Newport Beach, Calif. and Houston (January 18, 2017) – Buchanan Street Partners has acquired Sam Houston Crossing II, a 160,000-square-foot office building located at 10344 Sam Houston Park Drive in Houston from Duke Realty for an undisclosed price. This is Buchanan Street’s sixth acquisition in Texas in the last 24 months.
According to Buchanan Street, there is an increasing opportunity in Houston’s office sector as a result of the distress in the energy sector. Although the energy sector has recovered significantly, valuations have dropped materially.
“Houston has experienced difficult times due to the energy sector’s instability. However, we are optimistic about the market long term as it has continued to maintain job growth due to Houston’s increasing industry diversity,” said Matt Haugen, vice president at Buchanan Street Partners. “We believe that a rebound of the energy sector will stimulate additional job creation over the next 12 to 18 months and drive absorption in the area.”
Sam Houston Crossing II is a three-story office building that is 100 percent leased by subsidiaries of Forum Energy Technologies; PEMEX; and First American Title Company. The property has frontage along Texas-8 Beltway between US-290 and Texas State Highway 249, in a location central to housing ranging from entry to executive level.
“The market surrounding Sam Houston Crossing II is becoming an increasingly popular employment hub in Houston because of its central location to a wealth of housing. Large companies are making office decisions based on location and are attracted to this region because it can minimize employees’ commute times and appeal to a larger percentage of the workforce,” said Haugen. “Houston is one of the top 10 population centers in the nation, and we believe in its long term economy.”
Buchanan Street plans to seek opportunities in Houston and anticipates actively acquiring significant assets in Texas in 2017.
Jared Chua of CBRE represented the seller in the transaction. Buchanan Street represented itself.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors. Since its inception, Buchanan Street has invested and structured approximately $17 billion of capital in a broad range of equity and debt real estate investments throughout the United States. The Buchanan Street team has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing principal preservation. For more information: www.www.buchananstreet.com.
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