Bisnow Exclusive: Three Sugar Creek Sells

Following its model of owning trophy assets in the suburbs, Radler Enterprises just closed on Three Sugar Creek, a 153k SF office building. (Most trophies in the suburbs come from youth sports.) Principal Tom Radom clued us into why the property is a unique opportunity for the Houston metro. 

Tom (here with his father and boss Mishael Radom) believes Three Sugar Creek is the finest office building in Sugar Land, a submarket he loves. (Its employment and amenity base are to die for.) And unlike the MSA’s other strong areas, there have been almost no new office projects delivered or announced since it hit the market (’08). That means very little competition, and Tom feels the quality and location make it nearly irreplaceable.

And Tom says Three Sugar Creek (pictured) comes with an upside—it’s 80% occupied, but the full top floor (the nicest space in the building) is available. He’s optimistic it’ll lease up quickly. CRC Real Estate’s Richard Glass repped Radler. Radler is also flying along on development of its Beltway Lakes campus. Building 3, which broke ground last year, is reaching core and shell completion in October. Building 4, its mirror image (each is nine stories and 270k SF), will go into the dirt in the next 90 days. Radler is also beginning planning on Building 5, a 20-story tower that’ll top 600k SF.

Tom tells us the original site plan (pictured) called for three sets of mirror-image buildings, but now that the Beltway is booming and land is scarce, he really has to focus on being a true Class-A development. And that means upping the amenities game. (They’re near the top of every credit tenant’s wish list.) Instead of a sixth office building, Radler is in late negotiations with a hotel that will also offer dining and conference facilities to tenants.