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EOP, JV Seal $281M Deal for 2M SF-Plus in Houston

HOUSTON-Equity Office Properties holds onto an 80%-leased office building and sells the rest of its local portfolio, 2.5 million sf in four buildings, to Thomas Properties Group, a first-time buyer in the region that teams with CalSTRS for the all-cash takeover.

By Amy Wolff Sorter | Updated on August 05, 2005

HOUSTON-Affiliates of Equity Office Properties Trust have sold four suburban Houston office properties, totaling 2.5 million sf, to California-based Thomas Properties Group, Inc. and California State Teachers’ Retirement System. The properties, with a current occupancy ranging from 72% to 92%, sold for $280.5 million or about $111 per sf.

The four properties involved in the transaction were San Felipe Plaza at 5847 San Felipe Blvd., a 45-story, 959,466-sf structure; 2500 City West, a 25-story, 574,216-sf building in Westchase; Brookhollow Central I, II and III, a 797,971-sf complex at the intersection of Loop 610 and US Highway 290 in the northwest submarket; and Intercontinental Center, a nine-story, 194,801-sf building at 15600 JFK Blvd. in the North Belt submarket. The structures were built between 1972 and 1984.

“We made it public last year that we were going to look at 17 growth markets that we were committed to, and exit, over time, the ones where we don’t have as large a concentration,” says Matt Gworek, senior vice president of investments for the Chicago-based EOP. “Houston is a great market, but we decided to focus on markets where we have a better presence and position.”

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