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Distressed Houston Office Property Hits the Market
JLL recently posted a listing for the 632,511-square-foot midrise office building at 5400 Westheimer Court, which sits on a 6.43-acre property less than half a mile west of The Galleria mall. Built in 1981, the nine-story building most recently was 100% occupied by Enbridge Inc. (NYSE: ENB) following the $28 billion acquisition of Houston-based Spectra Energy Corp., which closed in 2017.
The Houston Business Journal reports that JLL’s listing said the building may offer a redevelopment opportunity within a premier infill location.
The building was previously owned by PTAD Realty. The company began to struggle when its sole tenant, Spectra, was acquired by Enbridge, which then moved into another Houston office.
Enbridge’s lease in the building ran through 2026, and the company continued to make rent payments until earlier this year. The owners defaulted as a result of the the move.
Ladder Capital Finance was the lender. Rialto Capital serves as the loan’s special servicer.
- ◦Sale/Acquisition
