Kirby complex purchased in $182M deal
A San Francisco-based real estate firm has acquired Kirby Collection, a high-end office, apartment and retail development at 3200 Kirby Drive, has renamed it and plans to renovate it.
Fowler Property Acquisitions bought the property, now known as Arrive Upper Kirby, for $182 million from New York-based Thor Equities. The deal closed Oct. 26.
New York-based Thor Equities completed the Kirby Collection in late 2017. Designed by Los Angeles-based Richard Keating Architecture, it includes 199 apartments in an elliptical 25-story residential tower and two other buildings with 182,000 square feet of office space and 61,000 square feet of retail space.
“This was a rare opportunity to acquire a relatively new construction multifamily, mixed-use asset in the highly sought-after Upper Kirby commercial district at the epicenter of Houston,” Brandy Clark, senior vice president of Trinity Property Consultants, said in an announcement. “Arrive Upper Kirby joins our portfolio of Arrive Luxury Communities.”
The deal follows Fowler’s 2018 acquisition of West Ave, an apartment, office and retail development at Kirby and Westheimer. The project was renovated and renamed Arrive River Oaks and Shops at Arrive River Oaks.
Trinity Property Consultants will oversee $7.8 million in improvements to Arrive Upper Kirby beginning in the first quarter.
While the office space is fully leased, the apartments are 91 percent occupied, and the retail space is 87 percent leased, Fowler said.
Thor Equities broke ground on the project in late 2015 as Houston’s office market softened after a sharp drop in oil prices in 2014. They proceeded with the development, citing Houston’s diversified economy and outlook for growth.
Office tenants include PROS, Hancock Whitney Bank, Novum Energy, Lukoil, Regency Centers and the Alexander Group. The retail space is anchored by Pinstripes, a restaurant and entertainment venue with bowling.
The purchase comes as the demand for apartments in Houston has been strong. Rents rose by 15.8 percent in December over the previous year, according to ApartmentData.com.