Moody National Companies Acquires Trophy Office in the Central Core of the Houston Galleria Submarket
Moody National Companies acquired its fifth Houston office building in recent months with 2100 West Loop South, a 16-story, 165,399 Square Foot asset located in the central core of the prestigious Galleria/Uptown submarket.
Kyle Bebee, Director of Real Estate Investment with Moody National Companies, sourced the office acquisition. Dan Miller, Senior Vice President with Trammell Crow, represented the seller, a private equity partnership.
Moody National Companies was attracted to 2100 West Loop South because its irreplaceable Galleria Area location and below-market rents provide opportunity for revenue growth.
2100 West Loop South is 90% occupied, and major tenants include EMS Pipeline Services, Telwest Network Services, Layton Energy, and Imedia It. EMS Pipeline Services provides pipeline maintenance to the energy industry. Telwest Network Services is a Seattle-based telecommunications company. Layton Energy is an upstream energy exploration and production firm. Imedia It provides interactive media and marketing services.
Located in the central core of the Houston's Uptown District, 2100 West Loop South is in close proximity to 5 Million square feet of retail space, 27.7 Million square feet of office space (approximately equivalent to downtown Los Angeles), as well as Loop 6-10, Interstate 10, and U.S. Highway 59.
According to Trammell Crow, the Galleria submarket has experienced nine consecutive quarters of positive office absorption, with a Class A office absorption of 295,592 during the fourth quarter of 2006. Moody's Investor Services' quarterly Red-Yellow-Green CMBS ratings report indicated that demand for Houston office space maintained pace with supply for each quarter of 2006.
Moody National Companies is actively sourcing additional Class A office opportunities in the East Coast, West Coast, and Sunbelt, due to strong technical pressures and high replacement costs for the asset class.
Moody National Companies declined to disclose the purchase price for 2100 West Loop South.