Houston Office Asset Trades in $27M Bankruptcy Sale
Hilco Real Estate brokered the deal.
Twentyfour25 Galleria, a 285,000-square-foot Class A office building in Houston, has sold for $27 million.
Hilco Real Estate, appointed by The U.S. Bankruptcy Court for the Southern District of Texas, brokered the Chapter 11 Bankruptcy deal of behalf of the property’s trustee, during a one-month marketing period, with the initial minimum bid price starting at $7.3 million.
The bankruptcy sale was scheduled earlier this year, when The National Bank of Kuwait attempted to foreclose on the property, owned since 2013 by Jetall Capital, The Real Deal reported.
The asset changed hands later in 2018, with the new ownership being associated with the seller, according to the same source. At the time of that sale, The National Bank of Kuwait issued a $51.7 million loan, CommercialEdge shows.
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Completed in 1979 and upgraded in 2016 and 2020, the 11-story property features six passenger elevators, 24,700-square-foot floorplates and 938 parking spots.
Amenities at Twentyfour25 Galleria include an atrium, a conference room, a fitness center, shower facilities, food services, on-site restaurants, a property manager and an outdoor courtyard with seating space.
Located at 2425 W. Loop S., the nearly 2.5-acre property is across Interstate 610, within Houston’s the Galleria area in the Uptown District. Downtown Houston is 8 miles away and George Bush Intercontinental Airport is some 26 miles northeast.
Foreclosure deals on the rise
Defaults and office loan delinquencies are on the rise, with over $260 billion in office loans that matured earlier this year or will mature by the end of 2026, according to a June CommercialEdge report. Maturing loans will affect 30 percent of all office loans and more than 12,000 properties, located mostly in city centers.
A recent similar deal closed in Houston is Interra Capital Group’s acquisition of The Esperson Buildings. The two historic office properties changed hands for $12 million, following a foreclosure with Metropolitan Life Insurance Co.
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