Capital Commercial Buys Houston Office Building
Capital Commercial Investments Inc., of Austin, Texas, has acquired Energy Crossing II, a 327,404-square-foot office building in Houston’s Energy Corridor. JLL Capital Markets led the sales effort for the property.
Invesco Real Estate was the building’s previous owner, according to CommercialEdge data. The transaction’s dollar value was not disclosed.
Energy Crossing II was completed in 2014 on a 5.47-acre site at 15011 Katy Freeway. The eight-story property offers flexible floorplates averaging 42,648 square feet. Amenities include LEED Platinum certification, a fitness center and an on-site parking garage. The building is currently about 30 percent leased; JLL described it as positioned to capitalize on the office market’s “flight-to-quality” trend.
The building’s major tenant currently is MODEC Inc., at 168,400 square feet, according to CommercialEdge data. Founded in Tokyo in 1968, the company is a worldwide supplier and operator of offshore floating platforms for the oil and gas industry.
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The site is adjacent to I-10, providing access to Beltway 8 and Westpark Tollway, as well as downtown Houston, the Galleria, the George Bush Intercontinental Airport and several premier residential areas, including The Villages, Briar Forest and River Oaks.
The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Managing Director Kevin McConn and Senior Director Rick Goings.
Middling market
Houston’s office market presents a mixed picture, with modest positive net absorption in the third quarter, ending a four-quarter streak of negative absorption, according to a new report from JLL. Overall vacancy is 26.4 percent, however, and the report described recent leasing activity as moderate.
The West Houston submarket (Katy Freeway East, Katy Freeway West and Westchase) saw 630,997 square feet of positive absorption, far outpacing the Houston region as a whole.
In June, Howard Hughes Holdings Inc. secured a $130 million refinancing package for 9950 Woodloch Forest Drive, a 601,000-square-foot Class A office building in The Woodlands, Texas, from Wells Fargo and Argentic Real Estate Finance. The deal was significant for being Howard Hughes’ largest debt maturity in the following two years.
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