You Might See Yao Ming From Here
Fuller Realty bought 9801 Westheimer, a 211k SF office tower in Westchase. Maybe it was drawn to the location—it's got a lovely view of Yao Ming's old home. (You never know when he'll be feeling nostalgic and stop by.)
HFF director Marty Hogan and senior managing director Danny Miller repped seller Younan Properties and said the building offered a fantastic value-add opportunity. It's 86% occupied, leaving room for lease-up, but even better are the rents, which are well below market rate. (We're talking $19.50/SF gross in place versus $18 net current rates, a $6 to $7 delta.) That's one reason why they had a solid amount of interest, despite a big hurdle: The asset came with a CMBS loan assumption that was 50% of the purchase price. (The dreaded CMBS, the most feared pirate on the open market.)
Danny tells us the property also comes with room for future development fronting Westheimer. (The building sits on 5.4 acres... that's a sizable amount of leg room.) We should see some mega closings from these two soon: They've got Energy Crossing I and II, Two Westlake, 10333 Richmond, and two of the Lakes on Post Oak buildings on the market.
