News Release
AMSTAR GROUP AND CAMERON MANAGEMENT SELL HOUSTON’S HISTORIC ESPERSON BUILDINGS
Amstar/Cameron Partnership Completes the Sale of a Houston CBD Landmark.
HOUSTON, TEXAS (June 18, 2007) – The Amstar Group and Cameron Management today announced the sale to Seligman Western Enterprises of the Esperson Buildings, a 599,107-square-foot office property consisting of the Niels and Mellie Esperson Buildings located at 808 Travis Street and 815 Walker Street, respectively, in the heart of downtown Houston. The partnership acquired the property in December 2004.
“Dougal Cameron identified this acquisition opportunity at a time when institutional investors were shunning Houston. This is a testament to Cameron’s years of experience in the Houston office market,” said Amstar Executive Director Doug Wiley. “Cameron Management’s vision for this iconic building and their attentive management style were very attractive to us.”
“While we strive be a disciplined investor, letting this one go was not easy. The swift recovery of Houston’s CBD and Esperson’s favorable positioning in the market will make this a great buy for Seligman,” Wiley added. “Amstar will have to work hard to replace this asset with new opportunities in Houston.”
The CB Richard Ellis team of Richard Rudd, Kent Peters, and Jared Chua, who acted as the exclusive brokers on this sale, targeted highly motivated and qualified private buyers from across the U.S. in a tightly coordinated marketing process. “The unique appeal of the Esperson Buildings resulted in highly competitive offers from many quality private and institutional capital sources that have not previously pursued Houston acquisitions but are eager to gain a market presence,” said CBRE's Richard Rudd.
The Houston CBD office market has improved significantly the last few years, exhibiting positive net absorption, decreasing vacancy rates and higher market rental rates. According to Cameron Management CEO, Dougal Cameron, “When we brought this opportunity to Amstar, Houston CBD vacancy was over 20% with Class A market rates in the low $20s. Today, with the surge in the energy sector, vacancy is down to 10% with rates in the low-to-mid $30s and improving daily. More than ever, Cameron Management is bullish on Houston and we believe in the resurgence of downtown.”
Both Amstar and Cameron will continue to be investors in Houston and other parts of Texas and hope for more opportunities to work together in the future. According to Dougal Cameron, “Amstar has been a very supportive partner. They do their homework quickly and were always responsive to our recommendations. We look forward to future investments with them.”
“Esperson was a great outcome and is indicative of our overall strategy,” said Amstar CEO Gabe Finke. “Amstar seeks out macro market opportunities with strong local partners where the ability to add value is clear. Beginning with the Esperson Buildings, Amstar took a long view on Houston and invested in several products in that market with great partners, all of which have yielded outstanding results.”
About Cameron Management
Cameron Management is a Houston-based real estate group that owns, manages, and leases office buildings in Houston and San Antonio, Texas. Its portfolio is comprised of classic buildings located in Class A submarkets and managed to a Class A standard. Its clientele are primarily business and professional office tenants who typically require less than 25,000 square feet of space (most are less than 5,000 square feet). These tenants are attracted to the economic value and attentive onsite management provided by Cameron Management. More information about Cameron Management can be found at www.cameronmanagement.com.
About Amstar Group
Established in 1987, Amstar is a leading real estate private equity firm headquartered in Denver. The company invests throughout North America in value-add acquisition and development opportunities. In its history Amstar has acquired, developed and sold more than $3.5 billion of real estate. Amstar’s current $2.0 billion portfolio includes office, multifamily, hospitality, industrial, multifamily, mixed-use, and retail projects. The firm’s current development pipeline exceeds $1.5 billion. For more information about Amstar Group visit the company’s website at www.amstargroup.com.