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Key Investment Highlights

  • Rebounding Oil Market: Anchored by the energy corridor, the Katy Freeway West office submarket has improved due to the recent surge in oil prices. The price for a barrel has averaged $65.63/barrel in 2018, a 25% increase over the 2017 average of $52.51/barrel. As the energy market continues to improve, leasing velocity in the Submarket is projected to continue to increase.
  • Recent Leasing Momentum: The Property has experienced strong recent leasing momentum in the last twelve months having signed five new leases totaling 11,772 SF (14.7% of the NRA).
  • Below Replacement Costs/Basis-Play: The Property is anticipated to trade at a price below replacement cost, allowing investors a sustainable basis. Consequently, investors will be able to compete for tenants with lower rental rates, expediting the lease-up time frame. 
  • Strong Retail Amenity Base: The Property benefits from a desirable surrounding amenity base within a short drive of the Property (sub 1 mile) including eateries such as Fuddruckers, Chick-fil-A, Chipotle and P.F Chang’s along with established retailers such as WalMart, H-E-B and Target.
  • Excellent Access: Gray Falls Center is proximate to I-10 and Beltway 8 which provide access into downtown Houston and the surrounding suburbs. The Property is also conveniently located on the eastern side of Houston in close proximity to affluent suburbs such as Katy and Cinco Ranch. This location allows for the Property to be a seamless commute for executives and decision makers living in these affluent suburbs.


Overview

Gray Falls Center is a 40,019 SF office building located in the Katy Freeway West submarket of Houston, Texas (the “Property”). The Property is currently 32% leased by a diverse tenant mix, with no tenant making up more than 2,784 SF (7.2% of the NRA). The Property is a two-story office building with large floor plates, allowing for flexibility when leasing the vacant space. The Property has benefitted from strong recent leasing momentum with five new leases totaling 11,772 SF (14.7% of the NRA) signed in the last twelve months.

Gray Falls Center is located just off Westheimer Road, one of Houston’s main east/west arteries. Anchored by the West Oaks Mall, the area features various national retailers including WalMart, Marshalls, H-E-B and Target that serve as natural amenities for the tenants. The Katy Freeway West office submarket (the “Submarket”) is the second largest submarket in Houston with over 28.3 million square feet. The Submarket is home to some of Houston’s major employers including Worley Parsons, McDermott International and Sysco along with many other engineering firms benefitting from the recent increase in oil prices.

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All investors who are interested in engaging Holliday Fenoglio Fowler, L.P. (“HFF”) and CW Capital Markets (“CW”) (collectively “HFF/CW”), a financial intermediary, to assist in arranging financing for the property should contact Brock Cannon at HFF, L.P. via email (bcannon@hfflp.com) or by phone at (212) 632-1808.


Throughout the marketing period HFF will provide investors with real time debt quotes from various capital sources. It is to the investor’s benefit to contact Brock Cannon early in the process in order to discuss all available terms, along with the advantages of engaging HFF/CW on the financing versus completing an all-cash acquisition.

 

Benefits of Engaging HFF/CW In Arranging Financing Include:

  • Transparency: Continued transparency in the debt capital markets for the subject opportunity based on real time conversations HFF is having with lenders
  • Access to Property: Lender will have access to the property, post contract, to complete their diligence prior to closing
  • Financing In Place: Allows the investor to close with financing in place

 

Note: Benefits referenced above will only be made available to investors who engage HFF/CW prior to the auction start date. It is recommended that investors contact HFF early in the process.


HFF’s Debt Placement Services

As a leading mortgage banker in the U.S., HFF’s extraordinary transaction volume provides the unparalleled capital markets knowledge necessary to develop the most creative financing strategies to meet and exceed client expectations.  Our established relationships with insurance companies, investment banks, foreign and domestic banks, a Fannie Mae lender, Freddie Mac and pension funds have allowed us to provide our clients with the most competitive terms and most reliable executions in the debt and equity market.

Loan Types HFF Assists With Include:

  • Fixed-rate loans
  • Construction loans
  • Forward loans
  • Tax-exempt loans
  • Floating-rate loans
  • Construction/permanent loans
  • Bridge/acquisition loans
  • Credit-tenant lease transactions

 

HFF’s 2017 Commercial / Multifamily Annual Origination Rankings per the MBA:

  • #1 Total Loan Originations
  • #1 Intermediary
  • #1 Insurance Company Originator
  • #1 Credit Company Originator
  • #1 Originator for Third Parties
  • #1 Total Direct Originations
  • #1 Seconds/Mezzanine/Preferred Equity Structures

Disclaimer: The information being provided herein is for informational purposes only. No representation or warranty is made as to the accuracy or completeness of any information contained herein, including, without limitation, any information regarding the condition of the Property, the condition of title or Property descriptions.

Any documents and/or pictures posted herein or elsewhere on the RealINSIGHT Marketplace, (the "Website") are for informational purposes only, and may not represent the current condition of the Property or the condition of the Property at the time of sale. The posting of pictures herein or elsewhere on the Website does not constitute a guarantee that any items represented in the pictures will be present when the buyer takes possession of the Property.

You are encouraged to conduct your own due diligence and investigate all matters relating to the Property. It is recommended that you seek independent advice, including legal advice, to perform your due diligence and that you use good faith efforts in determining that the content of all information provided to or obtained by you is accurate.

Houston Office Building with Strong Leasing Momentum | 40,000 Sq. Ft.

2470 Gray Falls Drive, Houston, TX 77077

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Current Bid:
Starting Bid:

Asset Snapshot

  • Asset Type
  • Real Estate
  •  
  • Office Type
  • Suburban Office
  • Property Size
  • 40,019 Sq Ft
  • Land Area
  • 1.75 Acres
  • Year Built
  • 1983
  • Number of Floors
  • 2
  • Number of Buildings
  • 2
  • Parking Count
  • 135
  • Occupancy
  • 31.93%
  • Occupancy as of
  • Apr 30, 2018
  • Platform Fee

    Platform fee for this transaction is 5.00% or a minimum of $25,000.

  • Auctioneer

    1. Lamar P. Fisher

      Fisher Auction Company Inc.

      License: #10344