HOUSTON – A locally based investment group has sold Enterprise Rent-a-Car’s longtime home in Houston’s Galleria submarket to Zeus Equity Group, ending a 20-year hold on an irreplaceable site in one of the city’s premier commercial corridors.
The half-acre infill tract, located at 2829 West Loop S, boasts 203 feet of frontage and direct access to West Loop S/Interstate 610, which has a daily traffic count of nearly 250,000 vehicles. The site, featuring a 1,334-sf office building and 40 parking spaces, was developed in 2000 for Enterprise, one of the nation’s largest privately held companies.
“It’s extremely rare to own a piece of dirt in this area, especially one fronting 610. It is a good time in the market in terms of interest and cap rates to sell such a prominent location,” says Marc Peeler, vice president of NewQuest Properties’ investment sales division. He represented the seller, Kids Loop Holdings Ltd.
The acquisition opportunity came to market as an absolute triple net-lease investment, with a corporate giant in place as the long-term lessor. “We expected a lot of offers and we got them,” Peeler says. “It’s been several years since a site was available in this area.”
Ashley Strickland, vice president of NewQuest’s healthcare and wellness group, and David Luther, executive vice president of the firm’s investment sales division, represented the buyer. Zeus Equity Group’s managing principal is Dr. Steven Kaufman, who also owns Village Emergency Centers.
“We’d been looking at various developments when this site became available,” Strickland says. “The tight market gave us the foresight to buy this piece of land.”
The just-bought parcel is situated at an on-ramp to the city’s Inner Loop and directly across the freeway from the Galleria. It also neighbors the prestigious River Oaks residential enclave.
Zeus Equity is a recognized local developer with a mixed-use portfolio. Its newest holding is an income-producing asset, which has been earmarked for a future vertical redevelopment for medical office.
“Values in the Galleria submarket keep going up. It was too good of a location to pass up,” Strickland emphasizes.
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