Property Details
Below Market Occupancy  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Former HP-Compaq Headquarters - Value Add Office Opportunity

Houston, TX

Office Property
Capital Commercial Investments, Inc. Austin, TX
Capital Commercial Investments, Inc.
  • IRR 15%+
  • Equity Multiple 1.8x
  • Hold Period 4-5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 0%
  • Stabilized Cash on Cash 0%
  • First Distribution Jul 2024
  • Distribution Frequency N/A
  • Co-Investment 1%
  • Preferred Return 8%
  • Investor Profit Share 50%
  • Asset Profile Value Add
  • Loan-to-Value 83.3%
  • Current Occupancy 0%

About this Property

"We are pleased to share with you CCI’s latest investment opportunity, CCI-Cypress Crossing I, LP, for investors desiring long-term capital gains. CCI acquired 11403 Compaq Center Drive (the “Property”) for $6,000,000 ($25/SF) on June 15th. This asset represents a two-story 250,000 SF Class B office building in the SH 249 Corridor submarket of Houston, Texas. This investment holding period is 4-5 years."

-Capital Commercial Investments, Inc.

Address 11403 Compaq Center Dr
Square Footage 243,403
Price/Sq. Ft. $25/sq. ft.
Purchase Price $6,000,000
Stabilized Loan to Value 43.07%
Current Average Rents: Asking: $10 - $12/SF NNN
Average Market Rents: Class A: $27-$28/SF Full Service (equivalent to $17-$18/SF NNN)
Class B: $21-$23/SF Full Service (equivalent to $12-$14/SF NNN)
Current Occupancy 0%
Market Occupancy Class A: 88.7%; Class B: 85.7%

Top Questions

All answers are provided by the sponsor, Capital Commercial Investments, Inc., or its representatives.

 

Why are you buying this property?

Capital Commercial Investments, Inc.: "11403 Compaq Center Drive is a low cost investment at $25 psf for a class B+ suburban office building in major sunbelt market."

 

What are the most important aspects of this investment opportunity for the investors?

Capital Commercial Investments, Inc.: "CCI’s business plan is to acquire the asset vacant, complete the utility segregation from the southern campus creating a stand-alone building, upgrade the entry sequence, increase the parking ratio, then fill the asset with tenancy. CCI excels at “buying right” or at a low basis, affording the opportunity to offer prospective tenants below market rates with substantial incentives, inclusive of free rent and attractive Tenant Improvement (TI) allowances. Post-closing, CCI will aggressively market the much-improved property with lease rates unmatched by competitors, giving a strong competitive advantage in the market."

 

What is your investment strategy/business plan for the Property?

Capital Commercial Investments, Inc.: "CCI’s business plan is to acquire the asset vacant, complete the utility segregation from the southern campus to create a stand-alone building, create a new entry sequence and visitor parking area, increase the parking ratio, then fill the asset with tenancy."

"Upon completion of the planned capital improvements to the building and visitor parking areas, CCI will aggressively market the much-improved property with lease rates unmatched by competitors, giving a strong competitive advantage in the market. CCI excels at “buying right” or at a low basis, affording the opportunity to offer prospective tenants below market rates with substantial incentives, inclusive of free rent and flexible Tenant Improvement (TI) allowances.”

 

How has COVID-19 impacted your business plan?

Capital Commercial Investments, Inc.: "COVID-19 has not affected the business plan yet. CCI is moving forward with all capital projects on schedule. The building is being segregated to have stand alone utilities verse part of a corporate campus with integrated utilities that will take up to 12 months to complete through 3rd Quarter 2021."

 

What are the risks and how are you mitigating those risks?

Capital Commercial Investments, Inc.: "Lease up could take a little longer due to COVID-19. CCI has begun immediate post-acquisition marketing of the property for lease with discounted rental rates to attract tenants."

NOTE: All answers provided by the sponsor, Capital Commercial Investments, Inc., or its representatives.

About this Property

"We are pleased to share with you CCI’s latest investment opportunity, CCI-Cypress Crossing I, LP, for investors desiring long-term capital gains. CCI acquired 11403 Compaq Center Drive (the “Property”) for $6,000,000 ($25/SF) on June 15th. This asset represents a two-story 250,000 SF Class B office building in the SH 249 Corridor submarket of Houston, Texas. This investment holding period is 4-5 years."

-Capital Commercial Investments, Inc.

Address 11403 Compaq Center Dr
Square Footage 243,403
Price/Sq. Ft. $25/sq. ft.
Purchase Price $6,000,000
Stabilized Loan to Value 43.07%
Current Average Rents: Asking: $10 - $12/SF NNN
Average Market Rents: Class A: $27-$28/SF Full Service (equivalent to $17-$18/SF NNN)
Class B: $21-$23/SF Full Service (equivalent to $12-$14/SF NNN)
Current Occupancy 0%
Market Occupancy Class A: 88.7%; Class B: 85.7%

Top Questions

All answers are provided by the sponsor, Capital Commercial Investments, Inc., or its representatives.

