Statoil Gulf Services Signs Lease for 581,000-SF at TPG's CityWestPlace in Westchase District
Statoil Gulf Services, the U.S. upstream subsidiary of Norwegian oil giant Statoil ASA, signed a long-term lease for 581,000 square feet to more than double the current size of its North American headquarters at Thomas Properties Group's CityWestPlace in Houston’s Westchase District.
LA-based TPG bought the four-building, 1.5 million-square-foot office campus from BMC Software for $295 million in 2006 through its joint venture with the California State Teachers' Retirement System. It has since acquired full ownership of the property.
Beginning with initial occupancy in mid-2015, Statoil plans to expand from its current 225,000 square feet in the complex to eventually fill the entire 431,000-square-foot CityWestPlace 2 building while keeping an existing lease for 150,000 square feet in the CityWestPlace 4 building.
The new Statoil lease at CityWestPlace resolves the question mark hanging over the status of the property stemming from the December 2014 lease expiration and expected departure of major tenant Halliburton Energy Services.
Built as the Texas headquarters of BMC Software, CityWestPlace is a 30-acre corporate office campus totaling 1.46 million square feet. BMC still leases approximately 550,000 square feet in three of the buildings. Other major tenants include Ion Geophysical, Bristow Group and Spark Energy.
The Colvill Office Properties leasing team of Chip Colvill, Clark Thompson, Win Haggard Jr. and Michael Anderson represented TPG in lease negotiations. Mark O’Donnell of Studley in Houston represented Statoil.
Thomas Properties Group recently agreed to be acquired by Parkway Properties, Inc. (PKY) in a stock-for-stock transaction valued at approximately $1.2 billion. The transaction is expected to close by the end of this year. After closing, Parkway will assume ownership of TPG's two office properties in Houston and five office properties in Austin.