Cross Ocean, Fuller buy 94%-leased Houston office campus

Cross Ocean Partners and Houston-based Fuller Realty have acquired Eldridge Place, an 828,784-square-foot Class A office campus in Houston's Energy Corridor, IREI reports. The three-building property is 94 percent leased. Fluor Corporation anchors it with roughly 413,000 square feet. The other tenants are SM Energy, Pemex Procurement International, Baker Engineering and Risk Consultants, Certarus, and Petrobras America.

Houston's energy tenants have kept the corridor active while office distress weighs on other metros. Fluor relocated to the campus in 2024. It fills all of Three Eldridge Place, a 308,186-square-foot building. One Eldridge Place spans 245,315 square feet. Two Eldridge Place runs 275,283.

The sellers have spent more than $20 million on capital improvements. Since 2019, that work has covered lobby and common-area renovations, elevator modernization, upgraded building systems and restrooms, and new amenities: a resort-style fitness center, pickleball courts, a full-service deli, and a conference facility. The upgrades give the new owners a property already redone, so they can skip the leasing risk of a speculative renovation.

"We continue to see compelling opportunities to acquire high-quality office assets with strong in-place cash flow at attractive bases, particularly in markets and submarkets demonstrating durable tenant demand," Teren, a Cross Ocean principal, said in the IREI report.

Basis wasn't disclosed. Office capital is still being deployed, but only into buildings with occupancy, energy-credit tenants, and renovations already paid for.