The CBD footprint consists of a 53-story, 1.15-million-sf class A office building and the Federal Land Bank Building. An industry source says Goddard was competing with locally based Hines and Fort Worth-headquartered Crescent Real Estate Equities Co. for the 1111 Bagby St. complex. The New York City-based ING Clarion is the Michigan pension fund's adviser.
The buyer's spokesman tells GlobeSt.com that Goddard didn't have the highest bid on the table, but rather won the deal for its all-cash terms. Heritage Plaza, which houses ChevronTexaco's headquarters, is assessed at $81 million by the Harris County Appraisal District.
Once ChevronTexaco moves to 1500 Louisiana St., the complex will have the largest block of contiguous vacant space in the downtown. The present 43% occupancy is projected to dip to 31% by year's end, Goddard's spokesman says.
As part of the deal, Goddard also purchased two adjacent acres from another fund advised by ING Clarion. The firm plans to construct a parking garage that will boost the parking ratio to more than 2:1,000.
Goddard Investments, which focuses on value-added investments, plans to reposition Heritage Plaza. The plan could include a residential tower. The added cost and a timetable for improvements weren't available by publication time.
ING Clarion and Dallas-based Lincoln Property Co. will continue to handle the leasing and management while Goddard interviews brokerage houses for the assignments. Richard H. Rudd in CB Richard Ellis Inc.'s local office brokered the sale, which marks Goddard's ninth Houston-area acquisition and pushes its local portfolio to 1.7 million sf.
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