Crescent, JPMorgan Inking $1B Deal for 8M-SF Trophy Collection

FORT WORTH-Crescent Real Estate Equities Co. has a $1.2-billion trio of deals ready to close by year’s end with JPMorgan Investment Management for a 60% stake in a 7.9-million-sf collection of landmark office buildings: the Crescent, Trammell Crow Center and Fountain Place in Dallas and the five-building Houston Center and Post Oak Central in Houston. A conference call will be held this morning to discuss the five-property trade.

The JV buy-in has been structured in two takedowns with JPMorgan and a third with an unidentified institutional partner for 16% of Crescent’s remaining 40% in part of the package. When the dust settles, Crescent will have generated $316 million in net cash proceeds and earned a gain of $211 million. Overall, the REIT will hold onto a combined 76% stake and remain in place to lease and manage all assets. Crescent also will receive promoted interests based upon long-term performance measures.

Crescent intends to flip 16% of its 40% remaining balance in the Crescent, Houston Center and Post Oak Central, a 5.6-million-sf package valued at $898.5 million. All the REIT will say at this stage is it’s in talks with another institutional partner for the minority split.