Another distressed Houston office property once owned by troubled Accesso Partners has found a buyer.
Receiver Midland Loan Services sold Ashford Office Park a few weeks after it offloaded One City Centre from the same borrower, according to a news release from JLL. The buyer is LFFP Ashford Portfolio, an entity led by Houston businessman Mohammed Ali Lakhany, state filings show.
JLL brokered the sale, with Marty Hogan and Kevin McConn representing the seller and Rick Goings, John Ream and Clay Anderson representing the buyer.
The buyer assumed the $60.9 million CMBS loan on the three-building, 570,000-square-foot complex, Morningstar Credit previously reported. The price comes to $107 per square foot.
The balance on the loan was $46.6 million; it was sent to special servicing in 2022.
The property was last appraised at $26 million, under $46 per square foot and down 20 percent from its $32.5 million valuation in 2023, according to Morningstar Credit. The property was valued at $83 million in 2012 when the CMBS loan was issued
The complex, at 1155 Dairy Ashford Road, 14701 Saint Marys Lane and 900 Threadneedle Street, is 58 percent occupied. It was built in 1979 and renovated between 2014 and 2016.
LFFP also recently purchased Westgate II, another Energy Corridor office property.
Accesso Partners, based in Tallahassee, also lost One City Centre this year after defaulting on the loan backed by the building.
Delaware Street Capital bought the building, at 1021 Main Street, which was just 9 percent occupied in September.
The sale represented a realized loss of $83.3 million ($137 per square foot) on the two CMBS loans backed by the downtown property, Morningstar Credit reported. The loans, which originated in 2015, totalled $100 million. They’ve been in special servicing since 2021 after the departure of the building’s largest tenant, Waste Management (now WM), in December 2020.
The 607,500-square-foot, 32-story building’s taxable value is $25.9 million, less than $43 per square foot, according to the Harris Central Appraisal district.
Accesso Partners has also faced multiple foreclosures on Chicago-area office properties.
Houston’s office market has been struggling under the yoke of older, distressed properties like these. Its vacancy rate rose to 27 percent in the fourth quarter, according to Colliers.
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