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The Perennial — BBVA Compass Plaza + Loews Hotel/Apts & Office Tower

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brilliant and beautiful!  i cannot wait until they announce this hotel brand....

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What's with the Soviet-style cloned towers behind the one rendering of the office tower?

Someone went a little nuts recreating the Dominion on Post Oak.

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So the office tower is 29-stories plus 8 stories of parking to make for a 37-story tower? 

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42,410sqft of Retail space. Thats awesome. Now this is what I call mix-use. Residential, Hospitality, and Retail in the same building!

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So any timeline on construction?

 

2Q or 3Q start date according to the last article on this one.

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Is that for both mixed-use tower and the office tower?

 

The mixed-use high-rise. I think the office tower was going spec but will only move forward now when a tenant signs on.

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^^^  magnificent!  this was badly needed for this particular stretch of post oak blvd....

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The mixed-use high-rise. I think the office tower was going spec but will only move forward now when a tenant signs on.

Makes sense in this economic climate. Is that the name of the hotel or has their not been an official announcement yet?

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Every time I hear BBVA compass I think of the soccer stadium, so have a moment of confusion of why they would build towers at the Dynamo stadium

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BBVA Compass Plaza, the first office building to rise on the Uptown skyline in 30 years, has changed hands in a deal that signals the strength of Houston for international investments.

Masaveu Post Oak Houston Delaware, a private investor based in Spain, has purchased the 22-story building at 2200 Post Oak Blvd.

The sales price was not disclosed, according to commercial real estate firm Holliday Fenoglio Fowler, which marketed the property for the seller.

Completed in 2013, BBVA Compass Plaza was sold by a venture partnership of Stream Realty Partners, TRC Capital Partners (formerly The Redstone Cos.) and an institutional client of L&B Realty Advisors.

"The sale of BBVA Compass Plaza reflects the continued interest of foreign capital in Class A product in superb locations in Houston such as the Uptown/Galleria submarket," Steve Lerner, CEO of TRC Capital Partners, said in an announcement.

The 326,200-square-foot modern-style building is 83 percent leased, with BBVA Compass Bank occupying 58 percent of the space. The building has seven levels of parking with 1,144 spaces, a etail bank, a fitness center and two upscale restaurants, Caracol and Oka Sushi.

Located on Post Oak Boulevard north of the Galleria, the building is in a high-growth urban area where cranes dot the skyline and amenities such as 40 restaurants are within walking distance. But, with oil trading below $50 a barrel, it is unlikely additional office buildings will break ground anytime soon.

"With its groundbreaking, BBVA Compass Plaza ignited a development renaissance in Houston's most coveted submarket that is ongoing and encompasses more than 6,050 luxury multi-housing units, more than 2 million square feet of office space, in excess of 697,000 square feet of high-street retail and two new luxury hotels," Dan Miller, senior managing director of HFF said in an announcement. "The transformative impact that this property has had on the Galleria skyline cannot be overstated, placing it at the forefront of the 'urbanization' movement in the Houston marketplace."

In the past two years, foreign investors have spent nearly $2.5 billion on all types of commercial real estate in the Houston market, placing it just ahead of Miami and behind Atlanta, according to Real Capital Analytics, a real estate information firm. Foreign investments represented 9.2 percent of all commercial real estate investments here during the period.

The top cities for foreign investment in the past two years are Manhattan, Los Angeles, Boston, Washington, D.C., and Chicago.

The biggest deal occurred earlier this year when German realty fund Union Investment purchased 1000 Main, a 36-story downtown building from Invesco Real Estate. With a price tag of $440 million, the sale is one of the biggest ever in Houston.

Post Oak Boulevard has been a popular street for foreign investors.

This summer, Strategic Capital, the U.S. investment arm of China-based real estate conglomerate CSCEC, made its first Texas purchase with the acquisition of Broadstone Post Oak apartments at 3100 Post Oak Blvd.

Last year, Sinopec USA of China purchased 3050 Post Oak Blvd., a 17-story office building in the Lakes on Post Oak complex. And FG Asset Management of South Korea bought 3000 Post Oak Blvd, a 19-story building in the same complex.

The investment sales team of Scott Galloway, Dan Miller, Matt Kafka, Colby Mueck and Trent Agnew from HFF handled the sale of 2200 Post Oak Blvd.

