Houston's Hess Tower Receives $250 Million Debt Financing

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This week CBRE reported that they had arranged $250 million in debt financing for the acquisition of Hess Tower, a 844,736-square-foot, Class AA trophy office asset in the Houston CBD.

CBRE Capital Markets Senior Vice President Michael Strober worked on behalf of the borrower, H&R REIT to secure the eight-year, fixed-rate loan at 4.5% per annum through Pacific Life Insurance Company. Strober, based in Tampa, FL, was joined in representing H&R REIT by Bernard Branca and Greg Greene of CBRE Capital Markets in Houston and Dallas, respectively.

H&R REIT completed the purchase December 22, 2011 and the financing closed January 23, 2012.

Completed in June 2011, the 29-story, 844,763-square-foot Class AA office tower is downtown Houston's newest landmark and the Central Business District's newest LEED Certified Platinum for Core & Shell property.

The asset is fully leased through June 2026 to Hess Corporation (NYSE: HES, S&P: BBB/Stable), a global integrated energy firm. Situated at the heart of downtown Houston's Entertainment District, the property is positioned at the epicenter of a sophisticated and vibrant, pedestrian-oriented urban neighborhood. With an irreplaceable location overlooking the extraordinary Discovery Green, Hess Tower is within walking distance of an unrivalled concentration of upscale restaurants and retail, first-class hotels and world-class sports and entertainment destinations.

H&R REIT is a Toronto Stock Exchange listed, open-ended Real Estate Investment Trust. The REIT holds interests in 39 office properties, 117 industrial properties, and 133 retail properties comprising over 43 million square feet.