Camden Property Trust Expands Presence at Greenway Plaza—but Switches Buildings

By Georgiana Mihaila, Associate Editor

Camden Property Trust—one of the largest publicly traded national multifamily developers—will soon be trading its office at 3 Greenway Plaza for the neighboring 11 Greenway Plaza. The company signed a lease for 86,733 square feet on floors 23 through 26 of the 31-story Class A office building.

Bob Boykin, Warren Savery and Bubba Harkins represented owner Crescent Crown Greenway Plaza SPV L.L.C., while Anthony Squillante, Chris Johnson, Jeremy Hunt and Mike Anzilotti represented Camden Property Trust.

“Camden’s growth over the years required that we relocate our headquarters from 3 Greenway Plaza,” said Keith Oden, Camden’s president. “After a lengthy review of available options, we decided that the best choice for the company and our team members was to relocate within Greenway Plaza. The convenient location, ease of ingress/egress and access to amenities made our decision to move to 11 Greenway very straightforward.”

The planning and design of Camden’s new space in Greenway Plaza is being conducted by Gensler, and the construction will be performed by E.E. Reed Construction L.P. Located in Houston’s Greenway Plaza submarket, 11 Greenway Plaza totals 745,956 square feet.

Greenway Plaza, Houston’s premier master-planned business development, is a 10-building complex featuring 4.3 million square feet of Class A office space. The campus is also home to The Shops at Greenway, which includes a unique selection of retail options and a full-service food court. Located just five miles southwest of downtown Houston, the 55-acre business park and mixed-use community includes residential condominiums, a luxury hotel and a comprehensive athletic/social club; it provides easy access to major thoroughfares and convenient transportation alternatives.

Image via http://www.greenwayplaza.com/

GID Development Reveals Phase Two of Regent Square Mixed-Use Project

By Georgiana Mihaila, Associate Editor

Following the August 2012 groundbreaking on its Regent Square mixed-use project, GID Development Group is now lining up plans for a second phase.  Phase Two will add an Alamo Drafthouse Cinema, another residential building and 15,000 square feet of restaurant space to the project, which is set in the heart of the Inner Loop.

Designed as a walkable mixed-use district featuring apartments, condominiums, retail shops, restaurants, entertainment venues, office space, parks and courtyards, Regent Square aims at becoming an icon of sophisticated urban planning.

GID Development kick-started the 4.2 million-square-foot mixed-use Regent Square development in August 2012, when construction began on the 290-unit luxury apartment tower The Sovereign. The 21-story residential tower, designed by Zeigler Cooper Architects, promises to deliver the most sophisticated set of amenities in the market. With initial occupancy slated for March 2014, The Sovereign has been designed to comply with LEED Silver standards.

Work on Phase Two will start in late 2013, with Alamo Drafthouse Cinema having already officially announced its presence at the location. Another sophisticated residential project featuring 160 apartments and a wide variety of amenities has also been included, as well as 15,000 square feet of restaurant space.

“Phase Two represents a vibrant component of Regent Square, featuring an exciting multi-family project and high-caliber tenants such as Alamo Drafthouse Cinema,” said James Linsley , president of GID Development Group. “The addition of this type of entertainment destination to Regent Square supports our vision to provide the best shopping, dining, entertainment, public space and walking neighborhood in Houston.”

Neal Berkowitz with Newmark Grubb Knight Frank mediated the Alamo Drafthouse Cinema lease.

Image courtesy of GID Development Group

Hines Tapped to Manage Three-Building Energy Corridor Portfolio

By Georgiana Mihaila, Associate Editor

Energy Tower I

Franklin Street Properties Corp. has retained international real estate firm Hines to manage its three-building office portfolio in the West Houston Energy Corridor.

The multi-tenant office portfolio comprises Energy Tower I—a 326,000-square-foot, 14-story building located at 11700 Katy Freeway; Phase I of The Offices at Park 10, a six-story building at 16285 Park Ten Place, with 157,000 square feet of space; and neighboring Phase II of The Offices at Park 10, located at 16290 Katy Freeway and totaling 157,000 square feet.

“Hines has enjoyed its relationship with Franklin Street Properties, managing buildings for FSP in Atlanta, Chicago, Dallas and Kansas City. Following our firm’s recent success with FSP at Phoenix Tower in Houston, we look forward to achieving our owner’s asset objectives through Hines’ property management expertise,” said General Property Manager Don Emerson, who will oversee Hines’ on-site management staff at each property.

The three-building portfolio is 100 percent leased, with Technip USA Holdings Inc. and Murphy Exploration and Production Co. occupying substantial portions of Energy Tower I and the Offices at Park 10, respectively.

