Yahoo Finance The Howard Hughes Buys Two Office Buildings in The Woodlands
The Howard Hughes Corporation HHC recently announced the acquisition of two Class-A office buildings in the 28,000-acre master-planned community of The Woodlands. The acquisition deal also includes excess land where The Howard Hughes has scope to build another office building. The purchase was made in an off-market transaction for $53 million.
The vacant four- and six-story buildings comprise 257,025 square feet of rentable space and are located next to the company’s Hughes Landing Development. The Howard Hughes has planned to offer these buildings for tenancy at the earliest.
The purchase amount for the above-mentioned properties is lower than the building’s replacement cost which makes the buyout even more lucrative. The building’s deed prohibits modification in the property by anyone other than the buyer. This exclusivity has further enhanced the deal’s attractiveness.
Notably, the Greater Houston area is experiencing rising demand for office spaces and the latest acquisition of premium properties by the company will help it capitalize on this favorable trend. This confirms the company’s ability to generate revenues over the long run.
The Howard Hughes’ shares have gained 12.5% over the past year, as against the industry’s decline of 4.7%. At present, the stock carries a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks from the Real Estate space include Consolidated-Tomoka Land Co. CTO, Colliers International Group Inc. CIGI and CBRE Group, Inc. CBRE. While Consolidated-Tomoka Land and Colliers International Group flaunt a Zacks Rank of 1 (Strong Buy), CBRE Group carries a Zacks Rank of 2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated-Tomoka Land’s Zacks Consensus Estimate for 2018 earnings has been revised slightly upward over the past 60 days. Its shares have rallied 13.5% in the past year.
Colliers International’s earnings estimates for 2018 moved 3.9% north in the past 60 days. Its shares have appreciated 54.8% over the past year.
CBRE Group’s earnings estimates for the current year inched up 1.3% over the past 60 days. Its shares have gained 31% in a year’s time.
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Consolidated-Tomoka Land Co. (CTO) : Free Stock Analysis Report
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