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5400 N Sam Houston Pkwy EHouston, TX 77032
5400 N Sam Houston Pky E
Asset ClassOffice
Occupancy100%
Rentable SF: 14,920# Tenants: 1Cap Rate: 7.96%Access Data Room
100% State Leased Opportunity
overview of deal

Overview

Transwestern is pleased to present the exclusive opportunity to acquire 5400 N Sam Houston Pky E (the "Property"), a 14,920 SF single-tenant office asset located in north Houston, Texas, fully leased to the State of Texas – Department of Criminal Justice (TDCJ).

 

The Property represents a stable, investment grade government-backed tenant with a long-standing operational history at the site dating back to 1993, now further secured by a recently executed 10-year lease extension.

 

The lease is structured on a Full-Service Gross (FSG) basis with fixed 2% annual rent escalations. TDCJ has affirmed its long-term commitment to the Property by executing a 10-year renewal extension through September 30, 2036, inclusive of a negotiated tenant improvement allowance covering new flooring, interior paint, restroom countertop upgrades and the conversion of existing storage space into functional lab space. This scope of improvements, particularly the lab conversion, reflects an expanding and evolving operational use of the Property by the agency, reinforcing the depth of TDCJ's long-term commitment beyond a simple lease rollover.

 

Given TDCJ's sovereign credit profile, minimal default risk and now-extended occupancy commitment, this offering presents investors with a bond-like income stream backed by the State of Texas, anchored by a freshly executed long-term lease with enhanced rental.

Investment Highlights

5400 N Sam Houston Pky E is situated along N Sam Houston Pky E in north Houston, a well-established corridor with strong access to Beltway 8, providing efficient connectivity throughout the greater Houston metro and minutes from George Bush Intercontinental Airport (IAH).

 

The Property has served as a long-term, mission-critical administrative facility for TDCJ, reflecting the agency's continued reliance on the location for its regional operations.

 

Built in 1979 and renovated in 1993, the two-story, elevator-served building offers 14,920 SF on a 1.375-acre site, a building footprint and site scale well-matched to single-tenant government or administrative use.

 

The Property's Full-Service Gross lease structure, combined with TDCJ's three-decade operating history at the site, has produced a stable, low-maintenance income stream with minimal landlord oversight burden.

 

With two five-year renewal options remaining, the asset offers investors an attractive entry basis relative to its in-place income.

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5400 N Sam Houston Pkwy EHouston, TX 77032

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