A 22-story tower just got a second wind amid Houston’s stormy office market.
Braun Enterprises acquired 3040 Post Oak Boulevard, a 426,000-square-foot building in the Lakes on Post Oak office complex, with plans to launch an extensive renovation, the Houston Business Journal reported.
The building was about 82 percent leased at the time of sale, with roughly 75,000 square feet available, according to Stream Realty Partners. The brokerage will continue handling leasing and property management.
The property sits at the corner of Post Oak Boulevard and Hidalgo Street and was previously owned by MetLife Real Estate Investors. Its taxable value is pegged at $68.1 million, according to the Harris Central Appraisal District. The sale price was not disclosed.
Planned upgrades include a fitness center, coffee bar, lobby refresh and exterior enhancements. Braun said the goal is to meet the evolving needs of tenants and build on the existing amenity package, which includes 24/7 security, a tenant lounge, grab-and-go market and dedicated parking.
Tenants at the building include law firm Spencer Fane, KLX Energy Services, Neste US and a Common Desk coworking space, which was retained by parent company WeWork when it exited bankruptcy last year.
Braun is experienced with upgrading older buildings for modern users. The company recently completed a multi-year renovation of 53 West, a mixed-use development next to the Galleria. That project included overhauling office interiors, updating ground-floor retail storefronts, and improving walkability with lighting and outdoor seating.
The property is part of a broader three-building campus that also includes 3000 Post Oak Boulevard, vacated last year by Bechtel, and 3050 Post Oak Boulevard. Its stable occupancy and central location are bright spots in an otherwise uncertain office market.
West Loop–Galleria, the submarket that includes Braun’s building, posted its highest net absorption in over two years, according to CBRE. The building is 18 percent vacant, but the submarket’s vacancy was nearing 28 percent in the first quarter, higher than Houston’s overall office vacancy rate of 24.2 percent.
— Judah Duke
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