Amstar Acquires 1001 McKinney Office Building in Houston, TX
Houston, TX (July, 2018) – In June 2018, Amstar, in conjunction with its joint venture partner, Houston-based TRC Capital Partners, closed on the acquisition of 1001 McKinney, a 23-story, 375,440 SF historic art deco office building in the central business district of Houston, TX. Situated in a Class A location on the corner of McKinney and Main in the heart of downtown Houston, 1001 McKinney provides convenient access to the city’s METRO Light Rail, Greenlink Bus System and Interstate Highways 10, 45 and 69. Additionally, the property is linked to the underground tunnel system, which connects 95 full city blocks and offers more than 400,000 square feet of retail and restaurant space in a climate-controlled, subterranean environment. 1001 McKinney was constructed in 1947 and is a historic landmark on the National Register of Historic Places. “We strongly believe in the Houston CBD and have been looking for several years at historic buildings that offer compelling value for both tenants and our investors,” said Steve Lerner, President and CEO of TRC Capital Partners.
76% leased at closing, the Property provides an attractive value-add lease-up opportunity as well as unrealized potential based on its historic features. Amstar will maintain these features while executing on a material renovation of the project including updates to the lobby and common areas with contemporary finishes, addition of an amenities suite including a conference center as well as a new tenant lounge and fitness center.
According to Amstar Senior Vice President Arndt Nicklisch, “1001 McKinney represents a unique opportunity to acquire a well-located asset with strong in-place cash flow at a favorable basis. Office leasing fundamentals in the Houston CBD have continued to improve and institutional investors have shown renewed interest in the market in recent months.”
Matthew Karp, Amstar’s Head of Americas, commented “1001 McKinney is an excellent addition to Amstar’s portfolio. Acquired alongside a strong local partner in a transit-oriented location, the Property is poised to perform well upon the execution of the renovations. This is Amstar’s third investment in the new Amstar America portfolio, and a continuation of a successful series of investments in Houston.”
Amstar is a privately-owned real estate investment management company with over three decades of experience in acquiring, developing and managing all major property types in the United States and in select international markets. The company’s two primary divisions include: Amstar America LLC, which targets value-add acquisitions, major renovations and repositionings and opportunistic ground-up developments in the United States, and Amstar Global Partners Ltd., which invests opportunistically in select international markets. Amstar was founded to manage the real estate allocation of its large family office owner. Over its 30 year existence, Amstar has grown to approximately $1.1 billion in assets under management (as of December 31, 2017).
About TRC Capital Partners, LLC
TRC Capital Partners (TRC), formerly known as The Redstone Companies, is a Houston-based, privately-held development and investment firm managing both private and institutional capital. Over the past 25 years, TRC has invested both private and institutional capital in assets with an aggregate value of over $1.4 billion. The TRC portfolio has included over $700 million in hospitality assets and over $400 million in commercial real estate. Recent projects include BBVA Compass Plaza, Regions Financial Center and the Intercontinental Houston Medical Center Hotel. To learn more please visit trccapitalpartners.com.