Wednesday, July 9, 2008

CB Richard Ellis Buys Enclave of $37.3 Million

Behringer Harvard REIT I Inc. sold the Enclave on the Lake office building to CB Richard Ellis Realty Trust for $37.3 million.
The fully leased, 171,000-square-foot office building is located at 1255 Enclave Parkway in Houston's Energy Corridor area. The six-story facility is occupied by SBM Atlantia Inc., a subsidiary of SBM Offshore Inc.
The building was constructed in 1999 on a 6.7-acre wooded site in The Enclave Office Park, an 878-acre development consisting of Class A office buildings in a campus setting.
The Behringer Harvard REIT acquired a 36 percent interest in Enclave on the Lake along with tenants-in-common investors in April 2004. The REIT reports an overall yield during the holding period of 80 percent and an annualized cash-on-cash return of approximately 19 percent that represents a leveraged internal rate of return of more than 17 percent.
Following the disposition of Enclave on the Lake, the Dallas-based Behringer Harvard REIT I Inc. portfolio owns interests in 73 properties with approximately 25 million square feet.
CB Richard Ellis Realty Trust is sponsored by Los Angeles-based CB Richard Ellis Investors, an indirect wholly owned subsidiary of CB Richard Ellis Group Inc.
Jeff Torto, senior director of acquisitions for CBRE Investors, said Enclave on the Lake was an attractive investment because vacancy rates in Houston and the Energy Corridor are at record lows and rental rates are steady.
"The Houston office market is considered a 'Blue Chip' market by CBRE Investors' Research Group," Torto said. "While the national economy has decelerated, Houston continues to expand and is significantly outperforming the nation as a whole." for more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net or www.edayres.com