HFF closes sale of and arranges acquisition financing and joint venture equity for two office buildings in Houston’s Galleria submarket

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced  has closed the sale of 1001 and 2425 West Loop South (top left photo), two office buildings totaling 503,930 square feet in Houston’s Galleria submarket.

The HFF investment sales team was led by senior managing director Dan Miller (middle right photo) and associate director Marty Hogan (middle left photo) who marketed the properties on behalf of the seller, The Ellman Companies.

 Fuller Realty Partners LLC purchased the properties free and clear of debt.  The same team was involved in the sale of both of the assets to Ellman in 2007.   

Acquisition financing was arranged by HFF senior managing director Wally Reid and provided by NexBank as agent for a group of lenders managed by Highland Capital Management, LP.  

HFF managing director Tucker Knight (lower right photo) arranged the joint venture equity for the acquisition with PCCP, LLC.

1001 West Loop South and 2425 West Loop South are situated on the east side of Loop 610 between Westheimer Road and Woodway Drive in the Galleria area.  1001 West Loop South is an eight-story, 222,340-square-foot office building with a 697-space parking garage.

Renovated in 2007/2008, the property is 41.2% leased to tenants including Xerox.  2425 West Loop South has 11 stories of office space totaling 281,590 square feet plus a 947-space parking garage.  The property is 53.8% occupied to tenants including Blue Cross Blue Shield.

“Both assets offer superior upside potential through the lease up of vacant space.  1001 and 2425 West Loop are the only two Class B buildings in the Galleria submarket that can accommodate a 50,000 square foot or larger user,” said Miller.

Contacts:

H. Dan Miller, HFF Senior Managing Director, (713) 852-3500,  

dmiller@hfflp.com

                                                                                             

Wallace P. Reid, HFF Senior Managing Director, (713) 852-3500, 

wreid@hfflp.com

                    

Tucker S. Knight, HFF Managing Director, (713) 852-3500, tknight@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com