LOS ANGELES, CA (July 2, 2007)—Younan Properties, Inc. (YPI) announced today that it has completed its acquisition of Northbelt Corporate Center, an institutional-grade, 10-story office property at 2350 North Sam Houston Parkway East in Houston, Texas. The 156,572-square-foot mid-rise is the second Houston office property acquired by YPI this month, as part of its strategic plan to acquire five million square feet of Houston office space by the end of 2007.

Younan Properties is now the third-largest owner of Class A office space in Texas, with nearly eight million square feet of prime commercial real estate in the state. In Dallas, it is the top office landlord, with approximately 12% of the city’s Class A assets. Nationwide, YPI holdings now total more than 10 million square feet of Class A office space.

"We are exceptionally bullish about Houston, as we believe its recovery is now gaining tremendous momentum thanks to nearly seven million square feet of net positive absorption last year—the highest annual absorption total in a decade—and close to three million square feet in the first quarter of 2007," commented Zaya S. Younan, Chairman and CEO of Younan Properties, Inc. "Combined with increasing valuations, rising rental rates, decreasing vacancy rates and a projected absorption of more than eight million square feet for 2007, this makes Houston one of the most attractive recovering office markets for investors today."

Younan pointed to an affordable cost of living, access to a highly educated workforce and rising port activity as additional factors fueling job growth and economic health in Houston. "Over 5,000 energy-related companies now call Houston home, and the vacancy rate for Class A office space has dropped more than 11% from a year ago," he said. "By the second quarter of 2008, we predict vacancy rates will fall to single digits."

Younan represented itself in the transaction. Darrell L. Betts of Grubb & Ellis represented the seller, Triple Net Properties, LLC.

"Zaya Younan and his team are savvy investors who recognize value and opportunity in a city that is now shifting from recovery to expansion mode," Betts commented. "YPI’s tenant-focused, value-add approach will maximize the market potential of Northbelt Corporate Center, which offers significant upside promise."

Originally built in 1982, Northbelt Corporate Center was renovated in 2003 with first-rate amenities and finishes. Now 100% occupied, the high-image property boasts 95% credit tenancy with average rent in-place that is 21% below market. Two major tenants—Southwestern Energy Company and U.S. Customs Service—occupy 93% of the Class A space. Other credit tenants include the U.S. Department of Agriculture, the State of Tennessee and CMA-CGM America. The building is strategically located in the desirable Greenspoint/Northbelt submarket with direct highway visibility from Beltway 8 and immediate access to Highway 45, Highway 59 and George Bush Intercontinental Airport.

Earlier this week, YPI closed on 6464 Savoy in the desirable deed-restricted Regency Square Office Park in southwest Houston, Texas. The fast-growing firm also owns Norfolk Tower, a 206,680-square-foot office building at 2211 Norfolk Street in Houston. YPI also is under contract to purchase two additional Houston properties: the 11-story Westchase Bank Building, a 202,294-square foot property at 9801 Westheimer Road, and Two Westlake Park, a 381,327-square-foot building at 580 Westlake Park Blvd.

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties’ management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $1.5 billion in real estate holdings since its inception in 2002.