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.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
