada, focusing on office, industrial, multifamily and retail asset types. Today, CarVal Investors has approximately $8 billion in assets under management in both credit and real estate strategies. For more information, visit www.carvalinvestors.com.
Contact Information:
Contact:
Kira Sarkisian | Randy Hall
714-263-8729 | 714-263-8723
kira@ideahall.com
randy@ideahall.com