2424 & 2500 Wilcrest
Houston, Texas
Griffin Partners (GP) acquired 2500 Wilcrest and the adjacent 2424 Wiclrest in October 2002 from CSFB, which had previously foreclosed on a loan secured by the properties. The 2500 building contains 109,373 sf and is located within the highly desirable 2,400-acre master planned development of Westchase on the cities far west side.
This was a value added investment where Griffin Partners purchased an asset that was underperforming due to lack of attention from the foreclosing lender and accumulated deferred maintenance. Combined, the buildings were 66% occupied at acquisition; however, a significant tenant was scheduled to move out, further reducing occupancy. GP invested approximately $560,000 in capital improvements to major building systems, common area upgrades, and parking additions boosting the parking capacity to 4.5/1000 square feet and significantly improving the competitive position in the market. Market rents have improved to $16,50 psf vs. an average in-place rate of $14.02 psf.
2424 Wilcrest - The property was approximately 25% leased at the time of purchase. GP invested in improving the atrium lobby and the restrooms, and has subsequently leased the building to just shy of 90% occupancy.
Both 2500 and 2424 Wilcrest were sold by Griffin Partners in February 2007.