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GlobeSt.com UPDATE: HQ Sale Right for Market

HOUSTON-The $45 per sf price for Enron's 1.3 million sf is "very rich pricing" for an empty building and one with no parking facility to call its own but rather a lease with a $3.5-million annual tab, a source says. Nonetheless, townsfolk are glad the deal's done.

By Jennifer Brenner Andrade | Updated on December 03, 2003

HOUSTON-The jury is still out on what the new owner of 1.3 million sf of class A office space is planning for the Houston CBD, but one source close to the deal says the $55.5 million or $45 per sf price tag was “very rich pricing.”

Dr. Antonio Pacifico, a local cardiologist who leads the Texas Arrhythmia Institute, put together the investment group that bought Enron’s shuttered headquarters at 1400 Smith St. Pacifico didn’t return telephone calls by publication time for comment on the acquisition.

A source close to the deal tells GlobeSt.com that $45 per sf was “very rich pricing” for an empty building in the midst of an economic downtown and one with no parking facility to call its own. The source puts the cost of the parking lease, which has less than 15 years left on the term, at more than $3.5 million per year–a fee that must be paid to owner Trizec Properties Inc. regardless of the number of tenants in the building.

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