SLS Properties is relaunching the I.M. Pei-designed office building at 2425 West Loop South in Houston, aiming to move past years of turmoil under former owner Ali Choudhri.
The vacant 285,00-square-foot 11-story building, formerly home to Stage Stores’ headquarters, became mired in legal and financial distress, including attempted foreclosure and an involuntary bankruptcy tied to Choudhri’s Jetall Companies, BisNow reported. National Bank of Kuwait, which lent $60.2 million on the building in 2018, remains a creditor in the bankruptcy case, and Choudhri was briefly jailed in April for contempt after failing to submit required financial documents.
After acquiring the building through a receivership sale, Houston-based SLS Properties opted to reject all prior leases through bankruptcy proceedings, choosing instead to completely revamp the property.
SLS Properties founder Danny Sheena said the building was in severe disrepair upon takeover — only one elevator functioned, the cooling system and roof had failed, garage lighting was outdated and interior floors needed structural attention. SLS has since modernized elevators, replaced mechanical systems and the roof, upgraded lighting and restored interior spaces.
The building is now intentionally 100 percent empty and ready for immediate tenant occupancy.
Transwestern’s Kelli Gault, Jack Scharnberg and Doug Little will handle leasing. Gault emphasized the rarity of such large, contiguous blocks of space in Houston’s Galleria submarket. With expansive floor plates, opportunities for prominent signage and its site directly across from The Galleria Mall, the property could appeal to tenants seeking high visibility.
Its architectural pedigree also enhances its appeal – few office buildings can claim the same designer as the Louvre Pyramid in Paris, Gault said.
Sheena said nearby investments could impact the building’s future. It sits next to land purchased by billionaire Tilman Fertitta, who also owns the River Oaks District development across the street and is exploring expansion concepts. Fertitta recently stepped down as CEO of his holding company to serve as U.S. ambassador to Italy. The property also neighbors The Greenleigh, a Marriott-affiliated hotel rising from the former Hotel Derek site.
— Joel Russell