DEAL OF THE WEEK

Nor­folk Tower to re­ceive up­grades and a new name, Nitya Tower

Houston Chronicle Sunday - - PRIME PROPERTY - By Kather­ine Feser kather­ine.feser@chron.com twit­ter.com/kfeser

Nitya Cap­i­tal has plans for its first of­fice project, the 35-year-old Nor­folk Tower that it plans to spruce up and re­name.

Hous­ton-based Nitya, which in­vests pri­mar­ily in apart­ment prop­er­ties, has pur­chased the 11-story of­fice build­ing at 2211 Nor­folk at Green­briar from Bos­ton-based TA Realty. HFF han­dled the sale.

The build­ing, which is leased to 65 to 70 small ten­ants, will be up­graded and re­branded as Nitya Tower. The lo­ca­tion near Green­way Plaza, River Oaks, the Texas Medical Cen­ter and down­town was a draw.

“We saw a sim­i­lar val­ueadd play that we look for in apart­ments,” founder and CEO Swapnil Agar­wal said. “It’s a great lo­ca­tion with vis­i­bil­ity from U.S. 59. It’s an old build­ing and it needs work, which is what we do.”

The 207,562-square­foot build­ing is 82 per­cent leased, and Agar­wal aims to push it to 92 per­cent within two years through re­newals and new leases. The com­pany’s Karya Prop­erty Man­age­ment af­fil­i­ate will man­age the build­ing.

Over the next 12 to 18 months, the build­ing will be mod­ern­ized by ad­ding ei­ther pan­els or stucco over the red brick ex­te­rior and paint­ing it white, Agar­wal said. New fit­ness and con­fer­ence fa­cil­i­ties are planned along with up­grades to the lobby, el­e­va­tors, and com­mon area re­strooms. The tower was built in 1982.

H. Dan Miller, Martin Ho­gan and Wes­ley Hightower of HFF rep­re­sented TA Realty in the sale. HFF’s Su­san Hill and Kelly Layne ar­ranged float­in­grate ac­qui­si­tion fi­nanc­ing on be­half of Nitya Cap­i­tal.

TA Realty has sold other lo­cal prop­er­ties re­cently, in­clud­ing the Two Sugar Creek of­fice build­ing in Sugar Land to Dal­las-based Velo­sis, and a three-build­ing ware­house port­fo­lio to Dal­las-based ATCAP Part­ners.

Nitya Cap­i­tal owns and op­er­ates more than 10,000 apart­ment units and has about $800 mil­lion of as­sets un­der man­age­ment.

Jud Hag­gard / HFF

Nitya Cap­i­tal has pur­chased the 11-story Nor­folk Tower and will ren­o­vate and re­brand the build­ing.

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