The $565 million transaction also includes Occidental’s Century Park campus in the West Houston Energy Corridor, representing an additional 63 acres, with 1.3 million square feet and 17 office buildings. That property will be remarketed, according to a Howard Hughes Corp. news release.
In The Woodlands, where Howard Hughes Corp. announced it would move its headquarters in October, the Occidental office tower purchase includes a 125,000-square-foot warehouse and 9.3 acres of developable land in The Woodlands Town Center alongside The Woodlands Waterway.
Occidental completed its acquisition of Anadarko in August.
Howard Hughes officials said the deal is part of the company's goal of expanding its portfolio in The Woodlands area.
“The Howard Hughes Corporation is defined by a steadfast commitment to our master planned communities, which across the country are consistently ranked among the best places to live, work and discover, allowing leading corporations to attract and retain today’s top talent,” Howard Hughes Corp. CEO Paul Layne in a statement. “This acquisition of Class AAA office space in The Woodlands Towers at The Waterway, as well as the additional property in The Woodlands, further expands our existing portfolio in this market where our 2.5-million-square-feet office portfolio is currently 94% leased, allowing us to respond to the growing need for premium office space as companies are looking to relocate and expand within The Woodlands.”
According to the release, Occidental will continue to occupy the towers and will lease back 100% of the larger, 808,000-square-foot tower at 1201 Lake Robbins Drive as well as 100% of the warehouse for 13 years.
Occidental President and CEO Vicki Hollub said in a statement she believes it is important for the company to maintain a presence in The Woodlands.
“The sale of office complexes in the Houston Energy Corridor and The Woodlands is part of our plan to divest non-core assets and continue to improve the strength of our balance sheet,” Hollub said. “It was important to us, and many of our employees, to maintain a presence in The Woodlands, and we are pleased to have signed a 13-year lease to remain in the community.”
The Howard Hughes Corp. will relocate its corporate headquarters into the approximately 595,000-square-foot tower at 9950 Woodloch Forest Drive, The Woodlands.
The future of the towers following Occidental’s acquisition of Anadarko Petroleum Corp. has sparked speculation since the Occidental acquisition was announced earlier this year.
“These iconic towers have long been a beacon at the entry to The Woodlands Town Center, and The Howard Hughes Corporation is extremely proud to bring them into our portfolio,” said Jim Carman, President, Houston Region for The Howard Hughes Corporation. “The Woodlands offers a vibrant lifestyle, a strong workforce, highly-acclaimed schools, and unparalleled amenities including hiking trails, parks and open spaces while focusing on health and wellness.”