InLight Capital Picks Up Houston Office Asset

The property changed hands following a CMBS loan foreclosure.

77 Sugar Creek

77 Sugar Creek went through a series of cosmetic renovations in 2018. Image courtesy of CommercialEdge

InLight Capital has purchased 77 Sugar Creek, a 143,410-square-foot, Class A office property in Houston’s Sugar Land, Texas, suburb. JLL, with the assistance of RI Marketplace, negotiated the deal on behalf of the seller, CWCapital Asset Management.

The asset was taken to auction following a CMBS foreclosure, with CWCapital Asset Management acting on behalf of Wilmington Trust, CommercialEdge data shows. In early 2023, NorthStar Commercial defaulted on a mortgage held by Wilmington Trust, the same source reveals.

Built in 1998, the six-story office property is located at 77 Sugar Creek Center Blvd. and features floor-to-ceiling windows, 23,839-square-foot floorplates, three passenger elevators, tenant common areas and 574 vehicle parking spots, according to the same source.

With cosmetic renovations completed in 2018, the property sits on 6 acres, close to U.S. Highway 59, Interstate 69 and 19 miles from Houston, 25 miles from Pearland, Texas, and within 38 miles of George Bush Intercontinental Airport. As of August, 77 Sugar Creek was 66 percent leased to a variety of tenants, including Wells Fargo Advisors, Lucid Private Offices, Summus Industries and Mc Offshore Petroleum, among others, CommercialEdge shows.

Senior Director Rick Goings and Senior Managing Directors Marty Hogan and Will Sledge of JLL’s Capital Markets Investment Sales and Advisory team worked on behalf of the seller.

The property’s auction raised interest from multiple high-quality buyers, RI Marketplace’s Managing Director, Neil McKenna, commented in prepared remarks.

Earlier in May, JLL brokered a deal involving two office buildings in Houston’s Woodlands, Texas, suburb. Totaling 153,294 square feet, the properties were acquired by Black Forest Ventures.

According to a recent CommercialEdge report, office sales across the U.S. totaled $17.5 billion in the first seven months of the year, marking a significant drop of more than 60 percent year-over-year. Houston ranked as the sixth market nationally, with $747 million in office sales volume through July. The metro was followed by Chicago ($658 million) and the Bay Area ($609 million).

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