HFF announces sale and financing of Loop Central office complex in Houston
– DRAFT – HFF announces the sale and acquisition financing of Loop Central, a three-building, Class A office complex totaling 574,944 square feet in Houston, Texas.
The HFF team represented the seller, TIER REIT, and procured the buyer, Griffin Partners. Additionally, the HFF team worked on behalf of Griffin to secure the five-year, floating-rate acquisition loan through Global Atlantic Financial Group and source their equity partner, Wheelock Street Capital.
Loop Central is located at 4848 Loop Central Drive at the intersection of two of Houston’s major thoroughfares, Loop 610 and U.S Highway 59. Its location within the Bellaire/Medical Center submarket places it within close proximity to the Galleria, Greenway Plaza and some of Houston’s most affluent residential neighborhoods, including River Oaks, West University, Tanglewood and The Villages. It also has frontage along the Westpark Tollway, providing both visibility and express vehicular access to Houston’s western suburbs. The property comprises Loop Central 1, 2 and 3, which are 86.9 percent leased to 24 tenants, and three parking garages that offer 2,327 parking spaces. Griffin Partners and Wheelock will execute a proactive capital improvement plan to update the assets visibility, as well as add various new amenities which will maximize the tenant experience. A few additions would include a new conference and fitness facility, new food options and capitalizing on the existing park-like setting with new outdoor area seating and amenities for tenants to enjoy.
HFF’s investment advisory and debt and equity placement teams included senior managing directors Jeff Hollinden and Wally Reid and senior director Cameron Cureton.
“This is the latest example of an informed investor recognizing the inherent value represented by Houston office market,” said Hollinden. “Sales activity in the office sector has picked up dramatically over the past twelve months, signaling a return to healthy liquidity in the Houston market.”
“We think Loop Central is a unique and timely investment considering Houston’s office and capital market environment,” said Andrew Montgomery of Griffin Partners. “Houston’s overall resiliency and recent bounce highlighted by the latest job performance numbers is a lead indicator and an early preview for continued momentum in the Houston office market.”
Holliday GP Corp. (“HFF”) is a Texas licensed real estate broker.
About TIER REIT
TIER REIT, Inc. is a publicly traded (NYSE:TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. TIER REIT’s vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.
For additional information regarding TIER REIT, please visit tierreit.com or call 972.483.2400.
About Griffin Partners
Griffin Partners, Inc. is an owner and operator of commercial real estate properties throughout Arizona, Colorado, North Carolina, and Texas with a current portfolio of 4.5 million square feet valued at over $900 million. Griffin Partners was formed in 1980, and its six senior principals average over 26 years of diverse real estate experience. Griffin Partners has acquired, developed, or managed over 12.5 million square feet of office, retail, and light industrial property since its founding, valued at over $1.8 billion. This asset was purchased by Griffin Partners Office Fund III (“Fund III”), its 5th investment since its inception in June 2016. Fund III now owns 1.4 million square feet in five assets totaling over $215 million in asset value.
About Wheelock Street Capital
Wheelock Street Capital (www.wheelockst.com) was formed in 2008 by Rick Kleeman and Jonathan Paul, two veteran real estate private equity investors, each with over 25 years of broad real estate transaction experience across all major asset classes. Wheelock has since raised over $2 billion in capital commitments and is currently investing its fifth fund comprising $725 million of commitments from leading pension funds, endowments and foundations. Wheelock will invest in a broad range of real estate assets throughout the United States. The fund may invest directly or with high quality joint venture partners through a variety of capital structures and transaction types, including acquisitions, restructurings, and recapitalizations.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.
Posted on April, 2018
by Andrew Raab