1000 main building purchased for $440

Germany-based Union Investment announced it has finalized the purchase of the 36-story 1000 Main office tower in downtown Houston for approximately $440 million or about $525 per square foot, in one of the biggest Houston realty deals ever.

“We are delighted to add this well positioned property with strong prospects for stable long-term income and rent growth to our excellent US portfolio,” said Martin Brühl, head of International Investment Management at Union Investment.

Union, which is based in Hamburg, acquired the 836,000-square-foot building for its Unilmmo: Europa fund.  Union was advised by Metzler Real Estate, which has strong ties to German investors.

After making plays in Austin and Minneapolis, Union  has now entered a third US market outside of the traditional East and West coast investment regions in just 20 months.

“The prospect of further, sustainable job growth across many sectors means that Houston is one of the most compelling US investment markets and an attractive alternative to the classic gateway cities,” continued  Brühl. “Our two acquisitions in Houston and Austin give us a good toehold in the Texan market which will help us to move forward with further investments for our funds.”

In a statement, Union noted that Houston is called the “Energy Capital of the World” and is the fasting growing city in the United States.

The seller of the Houston tower, Invesco Real Estate of Dallas purchased the 1000 Main building in 2012 for $355 million.

Source – Realty New Report