Hartman Short Term Income Properties XX Buys Houston Office Building

Hartman Short Term Income Properties XX Inc., a Houston-based real estate investment trust, acquired a fee simple interest in Ashford Crossing II in Houston, Texas for $10.6 million, exclusive of closing costs. The seller, KWI Ashford Westchase Buildings L.P., is an unrelated third party seller. 

Built in 1983, Ashford Crossing II is an approximately 158,451-square-foot, six-story office building that is 87 percent occupied by 22 tenants. RigNet, Inc. (NASDAQ:RNET), a provider of digital technology solutions to the oil and gas industry, occupies approximately 27.6 percent of the property and accounts for approximately 34.2 percent of the current annual base rent.  

The property was purchased with proceeds from the company’s ongoing public offering, as well as loan advance proceeds from the company’s revolving credit facility.  An acquisition fee of approximately $265,000 was earned by Hartman Advisors LLC, the company’s advisor.

Hartman Income REIT Management Inc. will manage and be the exclusive leasing agent for the Ashford Crossing Property and will earn a monthly management fee of 3 percent of the effective gross revenues.

Last month, the DI Wire reported that Hartman Short Term Income Properties XX entered into an agreement to purchase Ashford Crossing II for the pre-amended price of $10.9 million. 

Hartman Short Term Income Properties XX is a publicly registered non-traded real estate investment trust that seeks to acquire undervalued properties for its value-add investment strategy. The REIT and affiliates also manage and lease all of its properties, which are located in Dallas, Houston and San Antonio.