HOUSTON–In a move to diversify its portfolio, MetLife Inc. sold a 50% interest in the 1.7-million-sf class AA Wells Fargo Plaza to New York State Common Retirement Fund. The New York seller will retain asset management responsibilities for the remaining 50%.
The 71-story office building is at 1000 Louisiana St. in Houston’s CBD, and is 96% leased to tenants in the energy, legal and finance industries. MetLife has owned the asset since its development in 1983. The Harris County Appraisal District values the asset at north of $238 million.
“Selling a partial interest in Wells Fargo Plaza is an excellent opportunity for MetLife to diversify its portfolio while still holding a stake in this top tier property in a strong market,” said Robert Merck, senior managing director and head of real estate investments for MetLife in a statement discussing the sale.
“This transaction allows us to leverage our strong asset management platform and expands on the success we’ve had in positioning Wells Fargo Plaza as a best-in-class property. We are pleased to partner with such a reputable institutional investor as New York State Common Retirement Fund who shares our focus on risk management and our commitment to longterm investing in high-quality assets.”
Holliday Fenoglio Fowler LP helped negotiate the sale between buyer and seller.
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