Interra Capital Group has acquired a three-building office complex in northwest Houston, its latest investment in the city.
The 392,400-square-foot Remington Square, at 10603, 10613 and 10713 West Sam Houston Parkway, was purchased from New York-based BGO, the Houston Business Journal reported. JLL’s Kevin McConn, Marty Hogan and Rick Goings represented the seller in the transaction and also procured the buyer.
The price wasn’t disclosed. Harris Central Appraisal District records valued the property this year at $73.5 million, or $187 per square foot.
Developed by Stream Realty Partners in partnership with Sun Life, the complex is situated along Beltway 8 between U.S. Highway 290 and State Highway 249. Buildings 1 and 2, comprising 191,800 square feet, were built in 2008, while the 200,600-square-foot Building 3 was completed in 2015. Amenities include a First Watch restaurant, a fitness center, tenant lounge and conference rooms. The 16.8-acre campus has potential for an additional building.
As of July, Remington Square was 77.2 percent leased, with tenants such as Patterson-UTI Energy, Acclara Solutions, Republic Services, Highland Homes and Granite Harbor Advisors.
Interra CEO Jack Polatsek sees the acquisition as a strategic move in a strengthening office market. “This property represents an opportunity to capitalize on market dynamics that favor well-positioned assets,” he said.
This acquisition follows the local firm’s recent purchases of the historic Esperson complex in downtown Houston, which it bought at foreclosure auction, and Memorial Pointe in the Energy Corridor, underscoring the company’s aggressive growth strategy in Houston.
Houston’s office market is facing challenges similar to those of metros across the country. Its vacancy rate neared 26 percent in the third quarter, according to Cushman & Wakefield. But properties built more recently are faring better. Class A office space posted 342,600 square feet of absorption in the third quarter, while Class B space was negative to the tune of almost 500,000 square feet.
—Rachel Stone
Read more
Houston office leasing hits lowest point in a decade
Looking for bottom: State of the Houston office market
Real estate law firm buys “on sale” Galleria-area office building
