Howard Hughes Acquires Waterway Plaza II in The Woodlands, Texas
June 28, 2024 : Howard Hughes Holdings Inc. (HHH), a prominent developer shaping the landscape of The Woodlands® community near Houston, Texas, announced the acquisition of Waterway Plaza II on June 27, 2024. This strategic move strengthens HHH’s presence in the area’s thriving commercial sector.
Waterway Plaza II is a six-story Class A office building situated within The Woodlands Town Center, the central business district of The Woodlands®. The building encompasses approximately 142,448 square feet of rentable office space and is conveniently located on a 3.23-acre site with an attached 1,316-space parking garage.
The acquisition holds significant value for HHH. Notably, Waterway Plaza II is currently only 55% occupied, presenting an opportunity to increase occupancy rates and generate additional revenue. This aligns perfectly with HHH’s existing portfolio within The Woodlands Town Center, where office space boasts a near-full % occupancy rate of 96%.
David O’Reilly, CEO of Howard Hughes Holdings, emphasized the strategic benefits of the acquisition. He highlighted the potential for immediate value creation through lease-up of the vacant space and long-term value creation through potential redevelopment opportunities on the site.
Furthermore, O’Reilly expressed confidence in Waterway Plaza II achieving a stabilized net operating income (NOI) of $3 million within the coming years. This reinforces HHH’s commitment to the ongoing development and economic vitality of The Woodlands®.
The acquisition of Waterway Plaza II exemplifies Howard Hughes Holdings’ continued investment in The Woodlands®. By strategically expanding its commercial portfolio, HHH is well-positioned to cater to the growing demand for office space within this dynamic business district. This move further solidifies HHH’s role in shaping the future of The Woodlands® as a premier destination for businesses and residents alike.
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