Stream Realty Sells 175,000-SF Office Building

Last Updated: June 21, 2012 05:01pm ET

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The 150,000-SF Reserve at Sierra Pines now belongs to CapLease.

THE WOODLANDS, TX-Three years after Stream Realty Partners LP delivered the 175,000-square-foot Reserve at Sierra Pines to market, CapLease Inc. acquired the class A office building for $40.5 million. Based on the success of the commercial real estate asset's lease-up and sale, Stream Realty Partners is readying to break ground on a second office building on an adjacent 20-acre site.

Though Stream Realty sold Sierra Pines, the company will continue to serve as management and leasing provider for the office building at 1585 Sawdust Rd. Trent Agnew and Dan Miller with Holiday Fenoglio Fowler LP represented Stream Realty in the transaction. The building is 100% leased with Praxiar occupying most of the project.

"We had a couple of different opportunities with the site," explains Paul Coonrod, a managing director with Stream Realty. "We bought 35 acres several years ago, and Sierra Pines was built on the southern 15 acres." Coonrod goes on to say that Stream Realty was flexible in marketing the asset; it could have sold just the building alone or sold the building with the adjacent land. "The group we sold it to is a triple-net buyer interested in leased assets," Coonrod says. "So we have plans to break ground on a second building very soon."

Coonrod tells GlobeSt.com that the second office building will be approximately 150,000 square feet with a parking garage, and Stream Realty is working through whether it will be spec or preleased. Though speculative construction on office buildings isn't common, even in a hot market like Houston, The Woodlands' single-digit vacancy rates doesn't mean it's out of the question.

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Stream Realty Sells 175,000-SF Office Building