Not only is CenterPoint locked into 280,000 sf at least five more years at 1301 Travis St., but there's less than 1% of the balance of leases set to roll in the coming three years, M. Jason Mattox with the Dallas-based Behringer Harvard tells GlobeSt.com. Plus, he says, "the infrastructure investment that the city has made certainly makes this an attractive investment for a long-term hold."
The 21-story Travis Tower was marketed to a select group of buyers by Granite Partners, which maintains headquarters offices in New York City and Houston. "We got it really for the certainty of the close and our reputation with McCord," Mattox explains. For previous story, click here.
Last week's acquisition marked the investment group's second pickup in Houston this year and possibly not its last before the calendar flips. "We have a pipeline that includes buildings from Houston, but I can't say definitely we're going to buy again before the end of the year," Mattox says.
The new owner has tapped Trammell Crow Co.'s Houston team to lease and manage 1301 Travis St., bought from McCord Development Inc. of Houston and an affiliate of Boston-based AEW. The 84%-leased high-rise, selling for $102 per sf, carries a rental rate with a $17.50 per sf average.
Behringer Harvard Funds bought Travis Tower with participation from a 1031 Tenants in Common Exchange program. Mattox says it's undetermined at this time how many investors will be asked to buy in, but law limits participation to 35.
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