Houston Business Journal | 10.02.2019
Houston-based developer Midway has sold a majority stake in the newest office building in CityCentre, a mixed-use development in west Houston.
Houston-based Lionstone Investments purchased the majority stake in CityCentre Five, whose anchor tenant is the headquarters of Par Pacific Holdings Inc. (NYSE: PAAR), on behalf of a client for an undisclosed price.
CityCentre Five is a 15-story, Class A office tower located at 825 Town & Country Lane. While terms of the sale were not disclosed, the land and office building were valued at $54.1 million as of Jan. 1, according to Harris County Appraisal District records.
Hubbard said CityCentre Five offered a number of features that made it attractive to investors.
“When appealing to tenants, one of the first things landlords have to think about is amenities, and CityCentre is an amenity-rich environment,” Hubbard said. “We’re also seeing that investors are wanting to buy buildings where there are immediate, nearby amenities.”
Within CityCenter, visitors have access to 26 restaurants, a number of fitness and entertainment options and two hotels, according to CityCentre’s website.
Hubbard said CityCentre’s location within Houston was another plus for Lionstone when putting together the deal.
“This segment of Katy Freeway has one of the best-performing office markets in the city and is located in the 77024 ZIP code, which has one of the highest average incomes in the state of Texas,” Hubbard said.
The sale comes a little over a year after Midway refinanced the building. Holliday Fenoglio Fowler LP secured the $48.51 million loan through New York Life Real Estate Investors on behalf of Midway, who was listed as the borrower.
The 201,437-square-foot building broke ground in early 2014 and delivered in the fourth quarter of 2015. In addition to Par Pacific, current tenants include Amazon Web Services, Credera, Five Point Energy, For All Mankind, University Lands and Wells Fargo Bank NA.
In June, Life Time Work, the creative office division of Minnesota-based Life Time Inc., opened the first of what the company hopes will be several Houston-area coworking spaces in CityCenter Five.