Hanover Real Estate Partners Sells Marathon Oil Tower

  Hanover Real Estate Partners Sells Marathon Oil Tower

Business Wire

GREENWICH, Conn. -- October 16, 2013

Greenwich, Connecticut-based Hanover Real Estate Partners (“Hanover”), a
privately held real estate investment company today announced the sale of
Marathon Oil Tower, one of Houston, Texas’ most iconic office buildings, to
CBRE Strategic Partners U.S. Value 6, a fund sponsored by CBRE Global
Investors. Terms of the transaction were not disclosed.

Reed Miller and Ken Boyle, Managing Partners for Hanover Real Estate Partners,
commented: “We sought an opportune time to sell this truly unique trophy asset
and believe this attractive transaction makes sense for both parties. We
enjoyed working with CBRE Global Investors to consummate this sale and are
pleased to come to an agreement that creates immediate value for our

Located at 5555 San Felipe Street in Houston’s Galleria submarket, the
41-story, Class-A property contains 1.2 million square feet of premier office
space, above standard finishes and an attached granite-clad, 13-level parking
garage. Marathon Oil Tower is generally regarded as one of the finest office
buildings in Houston. The property is ideally situated in proximity to some of
the City’s premier residential neighborhoods and directly adjacent to the
prestigious Post Oak Boulevard corridor.

Hanover took over responsibility for the management and oversight of the
property from Lehman Brothers Inc. in 2003. At that time, the property was 100
percent leased to Marathon Oil Company (“Marathon”) under a lease that expired
in December 2006. In July 2004, Marathon had indicated a desire to reduce its
overall square footage and began considering options for the relocation of its
headquarters’ facility. Hanover immediately set about addressing Marathon’s
space needs to ensure the company remained at the property. Hanover
successfully negotiated a new 15-year lease with Marathon for approximately
650,000 rentable square feet or 60 percent of the total building. Hanover then
implemented an aggressive leasing strategy to fill the space vacated by

To help lease up the property, Hanover made significant capital improvements
to the building, including renovating the lobbies, improving the building’s
mechanical systems and making significant structural improvements. Hanover
also realized significant cost savings by improving the building’s energy
efficiency and achieved LEED Silver status. Hanover’s capital commitments and
marketing efforts helped it secure long-term leases with a number of
creditworthy tenants. The building is currently home to businesses from a wide
range of industries, including insurance giant Aon Corporation, Houston-based
wealth management firm Kanaly Trust Company, and engineering giant Baker
Hughes Oilfield Operations Inc., among others. Marathon Oil Tower’s strong
tenant base coupled with the strength of the Houston market made it an
attractive acquisition prospect.

About Hanover Real Estate Partners

Hanover Real Estate Partners, Greenwich, Connecticut is owned by Reed Miller
and Ken Boyle. Hanover is a national full service real estate investment
company focused on owning, managing and operating institutional grade
commercial real estate. Its portfolio includes properties in the office,
hospitality, residential and retail sectors located across the United States.
For its own account Hanover acquires and repositions valuable but often
under-performing real estate assets and specializes in repositioning assets to
realize untapped potential. Founded in 1981 and based in Greenwich, CT,
Hanover approaches each asset from an owner’s perspective, priding itself on
its strong operating and management capabilities strictly applied to each of
its investments. The company currently owns and manages office buildings and
industrial/warehouse, hotels and resorts. Please go to
www.hanover-partners.com for more information.


ICR, Inc.
Jason Chudoba, 646-277-1249
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