Doug Agarwal’s Capital Commercial Investments is seeking to sell a Houston office building after its loan matured in February, according to an April 15 announcement. Cushman & Wakefield is marketing the 411,000-square-foot property at 1900 West Loop South in Houston’s Galleria submarket.
The move comes as the firm faces decisions about the future of the building, which was developed by Hines in 1978 and renovated in 2001. Agarwal’s Austin-based company acquired the property for an undisclosed amount in 2022. “It’s an absolutely gorgeous building,” Doug Agarwal told The Real Deal. “We look forward to partnering with someone new to fill it back up or selling it to someone who can.”
The listing does not specify a price, but appraisal district records last valued the property at $28.7 million for tax purposes. The acquisition was financed with a $40.4 million loan from Bank of America, and documents show that Agarwal secured a maturity extension until Feb. 3 this year to repay it. He declined to comment on whether the loan is currently in default but said he would consider recapitalizing and retaining ownership.
Cushman & Wakefield describes the offering as both an opportunity for investors seeking quality assets and as a value-add prospect due to current market conditions. At present, occupancy stands at about 75 percent but will decrease to approximately 64 percent when one tenant relocates next door, according to information included with the listing. Historically, occupancy has exceeded 90 percent.
“There’s no shortage of people who want to invest in Houston right now, with oil prices up,” Agarwal added.
Houston’s office market continues to face high vacancy rates—currently around 27 percent—which has created opportunities for investors interested in discounted properties and allowed some corporate tenants to purchase buildings rather than lease them.
