Hines Strikes Deal to Sell Houston’s 1.8 MSF Shell Plaza
- Jul 12, 2012
Eight years after acquiring Shell Plaza in downtown Houston, an affiliate of Hines has entered into an agreement to sell the 1.8 million-square-foot trophy office complex to Enterprise Products Co. Hines, which has not disclosed the agreed-upon sale price, picked up the two-building property in 2004 for $351.8 million. The transaction is on track to close in August.
Shell Plaza has towered over Houston’s central business district since Hines completed development of the complex in 1970. Designed by Skidmore, Owings & Merrill, the Class A asset consists of One Shell Plaza (pictured at left) and Two Shell Plaza and was 97 percent leased at the close of the first quarter.
Law firm Baker Botts L.L.P. maintains its headquarters at Shell Plaza, as does Shell Corp., which recently expanded its approximately 1.2 million-square-foot occupancy by 50,000 square feet. Enterprise Products need not worry about Shell leaving a big gap on the tenant roster anytime soon, as the oil company recently extended its lease through 2025.
“This long-term investment reflects our confidence in Houston, its strong and diverse economy, as well as its role in global commerce and its attractive environment for business development,” said Richard H. Bachmann, president and CEO of EPCO.
Hines’ attachment to Shell Plaza will not end with the disposition. The company will continue in its role as the property’s manager and leasing agent.