Kline Properties has acquired the 79-unit Hogg Palace Lofts in Houston from Randall Davis Co. Harris County public records show Ladder Capital Finance facilitated the transaction with $14.9 million in acquisition financing.
Located at 401 Louisiana St. in the northern part of downtown Houston, the asset is within walking distance of numerous retail and dining options as well as public transit. The eight-story, mixed-use building consists of one- and two-bedroom apartments with floorplans ranging from 670 to 1,811 square feet. The units feature exposed air conditioning ducts and industrial brick and concrete walls. Additionally, the first and eighth floors comprise 14,212 square feet of retail and office space. Amenities include a fitness facility, media room and business center. As of May, the property was 88.8 percent occupied, according to Yardi Matrix data.
From office space to lofts
Originally completed in 1921, the building was designed by Charles Erwin Barglebaugh and Lloyd Whitson and is listed on the National Register of Historic Places. The property served as the office of William C. Hogg—businessman, philanthropist and son of Texas Governor James Hogg—until 1941. In addition, upscale automobile retailer Armor Auto Co. once used the asset as a showroom and office. Randall Davis Co. renovated and converted the building into residential lofts in 1995.
JLL’s Chip Nash and Bob Heard, alongside Jim Hurd and Bishale Patel of Houston Income Properties, worked on behalf of the seller. Recently, another JLL team represented the seller in the disposition of the 244-unit Kenton Place in San Antonio.