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News release

Houston, TX.

Jones Lang LaSalle Markets Premier Houston Office Tower for Sale

Class A office tower/data center expected to appeal to institutional investors, life companies


HOUSTON, May 20, 2011 – Jones Lang LaSalle has announced that it has been selected by Urdang, the real estate specialist for BNY Mellon Asset Management, and Griffin Partners, a Houston-based real estate investment firm, to market 1301 Fannin, a high-profile Class A office tower in Houston. The Urdang Value Added Fund II acquired the property in 2007.

The 25-story, 784,143-square-foot tower is located in Houston’s Central Business District and features more than 370,000 square feet of state-of-the-art data center space with critical technology infrastructure for major office tenants and third-party providers. 

Leading the Jones Lang LaSalle team on this transaction are Senior Managing Director Dennis Desmond, Managing Directors John Alvarado and Paul House, Senior Vice President Curt Holcomb and Vice President Ross Cannizaro.

“This property should appeal to a wide variety of institutional investors, life companies and technical real estate buyers that are attracted to its core tenancy and extraordinary data center environment,” said Desmond.  “Potential investors will also find significant upside potential in 1301 Fannin associated with existing below-market rents with investment grade tenants. In addition, a new owner can create substantial value by expanding the existing data center environment.”

Built in 1984, 1301 Fannin was designed by Morris Aubry Architects and underwent almost $10 million in renovations in 2009 and 2010.  The property is located on a prime CBD city block bordered by Fannin Street, Polk Avenue, Clay Avenue and San Jacinto Street.  It is directly across the street from the Houston Pavilions.  The property combines newly renovated Class A office space with one of the premier data center environments in the Southwest. The data center features raised flooring, hurricane-rated windows and numerous other backup systems to ensure data integrity in the event of power loss.  The property is currently 86 percent leased and includes an impressive array of investment grade tenants.

Jones Lang LaSalle 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 our clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2010 alone, Jones Lang LaSalle Capital Markets completed $43 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $33 billion in global investment sales and buy-side transactions, equating to nearly $140 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its office broker volumes by 257 percent in 2010 and is quickly gaining market share across all property types. Jones Lang LaSalle’s Capital Markets team comprises approximately 800 specialists, operating in 185 major markets worldwide.
 
About Urdang Capital Management

Founded in 1987 with an exclusive focus on institutional investment grade real estate, URDANG offers a variety of strategies and products, managing approximately $2.2 billion(1) in public real estate securities through Urdang Securities Management, Inc. and approximately $1.7 billion(1) in debt and private equity real estate investments through Urdang Capital Management, Inc. for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors.  URDANG’s research-driven process combines top down economic analysis and market/country selection with bottom up underwriting of properties, companies and management teams to seek high, risk-adjusted returns.  It is one of the investment boutiques of BNY Mellon Asset Management.
 
(1) As of March 31, 2011

About Griffin Partners

Based in Houston, Texas, Griffin Partners is a full service investment management company focused exclusively on commercial real estate across Sunbelt markets. The company specializes in adding value and improving investment returns from real estate assets and offers a full range of services to its clients that consist of tenants, corporate and institutional owners, and individual investors. The firm’s services include development, investment management, acquisitions and dispositions, asset/property management, tenant representation, marketing and leasing.

The experience of the partners spans over 30 years and involves almost every type of commercial real estate requirement. The principals distinguish their performance by investing their own capital in each owned asset and handling the prime services personally. To date, Griffin Partners has developed in excess of 2.8 million square feet of high quality office and mixed-use projects.  Strategic acquisitions total additional 4.1 million square feet and the organization has remained an active participant in the capital markets through all phases of the economic cycle.

The careers of the principal partners involve hundreds of assignments, millions of square feet, and a virtual who’s who of companies and individuals. In all of these assignments they have built a reputation of providing the best possible returns and a relationship based on integrity that their clients can trust.
 
About Jones Lang LaSalle 

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $43 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.