KBS Sells Fully Leased Houston Office Asset

Ten West Corporate Center One. Image courtesy of KBS

KBS has closed on the disposition of Ten West Corporate Center One, a Class A office property in Houston. Ellingstone Group teamed up with an overseas institutional investor to acquire the asset totaling 199,001 square feet.

JLL represented the seller in the transaction and also helped secure acquisition financing for Ellingstone Group. Greenberg Traurig LLP served as legal counsel for KBS.

Ten West Corporate Center One last traded in December 2006, when the current seller purchased the property from The Opus Group, according to Harris County records. KBS funded the acquisition with a financing package totaling $29.3 million originated by Massachusetts Mutual Life Insurance Co.

Located on nearly 10 acres at 17420 Katy Freeway, the four-story property was completed in 1998. The single-tenant building offers major street exposure to Interstate 10 and a parking ratio of 4.3 spaces per 1,000 square feet.

Ten West Corporate Center One is less than 3 miles from West Houston Airport and 23 miles west of downtown Houston. The property is within the 500-acre Park Ten business park.

Thriving market

Ten West Corporate Center One. Image courtesy of KBS

The office property is fully leased to Wood Group Mustang, with more than 10 years of lease term remaining. The low-rise building is within the Energy Corridor submarket of Houston, named after its large tenant roster of energy companies, including BP America and ConocoPhillips among others.

Houston’s office market showed positive absorption in the third quarter for the first time since 2019, according to a recent Colliers report. Developers completed more than 1 million square feet of office space in the third quarter, while another 3.2 million square feet of space was underway.

Houston also ranks as one of the nation’s major life science clusters. Earlier this fall, Texas Medical Center began construction of the $1.8 billion first phase of a 6 million-square-foot life science campus known as TMC3. Upon completion, the project is set to become the world’s largest life science campus.