Canyon Creek Real Estate picked up a Houston office campus, showing the enduring attractiveness of Class A products in the struggling office market.
The Fort Worth-based firm purchased Westchase Park I & II, at 3600 and 3700 West Sam Houston Parkway South, according to a release from Stream Realty. Deed records show the seller is New York-based Clarion Partners. Lender One William Street provided a $41.9 million mortgage for the purchase. The debt works out to $72 per square foot.
Stream is handling leasing at the property.
The 579,000-square-foot, two-building office campus was built in 2008 and 2014. It features an 8,000-square-foot amenities center which includes a gym and outdoor seating area. The campus sits on a 15-acre site.
It’s near the intersection of West Sam Houston Parkway and Westpark Tollway in the city’s Westchase neighborhood, which is about 17 miles west of downtown.
This isn’t the first office transaction in Westchase this year.
Miami-based Galium Capital purchased Lockton Place, at 3657 Briarpark Drive, in January. It was built in 2017. Beyond Global Management also purchased two office buildings in the neighborhood, at 9800 and 11000 Richmond Avenue, last month.
The neighborhood will soon be home to a $20 million mixed-use project from Y&K Real Estate. That development, featuring office, retail and restaurants, will be located between 3507 and 3515 Rogerdale Road.
Houston’s office market has struggled to recover from changes brought on by remote work and the flight-to-quality trend. In the first quarter, vacancy was 25.8 percent, according to the Greater Houston Partnership, citing data from CoStar.
The market’s construction pipeline has thinned out, with 1.1 million square feet of office space in the pipeline in the first quarter, according to Partners Real Estate. That’s a 63 percent drop from the year before, when there was 2.98 million square feet of office space under construction.
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