REIT's $167M Deal Closes With JV Opportunity

"We had been aware of the other suitors," says Jason Mattox, executive vice president for Behringer Harvard. Though he can't discuss how the Behringer Harvard came out on top for the 619,026-sf Terrace, he did tell GlobeSt.com that "our relationship with the deal was somewhat off market." Key to the closing was Behringer Harvard's arrangement to be a joint venture partner, if it wants, on the build-out of the remaining 48 acres of the 69-acre park at the intersection of loops 1 and 360. The park is entitled for 1.1 million sf of office, hospitality and retail space.

"The potential development opportunities are another attractive component of this acquisition," Robert M. Behringer, CEO says in a press release. Claydesta LP of Midland, TX retained sole development rights and management with the hand-off of the existing class A buildings. Colliers Oxford Commercial in Austin will continue to lease it.

Mattox says it's too early to say when more structures will come out of the ground or if Behringer Harvard will be part of the play. "We are under no obligation to do so," he stresses.

Behringer Harvard's stake, though, encompasses all that has been raised since 1999: a pair of five-story office buildings, each 115,000 sf, and two six-story structures with 192,000 sf and 196,000 sf. The 97%-leased asset's roster includes names like Vinson & Elkins LLP and the headquarters of Cirrus Logic. Mattox says all leases are in place for the long term, setting up a plan for a long-time hold by Behringer Harvard.

Claydesta's search for a buyer was highly publicized. The contracts that failed to make the closing table were held by Plymouth Meeting, PA-based Brandywine Realty Trust and Aspen Growth Properties Inc. of Austin.