Transwestern, Cornerstone Sell 350 KSF Houston Office Property
- Aug 09, 2013
Five years after acquiring 21 contiguous acres of land for the planned two-tower Eldridge Oaks office development in Houston, Transwestern and Cornerstone Real Estate Advisors L.L.C. have sold the site, along with the 350,000-square-foot trophy tower they developed at the location in 2009. With Transwestern at the helm of the marketing effort, the joint venture sold the Class A asset to AEW Capital Management.
The parties involved in the transaction are remaining mum on specific details, including the financials. However, it’s safe to say that the asset commanded more than its current assessed value of, as per Harrison County records, $81.5 million. The average office sale price was $205 per square-foot at mid-year, according to a report by Transwestern’s research affiliate Delta Associates.
Eldridge Oaks sits in a premier location, right in the heart of Houston’s booming Energy Corridor. The LEED Gold-certified Eldridge Oaks I, carrying the address of 1080 Eldridge Parkway, occupies a 13-acre portion of the site along with a 430,000-square-foot, seven-level structured parking facility. The 14-story office tower delivered as a spec building, but soon became a magnet for big-name tenants. In April 2008, with construction of Eldridge Oaks I underway, David Baker, an executive vice president with Transwestern, told Commercial Property Executive (then Commercial Property News) of the strong absorption in the Energy Corridor submarket, adding that “the timing is fabulous [and] given the lack of space, I think the trend is going to continue.”
He was right. Today, the Class A sector of the Energy Corridor has an overall vacancy rate of a mere 2.7 percent, according to the Transwestern report, and Eldridge oaks is 99.4 percent leased, with multi-billion-dollar engineering services company KBR Inc. occupying 62 percent of the office space under a lease that expires in 2021.
As for Phase II of Eldridge Oaks, the site is already zoned to accommodate an additional 350,000-square-foot office tower.