The Woodlands: Howard Hughes Buys Office Building

In Houston, Howard Hughes Holdings has scooped up a vacant office building in the Waterway District of The Woodlands Town Center in a $16.3 million transaction.

The Woodlands-based Howard Hughes reported the purchase of 10101 Woodloch Forest Drive, an eight-story building near I-45 and The Woodlands Parkway. Built in 2009, the building contains more than 200,000 SF on 1.6 acres and is walking distance to hotels, apartments, shopping and dining at Waterway Square, Market Street and The Woodlands Mall.

The building will be renamed 7 Waterway, as stated by Howard Hughes. It was previously occupied by McKesson and owned by Net Lease Office Properties.

The Woodlands office submarket has outperformed the overall Houston market. Class A properties there had a vacancy rate of 15.5% in the first quarter compared to 24.2% for Houston, as stated by CBRE.

“When this property became available, we recognized the immediate value it could add to our portfolio of world-class commercial properties in The Woodlands,” said Alex Hancock, Senior Vice President of National Sales & Leasing at Howard Hughes. “Given the influx of relocations to Texas, the growth of the Houston region, and the increased demand for premier office space in highly amenitized, walkable areas, this purchase provides us the opportunity to meet the real estate needs of both current and future tenants of our community.”

The latest purchase builds upon Howard Hughes’ portfolio totaling 4 million SF across 16 buildings in The Woodlands. Last year, the company purchased nearby Waterway Plaza II at 10001 Woodloch Forest Drive.

The company’s Woodlands office portfolio is 89% leased overall, as stated by Howard Hughes’ reports. Buildings in The Woodlands Town Center, which include The Woodlands Towers at the Waterway, are 96% leased.