Software giant to keep offices on the property
BMC Software is selling its expansive west Houston office campus to a California partnership for $295 million.
Thomas Properties Group and the California State Teachers' Retirement System have a contract to buy the four-building, 1.5 million-square-foot complex in the Westchase District along with about 24 acres of undeveloped land.
The price per square foot represents one of the highest prices paid for a property of its kind in this west Houston market, according to industry observers.
"It's really kind of the triple crown of a great tenant, great buildings and strong market area," said Jim Murphy, president of the Westchase District.
The Houston-based software company, looking to improve its balance sheet, will keep its headquarters at the campus. It will lease 621,500 square feet of space — or 42 percent of the campus — from the new owner.
After the sale closes, which is expected this month, the campus will be 78 percent occupied.
"We expect to see strong tenant interest in the available space," said Chip Colvill of Colvill Office Properties, which will be involved in leasing the property.
Cushman & Wakefield represented BMC in the transaction.
The four buildings, at 2101 CityWest Blvd. near the Sam Houston Tollway, range from six stories to 21 stories.
The 35.3-acre development was a model for cutting-edge office design in Houston when it was built in the early 1990s and expanded in later years.
The campus received national recognition for its style and amenities, which include Japanese pools, an indoor basketball court, a bocce ball court and a putting green.
"It was built with the idea of trying to make sure they competed for talent appropriately," said Will Penland, senior managing director of CB Richard Ellis in Houston.
This is the second major buy in Houston for Los Angeles-based Thomas Properties Group, which last year spent $280.5 million on a 2.5 million-square-foot office portfolio through the same partnership.
One of the buildings is at 2500 CityWest, adjacent to the BMC campus.
James Thomas, chairman and CEO of Thomas Properties said the Westchase office market is showing "steady, sustainable growth."
The vacancy rate for the best office buildings in the area is 7.7 percent, he said. Vacancies in the nearby Energy Corridor are even less, as companies have been relocating to west Houston where housing options are plentiful and road expansions have improved commutes.
nancy.sarnoff@chron.com
