Galium Capital Buys Office Building in Houston’s Westchase

Galium Capital wrapped up 2024 with a Houston office purchase.

The Miami-based private equity firm picked up 190,000-square-foot Lockton Place for $42 million, the firm said in a release. That comes out to $221 per square foot.

The property was valued for tax purposes at $55.2 million in 2024, appraisal district records show.

The eight-story building, at 3657 Briarpark Drive in Houston’s Westchase neighborhood, was built in 2017 by Houston-based Triten Real Estate. It’s named for Lockton Companies, a Kansas-City based insurance brokerage and its biggest tenant.

Lockton Place has historically been a high-performing office building; it was 92 percent leased when put up for sale earlier this year, according to an advertisement from JLL.

The Class A property offers a fitness center, cafe and tenant lounge.

Houston’s office market has struggled to bounce back after the pandemic, with vacancy in the third quarter topping 26 percent, according to a report from Colliers. The city’s high vacancy rate means it’s missing out on an estimated $1.56 billion in rental income.

Industry experts hope interest rate reductions will provide owners of distressed properties with more exit options and allow them to avoid foreclosure.

The purchase is part of Galium’s Core Office Opportunistic Platform, which targets discounted office properties. Since 2020, the firm has picked up more than 1,700 multifamily units and 90,000 square feet of retail space, the release said.

In Houston, Galium owns The Millennium High Street, a 340-unit apartment building in River Oaks, and The Rice Apartments, a 308-unit apartment building downtown.