The Houston office of Hines has announced that it has acquired the 910 Travis building in downtown Houston on behalf of National Office Partners Limited Partnership (NOP), the firm's joint venture with the California Public Employees' Retirement System (CalPERS). Terms of the sale were not disclosed.
The 735,000-square-foot office building is located on the block bounded by Travis, McKinney, Walker and Milam, in the heart of the CBD and the city's extensive tunnel system. Connecting the various quadrants of downtown, the primary tunnels of the network intersect below 910 Travis and feature retail and restaurant amenities. The 25-story tower was designed by noted Houston architect H. Kenneth Franzheim and underwent significant renovations in the early 1990s.
Hines Senior Vice President Mark Cover said: "Historically, 910 Travis has been a significant building on the Houston skyline. This acquisition provides a repositioning opportunity that will be very appealing to prospective tenants who wish to office in a superbly located building with access to the city's best amenities."
While NOP sold 1100 Louisianaits only asset in Houston prior to this acquisitionearlier this year, Hines' development portfolio in downtown Houston consists of 10 development and two redevelopment projects.
Gary Holtzer, Hines' vice president and NOP investment officer, commented, "We intend to capitalize on Hines' strengths in redevelopment and management to ensure that 910 Travis remains an enduring asset for the City of Houston and a successful investment for CalPERS and Hines."
The building is currently 91% leased by tenants including: the U.S. District Attorney's Office; the law firm of Winstead Sechrest; Bank One (now Chase); and Transworld Oil. It is also home to the famous Coronado Club, one of Houston's oldest private social clubs.
This transaction represents NOP's 18th major acquisition since its inception in July 1998. The CalPERS/Hines partnership sold 15 properties during 2004 with an aggregate value of approximately $2.5 billion. The acquisition of 910 Travis will bring the total number of office properties in the NOP portfolio to nine, with a total value in excess of $1 billion.