 

Why are you buying this property?

Capital Commercial Investments, Inc.: "11403 Compaq Center Drive is a low cost investment at $25 psf for a class B+ suburban office building in major sunbelt market."

 

What are the most important aspects of this investment opportunity for the investors?

Capital Commercial Investments, Inc.: "CCI’s business plan is to acquire the asset vacant, complete the utility segregation from the southern campus creating a stand-alone building, upgrade the entry sequence, increase the parking ratio, then fill the asset with tenancy. CCI excels at “buying right” or at a low basis, affording the opportunity to offer prospective tenants below market rates with substantial incentives, inclusive of free rent and attractive Tenant Improvement (TI) allowances. Post-closing, CCI will aggressively market the much-improved property with lease rates unmatched by competitors, giving a strong competitive advantage in the market."

 

What is your investment strategy/business plan for the Property?

Capital Commercial Investments, Inc.: "CCI’s business plan is to acquire the asset vacant, complete the utility segregation from the southern campus to create a stand-alone building, create a new entry sequence and visitor parking area, increase the parking ratio, then fill the asset with tenancy."

"Upon completion of the planned capital improvements to the building and visitor parking areas, CCI will aggressively market the much-improved property with lease rates unmatched by competitors, giving a strong competitive advantage in the market. CCI excels at “buying right” or at a low basis, affording the opportunity to offer prospective tenants below market rates with substantial incentives, inclusive of free rent and flexible Tenant Improvement (TI) allowances.”

 

How has COVID-19 impacted your business plan?

Capital Commercial Investments, Inc.: "COVID-19 has not affected the business plan yet. CCI is moving forward with all capital projects on schedule. The building is being segregated to have stand alone utilities verse part of a corporate campus with integrated utilities that will take up to 12 months to complete through 3rd Quarter 2021."

 

What are the risks and how are you mitigating those risks?

Capital Commercial Investments, Inc.: "Lease up could take a little longer due to COVID-19. CCI has begun immediate post-acquisition marketing of the property for lease with discounted rental rates to attract tenants."

NOTE: All answers provided by the sponsor, Capital Commercial Investments, Inc., or its representatives.

Offered By

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Assets Under
Management

Currently
$1B 50+ assets
Exited
$1B 100+ assets
Portfolio LTV
50%  
Historical
Realized Returns

Total IRR
23%  
Equity Multiple
N/R  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
28 years  
Size
28 Staff  
* All information is reported by Capital Commercial Investments, Inc. as of 10/27/2020.
Assets Under
Management

Currently
$1B 50+ assets
Exited
$1B 100+ assets
Portfolio LTV
50%  
Historical
Returns

Total IRR
23%  
Equity Multiple
N/R  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
28 years  
Size
28 Staff  
* All information is reported by Capital Commercial Investments, Inc. as of 10/27/2020.

Financials

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Offering Financial

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Location Details

Houston, TX

Capital Commercial Investments, Inc.:

  1. "11403 Compaq Center Dr. is located approximately 30 minutes from the Central Business District, in Northwest Houston, which in conjunction with the SH 249 Corridor, are experiencing exponential population growth. Employees and residents enjoy an attractive and safe suburban setting - the area is highly regarded for its premier residential communities, numerous country clubs, abundant green space, and an outstanding quality of life."
  2. "Northwest Houston is generally bound by I-10 and Beltway 8 to the south and by I-45 to the east. It extends west just past Katy, and its northernmost point is Conroe. The area’s population, which has more than doubled since 2000, has grown by 26% since 2010 alone, exceeds 1.4 million inhabitants and is projected to reach over 1.6 million by 2023. Northwest Houston is also home to more than 42,000 businesses, employing over 480,000 people."
  3. "Northwest Houston’s concentration of quality recently constructed office buildings, best-in-class amenities, proximity to the George Bush Intercontinental Airport, and superior regional access have also made it an ideal corporate location for local Houston businesses, as well as national and international firms. In addition to ExxonMobil’s campus that houses approximately 10,000 employees, other significant corporate expansions and relocations to the area include Noble Energy, ABS and Southwestern Energy."
  4. "With exceptional regional accessibility enhanced by the completion of the 38-mile Grand Parkway extension from U.S. Highway 290 to U.S. 59 North, 11403 Compaq Center is within 30 minutes of Houston’s primary centers of commerce, including downtown Houston, the Galleria, the Energy Corridor, and The Woodlands. It is also within 20 minutes of George Bush Intercontinental Airport."

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Offering Agreement Documents

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