According to Marcus & Millichap, Houston continues to rank among the tightest office markets in the nation. With above-average job creation, limited new supply and a highly active energy industry, investor demand for Houston properties will most likely rise over the next year alongside occupancy and rents. In high-demand areas such as the Energy Corridor and CBD, availability of large blocks of space has dwindled, and soon-to-be-vacated space should be met with healthy demand.

Image: Energy Tower I courtesy of Hines

Forum Energy Tech to Occupy 68% of New Duke Realty Building

By Georgiana Mihaila, Associate Editor

Duke Realty Corp.’s Houston office found a tenant for Sam Houston Crossing Two, the firm’s new, speculative suburban office building fronting the Sam Houston Tollway.

Forum Energy Technologies Inc.—a provider of manufactured technologies and applied products for the energy industry—signed a 108,639-square-foot lease and will be occupying the second and third floors of the building. The 108,639-square-foot lease amounts to 68 percent of the building.

Located between Highway 290 and Highway 249 on the Sam Houston Tollway, midway between the I-10 Energy Corridor and the new Exxon Mobil campus, Sam Houston Crossing Two has been targeting energy services firms that want to be close to industry clients, with Duke Realty’s efforts in this respect being deemed successful.

“This building will consolidate Drilling and Subsea personnel from four buildings, giving them an opportunity to work more closely together as a team, and supports our continued growth,” said Tom Simms, treasurer with Forum. “The Duke building appealed to us due to its location, easy access on the Sam Houston Tollway, visibility and attractive design.”

The 159,056-square-foot tilt-wall concrete-and-glass facility features large floor plates for flexibility in space planning and includes Class A finishes and fixtures. Forum will be moving in starting in July 2013.

Steve Hesse and Jeff Cairns with CBRE represented Forum in the transaction, while Cory Driskill, senior leasing representative, represented Duke Realty.

Another speculative development will soon claim ground at the southwest corner of the Sam Houston Beltway 8 Tollway and Highway 225. California-based The Carson Cos. recently broke ground on Carson Commerce Center, a three-building, 365,000-square-foot industrial project. With completion set for the end of the year, The Carson Co. chose Cadence McShane to be the general contractor for the project, while Powers Brown Architecture was named architect.

Image via Duke Realty’s Official Web site

Energy XXI Expands Footprint at One City Centre; Law Firm Moves In at BG Group Place

By Georgiana Mihaila, Associate Editor

Oil-and-gas exploration and production company Energy XXI Services L.L.C. has decided to expand its presence on the Main Street Corridor. The company has signed a lease expansion for 28,168 square feet at One City Centre, bringing its total footprint to 128,133 square feet.

Transwestern’s David Baker, executive vice president, represented landlord Beacon Investment Properties, which purchased the property on Sept. 20 from Behringer Harvard; Jason Wasaff with Wilson Wasaff Group L.L.C. represented the tenant.

One City Centre is a 29-floor, Class A office building totaling 609,000 square feet and located within walking distance of hotels, sporting events, convention facilities and Discovery Green Park. The strategic location on the Main Street Corridor is convenient to the Metro’s light-rail and bus routes.

Meanwhile, Downtown Houston’s newest office tower, BG Group Place, has achieved some recent leasing activity: Law firm BakerHostetler signed a 75,737-square-foot lease for floors 11 through 13 of the 46-story LEED Platinum building. The lease also includes a unique 10,000-square-foot, green rooftop deck for client events and firm functions.

The law firm will relocate from another downtown building when the lease commences in the third quarter of this year. With the signing of this lease, BG Group Place is 92 percent occupied. BakerHostetler was represented in lease negotiations by Mark O’Donnell, Derrell Curry and David Endelman of Studley. Chrissy Wilson, Allison Knight and Tyler Garrett represented Hines, the building’s developer, owner and manager.

Hines senior managing director John Mooz said, “We could not be more pleased with BakerHostetler choosing BG Group Place for their new home. They are an outstanding addition to an already world-class tenant roster.”

Image: BG Group Place, Courtesy of Hines

Skanska’s LEED Platinum Office Building Lands First Tenant

By Georgiana Mihaila, Associate Editor

Skanska USA’s commercial development business unit in Houston has officially announced the first tenant lined up for its state-of-the-art 3009 Post Oak Blvd. building, currently under construction in the Uptown/Galleria submarket.

Datacert Inc.—a 15-year-old global company based in Houston that provides enterprise legal management solutions—plans on relocating its corporate headquarters to the building. The company has signed a long-term lease for 49,824 square feet on the 10th and 11th floors of the new building.

