THE WOODLANDS – CapLease has purchased the fully leased Reserve at Sierra Pines office building in The Woodlands, just north of Houston, for $40.5 million.
The 175,000-sf building, 1585 Sawdust Road, was developed by Stream Realty. the Woodlands property is 100% leased with two investment grade rated large corporate tenants occupying about 70% of the space. Approximately 61% of the square footage in the building is leased through May 2022 to Praxair, Inc., and an additional 8% of the space is leased through August 2017 to a subsidiary of Dover Corp. The remaining square footage in the building is leased by three other credit worthy tenants. The Company’s average capitalization rate for this property is slightly below 8%.
CapLease obtained a $22.4 million mortgage on the building from a life insurance company.