Ray’s Buzz: All Systems Go In The Industrial Market

United State Industrial Market-Takeaway:
All monitored US markets have industrial rates in the single digits, and occupancies are expected to remain high ongoing. E-commerce warehousing demand to accommodate sorting, distribution, and logistics is strong and we are seeing higher (even multi-story) warehouses as developers work with tenants to meet their evolving needs. Labor markets are tight and will get tighter, resulting in rising wages. Asked rents are rising and this may offset projected rising interest rates over time. Industrial remains the most attractive segment to lenders and investors alike. Click to read more at www.rednews.com.

Cerberus, Hines JV Buys Texas’ Tallest Tower for $627M: Report


Hariri Interests sold JP Morgan Chase Tower in downtown Houston, a 1.6 million-square-foot skyscraper designed by the late I.M. Pei, along with an adjacent 407,000-square-foot property.

by Dolly Dutton

A joint venture of Cerberus Capital and Hines has acquired Houston’s JPMorgan Chase Tower, the tallest building in Texas, for approximately $627 million, according to a report from Real Estate Alert. The seller, Hariri Interests, had owned the skyscraper since 1981, according to Yardi Matrix data. Also included in the deal was an adjacent property, the 407,000-square-foot Chase Center. The 75-story JPMorgan Chase Tower is situated at 600 Travis St., in the heart of downtown. Built in 1981, the Class A office property was designed by the late famed architect I.M. Pei. Hariri Interests purchased the property in 1985 through its investment vehicle Prime Asset Management in a joint venture with Hines and later acquired full ownership.

A joint venture of Cerberus Capital and Hines has acquired Houston’s JPMorgan Chase Tower, the tallest building in Texas, for approximately $627 million, according to a report from Real Estate Alert. The seller, Hariri Interests, had owned the skyscraper since 1981, according to Yardi Matrix data. Also included in the deal was an adjacent property, the 407,000-square-foot Chase Center.

The 75-story JPMorgan Chase Tower is situated at 600 Travis St., in the heart of downtown. Built in 1981, the Class A office property was designed by the late famed architect I.M. Pei. Hariri Interests purchased the property in 1985 through its investment vehicle Prime Asset Management in a joint venture with Hines and later acquired full ownership. Formerly known as the Texas Commerce Center, the LEED Gold building houses tenants including Merrill Lynch, Willkie Farr & Gallagher, KeyBank and the Buzbee Law Firm. JPMorgan Chase moved its offices from the building more than a decade ago.

The property has 22,000 square feet of underground retail and tenant amenities including a fitness center and 1,657 parking spaces. In 2008, the building’s façade was damaged during Hurricane Ike, when hundreds of windows blew out and littered the streets below with glass and tangled window blinds.

Hines declined to comment and a spokesperson for Cerberus did not respond to a request for comment.

The Houston office market has been experiencing strong market fundamentals over the past year, with 18,600 office jobs added from March 2018 to February 2019, according to a recent Yardi Matrix report. Traditionally a strong energy market, the biggest city in Texas has been diversifying its economy and growing its tech, innovation, and health-care sectors.

A joint venture of Cerberus Capital and Hines has acquired Houston’s JPMorgan Chase Tower, the tallest building in Texas, for approximately $627 million, according to a report from Real Estate Alert. The seller, Hariri Interests, had owned the skyscraper since 1981, according to Yardi Matrix data. Also included in the deal was an adjacent property, the 407,000-square-foot Chase Center.

The 75-story JPMorgan Chase Tower is situated at 600 Travis St., in the heart of downtown. Built in 1981, the Class A office property was designed by the late famed architect I.M. Pei. Hariri Interests purchased the property in 1985 through its investment vehicle Prime Asset Management in a joint venture with Hines and later acquired full ownership. Formerly known as the Texas Commerce Center, the LEED Gold building houses tenants including Merrill Lynch, Willkie Farr & Gallagher, KeyBank and the Buzbee Law Firm. JPMorgan Chase moved its offices from the building more than a decade ago.

The property has 22,000 square feet of underground retail and tenant amenities including a fitness center and 1,657 parking spaces. In 2008, the building’s façade was damaged during Hurricane Ike, when hundreds of windows blew out and littered the streets below with glass and tangled window blinds.

Hines declined to comment and a spokesperson for Cerberus did not respond to a request for comment.

The Houston office market has been experiencing strong market fundamentals over the past year, with 18,600 office jobs added from March 2018 to February 2019, according to a recent Yardi Matrix report. Traditionally a strong energy market, the biggest city in Texas has been diversifying its economy and growing its tech, innovation and health-care sectors.

Hughes Landing Apartment Midrise Tops Out in The Woodlands

Howard Hughes Corp. has topped out its Two Lakes Edge apartment development on Lake Woodlands. The final beam was lifted to the top of the eight-story building at a ceremony Tuesday attended by Preston Partnership, the project’s architect; Hoar Construction, its construction manager; and officials from Howard Hughes. The project, which will have retail and a restaurant on the ground floor along Hughes Landing Boulevard, is part of the 79-acre Hughes Landing lifestyle district near shopping, dining and outdoor recreation in The Woodlands. Click to read more at www.houstonchronicle.com.

Houston Industrial Construction at All-Time High

Fueled by the rapidly growing e-commerce sector, increased activity at the Port of Houston, and the city’s continued high population growth, demand for industrial real estate product in Houston has kept vacancy rates low and pushed the construction pipeline to an all-time high of 21.2 million square feet across the metro. While industrial construction activity has been dominated by build-to-suit activity over the past few years, developers are modifying their strategy to get ahead of requirements with a wave of speculative construction. As a result, the current industrial construction pipeline is 74% speculative space, totaling 15.7 million square feet set to deliver over the next 18 months – an increase of 268% year over year. Click to read more at www.transwestern.com.

NE Houston’s Industrial Submarket Breaking Records

HOUSTON – The northeast industrial submarket broke records in first quarter 2019, delivering 438,000 sf, with an additional 835,200 sf—the second-largest amount during a quarter—under construction. According to NAI Partners, the market contains 37 million sf of inventory. Vacancies have been gradually rising due in part to new inventory delivering with vacant space. Click to read more at www.recenter.tamu.edu.

West Houston Office Building Changes Hands

Hartman Income REIT has purchased Ashford on the Bayou, a five-story office building in west Houston near the Energy Corridor. Built in 1983, the renovated property is 55 percent leased. HFF marketed the property for the seller, Los Angeles-based RPD Catalyst, and arranged a five-year, fixed-rate acquisition loan with RGA Reinsurance Co. for the buyer. Terms were not disclosed. The 126,811-square-foot building is situated on 2.5 acres at 1001 S. Dairy Ashford, south of Buffalo Bayou. The property has an attached seven-story, 467-space parking garage and borders Terry Hershey Park. Click to read more at www.houstonchronicle.com.