HOUSTON — Jones Lang LaSalle's capital markets team has arranged a $185.4 million acquisition loan for Williams Tower, a 1.4 million-square-foot Class A office tower in Houston's Galleria region.
Mike Melody and Paul House led the Jones Lang LaSalle team on the transaction. Prudential Mortgage Capital Co. provided the loan on behalf of the borrower, Invesco Real Estate.
“This was a very significant financing transaction that generated substantial interest from the top-tier institutional lending community,” said Melody. “Williams Tower is not only one of the most recognizable buildings in Houston, it is also an asset that has outperformed the market over the past five years, proving to be a very solid investment. We are confident Williams Tower will continue to deliver good returns for Invesco and perform favorably in the future given its high quality and position in the marketplace.”
Invesco purchased the 64-story building from Hines REIT in early March 2013. Tom Melody, Michael Zietsman and Dan Bellow of Jones Lang LaSalle represented Hines on the sale. The team was assisted by Jones Lang LaSalle's tenant representation and international capital group.
Completed in 1982, Williams Tower was designed by Philip Johnson and John Burgee. The building received multiple awards, including the ULI Development of Distinction award in 2010 and the LEED Gold certification in 2009.
The art deco building has a facade of gray glass and aluminum, accented by columns of bay windows and non-reflective glass. It also features an 88-foot-high granite arched entry, 12-story parking garage, helicopter landing pad and sky bridge access to the Galleria, a 2.4-million-square-foot shopping center containing 400 stores and restaurants.
The building is 95 percent occupied and tenants include Ecopetrol America Inc., Hines Real Estate Investments, Knoll Inc., NetiraOne, Rowan Cos., Smith Barney, Trammel Crow Co., Wells Fargo and Williams Corp.
— Liz Burlingame