posted on April 22, 2010 21:52
The One Park Ten office building in West Houston has traded for $15.7 million.
Parkway Properties Inc. recently sold the 163,000-square-foot building at 16225 Park Ten Place to Beacon Investment Properties LLC of Hallandale Beach, Fla.
J Connor Consulting is a major tenant in the eight-story facility, which is approximately 94 percent occupied.
Beacon paid $4.8 million in cash. It also assumed Parkway’s $8.7 million loan on the building. And Parkway provided an additional $1.5 million in seller financing to complete the deal.
The gross sales price of $15.7 million represents a capitalization rate of approximately 10.35 percent, based on in place cash net operating income, according to Parkway.
H. Dan Miller of Holliday Fenoglio Fowler LP represented Parkway on the transaction, which drew a dozen bidders. Beacon was represented in-house.
Miller said it took a long time to close the deal because of the loan assumption. The commercial mortgage-backed security was in a bond pool held by Wachovia, but the pool was taken over by Wells Fargo in the midst of the assumption process, Miller said.
Broker Ken Page of Grubb & Ellis Co., who was not involved in the deal, says One Park Ten sold for a good price.
“It’s a really good indicator,” he said. “There’s more capital in the market. There are more buyers in the market.”
Jackson, Miss.-based Parkway will retain leasing and management duties at the 25-year-old building through its affiliate — Parkway Realty Services LLC.
Parkway (NYSE:PKY) also sold the 110,000-square-foot office building at 1717 St. James to Beacon in June 2009, and continues to lease and manage that facility.
Parkway owns approximately a dozen office buildings in Houston with 2 million square feet of space.
Houston Business Journal - by Jennifer Dawson Reporter | April 16th, 2010