Chevron Picks Up Four Allen Center for $340M

Four Allen Center, the former headquarters for Enron in Houston, was purchased by Chevron Corp. for $340 million this week as Brookfield Office Properties unloaded the property from its portfolio. According to the Wall Street Journal, Brookfield bought the property, which sat vacant for three years before Chevron leased the building. for $120 million in 2006 from Towanda Development I Ltd. The building at 1400 Smith Street stands 50 stories tall with 1.3 million square feet of space.

"We have created significant value through the sale of this stabilized asset concurrent with Chevron's sizeable lease extension at our adjacent property," said Dennis Friedrich, president and global chief investment officer of Brookfield. "Chevron represents the type of top-flight corporate tenant we seek to partner with in our global energy-sector markets."

The sale price is a "coup" for Brookfield, said Dan Fasulo, managing director at Real Capital Analytics Inc. in a Bloomberg article. "It's a win-win for both parties," Fasulo said. "For Chevron, obviously they're a cash-rich corporation. They have the money to buy their own property."

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