Interra Acquires 227 KSF Houston Asset

Memorial Pointe was completed in 1982. Image courtesy of CommercialEdge

Interra Capital Group has acquired Memorial Pointe, an office building in Houston spanning 226,586 square feet. The asset was last owned by Gemini Rosemont, which acquired it in 2007 for $26.3 million, according to CommercialEdge data. In 2017, the property became subject to a $17 million loan from BOKF, the same source shows. JLL brokered the deal, representing the seller.

Completed in 1982, the property rises 11 stories and features 20,605-square-foot floorplates and average suite size of 2,600 square feet, along with 680 parking spaces. It underwent a cosmetic renovation in 2001. At the time of the sale, the property was 25 percent leased, with the roster including various insurance, law and financial firms, CommercialEdge data shows.

Located at 11767 Katy Freeway within the Energy Corridor, the building is just off Interstate 10 and roughly 15 miles west of downtown Houston. Along the corridor, there are some 3 million square feet of retail, dining and entertainment options.

Sales in Houston’s office market

JLL’s Senior Director Rick Goings and Senior Managing Director Tom Hall, along with Managing Director Chad Coluccio led the team that represented the seller. Interra Capital Group Principal Jack Polatsek stated in prepared remarks that the transaction perfectly aligns with the company’s strategy of acquiring distressed assets. Goings recently represented Gemini Rosemont in the sale of two other office buildings in the Houston area, totaling 153,294 square feet.

As of August, Houston’s office market registered a total sale volume of $865 million, at an average price of $123 per square foot, a recent CommercialEdge report shows. The vacancy rate in the metro rose 1.3 percent year-over-year, reaching 25.3 percent, above the national average of 17.5 percent, the same source shows. One of the largest recent transactions in the metro is Parkway’s acquisition of a 3 million-square-foot office portfolio.