J.P. Morgan Cashes Out, Sells Five-Building CBD Complex
Continuing to contribute to its Houston holdings, Brookfield Possession Management, an institutional investment company based in Canada, closed on its purchase of Houston Center, a 4.2 million-square-foot workplace and retail complex in downtown Houston from J.P. Morgan Asset Management.
Houston Center is billed as the biggest commercial home in Houston’s central downtown. It covers a 9.2-acre, 6.5-block website and includes five properties along Fannin and McKinney streets and Lamar Ave., consisting of 3 high-rise office towers and a 16-story office building atop 196,000 square feet of retail space. The complex is presently 71.6 percent leased. Significant tenants include LyondellBasell Chemical Co., Norton Rose Fulbright and Haynes and Boone.
Although a sale price was not launched, regional news reports pegged it at $875 million. Brookfield said it prepares to make extensive restorations to the aging property, which was mainly integrated in the 1970s and 1980s.
“The focus of our redevelopment efforts is going to be on enhancing the general tenant experience,” said Travis Overall, executive vice president and head of the Texas area for Brookfield. “Particularly, we wish to broaden and enhance the offering of features and redefine the general public areas-lobbies, skybridges and plazas,” he told Real estate News Report.com.
The seller, J.P. Morgan Property Management, originally owned Houston Center in collaboration with Crescent Real Estate before purchasing out its partner to become the sole owner of Houston Center.
An HFF financial investment advisory group of senior managing director Jeff Hollinden, executive handling directors Scott Galloway and Mark Gibson and senior director Trent Agnew marketed the home on behalf of the seller.
Brookfield is presently renovating the three-building Allen Center workplace complex on the west side of downtown Houston. Brookfield affiliates also own the DoubleTree hotel in downtown Houston along with Total Plaza and Heritage Plaza.
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