Jump to content
HAIF - Houston's original social media

Texas Tower (Block 58) by Hines, 47-Story Office Tower


Recommended Posts

26 minutes ago, CREguy13 said:

Right so for background, I was able to review Hines Block 58 Marketing book that highlighted all on their new office project (Block 58) in great detail.  On a few of the pages where they showed the impact on the skyline from different vantage points, they showed the proposed high rise on Block 42.  The proposed high rise was clearly residential and looked to be as tall if not a few floors taller than Market Square Tower, with nearly all glass facing Market Square park.  I have no knowledge of the project outside of these renderings - but the impact on the northern portion of our skyline was immense.  Hopefully the filing of these plats are a good sign.

 

Thank you sir!

 

I didn't think Block 58 would be full residential. Seemed to be suited for office or mixed use office. This makes sense.

  • Like 2
Link to post
Share on other sites
  • Replies 1.8k
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

The glass on the garage is starting to be installed.

If it pleases you, m'lord.

Posted Images

16 minutes ago, Triton said:

 

Wow... I really need to lower my expectations right now because they are sky high!

Same here.  While it was only preliminary drawings and everything is subject to change if/when this were to break ground, we must remember this is Hines.  And if you look at the immediate area with 609 Main, Aris MS, MST and Capitol Tower, these are all of the highest quality in their asset classes and are doing very well.  As we've seen time again, the Hines effect is real and we should expect this area to continue to reflect that.

  • Like 7
Link to post
Share on other sites
2 hours ago, REDev89 said:

The block 42 highrise is all residential and currently at 46 stories. This would take half the block (old HC parking garage).

Be still, my racing heart.  That'd be quite an addition, in and of itself.

 

As to Block 58, I'm sure Hines is well aware of the proposed tower at One Market Square given that they were tied down in litigation regarding tunnel access for that site.  I can't help but think Hines would want to ensure their building would make the bigger splash, even if One Market Square gets built.  That gives me a sense of optimism for this site.  :)

  • Like 3
Link to post
Share on other sites

So there are three blocks in this area: 42, 43, and 58. Hines owns and is slated to develop blocks 42 and 58. 43 is where one market square/international tower is slated to go on.

 

Is block 58 currently the surface parking lot or is that 43? Something isn't quite adding up.

Link to post
Share on other sites
  • 2 weeks later...

 

1 hour ago, hindesky said:

This has to be a promising sign that something is going to happen, a truck drilling for core samples, I counted 6 holes so far.

 

It can't be due to any sort of failure of the paving - it's still smoother than a baby's tuckus.

  • Like 2
  • Haha 1
Link to post
Share on other sites
  • 1 month later...
8 hours ago, swtsig said:

it's not posted on his website anymore but this morning Ralph Bivins announced that Hines was on the verge of kicking off block 58. V&E has long been rumored as the lead tenant and Ralph confirmed as much. Here was his write up:

 

 

 

So nice had to read it twice!

  • Like 7
Link to post
Share on other sites

Thrilling read from good ol' Ralph. Random thoughts:

 

Hines must really like the number 48. I wonder what the significance is to him. Was that how old he was when he met his wife or built the Galleria, or some other personal landmark?

 

There is a phenomenal opportunity here to establish Texas Avenue as a pedestrian thoroughfare. In an ideal world, an architect might find some way to mimic the verandah at The Rice in a more contemporary fashion.

 

This may push Brookfield to the heavier end of a planned renovation of Houston Center, to ensure those buildings don't fall into Class B status. The Cullen Center area buildings, basically everything south of the old Enron buildings, seem destined for Class B.

 

As far as One Market Square, what can you say? Is there any hope for them in a submarket that's already at 20% Class A vacancy? Change the use. Office is wrong for Market Square. Give us a great hotel right there.

Edited by H-Town Man
  • Like 4
  • Thanks 2
Link to post
Share on other sites
29 minutes ago, H-Town Man said:

Thrilling read from good ol' Ralph. Random thoughts:

 

Hines must really like the number 48. I wonder what the significance is to him. Was that how old he was when he met his wife or built the Galleria, or some other personal landmark?

 

I suspect it has something to do with an economic "sweet spot," but that's just a guess.

