Houston’s Williams Tower Sold by Hines for $412 Million
An Invesco Ltd. (IVZ) unit purchased Williams Tower in Houston for $412 million as office sales increase in the city amid a boom in U.S. oil production.
Invesco Advisers Inc. bought the 64-story building and an adjacent parking garage in Houston’s Galleria/West Loop area, the seller, Hines Real Estate Investment Trust Inc., said today in a regulatory filing. The Houston-based REIT purchased the 1.4 million-square-foot (130,000-square-meter) tower in 2008 for $271.5 million, and its net proceeds on the March 1 sale were $228.4 million after transaction costs, Hines said.
Office sales in Houston increased 32 percent last year to almost $3.89 billion as 104 properties changed hands, according to data from Real Capital Analytics Inc. Deal volume in the energy hub outpaced the 21 percent gain for total U.S. office sales, the New York-based research firm said.
U.S. oil production last year grew by a record 766,000 barrels a day to 6.41 million barrels on average, the highest level in 15 years, government data show. The 14 percent advance was the biggest annual gain since the industry began domestically in Pennsylvania in 1859, according to the Department of Energy.
Williams Tower is 95 percent leased, with tenants including Rowan Cos., Quanta Services and Cadence Bancorp, Hines said today in a separate statement. Designed by architects Philip Johnson and John Burgee, the tower is covered in silver-colored reflective glass and topped by a 7,000-watt revolving beacon. Hines developed the building in 1983 and uses it as its corporate headquarters.
The tower “has been a great investment that delivered strong cash flows and a positive return to Hines REIT,” Chief Executive Officer Charles Hazen said in the statement.
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