THE WOODLANDS – (Realty News Report) – The Howard Hughes Corp. has acquired the two former Anadarko office towers in The Woodlands, along with a 63-acre corporate campus in the Energy Corridor, in a $565 million transaction with Occidental Petroleum.
The huge real estate deal follows Occidental’s $55 billion purchase of Anadarko Petroleum Corp. last August. Subsequently, Occidental announced it would sell excess real estate and other assets.
On Monday, Howard Hughes Corp., the developer of The Woodlands, announced it was acquiring a significant portfolio of Occidental properties in The Woodlands including:
A 31-story, 807,586-SF office building that had been known as the Anadarko Allison Tower at 1201 Lake Robbins Drive. Occidental has leased the entire building for another 13 years. The tower was constructed in 2000 when Anadarko moved out of Greenspoint.
A 30-story, 595,854-SF office tower at 9950 Woodloch Forest Drive that had been called the Anadarko Hackett Tower. The Howard Hughes Corp., which has been based in Dallas, will relocate its headquarters into the tower. Howard Hughes Corp. predicts that it will lease-up the building within 36 months. The building was completed in 2014.
A 9.3-acre parcel of land for future development near The Woodlands Town Center. The site fronts Interstate 45 North.
A 125,000-SF warehouse in The Woodlands. It is fully leased to Occidental for 13 years.
And in the Energy Corridor in West Houston, Howard Hughes Corp. acquired Occidental’s 63-acre corporate office campus near the Katy Freeway and North Dairy Ashford. The 17-building campus, formerly the home of ConocoPhillips, has 1.3 million SF of office space. Howard Hughes expects to re-sell the campus within 12-18 months.
“The sale of office complexes in the Houston Energy Corridor and The Woodlands is part of our plan to divest non-core assets and continue to improve the strength of our balance sheet,” said Occidental President and CEO Vicki Hollub. “It was important to us, and many of our employees, to maintain a presence in The Woodlands and we are pleased to have signed a 13-year lease to remain in the community.”
Houston-based Occidental was represented in the sale by Brandon Clarke, Executive Vice President, Jared Chua, Senior Vice President, and Steve Hesse, Vice Chairman, for CBRE.
The Class AAA office project has been rebranded as The Woodlands Tower at The Waterway.
“This acquisition of Class AAA office space in The Woodlands Towers at The Waterway, as well as the additional property in The Woodlands, further expands our existing portfolio in this market where our 2.5-million-SF office portfolio is currently 94 percent leased, allowing us to respond to the growing need for premium office space as companies are looking to relocate and expand within The Woodlands,” said Paul Layne, who was recently named Chief Executive Officer of The Howard Hughes Corp.
Although Howard Hughes Corp. was primarily interested in The Woodlands properties, its offer to also purchase the Energy Corridor campus as part of the deal made the Hughes’ offer more attractive as Occidental is attempting to divest of multiple assets.
Dec. 30, 2019 Realty News Report Copyright 2019
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