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PRESS RELEASES
Phoenix Tower Purchased by FSP Phoenix Tower Limited Partnership
Hines Continues Management and Leasing Responsibilities
2/23/2006
(HOUSTON, TX) — Hines, international real estate firm, and the property manager of Phoenix Tower in Houston, announced today the sale of Phoenix Tower for an undisclosed amount to FSP Phoenix Tower Limited Partnership (“FSPLP”) from Peak Phoenix Tower, LP. Located at 3200 Southwest Freeway, the 34-story office tower contains 629,000 square feet of rentable area. All of the equity interests in FSPLP are owned, directly and indirectly, by FSP Phoenix Tower Corp., a real estate investment trust sponsored by Franklin Street Properties Corp. (“FSP”) (AMEX: FSP). Phoenix Tower is not owned by FSP.
“Phoenix Tower offers an outstanding location within the Greenway Plaza submarket, provides excellent access to the River Oaks and West University residential areas, and is home to a great mix of tenants,” said FSP President George Carter.
Phoenix Tower is 92 percent leased to tenants including: Washington Mutual; Champion Technologies; Allen Boone Humphries Robinson; and Phillips & Akers.
Hines will continue in its role as property manager and leasing agent, as well as take the reins on FSPLP’s planned improvements at the property. This assignment represents the second major piece of business between Hines and FSP-sponsored real estate investment trusts. Hines currently manages the 379,000-square-foot Galleria North office building in Dallas, which the firm developed in 1999 and sold to an FSP-sponsored real estate investment trust in 2004.
Including Phoenix Tower, FSP and its affiliates own and operate approximately 1.3 million square feet of Class A office space in greater Houston, and have approximately 155,000 square feet of space under construction.
“We have a deep belief in the future of Houston, which is evidenced by our growing portfolio of area assets and our investment history in the city, dating back to 1993,” Carter said.
“Phoenix Tower is a signature landmark on the Greenway Plaza skyline. Our stewardship of the asset for more than a decade has been very satisfying, and we are very pleased to continue our management of the office tower for a purchaser who shares our passion for quality,” said Hines Senior Vice President Charles Elder. “We look forward to expanding our longstanding relationship with Franklin Street Properties into the Houston market, and we are confident this project will continue to be a great success for investors as we work with FSP to improve the building’s appeal to quality tenants."
Franklin Street Properties Corp. is a real estate investment trust based in Wakefield, Massachusetts, focused on achieving current income and long-term growth through investments in commercial properties. FSP operates in two business segments: real estate operations and investment banking/investment services. FSP owns an unleveraged portfolio of real estate. The majority of FSP’s property portfolio is suburban office buildings. To learn more about FSP, visit their Web site at www.franklinstreetproperties.com.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The Hines portfolio of projects completed, underway, acquired and managed for third parties includes more than 830 properties representing over 330 million square feet of office, mixed-use, industrial, hotel, medical, sports facilities and residential properties, as well as large, master-planned communities and land developments. In Houston, the firm manages approximately 15 million square feet of office space for itself and third parties. With offices in 64 U.S. cities and 14 foreign countries, and controlled assets valued at approximately $11.7 billion, Hines is one of the largest real estate organizations in the world. Access www.hines.com for more information.
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