Heritage Plaza, known as one of Houston’s most distinctive towers because its top resembles a Mayan temple, is up for sale, according to the authoritative Real Estate Alert newsletter. A Brookfield Office Properties partnership is putting the 53-story Heritage Plaza building in downtown Houston up for sale and the price could go as high as $480 million, the newsletter said.
Brookfield has hired Eastdil Secured to market the 1.15 million-square-foot Heritage Plaza, which once housed the headquarters of the Texaco oil company. The top-tier investors with the financial wherewithal to buy such a property are being offered the opportunity to buy full ownership or a 49 percent stake. The building, 1111 Bagby, is believed to be worth as much as $415 per square foot or about $477 million, Real Estate Alert reported. But it could go higher.
Brookfield paid $321.5 million for the building in 2010 from Goddard Investment. The run-up in Houston skyscraper prices since then has been phenomenal. Rents have skyrocketed and occupancy rates are very strong. The Heritage Plaza’s value was also boosted by having its occupancy rate jump from from 84 percent to 98 percent under Brookfield ownership.
Earlier this year Dallas-based Invesco Real Estate paid $480 million for BG Group Place, a 973,000-sf Hines building at 811 Main Street. In another huge deal Cousins Properties bough the 10-building Greenway Plaza for about $950 million.
In addition, to Heritage Plaza, Brookfield Properties owns several skyscrapers on the west side of downtown Houston, including the Allen Center urban office park.