Toronto- and New York-based Brookfield Office Properties sold 600 Jefferson to a partnership of Dallas-based Stream Realty Partners and DRA Advisors for an undisclosed priced, Ralph Bivens reported in Realty News Report and CultureMap.
The 450,000-square-foot building is 91.4 percent leased, and United Airlines is the anchor tenant, according to Realty News Report. Chicago-based United Continental Holdings Inc. (NYSE: UAL) also keeps a corporate office at 1600 Smith, the former headquarters of Continental Airlines.
The new owners of 600 Jefferson will spend millions to renovate the exterior façade and lobby and upgrade finishes to Class A quality, according to the reports.
They also plan to change the address to something more recognizable, CultureMap reports.
Many owners of older buildings are trying to stay competitive through renovations, a trend that is likely to continue as rents rise and downtown occupancy and open space for development dwindle, Houston Business Journal recently reported.
For instance, four well-known downtown towers — Pennzoil Place, 800 Bell, the former 2 Shell Plaza building and the Niels Esperson and Mellie Esperson buildings — are undergoing significant renovations to compete with the high-end office towers underway nearby.
And like 600 Jefferson, 2 Shell Plaza got a new moniker reflecting an easily identifiable street address: 811 Louisiana.
SOURCE: Houston Business Journal