Brookfield Office Properties Sells Properties in Minneapolis, Houston
Brookfield Office Properties Inc. (NYSE: BPO) announced today the sale of two assets: the 33 South 6th Street / City Center property in Minneapolis and the KBR Tower office building in Houston, in which Brookfield sold its 50% interest along with joint venture partner KBR.
Brookfield sold the 33 South 6th Street / Minneapolis City Center property in Minneapolis to Shorenstein Properties LLC on behalf of its tenth investment fund, Shorenstein Realty Investors Ten, L.P. for $205.5 million gross. Net proceeds to Brookfield were approximately $106 million. The 50-story property contains 1.1 million square feet of office space, 370,000 square feet of retail space and 687 parking stalls. Target Corp. is the anchor tenant, renting 72% of office space under a lease that expires in December 2023. Overall, the property is 95% leased.
Brookfield, along with joint venture partner KBR Inc., sold the KBR Tower office building and adjacent garage in Houston to Corporate Property Associates 17-Global, a public non-traded REIT affiliate of W. P. Carey Inc. (NYSE: WPC) for $174.6 million gross. Brookfield's U.S. Office Fund (in which Brookfield owns an 84% interest) had owned a 50% interest in the building through a joint venture with KBR. Net proceeds to Brookfield were approximately $76 million. KBR Tower, located at 601 Jefferson St. in downtown Houston, contains 1.05 million square feet of headquarter office and retail space, with an adjacent 1,500-space garage. Brookfield acquired its stake in the 40-story tower as part of the Trizec portfol io in 2006.
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