Younan Refinances Houston Office Building
The tower is part of a 2.8 million-square-foot campus.
Younan Co. has obtained a $26.6 million bridge loan for 2 Westlake, a 467,609-square-foot Class A office tower in Houston’s Energy Corridor. Priority Capital Advisory provided the financing.
The property is at 580 Westlake Park Blvd., part of the 2.8 million-square-foot Westlake Park office campus. Completed in 1982, the 17-story building is certified LEED Silver, according to Yardi Research Data. The tower features 22,500-square-foot floorplates and several amenities such as a full-service deli, coffee bar, conference center, tenant lounge and fitness facility.
READ ALSO: Houston Office Sector Off to a Slow Start
Younan had acquired 2 Westlake in 2022 for $21.6 million. The property was completely vacant at that time and the owner completed substantial renovations, including remodeling the lobby. The building is 56 percent leased at present.
Priority Capital has provided more than $500 million in debt financing since its inception. Founder & President Zachary Streit recently offered insights on why regional banks have been quietly reengaging with CRE lending and how that will affect both borrowers and capital markets players.
Houston office market gradually improving
Houston’s office market has seen some improvement recently, as net absorption rose to about 758,000 square feet, versus not quite 8,000 square feet in the first quarter, according to a second-quarter report from Partners Real Estate. Leasing too increased, to 2.7 million square feet, driving vacancy down a bit, to 26.2 percent.
Total availability of Class A space in the Energy Corridor was 25.8 percent at the end of June, on an inventory of 13.9 million square feet, the report also shows. The average gross asking rent clocked in at $30.33 per square foot.
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