Downtown Houston just saw a skyscraper go on sale at clearance pricing. Namdar Realty Group and Mason Asset Management have scooped up Jefferson Towers, the 40-story office tower at 601 Jefferson Street, for $66 million, a sharp haircut compared with what the building used to be worth. The more-than-1-million-square-foot property was about 92% leased when it traded and is heavily dominated by one anchor tenant, KBR. The mid-January sale included the adjacent parking garage and offers another sign that downtown office buildings are getting repriced even when they are locked into long corporate leases.
Inside the Deal and Who Bought In
JLL's Capital Markets team said the property spans about 1,047,748 square feet and that it represented Net Lease Office Properties on the sale. CoStar reports the buyer was a partnership of Great Neck, New York-based Namdar Realty Group and Mason Asset Management, and that the $66 million price comes out to roughly $63 per square foot.
KBR Locked In Through 2030
KBR takes up most of the building, roughly 900,000 square feet, and the company's lease runs through June 30, 2030, according to an annual report filed with the SEC. Bisnow reports the sale closed on Jan. 15 and left the tower about 92% leased. That concentration gives the new owners a steady rent stream for now, but it also ties a big chunk of the property's future to a single tenant.
Why the Price Looks So Small
The $66 million price tag is far below the tower's past valuations. Harris County records and deal reporting put the property's appraisal at about $120.4 million and note that W.P. Carey paid roughly $174.6 million for it in 2012, a clear illustration of how sharply downtown pricing has reset. The Real Deal reports that Net Lease Office Properties sold the tower after clearing large loans tied to the asset in late 2024 and 2025. Investors say the final number reflects both that unusual financing history and ongoing worries about demand for downtown office space.
What Buyers and Tenants Should Watch
JLL said the listing drew "tremendous interest" from private capital because it offered immediate yield, a clue to why a buyer like Namdar was willing to jump into the Houston office market. JLL also noted that the tower's scale and prime downtown address give the new owners room to reposition the building, although any strategy will have to work around KBR's long-term lease. Market watchers will be paying attention to whether Namdar and Mason pursue upgrades, rent adjustments or leaseback moves that could extend KBR's stay.
For tenants and downtown stakeholders, the sale is a reminder that ownership can flip even when a big-name company is locked in upstairs. Expect more repositioning plays in Houston's central business district as investors sort through vacancy, rents and the long-term appetite for large corporate office footprints.