  • Like 1
Link to post
Share on other sites

I'm hoping for a cool crown too. 

Something not too eccentric but modern.

 

As far as vacancy I'm hoping some of the older buildings can be repurposed to residential ala Texaco/Star. 

 

Htown I'm with you on the Texas street pedestrian thoroughfare. Love The Rice verandah idea. As for the buildings south of the Enron buildings all 6 or so should be converted to residential. That includes the Exxon, Continental,  KBR,  500 Jefferson, 600 Jefferson/ 1801 Smith, 701 Jefferson Garage, Hell on Earth.... Would be nice if all of them were converted to residential. That should be more than 4M SQ alone.

  • Like 2
  • Haha 1
Link to post
Share on other sites
7 minutes ago, HoustonIsHome said:

I'm hoping for a cool crown too. 

Something not too eccentric but modern.

 

As far as vacancy I'm hoping some of the older buildings can be repurposed to residential ala Texaco/Star. 

 

Htown I'm with you on the Texas street pedestrian thoroughfare. Love The Rice verandah idea. As for the buildings south of the Enron buildings all 6 or so should be converted to residential. That includes the Exxon, Continental,  KBR,  500 Jefferson, 600 Jefferson/ 1801 Smith, 701 Jefferson Garage, Hell on Earth.... Would be nice if all of them were converted to residential. That should be more than 4M SQ alone.

 

That would take the wind out of the sails of new residential construction for a long time. Most of those buildings have decent occupancy, nothing wrong with Class B if you've got tenants. When the Pierce comes down could be a game-changer for that area.

 

  • Like 1
Link to post
Share on other sites
18 minutes ago, mattyt36 said:

 

I suspect it has something to do with an economic "sweet spot," but that's just a guess.

 

Probably. Maybe they think investors get scared of the number 50. 48 sounds like a more sober number.

 

I was kind of hoping they'd add a major non-office component and bring this one up above 60, considering it's the last best block downtown, and catapult Houston into the new age of true multi-use buildings like Wilshire Tower in L.A. or the proposed 600 Guadalupe in Austin. But considering they have a residential tower planned for Block 42, that probably gave them enough to chew on.

 

  • Like 2
Link to post
Share on other sites
17 minutes ago, H-Town Man said:

 

Probably. Maybe they think investors get scared of the number 50. 48 sounds like a more sober number.

 

I was kind of hoping they'd add a major non-office component and bring this one up above 60, considering it's the last best block downtown, and catapult Houston into the new age of true multi-use buildings like Wilshire Tower in L.A. or the proposed 600 Guadalupe in Austin. But considering they have a residential tower planned for Block 42, that probably gave them enough to chew on.

 

 

Doesn't it have more to do with the structural requirements or even the elevator banks creating uneconomical floor plates?

Link to post
Share on other sites
Just now, H-Town Man said:

 

That would take the wind out of the sails of new residential construction for a long time. Most of those buildings have decent occupancy, nothing wrong with Class B if you've got tenants. When the Pierce comes down could be a game-changer for that area.

 

I don't mind taking the wind out the sails of new residential if it means new office. 

 

Imo the crappiest new office building looks better than just about all the new residential except maybe Aris.

 

And let's be honest. With our track record it's surprising that buildings like 600 Jefferson was given a facelift instead of a demolition. 

 

It's nice having cheaper options but a building the size of Exxon sitting empty is a huge strain on vacancy rates and a reboot back to office dont help the prospects for new office construction. 

 

I would place more faith in rapid spikes in increase in demand for residential than a large spike in demand for office. 

 

Unless the flight to cheaper areas reverses or the city comes up with more ideas such as the innovation corridor idea then downtown growth in office isn't going to be all that exciting. 

 

Here's to $9/ a gallon gas

  • Like 1
Link to post
Share on other sites

bumping

 

11 hours ago, swtsig said:

HOUSTON - (Realty News Report) - Houston's next skyscraper - expected to be a 48-story, 1 million-SF tower - is quickly moving toward a construction start with the anticipated signing of an anchor tenant in the offing, Realty News Report has learned. 

  

Hines will develop the tower on the site of the former Houston Chronicle building, which was demolished and is now a surface parking lot. The site, known as Block 58, is bounded by Texas Avenue, Travis, Milam and Prairie. 

