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Shorenstein buys Houston office tower

The San Francisco-based firm acquires the 5 Post Oak Park office building through its recently upsized ninth real estate vehicle, Shorenstein Realty Investors Nine.

San Francisco-based Shorenstein Properties has acquired the Class-A 5 Post Oak Park office building in Houston’s Galleria submarket from a partnership between GE Asset Management and Crescent Real Estate Equities. Financial terms of the deal were not disclosed.

The acquisition was made through Shorenstein Realty Investors Nine, the firm’s latest $2 billion (€1.3 billion) private equity real estate fund.

Sitting on a 3.6-acre site in the Galleria submarket of Houston, the 28-story, 567,396-square-foot property also includes an adjacent 1,673-unit parking structure. The building is 93 percent leased with three tenants including Amegy Bank, UBS and Willbros USA.

The Houston market had “the highest office absorption of any market in the country outside Manhattan,” said Shorenstein chairman and chief executive Douglas Shorenstein in a statement, adding that the Galleria submarket “continues to attract a strong base of energy, professional services and financial tenants.”

Last month, Shorenstein upsized Shorenstein Realty Investors Nine, which initially closed in May 2007 with $1.3 billion in equity commitments, including $100 million invested by the firm. Its latest vehicle now has $2.06 billion of capital. The firm re-opened the fund to additional commitments at the end of 2007 “in response to disruptions in the debt markets that have changed the investment environment.”