HOUSTON--Andrew Peeples, Brett Butler and Jeff Jackson of Stan Johnson Co. (SJC) have brokered the sale of C&J Energy Services' corporate headquarters in Houston for an undisclosed amount.

“This sale is reflective of the strength of the Houston market despite the current oil slump,” Peeples, SJC associate director, told GlobeSt.com. “Houston has led the nation in job growth and population growth last year and a lot of that can be attributed to sectors other than energy. We anticipate abundant capital from national and international investors continuing to target Houston due to its diversified economy.” 

The campus consists of a 125,000-square-foot, three-story office building and a 96,149-square-foot tilt-wall industrial/lab building. The campus was a build-to-suit for C&J Energy Services developed by Westchase Green LLC, a partnership entity formed by InSite Realty Partners LP. The buyer was a private New York-based REIT.

“We were able to structure the transaction so that the seller could achieve long-term capital gains tax advantages by delaying the closings of each property to be one year from their substantial completion dates,” says Peeples.

The properties were put under contract in July 2014, with the industrial/lab facility closing in October, and the office headquarters closing in March 2015.

“There were several challenges we faced after going under contract including the precipitous drop in oil prices, a proposed tenant merger having to go through an appeals process and the tenant's stock price dropping 66 percent; however, the favorable long term leases and strategic location within the Westchase submarket of Houston drove the deal to a successful close,” says Peeples.