HFF Announces Sale of and Financing for J.P. Morgan’s 4.2M SF Office and Retail Complex in Downtown Houston

Dec 04, 2017 10:24 am

Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of and the acquisition financing for Houston Center, a 4.2-million-square-foot, urban office and retail complex in downtown Houston, Texas.

The HFF team represented the seller, institutional investors advised by J.P. Morgan Asset Management, in the transaction. Additionally, HFF advised the buyer on the acquisition financing for Houston Center.

Houston Center comprises three high-rise office towers and a 16-story office building atop 196,000 square feet of retail. Currently 71.6 percent leased, the property’s largest tenants include LyondellBasell Chemical Company, Norton Rose Fulbright and Haynes and Boone. As the largest property in Houston’s central business district, the LEED Gold® certified asset occupies a 9.2-acre, 6.5-block, fully amenitized site that offers fine dining and casual restaurants such as Pappas Brothers Steakhouse and Massa’s South Coast Grill; fitness offerings such as Fit Athletic Club; healthcare facilities, including Kelsey-Seybold Clinic; and connectivity to the rest of downtown through the tunnel system and skybridges. Additionally, with a Walk Score® of 98, Houston Center is within walking distance to the Houston METRORail, the 12-acre Discovery Green park, George R. Brown Convention Center, Toyota Center (Houston Rockets), Minute Maid Park (Houston Astros) plus an array of residential and hotel amenities.

The HFF investment advisory team representing the seller included senior managing director Jeff Hollinden, executive managing directors Scott Galloway and Mark Gibson and senior director Trent Agnew.

“I would describe the amount of investor interest in this offering as very robust,” said Hollinden. “Both domestic and offshore investors were attracted by the deal size, strength of the location, diversified tenancy and the overall resiliency of the Houston economy and office market.”

About J.P. Morgan Global Alternatives

J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $125 billion in assets under management and over 800 professionals (as of June 30, 2017), the firm offers strategies across the alternative investment spectrum, including real estate, private equity and credit, infrastructure, transportation, liquid alternatives and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, its independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information: www.jpmorganassetmanagement.com.

About HFF

HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

JEFF HOLLINDEN, (713) 852-3500
TX Lic. #0398738
HFF Senior Managing Director
SCOTT GALLOWAY, (713) 852-3500
TX Lic. #0403230
HFF Executive Managing Director
KRISTEN MURPHY, (617) 338-0990
HFF Director, Public Relations