The deal's value isn't available due to confidentiality agreements, but the quoted rate for Galleria structure volleys between $22 per sf and $24 per sf. "This was a substantial lease, with a number of tenant improvements," David Lee, senior vice president of Transwestern, tells GlobeSt.com. "They'll have their name on the building too. They're the defining tenant on the project." He and Transwestern's Brad Sinclair represented the local building owner, Coventry Investment Group Inc.
Coventry acquired the asset, once known as the IBM Building, in February 2005, investing millions into capital improvements. The building was 20% occupied when Coventry acquired it, but the new deal nudges it to 75%. Lee says negotiations are under way with several other potential tenants. "We think we're on the downside of filling this project," he adds.
The Netherlands-based tenant, represented by Scott Wegmann and Justin Leighton with Cushman & Wakefield of Texas Inc., is expanding, but also consolidating when it moves in May 1. Chicago Bridge & Iron is currently located at 9800 Centre Parkway and the Woodlands at 2103 Research Forest Dr.
"This is a terrific deal for the Galleria and a good sign of the solid fundamentals in the market today," Lee says. "CB&I is a great anchor tenant so we consider ourselves very fortunate."
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