Houston's Marathon Oil Tower Sold

Hanover Real Estate Partners, based in Greenwich, Connecticut, announced this week that it had sold the Marathon Oil Tower to CBRE Strategic Partners US Value 6, a fund sponsored by CBRE Global Investors. Terms of the deal and purchase price were not disclosed, but the property is appraised at $214 million according to the Harris County Appraisal District. CBRE's brokers Bernard Branca, Jared Chua and Russell Ingrum advised CBRE Global Investors on the acquisition.

"We sought an opportune time to sell this truly unique trophy asset and believe this attractive transaction makes sense for both parties," commented Hanover Real Estate Partners managing partners Reed Miller and Ken Boyle. "We enjoyed working with CBRE Global Investors to consummate this sale and are pleased to come to an agreement that creates immediate value for our investors."

"Houston ranked second in the nation in net absorption in 2012, and the Galleria submarket in particular is experiencing dramatic recovery," Vance Maddocks, president of CBRE Strategic Partners U.S., said in a statement announcing the sale. "Given its location within a major growth corridor, Marathon Oil Tower is a great fit with our fund's strategy, and with our strength of ownership, we will be able to add value for tenants and our investors."

The 1.2 million square-foot, 41-story office building at 5555 San Felipe was 93% leased at the time of sale, with 60% leased to Marathon Oil Corp. Hanover took over responsibility for the management and oversight of the property from Lehman Brothers Inc. in 2003. Hanover announced last July that it had committed $5 million in capital improvements to the property, including fully modernizing the building's 40 elevators, installing card-key access security turnstile system, retrofitting the building's parking garage lighting and making improvements to the asset's cooling tower and drainage system.

For more news and information visit Blumberg Capital Partners.

One Washingtonian Center Sold for $90M

CB Richard Ellis Investors successfully acquired One Washington Center in Gaithersburg, MD from LaSalle Investment Management Inc. this month for a purchase price of $90 million, or roughly $285 per square foot, according to a Washington Business Journal article. LaSalle originally purchased the property in 2000 for $59.25 million as reported in tax records. Cassidy Turley represented LaSalle in the transaction; the buyer's representation was undisclosed.

One Washingtonian Center,built in 1989, is a 315,929 square foot Class A office building located at 9801 Washingtonian Boulevard just off of Interstate 270 in Gaithersburg. In July 2010, the building received LEED Platinum certification by the U.S. Green Building Council under the Leadership in Energy and Environmental Design for Existing Buildings: Operations & Maintenance Green Building Rating System. The building was reportedly 88% leased at the time of sale with Sodexo, Inc. as its anchor tenant occupying over half of the property as its North American headquarters.

"Our commitment to sustainability, coupled with our interest in amenity-rich, pedestrian-friendly, mixed-use properties, make this an ideal fit for the Strategic Partners U.S Value 5 portfolio," Vance Maddocks, president of CBRE Strategic Partners U.S., said in a press release. "We are thrilled to acquire such a high-quality, well-located building in this market and believe that our capital campaign, coupled with our strength of ownership, will give One Washingtonian Center a distinct competitive advantage in the market."

For more news and information visit Blumberg Capital Partners.