Novel Office Expands Into Houston With Purchase Of Greenway-Area Building
Novel Office purchased 3555 Timmons, a 14-story Class-A building near Greenway Plaza, with plans to renovate and build out spec suites.
The sale was completed late last year, according to Harris County online documents, but sale details weren't disclosed. Occupancy at the time of the sale was 70.8%, according to Transwestern.
As of January 2023, the Harris Central Appraisal District valued the 225K SF building at $31.9M, down from a $36.2M appraised value in 2020.
Novel Office was founded in Dallas in 1993 and has 1.6M SF of assets in its portfolio throughout the U.S. and India, according to its website. It has one building in The Woodlands, but 3555 Timmons is its first asset in Houston.
Houston has always been Novel Office's top choice for expansion, Abhishek Kumar, senior vice president at Novel Office, said in a statement to Bisnow.
The company's initial venture into commercial real estate was at 2700 Research Drive in The Woodlands, he said, and its success encouraged them to acquire more office buildings in Texas.
"Actively pursuing office assets in Houston, we identified 3555 Timmons as a promising opportunity in the bustling Greenway Plaza area, where there is a high demand for office spaces," Kumar said in the statement. "With detailed renovation plans, an excellent leasing team, and a strong leasing strategy, we are confident in our ability to meet tenants' needs and position this property as a highly sought-after option in the market."
Novel Office intends to implement new offerings at 3555 Timmons in collaboration with Transwestern, Kumar said in the news release.
“There are variety of plans in the works for a lobby renovation, complete turnkey buildouts, new spec suites, complimentary 2D & 3D space planning, move-in allowances and more," he said.
Transwestern’s Eric Anderson, Katy Gragg and John Heard were awarded the leasing assignment.
The most recently reported owner of the building was Unilev, which purchased the building in 2012. Reached by phone, a Unilev employee declined to comment on the sale. It still lists 3555 Timmons Lane on its online portfolio.
Unilev has recently faced trouble in the Houston office market, with its $80M loan on One Riverway moved to special servicing in June. The same month, the building’s largest tenant solidified plans to vacate the building.
Though it isn't clear what led to the sale of 3555 Timmons, a JLL offering memorandum dated 2022 describes the building as a “significant value-add opportunity in an infill, walkable location at a fraction of replacement cost.” Its biggest tenant was Houston-Galveston Area Council, which occupied the first through fifth floors and had signed a lease through 2030, the flyer says.
Unilev awarded Stream Realty the leasing assignment for the building in March 2023, when available spaces ranged from 1,500 SF to 18K SF.
The currently available spaces are on higher floors, offering inner-loop views, according to the release from Novel and Transwestern. The property has 24/7 security, a conference center, a tenant lounge, a training room, food service and on-site property management.
Novel Office hopes to attract employees back to the office with its move-in-ready suites, according to the release.
“Many tenants need high-quality space that allows them to move in and focus on their business without working through a lengthy real estate transaction,” Gragg said in the release.
