News Archives

Real Estate Investment Co. Enters Houston Office Market, Plans to Buy More

Real Estate Investment Company Enters Houston Office Market, Plans to Buy More

(From Houston Business Journal)

A Los Angeles-based private investment firm recently broke into the Houston office market with plans to invest $250 million more in Texas over the next year.

Omninet Capital purchased the Southwest Corporate Center, a 525,580-square-foot office complex in Houston’s southwest/Beltway 8 submarket, for an undisclosed amount. The property was formerly Westwood Mall and renovated in 2000. Omninet owns commercial property in Austin, Dallas and San Antonio, but this is its first Houston acquisition.

HFF marketed the property on behalf of the seller, TX 9700 Bissonnet LLC. Omninet represented itself. CBRE will continue to manage and lease the property.

“Due to the current opportunities in the Texas markets, Omninet has decided to allocate an additional $250 million in Texas in the next 12 months,” Michael Daniel, a partner with Omninet, said in a statement.

The property is 50 percent leased to tenants including Stewart Lending Services and Texas Children’s Health Plan. The complex is situated on more than 40 acres at 9700 Bissonnet St., close to the U.S. Highway 59 and Beltway 8 interchange and the Memorial Hermann medical complex in southwest Houston.

As rent continues to rise and space becomes more limited, many tenants will look to second-generation buildings to keep their costs in check in the coming year.

Average rents in the area are $16.50 per square foot, according to HFF.