Acquisition Date | December 2006
Disposition Date | Currently Owned
Year Built | 1999; Redeveloped in 2009
Class | A-/B+
Size | 151,711 square feet
Building Height | 6 Stories
Location | 11200 Richmond Avenue, Houston, TX 77082
Projected IRR | Approximately 21%
Actual Multiple |
CREA had been pursuing opportunities in Houston for several years when Westchase Place was identified. Though marketed by a national brokerage company, CREA identified Westchase Place as an exceptional opportunity through working alongside the Houston office of Cassidy Turley. The seller had owned the asset for over 10 years and had lived through the damages caused by hurricane Ike. CREA believed they were under-marketing the asset. Occupancy was projected to be decreasing to 70% after closing. CREA viewed this as an opportunity in the very tight Westchase submarket.
CREA created a plan to reposition Westchase Place as a lower-priced alternative to Class A buildings in Westchase whose rents’ for comparable space are $10 – $12 per square foot higher than Westchase Place’s pro-forma. The repositioning included modest cosmetic upgrades including lobby renovations, restroom and corridor upgrades, tenant lounge and on-site management office.
Almost immediately after closing, CREA expanded an existing tenant by approximately 7,000 square feet and was able to retain one of the largest tenants expected to vacate the building on a long term basis. Instead of occupancy dropping to 70%, it stabilized at 85% prior to any capital improvements.