“Our decision to move was driven by the need for more space to accommodate our growth, as well as a desire to have a state-of-the-art workspace that will help us attract and retain top talent and present well to our world-class client base,” said Datacert CFO Alan Harding. “The innovative, green design of 3009 Post Oak Blvd.  will provide our employees with an attractive work environment with lots of natural light that’s in a premier location near Houston’s top amenities.”

3009 Post Oak Blvd. will total 20 stories and 302,000 square feet, including 12 stories of office space sitting atop an eight-story parking garage. The building will feature an all-glass curtain wall façade, an expansive double-height ground-floor lobby and 25,000-square-foot floor plates that maximize space-planning efficiencies. The building skin and high-efficiency mechanical and electrical systems are designed to reduce energy consumption by 25 percent for operational savings. In addition, the building will have a sophisticated lighting control system for the office and garage areas, as well as a water-saving rainwater collection system used for landscape irrigation.

The project is on track to deliver in summer 2013 and is pre-certified LEED Platinum, making it the only speculative office building of this level outside the Central Business District in Houston. Skanska USA Commercial Development acquired the site in October 2009 and is self-financing 100 percent of the development costs.

Image: 3009 Post Oak Blvd. brochure, courtesy of Skanska

Trammell Crow, Principal Start Work on Class AA Energy Center Three

By Georgiana Mihaila, Associate Editor

A joint venture between Trammell Crow Co. and Principal Real Estate Investors have embarked on a quest to deliver the highest-quality office building in the Energy Corridor, Energy Center Three. The developers just broke ground on the Class AA, 546,372-square-foot office building on the southwest corner of I-10 and North Eldridge Parkway, on an 18.9-acre site acquired by the joint venture in March 2012.

The Kirksey Architects-designed building will feature a post-tension concrete structure with a high-performance skin including a glass curtain wall and metal panels. Plans also call for a large green area and water amenity adjacent to the building.

The 20-story Energy Center Three has already been pre-certified LEED Gold by the U.S. Green Building Council. The office building—along with its featured nine-level, freestanding parking garage—will be merely the first phase of a planned multi-phase office development.

The project marks the fifth Class A office project Trammell Crow and Principal will develop together in Houston. The venture also developed Hess Tower downtown (the 2012 winner of Commercial Property Executive‘s Distinguished Achievement Award for Best Development/Redevelopment), Energy Center I and II in the Energy Corridor and most recently Noble Energy Center One in the northwest quadrant.

“Energy Center Three demonstrates TCC and Principal Real Estate Investors’ commitment to high-quality office development in top-tier national markets. This new speculative project is reflective of our longer-term outlook for growth and expansion within Houston and specifically the Energy Corridor,” said Aaron Thielhorn, managing director with Trammell Crow’s Houston business unit.

With Balfour Beatty Construction serving as the project’s general contractor and Trammell Crow’s Aaron Thielhorn, Kevin Schmok and Brandon Houston  alongside Principal’s Joe Wanninger leading the development team, completion is expected in the fourth quarter of 2014.

A syndication of Wells Fargo Bank and U.S. Bank provided construction financing, while the leasing assignments have been awarded to Cody Armbrister and Steve Rocher with CBRE Group Inc.’s Houston office.

Shorenstein Buys Exxon Mobil Building; Hilton Westchase Also Gets New Owners

By Georgiana Mihaila, Associate Editor

The downtown Exxon Mobil building recently traded hands, with San Francisco-based Shorenstein Properties becoming its new owner.  Shorenstein purchased the property for Shorenstein Realty Investors Ten L.P., a fund formed in 2010 with $1.2 billion in committed capital.

Along with the sale, former owner Exxon Mobil Corp. also leased back the entire building into 2015, when it plans to relocate to its new 385-acre corporate campus, currently under construction north of Houston.

The 45-story 800 Bell St. building, known as the Exxon Mobil Tower, was built in 1962 as the headquarters of Humble Oil & Refining Co., a predecessor to ExxonMobil; at that time, the 1.2 million-square-foot office tower was the tallest building west of the Mississippi River at 606 feet.

Also included in the sale was a seven-story parking garage. No financial details of the transaction have been disclosed, but Shorenstein Properties chairman & CEO Douglas Shorenstein declared, “We purchased this property markedly below current replacement cost, which gives us the opportunity, once the current user vacates, to employ all our company’s core skills – in capital transaction execution, redevelopment, leasing and operations – to increase the property’s value by establishing its long-term position and further enhancing its reputation in the market.”

According to an official release, Shorenstein plans to undertake significant improvements to the property after ExxonMobil’s departure.

