HOUSTON — Unilev Capital Corp. has purchased three office buildings that make up part of the Houston Galleria mixed-use development for $176 million. The seller was an affiliate of Walton Street Capital.
The three Class A office buildings are located at 2700 Post Oak Blvd., 5051 Westheimer and 5065-5075 Westheimer. They contain a total of 1.06 million square feet of space, which was 90 percent leased at the time of closing. Tenants include Air Liquide, Southern Union, Merrill Lynch, Citigroup Global Markets, UBS, Banco Santander and BBVA Bancomer.
A Holliday Fenoglio Fowler (HFF) team led by Senior Managing Director Robert Williamson represented Walton Street Capital in the deal. HFF was also responsible for arranging $130 million in acquisition financing on behalf of Unilev. A team lead by Senior Managing Director Wally Reid secured a 10-year, fixed-rate loan through J.P. Morgan Chase Bank. HFF will also service the loan.
“During the process interest rates increased substantially,” said Williamson in a statement. “Unilev and the lender committed to close the transaction and both closed as originally agreed to, which is a testament to their character and abilities to bring capital in an ever-changing marketplace.”
Houston Galleria is the primary draw of the city's Galleria/West Loop submarket, which is situated approximately 5 miles west of downtown. The mixed-use project comprises the three office buildings along with 2.3 million square feet of upscale retail space, two Westin-branded hotels containing 893 rooms and 12,685 parking spaces.
— Coleman Wood