"BMC isn't a real estate company," Todd Merkle, vice president for the Los Angeles-based Thomas Properties, tells GlobeSt.com.
"This really represented a win-win transaction, where we gave them an amount of cash to reinvest in their core business and we were able to acquire the crown jewel of that market."The sale-leaseback is slated to close before the month ends.
The remaining class A office space at 2101 CityWest Blvd., developed in phases from 1993 to 2001, has already attracted strong interest from a variety of different companies."We believe there'll be very strong demand in this space.This is among the strongest submarkets in Houston," Merkle
says, "and it'll appeal to almost anyone across a broad spectrum of companies."
says another important component is the campus' location.It is adjacent to the Thomas Property Group's 25-story office tower at 2500 CityWest Blvd., which was acquired by the joint venture, TPG/CalSTRS
, in summer 2005 as part of a $281-million, 2.5-million-sf portfolio buy.
"The goal is to create an integrated atmosphere were the value of all our properties in that submarket is maximized," Merkle
says, adding various development scenarios are under evaluation."At this point, there are no specific plans for development or sale on the extra land."
The transaction will be funded with $203.4-million first mortgage and about $96.6 million of equity, of which Thomas Properties
is contributing $24.2 million or 25% to CalSTRS' $72.4 million.Merkle
says it's a plan that's worked well in the past for Thomas."We've had a successful joint venture with CalSTRS on various acquisitions," he
says."It's a vehicle we've used to acquire our last four projects."He
won't say if more Houston acquisitions are in the works, but did stress Thomas Properties
remains bullish on the market.