HOUSTON – (Realty News Report) – DML Capital, a private equity firm based in Sugar Land, has added an office building to its portfolio with the acquisition of 1800 Bering.
The 10-story building was acquired from KBS, which completed a number of improvements to the property during its ownership. Kevin McConn and Marty Hogan of JLL Capital Markets represented the seller.
Located in the Tanglewood area west of the Galleria, 1800 Bering was built in the early 1980s. The 171,510-SF building is 83% leased to a diverse rent roll of tenants, according to JLL. The building is situated between San Felipe and Westheimer near several affluent neighborhoods.
“Houston has been one of the most active office markets in the country over the past year,” said McConn. “Investors are drawn to the strength of the city, the underlying office fundamentals and the once in a generation opportunity to invest at a lower cost basis.”
The 1800 Bering building was acquired in 2011 by Fuller Realty Advisors, which later sold it. The seller in the 2011 deal was he seller, Coast Range Investments of San Francisco, was represented by Rudy Hubbard, Paul House and Leah Gallagher of JLL.
In the last two years, several major office building sales have occurred in the Tanglewood/Galleria area.
Last year, Dallas-based pipeline company Energy Transfer acquired 5555 San Felipe in the Galleria submarket. A few years ago, Sovereign Partners acquired the 46-story San Felipe Plaza office building on San Felipe at Augusta.
The sale comes as Houston’s office vacancy rate dipped to 26.3% in 2025, slightly lower than the previous year as leasing activity improved, according to Partners Real Estate.
KBS, which acquired the building in 2014, completed upgrades to the lobbies, added new elevator cabs, and refreshed the common areas and landscaping. Amenities include an on‑site micro market, tenant lounge, conference center, and outdoor patio.
JLL’s debt advisory team led by Michael Johnson and Michael King arranged a three-year acquisition loan with an insurance company for the buyer.
“The debt capital markets are back open for office and there is no lack of liquidity for well-located, well-maintained assets such as 1800 Bering,” added Johnson. “We ran a competitive process and garnered quite a bit of interest from a variety of groups that were eager to lend in the Houston market.”
Boilerplate: Founded in 2012, DML Capital specializes in the development of retail centers and the strategic acquisition of value-added retail and office properties. The firm manages over 2 million SF of space and has more than $600 million in assets under management.
Based in Newport Beach, Calif., KBS was founded by Peter Bren and Chuck Schreiber in 1992. KBS has invested in nearly 1,700 multifamily, industrial, office, and retail assets since inception.
March 4, 2026, Realty News Report Copyright 2026
Image: Jud Haggard, Photo Courtesy of JLL
Mark Your Calendar: Commgate’s annual Developer Showcase will be held April 29 from 4:30 to 7:00 PM at the Houston Country Club. The Commgate event will provide Houston’s brokerage community an overview of significant Houston area commercial real estate developments in a small-scale trade show format. For more information: www.Commgate.com
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File: Private Equity Firm Buys Tanglewood Office Building