Applied Optoelectronics buys Houston buildings it leased for $102.25 million
Applied Optoelectronics bought three Houston buildings it had leased for $102.25 million, ending the leases with no early termination penalty.
Key takeaways
- Applied Optoelectronics (AAOI) completed its purchase of three buildings in Houston, Texas, for $102.25 million on Nov. 6, 2026. The buildings total 736,216 rentable square feet. The company terminated the three leases on them effective the same day, with no early termination penalty.
Applied Optoelectronics (AAOI) bought three Houston, Texas, buildings for $102.25 million on Nov. 6, 2026, and ended the leases it held on them the same day.
Shares rose 1.3% after hours at 5:09 p.m. ET, from a $52.75 close.
The purchase covers Buildings 1, 2 and 3 at Hightower Business Park – Phase I, with the land, improvements and certain associated personal property and rights. The seller is Hightower Phase I Owner, LLC. The price is subject to customary prorations and closing adjustments.
The company bought the buildings under purchase options in three leases dated May 8, 2026, reported May 13, 2026. The buildings total about 736,216 rentable square feet.
| Building | Address | Rentable square feet |
|---|---|---|
| Building 1 | 6000 McHard Road, Houston, Texas 77053 | 163,930 |
| Building 2 | 6100 McHard Road, Houston, Texas 77053 | 343,332 |
| Building 3 | 17255 Chimney Rock Road, Houston, Texas 77053 | 228,954 |
The buildings are intended for manufacturing, warehouse and office use.
The purchase agreement includes representations, warranties and indemnification provisions. It also assigns certain construction and roof warranties to the company.
The company and the seller signed a lease termination agreement ending the three leases effective Nov. 6, 2026. Each had an initial term of 123 calendar months, plus any applicable partial month.
No early termination penalty applies. Mutual releases of lease-related claims are subject to surviving obligations, including the company's indemnification, hold-harmless and defense obligations under the leases, and the parties' obligations under the purchase agreement. The agreement also returns the security deposit and any unapplied prepaid rent to the company.