Howard Hughes Corp. Adds 6 Offices to Columbia Portfolio

COLUMBIA, MD—The Howard Hughes Corp. has acquired six office buildings in Downtown Columbia that have a total value of $130 million as part of the settlement agreement between it and its erstwhile parent General Growth Properties. As part of the agreement, GGP is also making a $138 million cash payment to Howard Hughes Corp., which GGP spun off in 2010.

The six office buildings—known as 10-60 Columbia Corporate Center—are 90% leased and unencumbered.

With the acquisition, The Howard Hughes Corp. now owns more than 1.1 million square feet of commercial space in the submarket, or 50% of the total Downtown Columbia office market according to Cushman & Wakefield.

The acquired properties include:

10 Corporate Center, a four-story building of 90,000 square feet;

20 Corporate Center, a 110,000-square foot five-story building;

30 Corporate Center, a 12-story building containing approximately 135,000 square feet;

40 Corporate Center, a 150,000-square foot, 12-story building;

50 Corporate Center, a seven-story, 120,000-square foot building;

and

60 Corporate Center, a six-story building of approximately 110,000 square feet.

The 10-60 Columbia Corporate Center buildings are located in the Symphony Overlook submarket within Downtown Columbia, a neighborhood that under Howard County's Master Plan for Downtown Columbia was envisioned as mixed-use walkable urban core.

The agreement also settles certain tax issues between Howard Hughes Corp. and GGP, permitting Howard Hughes Corp. to control the ongoing litigation with the Internal Revenue Service. The IRS has challenged its method of tax accounting for certain master planned community land sales.