The Blackstone Group has sold part of Equity Office Property’s Austin, Texas portfolio, selling a 13-building complex to real estate investment firm Spear Street Capital. No financial details were available.
The New York-based private equity real estate firm, which bought Equity Office Properties (EOP) for $39 billion last year, owned the properties in partnership with investors advised by JPMorgan Asset Management, according to a statement from Holliday Fenoglio Fowler, which helped close the deal.
The Riata Corporate Park and Riata Crossing complex includes 13 buildings and two development sites, in a 95-acre corporate park. Completed between 1998 and 2008, the buildings are 98.7 percent leased to tenants including Apple, Centex, NVIDIA Corporation, Computer Associates, Janus Capital Group and Pervasive Software, the statement added.
Immediately after taking control of EOP last year, Blackstone started selling off parts of the portfolio and within a few months of closing the deal had earned back 70 percent of the purchase price. Assets sold included One Maritime Plaza in San Francisco and the $6.8 billion sale of seven Manhattan skyscrapers to Macklowe Properties. Blackstone won the Global Deal of the Year award – voted for by PERE magazine readers – in the 2007 Global PERE Awards for its EOP disposals. Blackstone was unavailable for further comment on the latest exit.
Earlier this month, Blackstone president and chief operating officer Tony James revealed the firm was in the “final stages” of closing its latest European real estate fund, Blackstone Real Estate Partners Europe III, on $3 billion saying it had been a “very successful” fundraise.
According to the HFF statement, JP Morgan Asset Management has more than $58.4 billion in real estate assets under management employing 379 professionals worldwide.