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Major Building in Houston's West Loop Acquired by Falcon

Falcon Real Estate Investment Company, LP is pleased to have acted as real estate investment advisor for the purchase of the ABB Building in Houston, Texas. This newly constructed, nine-story building contains 487,788 square feet of office space (45,364 square meters). The building has been pre-leased to ABB, Inc., a subsidiary of Asea Brown Boveri, LP of Zürich, Switzerland. The parent company, which is rated AA- by Standard & Poor’s and Aa2 by Moody’s, has guaranteed the lease.

The building was purchased from the developer at a price of $70 million and mortgage financing was provided by John Hancock Mutual Life Insurance Company of Boston, Massachusetts.

The ten-year lease with ABB, Inc. has a 10% rent increase after five years. The tenant reimburses the landlord for all operating expenses, but the landlord is responsible for maintenance of the roof and structure. The property is located in the West Loop area of Houston, Texas, which is the fourth largest city in the United States. Houston continues to be one of the fastest growing cities in the country.

David Hill, a Vice President of Falcon Real Estate responsible for the company’s Dallas office, stated “This is a very high quality investment from every viewpoint. The location in the West Loop area is excellent; the quality of construction is first-rate; and there is a premier quality tenant in place for the next ten years.”

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Announcements
December 1999