J.P. Morgan Cashes Out, Sells Five-Building CBD Complex
Continuing to add to its Houston holdings, Brookfield Asset Management, an institutional investment firm based in Canada, closed on its purchase of Houston Center, a 4.2 million-square-foot office and retail complex in downtown Houston from J.P. Morgan Asset Management.
Houston Center is billed as the largest commercial property in Houston’s central business district. It covers a 9.2-acre, 6.5-block site and includes five properties along Fannin and McKinney streets and Lamar Ave., including three high-rise office towers and a 16-story office building atop 196,000 square feet of retail space. The complex is currently 71.6 percent leased. Major tenants include LyondellBasell Chemical Co., Norton Rose Fulbright and Haynes and Boone.
Although a sale price was not released, local news reports pegged it at $875 million. Brookfield said it plans to make extensive renovations to the aging property, which was largely built in the 1970s and 1980s.
“The focus of our redevelopment efforts is going to be on enhancing the overall tenant experience,” said Travis Overall, executive vice president and head of the Texas region for Brookfield. “Specifically, we want to expand and improve the offering of amenities and redefine the public areas-lobbies, skybridges and plazas,” he told Realty News Report.com.
The seller, J.P. Morgan Asset Management, originally owned Houston Center in partnership with Crescent Real Estate before buying out its partner to become the sole owner of Houston Center.
An HFF investment advisory team of senior managing director Jeff Hollinden, executive managing directors Scott Galloway and Mark Gibson and senior director Trent Agnew marketed the property on behalf of the seller.
Brookfield is currently renovating the three-building Allen Center office complex on the west side of downtown Houston. Brookfield affiliates also own the DoubleTree hotel in downtown Houston as well as Total Plaza and Heritage Plaza.
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