JLL completes sale and arranges financing for Sugar Land office complex to first-time office buyer
The Offices at Kensington consists of two Class A buildings leased to a diverse rent roll in one of Houston’s top suburbs
HOUSTON, Mar. 6, 2024 – JLL Capital Markets announced today that it has completed the sale of and arranged financing for The Offices at Kensington, a two-building, Class A office complex totaling 171,055 square feet in Sugar Land, Texas.
JLL represented the seller, Buchanan Street Partners, in the sale of the property to DML Capital. In addition, JLL worked on behalf of DML to secure the fixed-rate acquisition loan.
The Offices at Kensington is located at 1600 and 1650 Highway 6, at the intersection of Highway 6 and Interstate 69, Sugar Land’s “main and main” intersection. The property is highly visible to the 157,000 vehicles per day that pass through this intersection and is close to many of Houston’s major thoroughfares, providing a convenient commute to the residential communities in the western and southern suburbs of Houston. Additionally, The Offices at Kensington are close to a variety of retail, restaurant and entertainment offerings in the Sugar Land area.
The four-story buildings are 84.1% leased to a diverse rent roll of tenants in the real estate, accounting, engineering and consulting industries, among others. The properties are comprised, primarily, of suites under 5,000 square feet, which fits the needs of smaller office tenants that dominate the Sugar Land market.
JLL’s Investment Sales & Advisory team representing the seller was led by Senior Director Rick Goings and Managing Director Marty Hogan.
JLL’s Debt Advisory team representing the borrower was led by Managing Director Michael Johnson and Director Michael King.
JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About Buchanan Street Partners, LP
Buchanan Street Partners is a real estate investment firm based in Newport Beach, California that focuses on investments in commercial, multifamily, and self-storage properties as well as providing loans as a direct lender through an affiliate. Having invested in over $8 billion worth of real estate assets in its 24-year history, Buchanan Street has an established track record in the commercial real estate industry. The company is comprised of a highly skilled team that has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing capital preservation. buchananstreet.com.
About DML Capital
DML Capital is a Houston based private equity firm focused on the development and acquisition of, primarily, retail real estate assets within the Texas triangle. DML’s approach to acquisitions requires that the acquired assets present opportunities for value addition or turnaround, and valuations should be such that the asset can generate enduring, stable returns capable of weathering market fluctuations. DML is focused on building a portfolio of opportunistic value added assets that provide stabilized cash flow during hold periods and provide its Limited Partners dependable equity growth while protecting their downside risk. For additional information, please visit: dml.capital.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.