HOUSTON – Shorenstein Properties is selling the 28-story Five Post Oak Park, an Inner Loop Houston office building that is expected to fetch $185 million, or $326 per square foot.
The Real Estate Alert newsletter reported that the deal is considered a “value add” play because the building’s anchor tenant Amergy Bank is expected to relocate in 2016. Amegy is moving into a new office building on Loop 610 on the site of the old Micro Center store.
Five Post Oak Park, 4400 Post Oak Parkway, is a 567,000-square-foot building, across from the St. Regis Hotel, just north of San Felipe street. Many real estate firms consider Five Post Oak Park to be part of the Galleria submarket.
Shorenstein, which is redeveloping the Exxon Mobil building in downtown Houston, has retained HFF to market Five Post Oak, the newsletter said.
In 2002 Crescent Real Estate and an affiliate of GE Pension Trust bought Five Post Oak Park for $65 million. In 2008 Shorenstein Properties bought the building, which was designed by Morris Aubrey Architects. The office building was developed by The Winter Company.
The property is part of the 43-acre Post Oak Park business park, which is located just west of the affluent River Oaks neighborhood.
The building is 98 percent occupied with Amegy occupying 174,000 square feet. Amegy is paying only $11 per square foot rent on its old lease, which expires in November 2016, and the current market rent is $28 per square foot, according to Real Estate Alert.