HOUSTON – (Realty News Report) – The Howard Hughes Corporation announced $250 million in financing for its 1201 Lake Robbins office building in The Woodlands.
The 806,000-square-foot tower is fully leased to Occidental Petroleum through the end of 2032, providing long-term income stability for the asset.
1201 Lake Robbins and 9950 Woodloch Forest together form The Woodlands Towers at The Waterway—the tallest office towers in The Woodlands. These prominent buildings sit at the entrance to the Waterway Square District, a major mixed-use hub that supports office, retail, hospitality, research, institutional and industrial activity across approximately 35 million square feet of developed space.
The Howard Hughes Corporation acquired both towers from Occidental Petroleum in December 2019.
The new financing is a non-recourse, 10-year loan with a fixed interest rate of 3.827 percent and interest-only payments for the full term. The transaction provides moderate leverage on 1201 Lake Robbins while significantly strengthening the company’s liquidity by roughly $248 million net of transaction costs.
“We are very pleased to execute such an attractive long-term and low-cost financing that represents a substantial return of our equity investment in 1201 Lake Robbins,” said David R. O’Reilly, Chief Executive Officer of The Howard Hughes Corporation. “This transaction further increases our already robust liquidity position and aligns with our commitment to focus resources on the accelerated growth of our core master-planned community assets—yielding proceeds we believe can be redeployed at significantly higher returns across the many expected opportunities in our pipeline.”
Owned and managed by The Howard Hughes Corporation, The Woodlands Towers at The Waterway comprise two Class AAA office buildings: the 32-story 1201 Lake Robbins tower and the 31-story 9950 Woodloch Forest tower.
Both buildings were formerly occupied by Anadarko Petroleum prior to Occidental Petroleum’s acquisition of Anadarko. The 1201 Lake Robbins tower was long known as the Anadarko Allison Tower and was built in 2000 when Anadarko relocated from Greenspoint. The 9950 Woodloch Forest tower, a 30-story, 595,854-square-foot building, had been known as the Anadarko Hackett Tower.
The Woodlands is a 28,800-acre master-planned community located 27 miles north of downtown Houston. More than 118,000 residents live in The Woodlands, and the community supports a workforce of over 68,000 people.
Oct. 18, 2021 Realty News Report Copyright 2021
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