HFF Closes Sale of 2500 CityWest to CREF
- Nov 28, 2011
The 25-story Class A office tower in Houston’s Westchase District known as 2500 CityWest traded hands, according to an announcement by investment advisory firm Holliday Fenoglio Fowler L.P. Owner Thomas Properties Group Inc. and its affiliate TPG/CalSTRS L.L.C. contracted with HFF to market the 578,284-square-foot property on its behalf, along with two parcels of adjacent land totaling 6.3 acres.
The property, located at 2500 CityWest Blvd., was built in 1982 but has undergone extensive capital improvements and is currently 94 percent leased to tenants such as Cal Dive Marine, Aspen Technology, TGS-Nopec Geophysical and Maersk Inc. Spreading across 8.1 acres, the property includes on-site parking for more than 2,100 vehicles and is within close proximity to the Westpark Tollway and Interstate 10.
The financial terms of the deal have not been disclosed, but the Houston Business Journal reports that the price of the 25-story building was in the $124 million to $125 million range, while the 6.3-acre development tract most likely traded for approximately $8 million. The new owner, real estate opportunity fund Crimson Real Estate Fund, did not release any further details concerning the acquisition. According to the same source, the fund is currently considering developing multifamily residences on the 6.3-acre site.
Crimson Real Estate Fund is managed by Houston-based Crimson Real Estate Advisors L.P., with USAA Real Estate Co. as its largest investor; the fund acquires and repositions real estate opportunities in key growth markets across the United States. The HFF investment sales team that handled the transaction was led by senior managing directors Jeff Hollinden and Robert Williamson.
Photo Credits: Thomas Properties Group Inc.