Thursday, June 30, 2011

I wonder where they got the 340 Million ?? Oh yea, from Me & You!!!

Chevron Corp. purchased Four Allen Center, the 1.23 million-square-foot office tower it fully occupies at 1400 Smith St. in downtown Houston, from Brookfield Office Properties for $340 million, or approximately $277 per square foot. The investment entity Towanda Development I Ltd. sold the building to Brookfield for $120 million in September 2006. “This sale is reflective of our ongoing strategy of recycling capital from mature assets into more accretive opportunities,” said Ric Clark, chief executive officer of Brookfield.
Built in 1983, Four Allen Center is a 50-story structure on 1.14 acres in the central business district. Chevron has leased the property for nearly five years.  The U.S. oil and gas company also inked a 311,000-square-foot office renewal next door at Continental Center I, a 1.1 million-square-foot, 51-story skyscraper at 1600 Smith St. Chevron's previous lease for 475,000 square feet expires in May of next year. The new deal will leave 164,000 square feet available next spring.  Brookfield has owned 1600 Smith St. for five years. It is 95.4 percent leased. Continental Airlines also anchors the property with 414,578 square feet. The average asking rent per year is approximately $23 per square foot, according to CoStar Group information.
“We have created significant value through the sale of this stabilized asset concurrent with Chevron’s sizeable lease extension at our adjacent property,” said Dennis Friedrich, president and global chief investment officer of Brookfield. “Chevron represents the type of top-flight corporate tenant we seek to partner with in our global energy-sector markets.” Paul Frazier and Margaret Gosda negotiated the lease in-house for Brookfield. Tim Relyea of Cushman & Wakefield represented Chevron.For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at :