  

The Vinson & Elkins law firm is expected to sign a lease soon for approximately 250,000 SF, which is enough to accelerate the timetable for development. Vinson & Elkins' current lease in the 1001 Fannin building, formerly known as First City Tower, expires in 2021 and construction work needs to start soon to meet the law firm's deadline. No formal lease announcement has been made, but people in the real estate community say it appears to be close to a done deal. 

  

The new Hines building is designed to be 36 stories of office space stacked atop a 12-level podium with street-level restaurants, a hospitable lobby, a fitness center and a parking garage with landscaped terraces. The building is expected to feature a distinctive crown to mark this new addition to the Houston skyline by the international development firm founded by master developer Gerald D. Hines in 1957. 

  

The new building will be across the street from the 75-story JPMorgan Chase Tower, completed by Hines in 1982. It's the tallest building in Texas. 

  

Hines recently completed two other towers nearby, the 609 Main at Texas and the Aris Market Square residential high-rise.  And, of course, there are a number of other Hines skyscrapers within walking distance. 

  

A Hines partnership bought the Chronicle property for $54 million in 2015. The purchase included 99,184 SF of downtown land -- the full block where the 10-story Chronicle building stood at 801 Texas; and a half-block at Prairie and Milam, the site of the Chronicle's garage. The Chronicle site is connected to the tunnel system. 

  

Although it will take a couple of years to complete, the Hines building is emerging at a time when the downtown office market has been struggling as it recovers from a downturn in the energy business. Downtown is weakened with an overhang of 2 million SF of sublease space and an availability rate of 20 percent. And Skanska is constructing a 750,000-SF tower that will hit the Central Business District in about a year. 

  

So it seems like the glut of downtown office space is going to get worse. 

  

But not all office space is created equal. New amenity-filled buildings   with great design, high ceilings and lots of light and glass are appealing to businesses that want to retain and recruit employees. Outstanding new buildings lure tenants away from older office space. Old and obsolescent space descends to Class B status and beyond, unless there are major upgrades.   

  

The Houston office market has a history of resiliency and the ability to revive quickly. So conditions could improve considerably by the time the Hines tower is completed on Block 58.

Edited by Avossos
  • Confused 2
Link to post
Share on other sites

Well it's not even truly a 48 story office tower. It's 36 floors on 12 floors of parking. I don't think Houston has had a true 40+ story office tower built since the 80s. 

 

Doesnt matter. I'd rather look like I can bench 300 lbs instead of actually doing it. As long as it looks like a 48-story tower then whatever.

 

Houston seems to be in an era like the 80s where new skyscrapers are popping up on every block. I'm loving it.

 

as far as the height goes, I think anything taller on this block would compete too much with Chase. I want tall too but not at the expense of Chase.  Do it next to the convention center or maybe on the Bank of the Southwest lot. 

  • Like 2
Link to post
Share on other sites
1 hour ago, H-Town Man said:

As far as One Market Square, what can you say? Is there any hope for them in a submarket that's already at 20% Class A vacancy? Change the use. Office is wrong for Market Square. Give us a great hotel right there.

 

Hotel or another residential (or mixed) would be perfect.  Office really doesn't fit in that block at all.

  • Like 1
Link to post
Share on other sites
35 minutes ago, mattyt36 said:

 

Doesn't it have more to do with the structural requirements or even the elevator banks creating uneconomical floor plates?

 

Yes, that is the reason why taller buildings are more expensive PSF. But the number of floors has a certain psychological impact.

 

  • Like 1
Link to post
Share on other sites

Total shot in the dark, but does anyone have a sense as to when an official announcement will be made? I could see it being both on the horizon or distant considering the Bivens post was pulled down.

  • Like 1
Link to post
Share on other sites

In the long run its how it plays off of the surrounding towers as far as materials and shape to see how it fares. I think 48, will put it high enough to make a statement, but what Im curious about is the shape material and this magic crown.

I also think there's another block with as much prominence and location, to qualify for the best block for a high rise. Walker, McKinney, Milam and Louisiana.

If its a true high rise 80 + floors or more, it would be amazing on that block.

