Marathon Oil Tower Trades Hands for $175M

CBRE Global Investors ended its hold on the Marathon Oil Tower in downtown Houston, selling the 1.2-million-square-foot office building for $175 million. The Baupost Group of Boston, and Houston-based M-M Properties bought the property for well below the $245.5 million that the seller paid for it in 2013. HFF’s Jeff Hollinden, Trent Agnew and Scott Galloway represented CBRE Global Investors and arranged for acquisition financing.

The seller, which invested $7 million in building improvements during its hold, listed the asset in 2015, took it off the market, then re-listed it in late 2017. Marathon Oil occupies approximately 744,000 square feet in a lease that expires in 2021. In February 2016, the oil company listed 81,059 square feet on the sublease market. The building at 5555 San Felipe St. is 87% occupied.

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