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Trammell/Principal JV Sells Energy Center II in Houston

American Realty Invests in 100% Leased Office Property in Energy Corridor
June 30, 2011
Trammell Crow Co. and Principal Real Estate Investors sold Energy Center II, a 303,299-square-foot office building in Houston’s Energy Corridor to American Realty Advisors. The price was not disclosed.

Trammell and Principal sold the 332,000-square-foot Energy Center I, a sister property, to Wells REIT II for $94 million last June.

Developed in 2008 by the joint venture, the 12-story, Class A, LEED Gold certified Energy Center II is on 4.36 acres at 575 N. Dairy Ashford. The property is fully leased. The largest tenants are Northern Offshore Ltd. with 11,450 square feet, CARBO Ceramics with 27,300 square feet and WorleyParsons Group Inc., which is two years into a 10-year deal for 255,550 square feet, according to CoStar Group information.

"Energy Center II is an outstanding core asset with durable income and appreciation potential. Houston's robust economy, which continues to outperform national levels, combined with an overall increase in national demand for energy and oil production, a premier location in the supply-constrained Energy Corridor and a roster of quality tenants all contribute to the potential for this asset to outperform over our anticipated investment period," said Stanley Iezman, American's chairman and chief executive officer.

American Realty Advisors is a commercial real estate investment company headquartered in Glendale, CA, with $3.7 billion in assets under management.

Trammell Crow is a real estate development and investment firm based in Dallas.

Principal Global Investors of Des Moines, IA, is a global asset manager and a member of the Principal Financial Group (NYSE:PFG).

See CoStar COMPS #2137082 for more information.

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