Shorenstein Scores Win for 356,750-SF Class A

HOUSTON-Shorenstein Properties LLC has beat close to a dozen other offers to win the 356,750-sf 2000 W. Loop South in the Galleria submarket. Sources uninvolved with the deal suggest the class A office building sold for $180 per sf to $185 per sf.

Holliday Fenoglio Fowler LP’s Jeffrey A. Hollinden, managing partner in Houston, says the buyer assumed existing financing on the 98%-leased asset to make the close. And, he adds, the deal went through quickly once the assumption closed. “Conduit financing can take four to 12 weeks to assume,” says Hollinden, who worked with HFF managing director Robert Williamson and associate director Barbara Buffey to sell the 21-story building and 1m299-space, five-story parking garage for Means-Knaus Partners LP and US Advisors LLC.

Hollinden says the 37-year-old high rise attracted offers from institutions, private investors and REITs because it is a stable building with a good roster of credit tenants. It also had undergone a major renovation in 2002. He tells GlobeSt.com that Means-Knaus, which has its headquarters in the building, is retaining management and leasing.

“Shorenstein hasn’t been active in Houston for the past few years, but nationally, they’re recognized as a high-quality investor and buyer,” Hollinden says. “They’re well-capitalized and have a great reputation, and brought the best combination of price and qualifications.” The buyer tapped the $1.3-billion Shorenstein Realty Investors Nine LP Fund to acquire the high rise.

The San Francisco-based Shorenstein is looking for more assets in the area. “Houston is definitely on their radar screens like it’s on the radar screen of a lot of investors who haven’t been here in awhile,” Hollinden says.