A Houston developer is buying 32 acres along the Energy Corridor for a business park that could hold 2 million square feet of office space.
The parcel is north of Interstate 10 and east of Texas 6. It sits on the north side of Park Row, which is being expanded east of Texas 6.
Its eastern neighbor will be the University of Texas M.D. Anderson Cancer Center.
The hospital recently purchased 35 acres north of I-10 where it’s planning a westside campus to offer many of the same services it does in the Texas Medical Center. The medical project will be part of a larger development called Central Park that could include offices, a hotel and high-end residential housing.
Read more: Energy Center corridor grows in west Houston
The developer of the business park, Core Real Estate, closed on just under half of the acreage in late 2012 and will complete the acquisition on the remainder of the parcel this year. The seller, a partnership, was represented by land broker Stan Creech.
Preliminary designs include a series of office buildings holding as much as 2 million square feet of space. The amount could grow depending on who occupies the site, said Michael Wyatt, Core’s managing director.
Construction is expected to begin by the fall on at least one building.
“I think it’s likely we’ll have a prelease for a portion of it,” said Wyatt, noting strong leasing activity among energy and oil field services companies.
Transwestern is marketing the project to tenants.
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The funding for the expansion and completion of Park Row is being done through a so-called 380 agreement with the city of Houston. These funding mechanisms allow infrastructure projects to be funded by a public entity, which is then paid back by property taxes generated from new development.
In this case, the Energy Corridor District will act as the developer making the infrastructure improvements. The group is receiving a $12.5 million loan from the Houston Housing Finance Corp. to expand Park Row and make other upgrades to the area.
BG Group Place
Houston-based Hines is hoping to sell another one of its trophy properties – and one of its youngest.
The commercial real-estate firm said it has hired property broker Eastdil Secured to market the building, BG Group Place, but would not provide further details.
The 1 million-square-foot downtown tower at 811 Main was completed in 2011.
Aside from its namesake tenant, BG Group Place also houses KPMG. Last month Hines announced it had leased 75,737 square feet to the local law office of BakerHostetler. With the law firm, the 46-story tower became 92 percent leased.
Real Estate Alert, a national industry newsletter, pegs the building’s value at $470 million.
If Hines gets that much, it would beat the $445 million record for a single office building held by downtown’s Hess Tower. Last year, Hines sold its two-building Shell Plaza complex, also downtown, for $550 million. The buyer was an affiliate of Enterprise Products Co., the Houston company founded by the late billionaire Dan Duncan.