Brookfield Properties Corporation (BPO) has announced that it has acquired Heritage Plaza – the 53-story, 1.2-million-square-foot trophy office tower in Houston’s central business district – from Goddard Investment Group LLC for $321.5 million.
“This acquisition is in keeping with our strategy of owning and operating the best-quality assets in our core markets,” says Dennis Friedrich, president and chief executive officer of Brookfield Office Properties’ U.S. Commercial Operations. “We are pleased to add one of the top institutional-quality buildings in the market to our strong and well-established Houston portfolio and operating platform at attractive investment terms.”
The acquisition was financed using the company’s available liquidity and a $200 million fixed-rate, 4.97% loan maturing in January 2023.
Heritage Plaza, at 1111 Bagby Street, overlooks historic Sam Houston Park and is well-known for its distinctive design elements, a recognizable marker on the Houston skyline. The building is convenient to major thoroughfares and provides direct passage to adjacent buildings and surrounding amenities via sky bridge. Tenant amenities include ample on-site parking and a fitness center.
Anchor tenants of the building – which is approximately 84% leased – include Deloitte and EOG Resources.
“Inheriting the strong existing tenant roster at Heritage Plaza is a major positive byproduct of this transaction, and we look forward to establishing long-term relationships with these new customers,” says Paul Layne, executive vice president and regional head of Brookfield Office Properties’ Houston operations.
Brookfield Office Properties’ Houston portfolio is 95% leased and now features 10 properties encompassing over 10 million square feet. Brookfield Office Properties is downtown Houston’s largest office property owner and operator.