Hines and Prime Asset Management are selling a 698K SF, 33-story Class A office tower in Downtown Houston that is 65% leased, with rents almost half the price of a new Hines office tower next door.
The building at 717 Texas Avenue, which opened about 20 years ago and underwent a $12M renovation in 2019, has been struggling to regain its footing since its largest occupier—McMoRan Oil & Gas, which had leased half the tower—moved out in 2017.
The partners are aiming for bids at $225M, or $322 per SF, and are pitching the property to value-add buyers by telling them they can achieve a stabilized yield of 8.5% within three years by capitalizing on the recent renovation and leasing up the vacant space, according to a report from Green Street.
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