Los Angeles-based Thomas Properties Group's executive vice president John R. Sischo told GlobeSt.com when the contract for the 82%-occupied portfolio went on the table to rapidly expand its presence in the region. The company owns the 333-acre Four Points Centre in the northwest submarket, where it's building two office buildings in a 275,000-sf first phase. In one fell swoop, Thomas and partners have picked up nearly 2.5 million sf, or more than 50% of class A space in the CBD, and about one million sf in the northwest submarket.
The buy was funded with $907.5 million of debt financing proceeds and $295 million of equity. Thomas Properties Group funded $18.4 million of the equity, or 6.25%, getting property management, leasing and marketing as well.
On average, the assets are 20 years old. The CBD component consists of the 561,000-sf Frost Bank Tower at 401 Congress Ave.; a 459,000-sf high rise at 300 W. 6th St.; 404,000-sf San Jacinto Center at 98 San Jacinto Blvd.; 549,000-sf One Congress Plaza at 111 Congress Ave.; and 523,000-sf One American Center at 600 Congress Ave.
The northwest submarket properties are 193,000-sf Stonebridge Plaza II at 9600 N. Mopac Expressway; 203,000-sf Park 22 Office Complex at 8601 Ranch Rd. 2222; 273,000-sf Research Park Plaza I and II at 12301 and 12401 Research Blvd.; 179,000-sf Westech 360 at 8911 Capital of Texas Hwy. N; and 141,000-sf Great Hills Plaza at 9828 Great Hills Trail.
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