Howard Hughes Corp. Sells Greater Houston Asset for $115M

The company sold the 208,000-square-foot medical building in a reverse 1031 exchange involving a $565 million purchase in December.
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The Howard Hughes Corp. has sold the MD Anderson The Woodlands building, a 208,000-square-foot medical office asset in The Woodlands, Texas, for $115 million. The transaction was part of a reverse 1031 exchange started in December, when the company purchased two Class A office towers for $565 million from Occidental Petroleum.

The company broke ground on the built-to-suit development at 100 Fellowship Drive in 2017. Last October, MD Anderson Cancer Center relocated to the three-story building that was four times the size of its previous location and remains the sole tenant. The 500-bed facility offers multidisciplinary care, as well as an ambulatory treatment center and diagnostic imaging center.

Located some 33 miles north of downtown Houston, the 13-acre site is 1 mile west of Interstate 45. The immediate area holds several other hospitals and medical centers, such as CHI St. Luke’s Health and Houston Methodist The Woodlands. The property is also roughly 2 miles north of Howard Hughes Corp.’s 180,000-square-foot office building within the Research Forest technology corridor.

The company plans to sell non-core assets worth approximately $2 billion. The proceeds will be reinvested in its core master-planned communities: The Woodlands, The Woodlands Hills and Bridgeland—all three in Greater Houston—as well as others in Summerlin, Nev., downtown Columbia, Md., and Ward Village, Hawaii.