Cielo Buys 243 KSF Texas Office Tower
- Jul 17, 2013
Cielo Realty Partners has purchased Neuhaus Tower, a 17-story, 242,693-square-foot office tower in McAllen, Texas, from an affiliate of Brookfield Asset Management for an undisclosed amount.
HFF represented the seller and also arranged acquisition financing on behalf of the buyer.
“Neuhaus Tower is the dominant office building within the McAllen central business district and has a rich history associated with it,” Trent Agnew, HFF’s director, told Commercial Property Executive. “[Brookfield Asset Management had] acquired this asset in a large portfolio from JPMorgan Chase with plans to exit after re-positioning the building and taking on some of the capital expenses needed, which they were successful in doing.”
Located at 200 South 10th St., the 31-year-old tower is situated on 9.09 acres and is the tallest office building in the Rio Grande Valley. The Class A property is currently leased to multiple tenants and is anchored by JPMorgan Chase Bank.
Neuhaus Tower is centrally located within downtown and the building has great access as it is within close proximity to the various amenities that the McAllen CBD offers.
The transaction falls right in line with Cielo Realty Partners’ acquisition strategy, which focuses on opportunistic investments in assets that have the potential to be repositioned so that value can be created in the project.
In just three short years, Cielo Realty Partners has acquired more than $75 million in real estate assets including multiple retail centers, office buildings and infill land across Texas. In April, it purchased the Swift Building, the Day Building and the McKean-Eilers Building, located at 315, 319 and 323 Congress Ave., respectively.
According to Agnew, Cielo will bring a local ownership presence to the table and draw on its experience owning other Rio Grande Valley assets.
“They have several creative ideas for the vacancies and will put forth a capital plan in coordination with feedback from the tenancy,” he added.
The HFF investment sales team also included senior managing director Dan Miller. HFF’s debt placement team was led by associate director Corby Chaffin.