The Hilton Houston Westchase also experienced a recent change of owners, as Interstate Hotels & Resorts sold the 297-room hotel to Wheelock Street Capital. This is the company’s second Houston purchase and its sixth full-service hotel acquired within the past 12 months. Wheelock Street plans to renovate the 12-story, 220,254-square-foot hospitality property at 9999 Westheimer Road.

No details have been provided as to the amount for which the Hilton Houston Westchase traded, but CoStar Group Inc. reports that investment entity Capstar Westchase Partners L.P. sold the asset to Interstate Hotels in February 2007 for $50.5 million, or $170,034 per key.

Image courtesy of Obskura via Flickr

One Hughes Landing Gets First Major Tenant, Construction Financing

By Georgiana Mihaila, Associate Editor

One Hughes Landing, the first office building to be constructed at the Hughes Landing community that The Howard Hughes Corp. is planning for The Woodlands, now has a major new tenant, as well as construction financing.

Layne Christensen Co. has signed a 51,152-square-foot lease for the top two floors of the still-to-be-completed One Hughes Landing. The global solutions provider will move 210 employees from its current Mission City, Kan., location in September 2013.

“We are delighted by the opportunity to join The Woodlands community and the amenities it provides,” said Rene Robichaud, president & CEO of Layne Christensen. “The Woodlands is a wonderful location to live and to conduct business. We sincerely appreciate the efforts of The Woodlands Development Co. to collaborate on our new building. We look forward to a successful partnership in the years to come.”

The developer was represented in the deal by Robert Parsley and Norman Munoz of Colliers International. Tenant Layne Christensen was represented by Colliers International brokers Sven Sykes (of Chicago), Brian Johnson (Kansas City) and Jay Kyle (Houston).

The Howard Hughes Corp. secured $38 million in non-recourse financing from Texas Capital Bank and Woodforest National Bank for the construction of the building.

Designed by Gensler of Houston to be LEED Silver certified, the 197,000-square-foot, Class A, eight-story building is now underway and is expected to be completed by September 2013. It will be the first of as many as eight office buildings at the 66-acre Hughes Landing on Lake Woodlands, a dynamic destination within The Woodlands that is set to include a boutique hotel and several retail and entertainment venues with high-end specialty stores, as well as upscale multifamily housing.

Image courtesy of The Howard Hughes Corp.

Houston Office Market Heats Up as 3 Buildings Change Hands; Invesco Emerges as Williams Tower Buyer

By Georgiana Mihaila, Associate Editor

With Houston having already set an annual record in office sales, December closings will certainly stand as confirmation, as investors seem to be herding local properties at an unusual pace.

3555 Timmons, a 225,895-square-foot, Class A office building in Houston’s Greenway Plaza submarket, recently traded hands for an undisclosed amount. Buyer Unilev Capital Corp. acquired the 14-story building from Great Point Investors L.L.C., with Holliday Fenoglio Fowler L.P. arranging the deal.

The 272,361-square-foot Westchase Park also experienced a change in ownership, with Clarion Partners recently acquiring the Class A office building along with seven acres of adjacent land. Westchase Park, completed in 2009, is one of the newest office properties in the Westchase submarket and has been awarded a LEED Gold designation for core and shell and a LEED Platinum designation for certain tenant improvements. The property is currently 98.3 percent occupied.

KBS Strategic Opportunity REIT also added a Houston office property to its portfolio; in its sixth investment of the year, KBS acquired 1800 West Loop South, a 400,101-square-foot, 21-story office tower located in the West Loop/Galleria submarket for the reported amount of $68.5 million. Although the 1982-built property underwent a renovation process in 2005, the new owner plans additional building improvements and modernizations, including an upgrade of the lobby and elevators.

The biggest local office deal is yet to come, Invesco Real Estate has reportedly agreed to pay Hines approximately $420 million for the 1.5 million-square-foot Williams Tower. If the deal closes, it would be Hines’ second major deal of the year, following the company’s August sale of the 1.8 million-square-foot One and Two Shell Plaza for $550 million. The 64-story Williams Tower, located at 2800 Post Oak Blvd. in the Galleria/West Loop submarket, is currently 96.5 percent leased, according to CoStar Group Inc. The tenant roster includes Hines itself, Transco Energy, Rowan Cos., Quanta Services and Citigroup.

While the $420 million price tag the LEED Gold-certified building could trade for would mark the top price in total dollars ever paid for a Houston office property outside the central business district, it would still fall short of some early expectations that it could trade for as much as $475 million.

Image: Williams Tower via Wikimedia Commons