Behringer Harvard Places $73M Contract on Trio

HOUSTON-Dallas-based Behringer Harvard Opportunity REIT I LP has placed a $73-million contract on three class A office buildings, totaling 578,175 sf. The closing date with CMD Realty Investors Inc. is pending.

The Chicago-based seller is selling the assets as part of its close-out of CMD Investment Fund IV LP. Poised to be sold are the 179,125-sf Northpoint Central on 4.2 acres at 2 Northpoint Dr.; a 242,465-sf structure on 1.5 acres at 2603 Augusta Dr.; and 156,585-sf Regency Center on 4.4 acres at 2901 Wilcrest Dr. Because the deal hasn’t closed, Behringer Harvard isn’t discussing the deal. However, there was $3 million of earnest money put up Aug. 20, according to an SEC filing.

Although he’s not involved in the transaction, Rudy Hubbard, managing director for locally based Transwestern, says Behringer Harvard is making a good investment with the acquisition. “I think any quality office building in Houston is highly desirable these days because we have such a good economy,” he says. “Anytime you can pick up a good asset in a market below replacement costs, and one in which rents are rising, you have a great deal.”

Hubbard tells GlobeSt.com that the 1980-era buildings in the Greenspoint, Westchase and Galleria submarkets might need some upgrading and freshening up, but basically they’re in good shape. “If they’re not fully occupied now, they should lease up fairly quickly, I would think,” he observes.

The family that owns the Chicago-based CMD Realty Investment determined awhile ago that it wanted to get out of real estate so it’s liquidating assets and closing out several funds. Kent Peters, first vice president with CB Richard Ellis’ Houston office, is representing the seller.