Anadarko bought Waterway Plaza I and II in November 2001 from Woodlands Operating Co. LP as expansion space for its nearby headquarters at 1200 Timberloch Place. Last year, the energy company pulled out of 130,000 sf in Waterway Plaza I at 10003 Woodloch Forest Dr., leaving the 223,500-sf building with a 40% occupancy. The 142,500-sf Waterway Plaza II at 10001 Woodloch Forest Dr. is 66% leased.
Jeff Hollinden, managing director for Houston-based Holliday Fenoglio Fowler LP, tells GlobeSt.com that Anadarko pushed for a closing by yearend once it decided to dispose of the properties. Start to finish, the deal took less than a month to close, he says, noting the offering was taken to a dozen potential buyers with eight making offers. Besides Hollinden, the sales team included James Savage of Holliday Fenoglio Fowler and Steve Hesse and Gerard Trione, both with Trione & Gordon/CBRE in Houston.
Dan Dubrowski, founding partner for the Lionstone Group, says it was second in line for the acquisition. By the time the deal rolled to Lionstone's camp, the buyer's team had seven business days to get to the closing table.
Dubrowski says the deal closed with a short-term, variable-rate loan for $23.5 million from JPMorgan Chase. He explains the leverage could end up as much as 60% of the financing because part of the capital is earmarked for a leasing campaign. When the assets are stabilized, the plan is return to the capitals market for long-term, fixed-rate financing.
Lionstone made the quick close with a pool set up last year with the Oregon Public Employees Retirement Fund. The pension fund kicked in $75 million of equity to leverage up to 65% for $220 million of office acquisitions. Lionstone, which has $2 million invested into the fund, has spent $190 million to date for office buildings in hot submarkets like Santa Monica, CA, Turtle Creek in Dallas and the West End in Nashville. Dubrowski says the Oregon pension fund is considering adding $50 million to fund another $150 million of acquisitions in the $20-million to $70-million range.
The Woodlands purchase will be leased and managed by Transwestern Commercial Services, which is quoting rates from $25 per sf to $26 per sf for the class A space. The tenant roster includes Charles Schwab & Co., UBS Paine Webber, Eli Lilly and the law firms of Andrews & Kurth and Jones Walker. The 4.5-acre property also includes a 1,300-space parking garage.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
