Lionstone Group Grabs Landmark Office Tower in Houston’s CBD
- Oct 22, 2013
By Amalia Otet, Associate Editor
The Lionstone Group completed the acquisition of 712 Main St. in Houston’s CBD, in a deal that marks the first time the landmark property has been offered for sale on an individual basis since its construction in 1929.
HFF, led by Dan Miller and Trent Agnew, marketed the property on behalf of the seller, Brookfield Asset Management Inc. The purchase price was not disclosed.
Developed by Jesse H. Jones, the signature office tower was originally built for Gulf Oil and the National Bank of Commerce. It then underwent two major expansion projects, in 1948 and 1950, which brought it to its current size of 794,186 square feet.
Located along Main Street, on the Downtown Houston Tunnel System, the 37-story Art Deco skyscraper has been designated a city of Houston landmark and a National Civil Engineering landmark, and is listed on the National Register of Historic Places.
Anchored by JPMorgan Chase’s southwest banking operations, 712 Main is currently leased to 43 tenants. Occupancy was set at 85 percent at the time of closing.
“Interest in the property was strong due to the quality of the asset and the stable and predictable cash flow via JPMorgan Chase’s lease through 2030,” said HFF’s Dan Miller in a statement. Transwestern was retained by Lionstone to handle management and leasing for the property.
The building boasts exclusive design features, including eight frescoes that depict Texas history, stained glass windows, gothic ornamentation and French marble. Additionally, the tower hosts a 15,000-square-foot Chase retail banking center on the ground floor, as well as a convenience store and a tenant conference center. Amenities include garage parking accessibility, on-site management and leasing, 24-hour courtesy officers, proximity to the North and East rail lines and two connections to Houston’s underground tunnel system of shops and restaurants.
Meanwhile, in multi-family news, the South Florida Business Journal reports that Ytech International, a nationwide multifamily investment and development company, acquired a 1,312-unit portfolio including five Houston developments, for $35 million. The seller was LB-RPR I Asset Holdings LLC, a Delaware LLC and joint-venture hedge fund of Baupost Group LLC, and The Lynd Co., a nationwide buyer of commercial and residential property.
Photo credits: i_am_jim via Wikimedia Commons