LaSalle Buys Equity Stake in West Houston’s CityWest Office Campus

LaSalle Investment Management has taken an equity position in CityWest, an office campus in West Houston made up of four buildings totaling about 1.5 million square feet. The size of the stake was not revealed.

The campus was originally built for BMC Software as a corporate headquarters on a 39-acre site near the junction of Interstate 10 and Beltway 8. At the time of the recapitalization, the property was 98 percent leased. Listed amenities include a recently renovated fitness center, a basketball court, several dining venues and outdoor gathering areas.

LaSalle made the investment through a joint venture with the investment firm 3Edgewood. The deal involves a large, fully leased suburban office asset that was built around a single anchor tenant's headquarters needs.

For developers and lenders, the transaction illustrates how joint-venture recapitalizations can bring new equity into established, well-occupied office properties without a full sale.