X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-A $52-million CBD office purchase caught the new owner’s eye for the stability in the lease roll of the 507,247-sf high-rise, particularly the long-term hold by lead tenant, CenterPoint Energy, on 55% of the class A space.

Not only is CenterPoint locked into 280,000 sf at least five more years at 1301 Travis St., but there’s less than 1% of the balance of leases set to roll in the coming three years, M. Jason Mattox with the Dallas-based Behringer Harvard tells GlobeSt.com. Plus, he says, “the infrastructure investment that the city has made certainly makes this an attractive investment for a long-term hold.”

The 21-story Travis Tower was marketed to a select group of buyers by Granite Partners, which maintains headquarters offices in New York City and Houston. “We got it really for the certainty of the close and our reputation with McCord,” Mattox explains. For previous story, click here.

Last week’s acquisition marked the investment group’s second pickup in Houston this year and possibly not its last before the calendar flips. “We have a pipeline that includes buildings from Houston, but I can’t say definitely we’re going to buy again before the end of the year,” Mattox says.

The new owner has tapped Trammell Crow Co.’s Houston team to lease and manage 1301 Travis St., bought from McCord Development Inc. of Houston and an affiliate of Boston-based AEW. The 84%-leased high-rise, selling for $102 per sf, carries a rental rate with a $17.50 per sf average.

Behringer Harvard Funds bought Travis Tower with participation from a 1031 Tenants in Common Exchange program. Mattox says it’s undetermined at this time how many investors will be asked to buy in, but law limits participation to 35.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.