US real estate investment firm Hines has purchased the 64-story landmark Williams Tower office building in Houston from Transco Tower Limited. A spokesperson for Hines confirmed the purchase price of $271.5 million (€176.2 million).
The 1.5 million-square-foot property, acquired through Hines REIT, is located at 2800 Post Oak Boulevard in Uptown Houston. The deal also included an undivided interest in the adjacent 2.8-acre Waterwall Park and a 2.3-acre undeveloped land parcel across the street at 3009 Post Oak Boulevard.
The building, developed by Houston-based Hines in 1982, is the second-tallest building in Texas at 909 feet. The building was known as Transco Tower at completion for its major tenant Transco Energy Corporation. After Transco was purchased by Williams Field Services Company in 1995 it was renamed in 1999. The tower features a skywalk that connects the building to The Galleria, one of Houston’s top shopping and tourist venues, and the Waterwall Park anchored by a 64-foot-high structure that features cascading water over both sides. The building is currently 94 percent leased.
This is the second Houston office deal announced this week. San Francisco-based Shorenstein Properties also recently acquired the Five Post Oak Park office building in Houston’s Galleria submarket from a partnership between GE Asset Management and Crescent Real Estate Equities. The Houston market had “the highest office absorption of any market in the country outside Manhattan,” Shorenstein chairman and chief executive Douglas Shorenstein said at the time.