  • Like 2
Link to post
Share on other sites
5 hours ago, H-Town Man said:

 

Yes, that is the reason why taller buildings are more expensive PSF. But the number of floors has a certain psychological impact.

 

 

Q: "Why did a globally renowned developer choose to build a 48-story tower versus a 50+-story tower?"

 

A.  He married his wife in 1948.

 

B.  He built the Galleria when he was 48.


C. The economics of a 48-story building fit more in line with the market.

 

D. There's a psychological effect with 50 stories.

 

I just find it so hard to believe the answer is (D) and not (C).

 

The above said, is there anything special about mixed use hotel/residential/office that changes the economics appreciably?  Smaller floor plates OK for residential and hotel?

 

Are the changing economy and changing tastes also changing old "rules" about optimal floor plates?

Link to post
Share on other sites
1 hour ago, CREguy13 said:

This really will be a special project and a ground floor unlike anything existing in Houston currently.  Hines is also renovating the ground floor of 717 Texas and their plan is to make it a seamless transition between 717 Texas, Block 58, and Block 42 so they all will complement one another's ground floor experience.

Any details regarding the 717 Texas ground floor renovation? Sounds great.

Link to post
Share on other sites

We need a magician to pull some renderings out of the hat. 

I'm sure someone here has seen the proposed building with a crown.

We're all anxiously waiting to see them!

We promise not to tell.

 

  • Like 5
Link to post
Share on other sites
6 hours ago, mattyt36 said:

 

Q: "Why did a globally renowned developer choose to build a 48-story tower versus a 50+-story tower?"

 

A.  He married his wife in 1948.

 

B.  He built the Galleria when he was 48.


C. The economics of a 48-story building fit more in line with the market.

 

D. There's a psychological effect with 50 stories.

 

I just find it so hard to believe the answer is (D) and not (C).

 

The above said, is there anything special about mixed use hotel/residential/office that changes the economics appreciably?  Smaller floor plates OK for residential and hotel?

 

Are the changing economy and changing tastes also changing old "rules" about optimal floor plates?

 

They're not mutually exclusive. Investors view Houston as a second tier market. Investors are not as comfortable putting money in tall buildings in second tier markets. 50 stories feels tall, 48 not quite so much. It's like when something costs $9.95 instead of $10.00. Or a car sells for $49k and not $50k. Investors are human; the same psychological tricks work with them as with other humans. 609 Main IIRC was equity funded by CalPERS, a pension fund. Pension funds are conservative and don't like gambles. 48 stories sounds better to a pension fund.

 

As far as "the economics of a 48-story building fit more in line with the market," well, what investors are willing to put money in in Houston is pretty much the economics. The market right now is nothing like the market in 2014 when their last building was announced (20% Class A vacancy vs. maybe 5%), and yet they're both 48 stories. The common thread between the two is, how attractive is Houston to an outside investor. It's mid-range attractive, not upper-range attractive. So put it a little below 50 stories.

Edited by H-Town Man
Link to post
Share on other sites
16 minutes ago, H-Town Man said:

 

They're not mutually exclusive. Investors view Houston as a second tier market. Investors are not as comfortable putting money in tall buildings in second tier markets. 50 stories feels tall, 48 not quite so much. It's like when something costs $9.95 instead of $10.00. Or a car sells for $49k and not $50k. Investors are human; the same psychological tricks work with them as with other humans. 609 Main was equity funded by CalPERS, a pension fund. Pension funds are conservative and don't like gambles. 48 stories sounds better to a pension fund.

 

As far as "the economics of a 48-story building fit more in line with the market," well, what investors are willing to put money in in Houston is pretty much the economics. The market right now is nothing like the market in 2014 when their last building was announced (20% Class A vacancy vs. maybe 5%), and yet they're both 48 stories. The common thread between the two is, how attractive is Houston to an outside investor. It's mid-range attractive, not upper-range attractive. So put it a little below 50 stories.

Just out of curiosity, where do you draw the line between first and second tier markets?

Link to post
Share on other sites
2 hours ago, Vy65 said:

Just out of curiosity, where do you draw the line between first and second tier markets?

 

And is a mezzanine market in the picture?  :ph34r:

  • Like 4
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...



×
×
  • Create New...