Cousins Properties has purchased a 100% interest in Post Oak Central, a Class-A office complex in the Galleria submarket of Houston, from institutional investors advised by J.P. Morgan Asset Management.
The off-market transaction provides Cousins with an attractive entry in Houston’s Galleria submarket. The Company funded the transaction using proceeds from recent non-core asset sales.
Larry Gellerstedt, President and Chief Executive Officer of Cousins, noted, “The Post Oak Central transaction is an outstanding fit with our ongoing strategy of acquiring quality urban office towers in the best Sun Belt submarkets at valuations below replacement cost. This investment also provides a rare combination of a significant future development opportunity and an attractive in-place yield.”
Post Oak Central includes three Class-A towers comprising 1.3 million square feet. The purchase price was $232.6 million, or $182 per square foot. A two-acre development parcel with frontage on Post Oak Central Boulevard was included in the purchase.