Brookfield Properties has relinquished control of a 4.6 million-square-foot office complex in Houston to its lender, Bisnow reported.

The report came after Stream Realty Partners announced that it completed the transfer of Houston Center’s ownership to a joint-ownership between itself and pension fund AustralianSuper.

AustralianSuper provided a US$219-million mezzanine loan to Brookfield in 2017, Bisnow reported while citing a Private Debt Investor report.

“We’ve structured a mutually beneficial deal and are confident the new owners will be strong stewards of the complex,” a Brookfield spokesman said in a statement to Bisnow.

The move marks a significant shift in ownership for one of downtown Houston’s largest commercial real estate assets. Brookfield Properties is a subsidiary of Toronto-based Brookfield Corporation.

The property transfer includes 1 Houston Center at 1221 McKinney St., 2 Houston Center at 909 Fannin Street, and 3 Houston Center at 1301 McKinney Street, all of which are at least 40 floors and 1 million square feet. The deal also includes the 985,000-sf 4 Houston Center at 1331 Lamar Street, which houses The Highlight at Houston Center retail development. 

“Houston Center represents a transformational opportunity in a market where we have strong conviction in the long-term fundamentals and future growth,” said Kyle Valentine, executive managing director and partner at Stream, in a news release.

“We are fully committed to delivering an elevated experience that resonates with today’s workforce and believe the strength of our team, paired with the support of an experienced institutional partner, positions the campus for lasting success as a premier office destination.”

Brookfield is among well-funded institutional investors that have deliberately defaulted on loans and returned properties to lenders to avoid paying high debt costs on underperforming assets.

Houston Center has lost some major tenants in recent years after Brookfield modernized the buildings constructed in the 1970s and 1980s, Bisnow noted.

Pictured: The Houston Center office campus.

Photo: Brookfield Properties

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multi-family housing, and much more. www.ConnectCanada2025.com