LaSalle JV Acquires Stake in Houston Office Campus

LaSalle Investment Management and 3Edgewood have acquired a stake in Houston’s CityWest office campus through an equity recapitalization.

The deal’s dollar value was not disclosed. Other parties to the transaction were also not identified, although Yardi Matrix shows that the most recent owner of the 1.5 million-square-foot, four-building campus was Parkway Properties.

The property is 98 percent leased, with a long-duration tenant base that includes BMC, Equinor, Honeywell and Bechtel. CityWest has completed about 460,000 square feet of leasing since 2023, according to LaSalle.

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CityWest was developed between 1993 and 2001 as a corporate headquarters campus. Its amenities include a recently renovated fitness center and basketball court, multiple dining venues, outdoor gathering areas and a secured campus environment with controlled access.

In addition to the four office buildings, the campus features four parking garages and two development sites of 4 and 6 acres. CityWest is located along the Sam Houston Tollway, near the intersection of Interstate 10 and Beltway 8 and just north of Westheimer Road, with street addresses of 2101–2107 CityWest Blvd.

Houston’s flight to quality isn’t slowing

Another recent Houston office deal came in late July, when the Wideman Co. acquired TotalEnergies Tower, a 35-story, 850,000-square-foot office building in downtown Houston. The seller was Brookfield Properties, and the price was not disclosed.

The Houston office market is marked by both ongoing leasing gains and a continuing flight to quality, according to a second-quarter report from CBRE. The report highlighted, for example, a 203,000-square-foot lease by Dow at City Centre Six and a 150,000-square-foot lease by Vitol at The RO Phase I. Both buildings delivered earlier this year. 

Overall office vacancy in Houston has declined to 23.8 percent, on an inventory of 15 million square feet, although Class A vacancy is just 11.7 percent. There’s 109,000 square feet of space in the pipeline, CBRE reported.