3 BUILDING COMPLEX POST OAK CENTRAL SELLS

CB Richard Ellis Investors is said to be paying $250 million for Post Oak Central, a 1.3 million sf office complex in Houston.The Los Angeles investment manager is buying the three-building complex from a venture between JPMorgan Asset Management, GE Pension Trust and Morgan Stanley Real Estate, which had offered it through Holliday Fenoglio Fowler.A CBRE spokesperson declined to comment on the transaction.CBRE is paying roughly $192/sf for the property, which is expected to result in a capitalization rate of 5.12%, based on the $12.8 million of net operating income that Post Oak Central is expected to produce this year.The purchase is expected to be completed by the end of the year. Post Oak Central would be the second largest office transaction in Houston this year behind Hines REIT's $271.5 million acquisition of Williams Tower in March. JPMorgan and GE Pension entered their investments in Post Oak Central in 2004 when they bought a total interest of 76%. Morgan Stanley had assumed its stake through its acquisition of Crescent last year.The property sits on 17 acres at 1980, 1990 and 2000 Post Oak Blvd. in Houston's Galleria submarket. It is 92% leased to tenants that include Apache Oil Co., Stewart Tile and Suez, an energy company.The property has 86,500 sf of retail space that is leased to a fitness center, salon, restaurant and bank.Post Oak Central is encumbered by $97.5 million of mortgage debt that was securitized via Banc of America Commercial Mortgage, Inc., 2004-6. It carries a coupon of 5.12% and matures in December 2014. fOR MORE INFORMATION SEE : www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net