Washington, DC, April 23, 2019 – Northridge Capital, LLC, the Washington, D.C.-based real estate asset management firm, today announced that it, along with its partner KAMCO Investment Company, a Kuwaiti based asset management and investment banking firm with one of the largest AUMs in the Middle East, has purchased HP Plaza in CityPlace at Springwoods Village, a newly-developed urban center in north Houston, Texas and home to the 385-acre ExxonMobil corporate campus. The acquisition is expected to generate an anual net cash yield of 7.50% across the target holding period.
Completed in November of 2018 and built to Class-AA standards, HP Plaza houses HP, Inc., which occupies 100 percent of the Premises pursuant to a long-term lease. The Property, located in Springwoods Village, sits on 11.78-acres and features two buildings, totaling 378,402 rentable square feet. Springwoods village is also home to the 385-acre ExxonMobil corporate campus. The newly constructed Property is designed for sustainability and offers efficient, rectangular floor plates, structured parking at a ratio of 6.00 per 1,000, modern interior finishes with exposed ceilings and “office of the future” workspaces. The office campus provides top-tier tenant amenities including a full-service cafeteria and dining room with seating for up to 330 people, coffee shop and juice bar, and a fitness center with men’s and women’s locker rooms.
"Our client/partners – offshore institutional and high-net worth individual investors – focus on Class A properties with strong cash flows from credit tenants that are strategically located in dynamic markets well-positioned to capitalize on future momentum and growth," said David Jackson, President of Northridge Capital. “While this asset certainly meets those criteria, we are especially gratified to complete our first transaction with KAMCO Investment Company, one of the most active and sophisticated Gulf region investors in US commercial real estate.”
“We are excited to partner with Northridge Capital and HP, Inc. on this highly desirable asset located in what we believe will be the most dynamic mixed-use environment in Houston. We are especially thrilled that the property is 100% powered by renewable energy sources and is strategically located at the confluence of the I-45 and the Grand Parkway. This acquisition is in line with KAMCO’s commitment towards scaling its real estate portfolio through diversified assets.” said Mohammad Al-Othman, Senior Vice President and Head of the Alternative Investments Department at KAMCO.
“HP Plaza checks the three boxes Northridge Capital looks for when pursuing single tenant opportunities: 1) strong credit quality and cash flows; 2) desirable underlying, functional real estate and 3) a dynamic suburban/urban location that will cater to the workforce of the future and serve as a recruiting tool for the tenant.,” said David Etemadi, Vice President of Acquisitions for Northridge Capital. “We believe more and more Fortune 500 companies will choose to locate in these types of locations around the country in the “arms race” for the best human capital.”
Apollo Global Management, on behalf of Athene, provided Northridge Capital with a five-year, fixed rate loan to complete the purchase and financing of HP Plaza.
HFF’s Houston office represented the seller, led by Jeff Hollinden and Trent Agnew. Chris Hew and Cary Abod, also of HFF, secured the financing on behalf of the borrower.
About Northridge Capital, LLC
Northridge Capital, LLC, based in Washington, D.C., is an independent real estate asset management firm that has invested in 52 assets on behalf of investors, with a combined acquisition value of $1.26 billion. Since its founding in 1997, the company has focused on generating superior risk-adjusted returns for international high net-worth individuals and institutions. It acquires, manages and sells real estate assets across a wide variety of property types and geographic areas.
KAMCO Investment Company K.S.C (Public) is a premier investment company based in Kuwait. The Company is one of the leading investment firms in the Gulf region in terms of assets under management (AUM) and is regulated by the Capital Markets Authority. Established in 1998 and listed on the Boursa Kuwait in 2003, KAMCO is a subsidiary of United Gulf Bank (UGB). In 2018, KAMCO acquired a majority stake of 69.528% in Global Investment House K.S.C.C. (“Global”). The Company has established itself as a regional leader in providing innovative products and services to its clients, enabling it to increase AUM to over USD 12.97 billion (as of 31 December 2018) and achieve a strong track record of 131 successful investment banking transactions worth around USD20.4 billion (as of 31 December 2018).
With almost two decades worth of experience in conducting business with in investment industry, KAMCO has successfully established a robust reputation in the region, driven by its performance, prudent and conservative investment philosophy, solid business model and fundamental belief in implementing the highest standards of transparency, which has consistently commanded the goodwill of a wide and growing patron-base. Through its strategy, the Company aims to continue building upon its core competencies to provide the MENA region with innovative investment management consultancy and services, in addition to financial services that meet the needs of clients through value-added investment products and a cautious investment approach that is supported by an experienced team and strong track record.
KAMCO Investment Company (DIFC) Limited (KAMCO DIFC) is a wholly owned subsidiary of KAMCO Investment Company, incorporated in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).