 

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How much money is there in being a skyscraper landlord? Lets say I owned Texaco Heritage Plaza, how much am I making a month off of that?

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If it's empty, you're making the increased (or losing if decreased) price of land and the building.

If it's full, it's the same, but with rent money also coming in.

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I'm looking for a dollar figure.

How much are companies paying in rent?

Let's use BG group place as an example. Prime, Class A office space with tunnel access. How much is the building owner making a month on a fully leased out 940,000 sq feet?

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I'm looking for a dollar figure.

How much are companies paying in rent?

Let's use BG group place as an example. Prime, Class A office space with tunnel access. How much is the building owner making a month on a fully leased out 940,000 sq feet?

 

Average rents depend on the submarket, so even though it's relatively new, BG Group Place, which is downtown, is not a good comparison for an Uptown building.

 

2200 Main (BBVA Compass) is renting at $30.88/sf/yr.

 

BG Group Place is renting at $34.11/sf/yr.

 

That only addresses income.  You need to factor in expenses (property management fees, additional salaries, janitorial, utilities, taxes, maintenance, insurance, captial improvements, tenant improvements, etc.) to get a sense of your take home.

 

Edited by Gator Purify
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In general the way buildings like this are appraised is the income approach which applies a cap rate to the net income to get an income value for the entire property.  So if you know the value and the cap rate you can back out to what the yearly income probably is.

 

For either the CBD or Uptown the cap rate is probably somewhere in the neighborhood of 7-8% for early 2015.

 

For BBVA this is $100 million * 7%/8% = $7 to $8 million income per year

 

For Bg Group Place is roughly $450 million * 7% = $31.5 to $36 million income per year

Edited by JJxvi

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In general the way buildings like this are appraised is the income approach which applies a cap rate to the net income to get an income value for the entire property.  So if you know the value and the cap rate you can back out to what the yearly income probably is.

 

For either the CBD or Uptown the cap rate is probably somewhere in the neighborhood of 7-8% for early 2015.

 

For BBVA this is $100 million * 7%/8% = $7 to $8 million income per year

 

For Bg Group Place is roughly $450 million * 7% = $31.5 to $36 million income per year

 

Is that EBITDA?

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In general the way buildings like this are appraised is the income approach which applies a cap rate to the net income to get an income value for the entire property. So if you know the value and the cap rate you can back out to what the yearly income probably is.

For either the CBD or Uptown the cap rate is probably somewhere in the neighborhood of 7-8% for early 2015.

For BBVA this is $100 million * 7%/8% = $7 to $8 million income per year

For Bg Group Place is roughly $450 million * 7% = $31.5 to $36 million income per year

Wow, thanks for the in depth breakdown.

So just to clarify, that figure is net profit, before expenses, correct?

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The additional two towers are on hold, for now...

 

http://www.bizjournals.com/houston/blog/breaking-ground/2015/11/after-galleria-area-tower-sells-phase-two-on-hold.html

 

 

 

Preston Young, regional managing partner for Dallas-based Stream, said the sale showed that interest from outside investors is still strong in Houston despite low oil prices.  

Still, he said the fundamentals of the market mean the phase two office tower proposed for 2100 Post Oak Blvd. is on hold for now. According to TRC Capital Partners' website, the proposed project would include 343,000 square feet of high-end office and retail space on 29 floors.  

"Last year, we made the decision to put pencils down on that project for the time being. Not only would it be difficult to achieve financing for a spec office project right now, the fundamentals aren’t right," Young said 

"A similar thing happened with phase one," Young added. "We originally had plans in 2007 to push the ball forward on development, but the Great Recession put the project on hold for 18 to 24 months, and we broke ground in 2011. Right now, we’re in wait-and-see approach with phase two."

 

 

Edited by AREJAY
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Go figure. I just don't understand why you wouldn't want to take advantage of cheap material to build the tower knowing that by the time the price of oil recovers, you're building is ready to be delivered. I mean if you're hell bent on developing the property, to my trivial, elementary mind, it makes sense.

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^^^ this site would be PERFECT for houston's first W HOTEL.  we can only PRAY that this is indeed the hotel flag that has been chosen.  props urbannizer, for this cool / wonderful information...

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I think it'll be that upscale Mexican Brand. I forgot the name.

 

Is it "la doble U" ?

Edited by AREJAY

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