X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-A joint venture of the Novati Group and an affiliate of General Electric Pension Trust, advised by GE Asset Management, has acquired the 1.3-million-sf Bank of America Center from Hines. An industry source says the two-building CBD trophy has sold for $380 million.

According to Holliday Fenoglio Fowler LP managing director Jeff Hollinden, the transaction for 700 Louisiana St. is the largest single-asset sale to date for the area. And, he adds that it put Houston on the map as a viable location for serious investment.

“Frankly, it was a shock to the investment community when this building became available because it was a Hines flagship building,” Hollinden tells GlobeSt.com. “It was a rare opportunity to buy a building a lot of investors thought they’d never get the chance to buy.”

Hollinden, teaming with HFF executive managing director Scott Galloway on behalf of the seller, says the buyer was selected from a huge pool of potential investors due to its sponsorship and ability to close. He says that with the current credit meltdown and uneasy markets, better buyer sponsorship can be as attractive as the price to a seller. “The buyer that can get things done in this market is the buyer who will end up with the asset,” he adds.

Hollinden says that, as a result of the 25-year-old Bank of America Center’s sale, other investors have eyed the 542,000-sf 919 Milam, which HFF also has on the market for Hines. Hollinden predicts it too will bring a similar price per sf as Bank of America Center.

“The important thing about the Bank of America sale is that this was a big, trophy national platform kind of asset. It was an asset that got people looking at Houston who otherwise wouldn’t have looked here,” Hollinden says.

HFF senior managing director John Brownlee in Dallas and managing director Susan Hill in Houston arranged financing. The new owners have retained Hines to manage the just-sold building. John Spafford, senior vice president and director with Houston-based PM Realty Group, will oversee leasing for the 93%-occupied buildings.

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?

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.