2013-07-01 23:10:01 -
HOUSTON, TX, July 1, 2013 - The Lionstone Group (lionstonegroup.com), a national
real estate investor, today announced the sale of Waterway Plaza I and II in The
Woodlands, Texas to Clarion Partners. Located at 10003 and 10001 Woodloch
Forest Drive, the two, Class A office buildings total 366,074 square feet and
are 98 percent leased with a single anchor tenant occupying more than 50 percent
of the space under a long-term lease. This is the second time in just a decade
that Lionstone has bought and sold the Waterway Plaza properties, having
previously acquired the buildings in December 2003 before selling in April
2005. In both instances, Lionstone held the assets for less than 18 months.
"We are very pleased to realize outstanding returns for the second time on
of our investors," said Lionstone Chief Investment Officer Glenn
Lowenstein. "We acquired the Waterway assets last June with 17 percent pending
vacancy but with great conviction on the strength of the market and an
irreplaceable location. Our excellent relationship with the major tenant led to
a long term extension of their lease and a talented leasing team at Transwestern
Property Company allowed us to raise rents and increase occupancy to 98 percent,
all in less than a year."
The buildings, which were completed in 2000 and 2001, are located in The
Woodlands submarket of Houston--one of the strongest submarkets in the country
in terms of occupancy. "The Waterway Plaza assets have twice confirmed
Lionstone's cash flow investment thesis that select properties in high demand
locations consistently will generate attractive returns for our investors,"
HFF marketed the property on behalf of Lionstone Cash Flow Real Estate Partners
One (CFRE), a joint venture between Lionstone and a large state pension fund.
The HFF investment sales team representing Lionstone was led by senior managing
directors Jeff Hollinden and Robert Williamson and director Trent Agnew.
According to HFF, Waterway Plaza sold for the highest price per square foot paid
to date for suburban property in the Greater Houston Area.
Waterway Plaza I and II is situated on a 4.5-acre site along The Woodlands
Waterway in Town Center, proximate to Interstate 45 and George Bush
Intercontinental Airport about 25 miles north of downtown Houston. Hollinden
said, "Waterway Plaza is a core office project with an unbeatable location
within walking distance of several retail, dining, entertainment venues, The
Woodlands Mall and residential communities of the Woodlands, plus it is less
than two miles from the new four million-square-foot Exxon U.S. Headquarters
Campus currently under construction."
"Both HFF and The Lionstone Group have a great deal of history with this asset,"
said Williamson. "Lionstone first purchased Waterway Plaza in December 2003 with
more than 50 percent vacancy, and then leased and sold the asset 18 months later
for a record suburban sales price. Lionstone then purchased Waterway Plaza a
second time in June 2012 and re-stabilized and extended the rent roll before
ultimately selling to Clarion Partners. Fortunately, HFF handled the sale of
the property in each of these four transactions."
Founded in 2001, the Lionstone Group is a privately-owned real estate investment
firm, which specializes in conceptualizing and executing national investment
strategies based on proprietary data interpretation and ideas. Each Lionstone
real estate strategy is implemented by a dedicated team with both discretionary
and non-discretionary capital, providing maximum flexibility for investing
partners and the fund managers to grow value. The firm focuses on productivity
based investment across three platforms: 1) Cash Flow Investments in high demand
cities that deliver safe cash returns with low volatility; 2) Urban Investments
in areas where lifestyle, rising incomes and globally competitive businesses
increase rental rates and values; and 3) US Land Investments in urban infill
land that are priced attractively today and provide opportunities for value
creation through rapid appreciation or re-use.
Clarion Partners (clarionpartners.com) has been a leading U.S. real estate
investment manager for over 30 years. Headquartered in New York, the firm has
offices in major markets throughout the U.S., in São Paulo, Brazil and London,
England as well as a presence in Mexico. With more than $28 billion in total
assets under management, Clarion Partners offers a broad range of real estate
strategies across the risk/return spectrum to its more than 200 domestic and
international institutional investors.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by
HFF, Inc. (NYSE: HF). HFF operates out of 21 offices nationwide and is a
leading provider of commercial real estate and capital markets services to the
U.S. commercial real estate industry. HFF together with its affiliate HFFS offer
clients a fully integrated national capital markets platform including debt
placement, investment sales, equity placement, advisory services, loan sales and
commercial loan servicing. For more information please visit www.hfflp.com or
follow HFF on Twitter at www.twitter.com/hff.
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Source: HFF, Inc. via Thomson Reuters ONE