Granite Acquires 825,000‑SF Eldridge Place in Major Energy Corridor Deal
The 3-building Eldridge Place has been sold to Granite Properties.
HOUSTON – Granite Properties has acquired Eldridge Place, an 824,632-square-foot, three-building office complex in the Energy Corridor of West Houston, for $78.4 million.
Jeff Hollinden, Senior Managing Director, and Martin Hogan, Senior Director of HFF, represented the seller, Dallas-based TIER REIT.
Situated at 737, 757 and 777 N. Eldridge Parkway, the complex offers direct access to Interstate 10, Memorial Drive and North Eldridge Parkway, and lies close to West Houston’s employment hubs that serve the Energy Corridor workforce.
The three Eldridge Place buildings are undergoing a $20.6 million capital improvement program that will continue through 2019. Upgrades include fully renovated lobbies, mechanical system improvements and raising the electrical service to better protect the buildings from future severe weather. Granite plans to continue enhancing on-site amenities such as the conference center, fitness center and cafe. The complex will offer more than 600,000 square feet of contiguous space over the next five years. Three Eldridge Place will be available for a full-building tenant in January 2020 and features a commercial kitchen, cafeteria, large lunchroom, conference and training center, and a customer lounge.
“With the continued recovery of the Houston economy and solid job growth, we’re expanding our Houston portfolio with high-quality assets in prime locations like Eldridge Place,” said Scott Martin, Granite Executive Managing Director. “As a real estate owner, we look forward to providing a customer-centric work environment that enhances productivity and fosters community.”
TIER REIT expects to receive additional insurance proceeds related to damage and destruction from Hurricane Harvey and its aftermath, including a claim for lost value attributable to the storm; the timing and amount of remaining claims are currently undetermined.
“The disposition of Eldridge Place allows us to streamline our Houston holdings and redeploy capital into higher-return opportunities, including our build-to-core development program at The Domain in Austin,” said Scott Fordham, CEO of TIER REIT.
Granite Properties was represented in the acquisition by Scott Martin and Paul Bennett.
Leasing for Eldridge Place is being led by Steve West, Senior Director of Leasing at Granite. The complex features connected, covered parking and includes the following buildings:
One Eldridge Place, at 777 N. Eldridge Parkway: a 12-story, 239,417-square-foot building that is 62.1% leased.
Two Eldridge Place, at 757 N. Eldridge Parkway: a 14-story, 279,329-square-foot building that is 77.9% leased.
Three Eldridge Place, at 737 N. Eldridge Parkway: a 13-story, 305,886-square-foot building that is 71.1% leased.
The Eldridge Place campus is adjacent to Energy Center Five at 915 North Eldridge Parkway, where McDermott International recently signed a 16-year headquarters lease for the 18-story, 524,000-square-foot tower.
With this acquisition, Granite expands its Houston holdings to more than 2.3 million square feet of Class A office space. Granite also owns and manages properties in Houston including 3355 W. Alabama, 2925 Briarpark, Weslayan Tower–24 Greenway Plaza, Granite Tower 290 and Briarpark Green.
