HOUSTON — Locally based Fuller Realty Partners has entered into a joint venture with PCCP LLC, a real estate private equity firm, to acquire a distressed office portfolio. The portfolio includes two Class B buildings located in Houston's Galleria submarket. The first property totals 281,590 square feet and is located at 2425 West Loop. It was constructed in 1980. The second property, which is located approximately 1 mile away at 1001 West Loop, totals 222,340 square feet and was built in 1978.
Currently, 2425 West Loop is 58.5 percent occupied, and 1001 West Loop is 43.4 percent occupied. This is in contrast to an average occupancy rate of 87.5 percent for office product in the Galleria submarket. Anchor tenants for the two buildings include Blue Cross Blue Shield and Xerox. Fuller Realty previously owned both buildings and sold them in 2007, during which time both were stabilized.
“The investment provides PCCP the opportunity to purchase a distressed two-building office portfolio through a lender-facilitated short sale,” saud Jed Lassere, senior vice president of PCCP, in a statement. “Fuller Realty, our locally based partners, is confident that it can achieve market occupancy in this prestigious submarket. Fuller has a long ownership history in these assets and has proven that they are the right operator to oversee the planned building upgrades and stabilize the rent roll.”
— Coleman Wood