HOUSTON – (Realty News Report) – The historic Esperson buildings – noted an as exquisite example of Italian Renaissance architecture – was acquired by Interra Capital Group in a foreclosure sale on Tuesday.
The lender, MetLife, instituted foreclosure action on the property, which had been owned by an affiliate of Houston-based Cameron Management for over a decade.
The Esperson buildings are located near the center of Downtown Houston on a block bounded by Walker, Rusk, Travis and Milam streets.
The property includes the 32-story Niels Esperson Building, built in 1927 at 808 Travis. It has been called the “only full-blown example of Italian Renaissance architecture in downtown Houston.”
The adjoining 19-story Mellie Esperson Building, 815 Walker, is an Art Deco office tower completed in 1941.
The foreclosure comes amid a distressed period in the nation’s real estate markets as many building owners face rising vacancies and declining property values. With higher interest rates and the inability to refinance the office towers, the stress has increased and the options are slim.
The Esperson building had been marketed for sale about four years ago and the unofficial whisper price was $65 million. The values drifted downward in the post-Covid era and Interra Capital was able to acquire the Esperson property this week for far less. The financial terms of the transaction were not disclosed.
Houston-based Interra Capital has retained Cameron Management to manage the property in transition. Cameron Management is led by Houston businessman Dougal Cameron.
“As having been stewards of this architecturally significant property, we are committed to maintaining the legacy and prestige of the Esperson during this transition period,” Mr. Cameron said in a prepared statement. “We look forward to collaborating closely with Interra Capital Group on this transition and to uphold the high standards that this landmark deserves. Cameron Management’s vision is to honor God and serve people and we plan to continue to do that .”
Interra Capital describes the property as a “landmark” and adds “this complex spans over 600,000 square feet and is renowned for its Italian Renaissance styling, marked by intricate terracotta detailing, dramatic columns, and stunning cornices. Constructed in the early 20th century, the buildings were the brainchild of Mellie Esperson for her husband, Niels, a real estate and oil tycoon. These structures not only reflect the economic boom of their era but also have been a focal point of Houston’s skyline, offering a blend of office spaces and commercial venues.”
The Esperson, which has tunnel space for retail, has been described as a 509,000-SF property at other times in prior years.
“Our acquisition of the Esperson reflects not just an investment in real estate but also a commitment to preserving the historical integrity of significant properties,” said Jack Polatsek, principal and founder of Interra Capital Group.
Anita Kundaje is the director of acquisitions at Interra Capital Group.
Aug. 7, 2024 Realty News Report Copyright 2024
Photo caption: The Niels Esperson Building, was built in 1927 at 808 Travis, demonstrates Italian Renaissance architecture.
Photo credit: Cynthia Lescalleet, CALPix, Copyright 2024, Realty News Report.
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File: Historic Esperson Buildings Acquired in Foreclosure Sale. Dougal Cameron. Art Deco. Historic Esperson Buildings Acquired in Foreclosure Sale 1941, 1927 Houston