Camco scoops up boutique Houston office building along Memorial Drive

A boutique office building in one of Houston’s coveted inner-loop corridors changed hands, as investors continue to target stabilized properties in the city’s amenity-rich neighborhoods.

Dallas-based Camco Investment Group acquired the 11-story office building at 5300 Memorial Drive from Equus Capital Partners, marking a rare trade in the tightly held Rice Military submarket. The Houston Business Journal reported that the price wasn’t disclosed, but the property carried a $25.7 million appraisal as of January, according to county records.

The 153,671-square-foot building, renovated in 2019, is more than 90 percent leased, offering the buyers in-place cash flow from the start. Tenants include a mix of professional users, notably U.S. Sen. John Cornyn’s Houston office, according to the outlet. JLL brokered the sale, with its capital markets team representing the seller and its debt advisory arm arranging financing.

Pennsylvania-based Equus bought the property in 2016 and completed upgrades before ultimately bringing it back to market, a timeline that stretched beyond its typical two- to four-year hold, but aligned with pandemic-era disruptions, according to the publication.

Camco prioritized the site in the acquisition, according to the outlet, as the property sits between Memorial Park and Buffalo Bayou Park, as well as within walking distance of high-end residential enclaves and a growing mix of retail and dining options, creating a live-work-play dynamic that continues to draw tenants even as remote work reshapes office demand.

Just blocks away, the forthcoming St. Regis Residences Houston is pushing the envelope on luxury condo pricing, with penthouses commanding up to $18 million and setting new per-square-foot records for the city. The project has already racked up hundreds of millions in pre-sales ahead of construction.

Taken together, the office sale and the nearby residential construction point to a broader transformation along Memorial Drive, where institutional capital and ultra-luxury development are converging.— Eric Weilbacher