Hartman Acquired Houston Highbrook Portfolio in the month of October

Houston, Texas, Dec. 13, 2019 /PRNewswire-PRWeb/ -- On October 1, 2019, a subsidiary of Hartman vREIT XXI, Inc. (vREIT XXI) acquired Highbrook Portfolio for approximately $20.5 million with the proceeds from the public offering. Highbrook Portfolio is a group of three office properties; two in the Energy Corridor within the Park Ten Business Park (1400 Broadfield Building and 16420 Park Ten Building), and the other in the Willowbrook area near Farm to Market (FM) Road 1960 and State Highway (SH) 249/Tomball Parkway.

"These assets are in prime locations supported by a stable and growing economy and an upper-middle-class workforce. These new acquisitions may generate capital appreciation opportunities, in alignment with the investment objectives of vREIT XXI."
– Al Hartman, Chairman, and CEO

1400 Broadfield Building and 16420 Park Ten Building are premier, class B office buildings comprised of 102,893 and 83,760 square feet, respectively. Both assets are located in the renowned Houston Energy Corridor; in close proximity to Interstate 10, a major East/West access artery. Hartman believes that these assets provide investors with the opportunity for income and capital appreciation because they have several characteristics and attributes that may respond well to the Hartman Advantage—a proprietary, value-oriented process executed by our vertically-integrated firm. Our investment process focuses on retaining existing tenants while enhancing the attractiveness of vacancies to prospective tenants seeking class A building concierge services and amenities at class B building rental rates.

• At the time of acquisition, 1400 Broadfield Building was 70.1% occupied by 12 tenants with an average remaining lease term of 2.5 years. The major tenant in this six-story office building, Strategy Engineering & Consulting, LLC, occupied 23.1% of the buildings' rentable square feet, and accounts for nearly 42% of the assets' annual rental revenue.
• At the time of acquisition, 16420 Park Ten Building was 53.6% occupied by 11 tenants with an average remaining lease term of 2.5 years. The major tenant in this five-story office building, Liberty Lift Solutions, LLC, occupied 13.1% of the building, and accounts for nearly 32% of the assets' annual rental revenue.

The Houston Energy Corridor has remained a bright spot in this suburbian Houston submarket. During 2018, three major firms, McDermott International, Transocean and Energy Center Five signed leases for nearly two million square feet—driving continued optimism and demand in the submarket.
7915 FM 1960 Building is a premiere, class B office building comprised of 67,581 square feet. The asset is located in northwest Houston, in close proximity to SH 249/Tomball Parkway and Willowbrook Mall; a newly-renovated GPC Mall that, according to LoopNet, attracts more than 19 million visitors per year.

At the time of acquisition, 7915 FM 1960 Building was 41.9% occupied by 11 tenants with an average remaining lease term of 2.5 years. The major tenant in this three-story office building, CHCH Woman's Hospital of Texas, occupies 6.4% of the building, and accounts for nearly 19% of the assets' annual rental revenue.

Northwest Houston is near the Energy Corridor and enjoys the benefits of a diverse tenant base, rooted in the energy sector. The FM 1960/SH 249 submarket had nearly nine million square feet of inventory at the time we acquired the assets.

The Highbrook Portfolio of properties were built in 1982 with a modern architectural design and remain attractive due to proactive maintenance by the previous owners; an unaffiliated third party. Although there is no guarantee that any investment strategy will be successful, we believe that these assets—located in close proximity to major access arteries and in highly desirable geographic areas—will allow us to successfully execute our proprietary, value-oriented investment strategy.

About Hartman
Hartman and its subsidiaries and affiliates has extensive experience acquiring, owning, managing and leasing commercial office, retail, light industrial and warehouse properties located in Texas. Since 1983, Hartman and its affiliated entities have sponsored 24 programs and acquired interests in more than 90 real assets totaling approximately $750 million as of April 29, 2019. Additional information can be found at http://www.hartmanreits.com.

Forward-Looking Statement
This material contains certain forward-looking statements. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this material. Such factors include those described in the Risk Factors sections of annual reports on Form 10-K and other reports filed with the Securities and Exchange Commission. Forward-looking statements in this material speak only as of the date on which such statements were made, and the company undertakes no obligation to update any such statements that may become untrue because of subsequent events. Such forward-looking statements are subject to the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

SOURCE Hartman Income REIT