(HOUSTON, TX) – In December 2019, Rycore Capital acquired a 155,000 Class A office building in Houston, Texas. The acquisition was completed through its fund management business. The property was 66% occupied and had two full floors of vacancy, including approximately 55,000 sf of office vacancy. Within 90 days of acquisition, the US and Houston market experienced the 2020 COVID-19 pandemic and an energy crisis, however, Rycore pressed forward and spent over $2 million of interior upgrades, roof restoration and multi-tenanting the two vacant floors.
“We are extremely pleased to have had the foresight to execute our value-add plan despite the US and Houston economy whirlwinds in 2020. The roll-up your sleeves mentality showcased the Rycore asset management team’s capabilities in a struggling West Houston leasing market, which is now 48 months later the top performing lease absorption in Houston.” said Ryan Urech, Founder & CEO at Rycore.
The property increased the tenant count from 3 full floor tenants to a total tenant count of 7 operating in the residential home building, oil & gas and engineering industries. Within 36 months, the property was 94% leased and net operating income more than doubled from acquisition. Rycore recently inked a final lease for the remaining ~9,000 sf vacancy to an existing tenant for expansion purposes, to increase occupancy to 100%.
About Rycore Capital LP
Rycore Capital LP (the “Firm”) is a Houston-based real estate investment manager with approximately $413 million AUM, focused on acquiring, leasing and managing income producing properties that deliver superior real estate solutions to our tenants while providing our investment partners with some of the most consistent value-add, core-plus and core returns. The Firm offers two investment platforms to investors: Fund Management and Direct Investment Advisory. The Firm aims to provide a solution with its institutional quality real estate investment management process to high net worth, family office and institutional investors. For more information regarding Rycore, visit the Company’s website at www.rycorecapital.com.