West Houston Office Building Trades
The property is fully leased to Blue Cross Blue Shield.
Sagard Real Estate has sold the BlueCross BlueShield Building in West Houston, Texas, for an undisclosed amount. Fuller Realty Partners and ICP Funds acquired the property.
JLL Capital Markets represented Sagard and facilitated a five-year acquisition loan with a regional bank for the new owners.
Sagard Real Estate purchased the property in 2003 from TA Realty for $17.1 million, Yardi Research Data shows. The office building was developed on a 10-acre lot at 8101 W. Sam Houston Parkway S. and spans 132,599 square feet.
The presence of a long-term tenant was a key factor in the decision to invest in the office building, JLL’s Kevin McConn noted regarding the sale.
In May 2024, Blue Cross Blue Shield signed an 11.5-year, full-building lease at the location. This marked the company’s 17th facility within the state. Under the lease agreement, the office building was expected to undergo a full renovation. This includes interior upgrades and amenity improvements such as the addition of an on-site café, employee training center and a multi-purpose room. A local Houston-based company was selected to handle the renovation project.
The property also offers the highest parking ratio in the area for buildings over 15,000 square feet, with 819 of covered and surface parking spaces available.
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JLL Capital Markets’ Investment Sales and Advisory team led by Managing Director Kevin McConn and Senior Director Rick Goings represented the seller. The firm’s Debt Advisory team led by Senior Managing Director Wally Reid and Managing Director Cameron Cureton worked on behalf of the borrower to secure financing for the purchase.
The office building is located along Beltway 8, between the Westwood and Sharpstown neighborhoods. The Hong Kong City Mall is within less than 3 miles from the property. The building also offers access to other major road networks, that connect the asset to other Houston neighborhoods.
Houston’s office transaction activity
Office investment sales in the Houston market in the first seven months of the year totaled $774 million, according to Yardi Research Data. In late August, Capital Commercial Investments purchased Energy Crossing I at 15021 Katy Freeway in the Energy Corridor. The property encompasses 240,166 square feet and was built in 2010.
Last week, US Property Management bought a vacant nine-story, 225,000-square-foot office building in Westaway Park, a 150-acre master-planned business park at 4646 W. San Houston North. Long-term tenant Cameron and Schlumberger vacated the building last November and the property hasn’t been leased since.
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