Kinder Morgan Tower Hits the Market; HFF Hired to Market the 1 MSF Building
- Aug 31, 2012
Following Hines’ recent announcement that the company is looking for a buyer for its iconic Williams Tower, another high-profile Houston office tower has hit the market.
The 32-story Kinder Morgan Tower in downtown Houston is now also up for grabs, and owner Kinder Morgan Inc. has named Holliday Fenoglio Fowler L.L.P. to market the property. No details have been released concerning the asking price, but industry experts believe that the debt-free property could trade for as much as $400 million.
Kinder Morgan Tower is located at 1001 Louisiana in downtown Houston. The 1 million-square-foot building underwent a ground-up renovation, completed in 2012, meant to bring the property up to current Class A, LEED Gold standards.
The architecturally significant building had previously served as the headquarters of El Paso Corp., until El Paso was acquired by Houston-based Kinder Morgan in May 2012. The property is the new global headquarters for both the Kinder Morgan family of companies and the now-separate EP Energy, which also leases space in the tower. Following a future sale, Kinder Morgan will remain on site under a long-term lease.
Kinder Morgan Tower occupies two full city blocks and features a structured parking garage, state-of-the-art conference facilities, retail amenities and a health club.
The HFF investment sales team representing the seller is led by senior managing directors Jeff Hollinden, Robert Williamson and Grady Roberts. HFF is marketing the property in conjunction with Studley, Kinder Morgan’s leasing representative. The Studley team is led by corporate managing director Aaron Howes.
Kinder Morgan is the largest midstream and the third-largest energy company in North America, with a combined enterprise value of more than $100 billion. It owns an interest in or operates approximately 75,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, carbon dioxide and other products. Kinder Morgan Inc. (NYSE: KMI) owns the general partner interest of Kinder Morgan Energy Partners L.P. (NYSE: KMP) and El Paso Pipeline Partners L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management L.L.C. (NYSE: KMR) and EPB.
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