California investor Paul Rahimian has exited Houston’s office market after selling his only commercial asset to a local investor.
Parkview Financial, Rahimian’s Los Angeles-based investment firm, sold the six-story Ten Plaza West in December after holding the Class B office property for just over three years, the Houston Business Journal reported. JLL’s Marty Hogan represented Parkview Financial in the sale.
The buyer’s identity and the building’s sale price were not disclosed. The taxable value of the property, at 15915 Katy Freeway, is $9.08 million, according to the Harris Central Appraisal District. The transaction, facilitated by JLL’s Marty Hogan, breaks down to a price of $86 per square foot.
Parkview Financial purchased the building in September 2021 for $9 million ($85 per square foot) during a period of slower office leasing activity.
The 105,000-square-foot building, constructed in 1983 and renovated in 2010, features updated amenities including a conference room, a tenant lounge and a deli.
Occupancy in the building was 76 percent at the time of purchase and has since climbed to 84 percent, following a lease deal with a tenant whose identity wasn’t reported.
The property is situated on 3.5 acres in the city’s bustling Energy Corridor, one of Houston’s most active and sought-after submarkets. The area recorded 1.7 million square feet of leasing activity last year, down from 2.6 million square feet in 2023, according to CoStar.
The sale comes amid tightening availability among the submarket’s Class A office properties, which ended the year with a vacancy rate of 21.4 percent, their lowest level in four years, CBRE reported. As Class A spaces fill up, companies have increasingly turned to Class B buildings like Ten Plaza West. The Class B vacancy rate is about 25.3 percent.
— Andrew Terrell
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