Private Real Estate Investment Firm Purchases Northwest Houston Office Park

JLL Capital Markets closed the sale and financing of Chasewood Technology Park, a four-building office campus totaling 463,969 square feet in northwest Houston. JLL represented the seller, The GenCap Group, and procured the buyer, Nitya Capital, and helped Nitya to secure a $46 million loan through Morgan Stanley. Chasewood Technology Park consists of One, Two, Three and Four Chasewood, which are located at 20333, 20405, 20445 and 20329 State Highway 249, respectively. The 10.44-acre site is positioned in one of Houston’s fastest-growing submarkets near the intersection of State Highway 249 and Louetta Road, equidistant between the Grand Parkway and Sam Houston Tollway. The GenCap Group’s first investment at Chasewood Technology Park was the acquisition of Two Chasewood in 1997, followed in the late nineties by the purchase of One Chasewood and the development of Three Chasewood. Four Chasewood was developed and delivered at the start of the 2008 financial crisis. Within a year, the building was more than 85 percent leased. “This type of strong demand has been typical during our holding period,” said Paul Vangrieken, executive vice president with the GenCap Group. “Despite the many challenges, these assets have continuously outperformed the market thanks to a strong ownership sponsor and the dedication of the Transwestern leasing and management team.” The GenCap Group’s only reason for selling the portfolio is because one of the partners, an undisclosed Dutch pension fund, is divesting all of its U.S. holdings. The JLL Capital Markets team representing the seller was led by director Rick Goings and analyst Ethan Goldberg. Financing efforts were led by JLL Capital Market’s senior director John Ream and associate Laura Sellingsloh. “This portfolio is among the first large office trades to occur in the Houston market since COVID-19 hit the U.S.” Goings said. “The pandemic created numerous challenges in bringing this deal across the finish line, but we had the right assets, the right tenancy and the right buyer to get it done. The prior owners did a great job in positioning these buildings to withstand macro-economic events and Nitya understood that value proposition.” The northwest Houston area has been driven by market-leading population growth given the proximity to the Energy Corridor and The Woodlands. Planned nearby future development includes Class A multi-housing, retail pads and jogging/biking trails along Cypress Creek, which is adjacent to the property. The multi-story buildings are 92.9 percent leased overall to a diverse array of tenants in the oil and gas, consulting, technology, engineering, architecture, healthcare, and food services industries.