SLS Properties is preparing to relaunch the I.M. Pei-designed office building at 2425 West Loop South in Houston, following years of legal and financial difficulties under previous owner Ali Choudhri. The 285,000-square-foot, 11-story property, which was once the headquarters for Stage Stores, faced foreclosure attempts and an involuntary bankruptcy related to Choudhri’s Jetall Companies. National Bank of Kuwait remains a creditor in the ongoing bankruptcy case after lending $60.2 million on the building in 2018. In April, Choudhri was briefly jailed for contempt after failing to provide required financial documents.
After acquiring the property through a receivership sale, SLS Properties rejected all existing leases during bankruptcy proceedings and decided to overhaul the building entirely. Danny Sheena, founder of SLS Properties, described the state of the building at takeover: “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disrepair upon takeover — only one elevator functioned, the cooling system and roof had failed, garage lighting was outdated and interior floors needed structural attention.” According to Sheena, SLS has since modernized elevators, replaced mechanical systems and the roof, upgraded lighting, and restored interior spaces.
The office tower is now vacant and available for immediate tenant occupancy. Leasing will be managed by Transwestern’s Kelli Gault, Jack Scharnberg and Doug Little. Gault highlighted that large contiguous blocks of space are rare in Houston’s Galleria submarket. She said: “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.”
Gault also noted that few buildings can claim an architect with credentials like I.M. Pei’s—who designed Paris’ Louvre Pyramid—which adds prestige to the site.
Sheena pointed out that future prospects for the property may be influenced by nearby investments. The office sits adjacent to land owned by billionaire Tilman Fertitta—who recently left his CEO role at his holding company to become U.S. ambassador to Italy—and near The Greenleigh hotel project at the former Hotel Derek location.
