Cerberus & Hines Acquire Texas’ Tallest Building in $627M Transaction

Cerberus Capital partnered with Hines to pay $627 million for the 1.7-million-square-foot JP Morgan Chase Tower, at 600 Travis in downtown Houston. The deal includes the adjacent 407,000-square-foot Chase Center, at 601 Travis. The seller was Hairiri Interests, operating as Prime Asset Management, and controlled by former Lebanese prime minister Rafic Hariri.

Real Estate Alert indicated that New York-based Cerberus will own 90% of the properties, while Hines will take a 10% share. Hines developed the buildings in the early 1980s; 600 Travis was, and continues to be, the tallest building in Texas. Hines has been managing both properties. Colvill Office Properties has handled leasing.

The seller acquired JP Morgan Chase Tower in 1985 through a joint venture with Hines. At the time, the property was known as the Texas Commerce Tower. Prime Asset later took full ownership of the property, and acquired the neighboring Chase Center in 2009.

The 75-story JP Morgan Chase Tower was designed by the late architect I.M. Pei, and completed in 1981 under the name Texas Commerce Tower.

Photo: Agsftw

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