W.P. Carey Expands Houston Footprint with 22-Story Office Acquisition; New Hyatt Place Opens in The Woodlands
By Amalia Otet, Associate Editor
W.P. Carey Inc., a real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced two acquisitions completed on behalf of its managed REITs at year-end 2013.
CPA®:17 – Global picked up a 22-story office tower located at 500 Jefferson St. in downtown Houston. The 390,479-square-foot building is anchored by KBR Inc., a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial and commercial markets. KBR is on a long-term lease through June 2030, according to official statements. Nine other tenants occupy 9 percent of the property. CPA®:17 – Global also owns KBR’s headquarters at 601 Jefferson, which it acquired in 2012.
CPA®:18 – Global purchased a three-property portfolio totaling 636,857 square feet in Madison and Logansport, Ind., and Marion, S.C. The three facilities are being leased to Crowne Group under a 25-year triple-net lease with annual CPI increases. The total acquisition price was approximately $22.3 million.
“We are pleased to have closed out 2013 with two solid acquisitions for our managed portfolios,” said Gino Sabatini, W. P. Carey managing director & co-head of global investments. “With its acquisition of the Houston office tower, CPA®:17 – Global has secured another long-term lease with KBR, a strong company located in a growing market. CPA®:18 – Global’s sale-leaseback with the Crowne Group is a prime example of how we provide capital to growing companies. The transaction provides Crowne with the necessary funding for future acquisitions of businesses that are complimentary to Crowne’s overall corporate strategy, while adding a 25-year lease to CPA®:18 – Global’s portfolio.”
In hospitality news, Hyatt Hotels Corp. and New Horizons Hospitality announced the opening of the 146-key Hyatt Place Houston/The Woodlands hotel, the third Hyatt Place in the Houston area.
Located at 1909 Research Forest Drive, the hotel offers easy access to The Woodlands’ main attractions, including The Woodlands Mall, Market Street and the Cynthia Woods Mitchell Pavilion.
The facility features studio-like suites with 46-inch HDTVs and a series of functional amenities, such as free Wi-Fi, more than 6,100 square feet of flexible, high-tech meeting and function space, a Coffee to Cocktails Bar and a 24-hour StayFit Gym.
Photo credits: W. P. Carey Inc. via PRNewswire