Houston: $69 million buy for 450,000-SF 600 Jefferson TowerHouston: $69 million buy for 450,000-SF 600 Jefferson Towerhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=24022014-11-20T14:44:00Z2014-11-20T06:40:00Z

HOUSTON - A partnership of Stream Realty Partners and DRA Advisors has purchased the 20-story 600 Jefferson office tower downtown. Brookfield Property Partners closed the sale for $69 million, generating $56 million of net proceeds at BPY’s share.

United Airlines is the anchor tenant in the 450,000-sf building, which is 91.4 percent leased.

Covering an entire city block, the 600 Jefferson tower is bordered by Jefferson St. on the north, St. Joseph Pkwy. on the south, Smith St. on the west, and Louisiana St. on the east.

“We will be investing a significant amount of capital into the building during the first nine months of ownership,” said Paul Coonrod, managing director and partner with Stream Realty.

The upgrades will include renovating the exterior façade and lobby, upgrading finishes to Class A consistency and changing the building’s address.

The overall vacancy rate in downtown is less than 10 percent — one of the best rates in the country — and rents have been rising sharply. Some Class A buildings are quoting rents in excess of $40 per sf, a record high.

The building was purchased from Brookfield Office Properties. The Harris County Appraisal District appraised the building at $55.2 million, but the actual sales price in today’s market would be higher.

Realty News Report
Houston-The Woodlands-Sugar Land
http://realtynewsreport.com/2014/11/18/stream-partnership-buys-600-jefferson-tower-in-downtown-houston/Read more at {Source}

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