democide

Chronicle Building; 710 Preston St. Redevelopment by Hines

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democide    138

Hearst Selects HFF to Market Houston Chronicle Downtown Property

 

HOUSTON – Hearst Corp. has selected the HFF commercial real estate brokerage firm to handle the sale of its Houston Chronicle property in downtown Houston.

 

Hearst interviewed a number of Houston’s leading commercial real estate brokers before selecting HFF, a national firm with a strong local office.

 

The 10-story Chronicle building, 801 Texas Ave., covers a full city block and comes with parking garage on another block. The newspaper, which has operated at that location since 1910, will move to the former Houston Post building on Southwest Freeway.

 

The Chronicle’s downtown facility, much of it classified as being in “poor” condition by the Harris County Appraisal District, is expected to be demolished.

 

The Chronicle property is in a hot sector. A number of new developments are being built nearby, including a 40-story apartment tower by Woodbranch Investments and the 48-story Hines office tower, 609 Main at Texas.

 

http://realtynewsreport.com/2014/11/21/hearst-selects-hff-to-market-houston-chronicle-downtown-property/

 

Thanks to desertpunk at SSC.

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j_cuevas713    900

They're putting a lot of effort into marketing the downtown site. Was I the only one that didn't know an adjacent garage was part of the deal too?

 

https://my.hfflp.com/GetDocument?DT=DealDocument&ID=113784

 

11233514_663055945010_772980604754847638

 

1549457_663055959980_1881979903842753951

THANK YOU MR. HINES!!!! This man is going to save this city all by himself!

 

Where did they get these conceptual renders from? We need a tower like that. Along with Discovery Tower, downtown could become something amazing!

Edited by j_cuevas713
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lockmat    1853

The HBJ report says that the Realty News Report run by Ralph Bivinins says that since Hines is currently building 609 that it is unlikely they would demolish and build a skyscraper at this time. Probably true, I guess given the economy? But that means they'd have to lease it for like ten years right? If so, this would be a LONG term investment they couldn't really start for a long time, and this while downtown is somewhat booming. I find that hard to believe but I guess it's possible.

 

Thoughts on what their options are?

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cspwal    1784

That half-block parking garage is the one next to the Hogg(sp?) Palace right?

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Avossos    870

The HBJ report says that the Realty News Report run by Ralph Bivinins says that since Hines is currently building 609 that it is unlikely they would demolish and build a skyscraper at this time. Probably true, I guess given the economy? But that means they'd have to lease it for like ten years right? If so, this would be a LONG term investment they couldn't really start for a long time, and this while downtown is somewhat booming. I find that hard to believe but I guess it's possible.

 

Thoughts on what their options are?

 

The fact there is a large parking garage is valuable.

 

They could also renovate the old building back to its historic facade roots.

 

There is also the empty lot nearby that is a part of the purchase - possible new residential by market square (likely IMO).

 

Honestly, this is a smart move. Hines will have a handful of potential plans for that space. If they are buying it, it is because of some kind of potential. Remember, there are 2 lots they would be getting. Future is bright for that area, this ensures Hines has at least 2 projects in the area for the future.

Edited by Avossos

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HNathoo    116

This is 1.5 blocks. At $50M, this places the value of the land at $500+psf. I'm pretty shocked they're able to get this type of valuation in a low oil price market.

 

 

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H-Town Man    1854

Good stuff. I think pretty much everyone was hoping Hines would get this.

 

I think a residential tower on the garage site will happen sooner than an office tower on the full-block site, but the need for a garage to serve the existing building is a barrier (assuming they will try to keep leasing it in the short term, until they can build a new tower). They would have to demolish the printing press section of the old building and put a garage there. Not sure how the economics would work on that.

 

And just for fun, who do we want designing the next office tower? Maybe we can give Pickard Chilton a break this time around. Renzo Piano might like to come back to town, and Hines has worked with Cesar Pelli in other cities.

 

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JJxvi    262

LOL @ a Houston Chronicle blog citing "unnamed sources" as to who the Houston Chronicle is in negotiations to sell to. 

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H-Town Man    1854

^^ Is Realty News Report affiliated with the Chronicle? Almost certainly Bivins got this info from someone involved in negotiations under strict anonymity, probably a contact he knows at either HFF or Hines. I doubt Hearst would let anything leak out internally.

 

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lockmat    1853

Last I saw Bivins worked for Culture Map but also has his own website.

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CREguy13    478

If Hines were to reach an agreement on the site, it would be in the best interest for Houston IMO. I would think they would use this site as a crossroads to tie together the CBD, Market Square, and the Theatre District. Personally, I would think if Hines locks up this site, they would look to buy the Market Square Tower site, as well (if it were for sale). With coordination, those 3 adjoining pieces of land, developed by the right group, could be transformational. Hines is the best in the business, and it would be quite the project. My guess is that Hines could hold this land even through the next cycle, possibly.

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ANTHONYHTOWN    154

really doubt we will see anything as tall as chase tower the only thing on life support is the chevron tower as the next possible super tall

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cloud713    3538

and Hines has worked with Cesar Pelli in other cities.

Hines wasn't apart of any of the Houston Pelli developments? Renzo would be neat.

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Moore713    297

I have more faint in Hines building something than I do any of the other developers.Hines has should the balls to take a risk on Houston more than the others

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Subdude    1279

I have more faint in Hines building something than I do any of the other developers.Hines has should the balls to take a risk on Houston more than the others

 

I don't know.  They left the 1000 block of Main Street remain as surface parking for like 15 years after the Lamar was demolished.  I kind of foresee the same fate for the Chronicle structures.  

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