posted on December 16, 2010 22:21
Brookfield Properties Corp. has acquired the downtown Heritage Plaza skyscraper complex for $325 million — the second-highest price ever paid for an office building in Houston.
The highest-priced downtown deal was in 2007 when Bank of America Center traded for $366.8 million after the Novati Group bought the 56-story, 1.2 million-square-foot tower.
The acquisition adds to Brookfield domination in downtown Houston, where it already owned 8.5 million square feet. The landlord now controls 9.8 million square feet in the Central Business District.
New York-based Brookfield purchased the 1.15 million-square-foot Heritage Plaza office complex from Goddard Investment Group LLC, which reported the $325 million sales price on Thursday.
According to Brookfield, the purchase price was $321.5 million, based on the gross purchase price of $325 million net of $3.5 million of closing credits.
The Heritage Plaza complex consists of a 53-story tower constructed in 1986 and the Federal Land Bank Building, built in 1935.
Atlanta-based Goddard bought the complex at 1111 Bagby in July 2005 for $128 million. Goddard completed an extensive renovation of the building and added a 10-story parking garage.
The building is approximately 84 percent leased to tenants such as Deloitte, EOG Resources and Tudor, Pickering Holt & Co.
12/10/10, Houston Business Journal, Jennifer Dawson