A Houston-based company has acquired an empty office building in a submarket facing significant vacancy rates. U.S. Property Management purchased the 225,000-square-foot property at 4646 West Sam Houston Parkway North. The transaction was confirmed by JLL, which represented the seller, RVI Group, an insurer based in Connecticut.
Financial terms of the deal were not disclosed. However, appraisal district records show that the building’s taxable value dropped to $9.7 million this year from $35.6 million last year.
The building has been unoccupied since November of last year after offshore drilling firm SLB vacated the premises. It is currently marketed as a headquarters-style property.
Built in 2001, the nine-story structure is located within Westway Park, a 150-acre business complex developed by Wolff Companies. The park also houses offices for General Electric Oil & Gas, Travelers, and Schneider Electric.
Westway Park sits in Houston’s West Belt submarket and offers access to major roadways including Beltway 8, Interstate 10, and U.S. Highway 290.
Houston’s office market continues to face high vacancy levels due to older properties becoming less desirable for tenants. Recent data from Partners Real Estate indicates that vacancy at buildings constructed before 2009 stood at 27.5 percent at the end of the first quarter, compared with 14.9 percent for newer buildings. For the West Belt area specifically, Partners reported a vacancy rate of 31.8 percent at the end of the second quarter—above the citywide average of 26.2 percent (https://www.partnersrealestate.com/market-research/houston-office-market-q2-2024/).
U.S. Property Management’s portfolio includes several other properties such as Lyric Tower in downtown Houston, a medical center office building, a Hilton hotel near the Medical Center, and a resort on Turneffe Island off Belize.
