The California State Teacher’s Retirement System and global real estate firm Hines have sold the 26-story 919 Milam office building in downtown Houston to Chicago-based Transwestern Investment Company, local press reported today. Terms of the transaction were not disclosed.
The joint venture owned the property for less than two years, during which it spent $11 million (€8 million) on renovations, including upgrades to the lobby and the addition of a 300-space parking garage.
The building, formerly known as Bank One Center, is 78 percent leased with tenants like the Coronado Club, one of Houston’s oldest private social clubs, the US District Attorney’s Office, and the Johnson, Spalding, Doyle, West & Trent law firm. The building has a net rentable area of approximately 542,000 square feet and is connected to Houston’s underground pedestrian tunnel system, linking 919 Milam with major office buildings, hotels and retail centers, according to Hines.
The Houston office market has seen increased interest from investors as of late, largely due to employment growth driven by the energy industry, according to the report.
Last week, Hines announced plans to develop MainPlace, a new 46-story, one million-square-feet office tower in downtown Houston at 811 Main Street. The project, described by the firm as a “classic urban infill development,” will be funded through the Hines CalPERS Green fund, a vehicle that focuses on developing sustainable office buildings throughout the US.