HOUSTON, TX (February 13, 2006) Continuing its pattern of aggressive expansion in the country's most promising submarkets, Woodland Hills, Calif.-based Younan Properties, Inc. (YPI), has announced the acquisition of Norfolk Tower, a 206,680-square-foot Class A high-rise located at 2211 Norfolk Street in Houston, Texas.
Younan Properties purchased the 11-story office property from ING Clarion, based in Boston, Mass. Younan Properties represented itself in the transaction. John S. Dailey, executive vice president/managing director private client services for PM Realty Group in Houston, represented the seller.
After several years of decline, the Houston office market is showing clear signs of recovery and we are very confident about a continuing upward trend, said Zaya S. Younan, Chairman & CEO of Younan Properties, Inc. Leasing activity is strong, rents have started going up, vacancy rates have declined, and we believe this is the prime time to capitalize on the upswing.
Built in 1982, Norfolk Tower is set on 2.36 acres along Highway 59 at Greenbriar Street, minutes from Rice University as well as the renowned Texas Medical Center. The rich brick masonry office building is currently 75% occupied by major tenants that include Frost Bank, Houston Medical Records, Inc., Groundwater Services, Global Search Consulting, L.P. and TranSystems Corporation. Surrounding the property are some of Houston's most affluent neighborhoods, including River Oaks, West University Place, Southampton and Montrose.
Zaya Younan and his team are smart, aggressive investors, and we were impressed with their professionalism and meticulous attention to detail in this transaction, observed John S. Dailey, PM Realty Group executive vice president/managing director private client services.
Norfolk Tower is Younan Properties' fourth acquisition in Houston. The firm currently owns Wilcrest Executive Building, a three-story multi-tenant building with 68,000 square feet in the Energy Corridor of West Houston. In Dallas, Younan Properties is the second largest office landlord, with a portfolio of seven prime properties totaling 2.7 million square feet of Class A office space.
In 2006, Younan Properties aims to acquire another five million square feet of Class A office space in high-growth markets, with a focus on acquisitions in Texas, Florida, Illinois and other areas of the Southwest.
Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $800 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 21 Class A office properties totaling more than 4.8 million square feet.