Houston CORE developments thread (Allen, Humble: low income, city hall, income)

[DaBears02]

Exxon’s tower at 800 Bell Street in downtown has also been sold to a New York investment group affiliated with CMI developers for residential conversion.

https://realtynewsreport.com/exxon-s...nt-conversion/

[ParaguaneroSwag]

Originally Posted by DaBears02

Exxon’s tower at 800 Bell Street in downtown has also been sold to a New York investment group affiliated with CMI developers for residential conversion.

https://realtynewsreport.com/exxon-s...nt-conversion/

Article says they’re planning to turn it into a residential tower. That’s a W

[oil capital]

Originally Posted by ParaguaneroSwag

Article says they’re planning to turn it into a residential tower. That’s a W

I think that's what daBears02 was referring to when he said it had been sold . . . "for residential conversion."

[DaBears02]

Originally Posted by oil capital

I think that's what daBears02 was referring to when he said it had been sold . . . "for residential conversion."

That’s exactly what I meant but I probably could have worded it better haha. Either way like ParaguaneroSwag said it is a big W considering it’s a 44-45 story building.

[LocalPlanner]

Originally Posted by DaBears02

That’s exactly what I meant but I probably could have worded it better haha. Either way like ParaguaneroSwag said it is a big W considering it’s a 44-45 story building.

If the conversion is feasible, it would certainly take a huge amount of vacant legacy office space out of the inventory, which would be great. The question is, will the conversion be feasible? Downtown apartment lease rates are at the top of the market (for Houston), but (1) is this building in the right spot Downtown to achieve those lease rates and absorb well and (2) how much capital costs must go into the property to actually achieve the conversion?

#2 could be partly offset by City incentives, which I bet the new owners will pursue - probably succesfully because otherwise this property has the potential for Days Inn-type blight, as it will likely never be reused as office space, so the City will be motivated. Not sure if it's in the Downtown TIRZ, but asbestos removal, if required, would be an eligible TIRZ-reimbursable.

But can this location get Market Square or Discovery Green-level lease rates? This is a much lower profile area of Downtown with fewer amenities like eating and drinking places. At least it will have a new park (Trebly Park). I've done previous analyses showing that the achievable lease rates have an enormous impact on the financial feasibility multifamily projects like this.

Hopefully the buyer has done a lot of examination and due diligence to have a reasonable idea of what they're getting into.

[ParaguaneroSwag]

One of the beauties of real estate is that it can always reinvent itself in the long run. I would suppose this developer sees the ground level retail potential and will use it to enhance its residential position.

There’s residential units nearby (i.e. Houston House). This is nearby the Pierce Elevated which has the potential to spring developments between this portion of Downtown and Midtown. Major employers are nearby (Chevron, KBR, Accenture). Light rail access is around the corner.

I wouldn’t call this the perfect location, but there’s definitely potential there.

[Jack Lance]

Originally Posted by DaBears02

Exxon’s tower at 800 Bell Street in downtown has also been sold to a New York investment group affiliated with CMI developers for residential conversion.

https://realtynewsreport.com/exxon-s...nt-conversion/

But will they keep the radiator fins?

[LocalPlanner]

Originally Posted by ParaguaneroSwag

One of the beauties of real estate is that it can always reinvent itself in the long run. I would suppose this developer sees the ground level retail potential and will use it to enhance its residential position.

There’s residential units nearby (i.e. Houston House). This is nearby the Pierce Elevated which has the potential to spring developments between this portion of Downtown and Midtown. Major employers are nearby (Chevron, KBR, Accenture). Light rail access is around the corner.

I wouldn’t call this the perfect location, but there’s definitely potential there.

The southern sector of Downtown has definitely upped its residential game in the last 10 years - the Skyhouses are also there. Nevertheless, it's not proven you can get Market Square-type lease rates there, yet. That doesn't mean it's not possible. Also, maybe the project still pencils out at rates a notch or two lower, especially if the City helps out.

[atadytic19]

Originally Posted by DaBears02

Exxon’s tower at 800 Bell Street in downtown has also been sold to a New York investment group affiliated with CMI developers for residential conversion.

https://realtynewsreport.com/exxon-s...nt-conversion/

It won't let me rep but +1 Million for that news.

I was hoping they would do something with that building soon and hearing that it is a residential conversion Mahe it double good news.

Actually it's triple good news because it takes away from the vacancy numbers. That building has a lot of sq footage and combined with the conversion of that other office building in Jefferson and that apartment building on main, that southern area is steadily adding units.

If they handle this Pierce business right that area could help pull all of Midtown into the 21st century. Southern downtown used to be totally dead 20 years ago. Now it is noticeably more active.
The amenities are not all that comparable to Market Square or discovery green, but I also remember when those areas were just as bad.

Market Square used to be rundown before they redeveloped the park, and GRB was separated from civilization by the ginormous packing lot that has become discovery green. Southern downtown has steadily built units comparable to those two areas without any park to spur growth. Imagine what it will be able to do with a redevelopment draw like the Pierce development. Amenities will be falling out the wazoo if they do this Pierce thing right.

With Rice anchoring the southern end, I think the middle portion of Midtown would fill in better soon that developers can cash in on being between ION and the Pierce developments.

The next 10 years might be huge for Midtown, or more of the same, but it all depends on how good of a job they do on Pierce.

And I do hope they keep the fins

[ParaguaneroSwag]

Some photos of the United training center

[IMG]https://media.bizj.us/view/img/12430400/united-airlines-new-training-center*1200xx7710-4337-0-403.jpg[/IMG]
https://media.bizj.us/view/img/12430...4337-0-403.jpg


https://www.us.jll.com/images/client...1280.1280.jpeg