JLL today announced the firm’s capital markets experts secured $163.5 million to refinance 717 Texas Avenue on behalf Hines and Prime Asset Management. Goldman Sachs provided the loan for the 33-story, 696,000-square-foot trophy office tower located in downtown Houston. Originally developed in 2003, the property was the first high-rise office building in Texas to earn a LEED Platinum Certification.
Executive Managing Director Tom Melody and Senior Vice President John Ream led JLL’s team on the financing.
“This is an exceptional asset located in Houston’s Central Business District,” said Melody. “This was a great lending opportunity with institutional ownership committed to the long-term success of the property. After evaluating proposals from multiple lenders, Goldman Sachs was ultimately awarded the financing due to attractive pricing and overall deal structure.”
717 Texas had been fully leased for more than a decade; however, a major tenant recently vacated leaving the building at approximately 50 percent leased.
“The drop in occupancy did not deter lenders from aggressively pursuing this refinancing opportunity” said Ream. “This is a testament to the quality of this asset and the lenders’ desire to place capital in Houston.”
The loan includes a facility allowing ownership to draw additional funds to lease the currently vacant space in the building.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2016 alone, JLL Capital Markets completed $136 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 2,000 specialists, operating all over the globe.
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