1M-SF-Plus Bank of America Goes Up For Sale

The asset at 700 Louisiana St. is hitting the market without an ask, but Harris Central Appraisal District assesses it at $139 million. A source familiar with the Houston real estate market speculates the building could bring $300 per sf to $325 per sf.

"Rents in Downtown Houston have just skyrocketed. As a result of that most in-place rents in the best buildings are way below market," the source tells GlobeSt.com. "This is an opportunity to buy a world-class asset that's in great shape, which has some upside potential."

The 56-story trophy building, designed by the late Philip Johnson and John Burgee, is 93% occupied. Its roster includes KPMG LLP, Weil Gotshal & Manges LLP, Deutsche Bank AG, Simmons & Co., CB Richard Ellis and Bear Energy LP. Bank of America holds about 20% of the class AA space through a long-term lease.

"We believe the present capital environment makes it the right time to bring this superior asset to market," John Mooz, Hines' vice president, says in a press release. "Taking this into consideration, we are hopeful this prime asset will create a new benchmark for Houston's real estate market." The current record price was not available by press time.

The GlobeSt.com source attributes the sale to the structuring of the Hines Value-Add Fund 700 Louisiana LP. "They're probably not long-term holders in that particular fund," he says. "That's typical for any value-add fund."

Holliday Fenoglio Fowler LP's managing director Jeff Hollinden, senior managing director Glenn Whitmore and executive managing directors Scott Galloway and Mark Gibson are marketing the asset. Hines did not return telephone calls by press time to comment on the sale plan.