Keira Moody, VP of investor relations for the Fort Worth-based real estate equity firm says pension fund investor, JPMorgan Asset Management, acquired a 60% ownership interest in the building while pension plan investment adviser, GE Asset Management, acquired 16.15% ownership. Crescent, which now holds a 23.85% interest in the tower, received $33.4 million in exchange for contributing the buildings and associated note to the joint venture. The trio shares an interest in the four other buildings comprising the Houston Center complex. JPMorgan and GE Asset, inking the initial deal in November, now control the entire Houston Center, Moody tells GlobeSt.com.
Crescent will continue to lease and manage the 1301 McKinney St. property in behalf of the joint venture. It also will receive a promoted interest once the property achieves certain long-term performance objectives.
The skyscraper, also known as Houston Center, was marketed for roughly $250 million but industry sources say Crescent, which had the right of first refusal on the asset, acquired it for about $100 million, far below the replacement value of the property.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.