JLL's Marty Hogan and Burke Tilton Close Sale of Houston Office Tower Near Bush Intercontinental Airport

JLL Capital Markets has completed the sale of 2350 N Sam Houston Parkway East, a 161,750-square-foot office building in Houston, Texas, to a private investor. The firm's Capital Markets Investment Sales and Advisory team, led by Managing Director Marty Hogan and Analyst Burke Tilton, represented the seller — a publicly traded REIT — in the transaction, which was announced September 28, 2026.

Property and Transaction Details

The 10-story building, also identified in marketing materials as 2350 North Belt Tower, sits on approximately 3.08 acres at 2350 N Sam Houston Parkway East in Houston, TX 77032. Originally constructed in 1982 and renovated in 2018, the property is currently 20% occupied, leaving roughly 129,400 square feet available for lease.

The asset includes a seven-story, 189,360-square-foot structured parking garage with 595 spaces, producing a parking ratio of 3.68 spaces per 1,000 square feet — a figure JLL described as above market. The 100% fee-simple interest in both the office building and the parking garage was conveyed to the buyer.

JLL marketed the property through the RealINSIGHT Marketplace auction platform, which the firm said generated significant market interest.

Location and Access

The building sits directly off Sam Houston Parkway (Beltway 8), just south of George Bush Intercontinental Airport, with frontage that exposes the property to more than 100,000 vehicles per day. Tenants and visitors can access the site via Beltway 8, the Hardy Toll Road, U.S. Interstate 69 and Interstate 45, connecting the property to northern Houston employment centers and surrounding suburban communities.

Value-Add Investment Thesis

The transaction reflects a segment of the Houston office market where buyers are acquiring heavily vacant assets at a basis that prices in substantial lease-up risk. At 20% occupancy, the building's current net operating income is limited, and the buyer's investment case appears centered on re-leasing potential, the property's 2018 renovation, and the flexibility provided by its large parking supply. JLL noted that the parking infrastructure supports multi-tenant occupancy while reducing utilization risk during a lease-up period.

The auction format and fee-simple ownership structure — encompassing both the office tower and the standalone garage — were positioned by JLL as attributes suited to either an investor or an owner-user.

Houston Office Market Context

The sale comes as Houston's office market continues to carry elevated vacancy. Overall vacancy in the market ranged from approximately 22.8% to 26.6% across various measures in the first and second quarters of 2026, depending on methodology and whether sublease space is included. Average asking rents have nonetheless held up, with gross rents reaching roughly $31.10 per square foot in the second quarter of 2026, up approximately 8.1% year over year. Class A asking rents reached $36.69 per square foot in the second quarter, while Class B rents stood at $23.55 per square foot.

Office cap rates in Houston have moved higher alongside the broader repricing of assets with leasing risk. A first-quarter 2026 measure placed the Houston office cap rate at 7.88%, up from 7.36% in a prior comparable period, reflecting the risk premium buyers are demanding for properties requiring significant lease-up. A separate second-quarter figure cited a 7.26% cap rate, underscoring the variability across asset quality and location.

For a property at 20% occupancy, conventional cap-rate comparisons are difficult to apply directly. The transaction at 2350 N Sam Houston Parkway East is better understood as a repositioning sale, where the buyer's return depends on the cost to stabilize the asset, achievable rents, tenant-improvement and leasing-commission requirements, and the long-term value of the parking infrastructure.

About JLL Capital Markets

JLL Capital Markets is a global provider of capital solutions for real estate investors and occupiers, offering investment sales and advisory, debt advisory, mergers and acquisitions, loan sales, equity and fund placement, net lease, derivative advisory and energy and infrastructure advisory services. The group has more than 3,000 specialists in offices across nearly 50 countries. JLL (NYSE: JLL) reported annual revenue of $26.1 billion and employed more than 112,000 people globally as of June 30, 2026.

Sources: JLL Newsroom — Value-add office building in Houston trades to private investor (September 28, 2026)