By Keith Loria
A joint venture between H.I.G. Realty Partners and Lincoln Property Co. has acquired Greenspoint Place, a six-property, mixed-use portfolio located in the North Houston District of Houston.
In total, the portfolio includes six office buildings totaling more than 2 million square feet and three adjoining retail centers.
“The appeal of the portfolio was the value add opportunity that presented itself,” Kevin Wyatt, LPC’s senior vice president, told Commercial Property Executive. “High-quality buildings which are well located at a price well below replacement costs and reflective of the current low occupancy. These properties enjoyed very high occupancy for many, many years and we hope to bring these buildings back to a stabilized occupancy level.”
Built over a 14-year span between 1978 and 1992, Greenspoint Place once held a decades-long standing as the premier office portfolio in the region, and the new owners plan to transform it back to its glory days.
A rebounding market
“All submarkets in the city have declined since mid 2014 due the downturn in energy prices,” Wyatt said. “We feel like the trough has stabilized and we are beginning to see signs of recovery. This opportunity allows us to deliver high quality space of all sizes at very competitive rates. Approximately 150,000 square feet of new leasing has been consummated over the past eight months. This was a very positive sign to us.”
Two years ago, a 7,000-square-foot high-performance fitness center and a 10,000-square-foot state-of-the-art conference center were added as tenant amenities.
Located at the intersection of Interstate 45 and the Sam Houston Tollway near Bush Intercontinental Airport, the property offers great access to neighboring communities.
“The location of these buildings, being at the intersection of I-45N and Beltway 8 and being 10 minutes from Bush Intercontinental Airport were big considerations for us,” Wyatt said. “The property is very accessible to all parts of the city. Additionally, the industrial activity happening at the Southwest corner of I-45N and Beltway 8 known as Pinto Business Park was also a consideration.”
According to Wyatt, the company has plans for capital improvements to the properties, however, these plans are still very fluid and so no details are currently available.
With the acquisition, LPC’s office holdings in Houston has surpassed nine million square feet.
Images courtesy of Greenspoint Place website