LOS ANGELES, CA (June 26, 2007) Younan Properties, Inc. (YPI) announced today that it has finalized its acquisition of 6464 Savoy, an eight-story, multi-tenant office building in the desirable deed-restricted Regency Square Office Park in southwest Houston, Texas. The addition of the 172,739-square-foot mid-rise at 6464 Savoy Drive to its Texas portfolio solidifies YPI's position as the third-largest owner of Class A office space in the state, with nearly eight million square feet of prime Texas real estate. YPI's nationwide holdings now total more than nine million square feet of Class A office space.
With its energy-based economy and the tremendous demand for oil and gas, Houston currently outshines all other cities in the nation for economic growth going forward, commented Zaya S. Younan, Chairman and CEO of Younan Properties, Inc. We will leverage such factors as higher job growth than any other U.S. city in the last year and tremendous activity at the Port of Houston now the nation's second largest port, destined to become the world's largest in our ambitious campaign to acquire and add value to our assets in Houston. All of these properties will benefit from the across-the-board upturn we predicted, that we foresee continuing for the next two to three years.
Younan represented itself in the transaction. Darrell L. Betts of Grubb & Ellis represented the seller.
The Younan team is comprised of aggressive, strategic thinkers and we look forward to working with them as YPI fulfills its goal to become the largest owner of Class A office space in Houston, just as it has done in Dallas, Betts observed. 6464 Savoy offers one of the largest contiguous blocks of floor space in Houston's southwest freeway submarket, and we are confident YPI will improve it to meet the superior standards for which the firm is known, he added.
Younan plans call for a $5 million renovation that will include extensive upgrades to both interior and exterior space. We will give this property a complete refurbishment as we transform it into a Class A business environment offering exceptional space solutions for new occupants, Younan concluded.
Built in 1980, 6464 Savoy is currently 30% occupied with tenants that include AIG International and Neon Systems, Inc. A parking ratio of 3.5/1,000 and an attached, four-story parking garage with a covered walkway provide abundant space for tenant and visitor parking. Onsite amenities include a bank, key card access, a lobby atrium setting, manicured landscaping and a fountain-lined entrance. The building is easily accessed by nearly all of Houston's major highways, including the Southwest Freeway (U.S. Highway 59), Loop 610, Katy Freeway (I-10), Sam Houston Tollway and the Westpark Tollway.
In Houston, YPI currently owns Norfolk Tower, a 206,680-square-foot office building at 2211 Norfolk Street. Its purchase of Northbelt Corporate Center, a 10-story office property strategically located on North Sam Houston Parkway in Houston's desirable Greenspoint/Northbelt submarket, is expected to close in approximately one week. In addition, YPI is under contract to purchase the 11-story Westchase Bank Building, a 202,294-square foot property at 9801 Westheimer Road in Houston.
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 $1.5 billion in real estate holdings since its inception in 2002.
About Younan Properties, Inc.
Headquartered in Los Angeles, CA, Younan Properties, Inc., a real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. As one of the fastest growing, privately held real estate investment groups in the country, the company is especially adept at turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan Properties creates immediate value. In fact, the company has delivered to its investors an average leveraged IRR of 65% on properties sold to date.
Since founding the company in 2002, Zaya S. Younan has accumulated a nine million-square-foot portfolio of well-located Class A office buildings valued at more than $1.5 billion in key markets within Arizona, Florida, Illinois and Texas.
Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.