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Stowers Building At 820 Fannin St.


ricco67

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Obviously, I can't look through past posts to see a previous discussion on this so I'm asking.

Driving through (a very busy!) Downtown tonight, I noticed some construction I've been meaning to ask about..It's right next door to The Montague Hotel,What's up there? It says, "Stowers condos" and something about retail on the first floor.

Anyone? Anyone?

Ricco

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The Stowers building is a redevelopment by Spire Realty and is going to be office condominums. This is a concept that is new to Houston. A law firm or architectural firm that wants space, but doesnt want to throw money away on rent will purchase a 3-5,000 sf space and be able to recognize the tax benfits and appreciaton of owning. It has worked well on the west coast, lets see how the Houston market will like it. Ther is also 2 stories of retail and ive heard some neat ideas about what could be done there.

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I agree. If done right and supported adequately by various tennants, it could be a catalyst for that esteemed building next door to it on what, right now, is probably the poorest block on Main Street downtown. The Stowers tower has a very cool design, a nice color scheme and reminds me of some of the older towers that front Grant Park in Chicago. I was thinking that, in time, Fannin Street from about Prairie to about McKinney could be a tightly arranged corridor of hotels and condo conversions, similar (but to a smaller degree) to S. Michigan Avenue.

And Ricco's right. Downtown was delightfully busy last night.

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  • 3 months later...

EXCLUSIVE REPORTS

From the December 10, 2004 print edition

Office condos return in historic building

Jennifer Dawson

Houston Business Journal

Spire Realty Group is introducing office condominiums to downtown Houston with conversion of the historic Stowers Furniture Building on Fannin.

Office condos operate much like residential condos, but small business owners are the buyers. The condos are designed for companies that would rather own than lease.

The office condo concept made a short-lived debut in the early 1980s before vanishing in the collapse of the local real estate market.

The 125,000-square-foot Stowers Building is located at 820 Fannin at Walker. Spire plans to lease the first two floors of the 10-story building to retail tenants. The 80,000 square feet of space on upper floors will be sold to businesses needing as little as 2,500 square feet, to firms that want to own multiple floors.

Prices range from $175 to $225 per square foot, and internal tenant improvements are estimated to cost an additional $32 to $35 per square foot. Another $3.50 per square foot per year would go to AMI, which has been retained to manage the building. And each owner would be responsible for their own taxes.

William Franks, Spire's executive vice president, says the cost over a 10-year period equates to office rental rates of $17 per square foot.

"It's actually less than if you were buying a residential condo downtown," he notes.

Retail and rail

Spire research found that only a few office condos have been built in Houston, and many of those were medical office buildings.

"We feel like this is a sign of things to come," says Franks in reference to a development trend that seems to be catching on around the country.

Sanford Criner of Trione & Gordon|CB Richard Ellis says some office condos were built here in the early 1980s, but they did not have much success, like much of the real estate market at the time.

The concept may be better received now, but the space is coming on line at a time when there is a 21 percent Class A vacancy rate downtown, Criner says.

"I think this is brave on their part," Criner says of the office condo conversion project. "But I wouldn't be surprised to find some people who are interested. Some people just like to own their own property."

Franks says the condos will sell because they give people who want to own office space a chance to buy property downtown that's near some high-profile buildings and only a block away from the Metro rail line.

The retail stores in the building also will be a draw to prospective buyers, he says.

Houston-based Spire hired Wulfe & Co. about a month ago to lease the retail space, preferably to the type of soft goods stores Franks says are needed downtown.

"We have very few shops and stores," he says. "We think this will be the first of a retail wave."

Spire bought the building three years ago as part of a package deal. That transaction also included the old Sam Houston Hotel, which has since been renovated and reopened, and the William Penn Building, which stands vacant awaiting possible redevelopment.

The Stowers Building dates back to 1913 when the Stowers Furniture Co. used the first two floors as a showroom and the upper floors as storage, Franks says.

The structure is one of only two historic buildings in the southwestern United States that feature white glazed bricks, Franks says.

Spire is spending roughly $13 million to renovate the property, which is scheduled to open in February.

G.T. Leach Construction is handling the renovation.

"It's really a new building, but inside an old envelope," Franks says.

Spire is a family-owned business that oversees real estate development and investments for the Smith family out of New York.

The firm owns a total of 5 million square feet of office space in Houston, Dallas and Austin.

jdawson@bizjournals.com • 713-960-5935

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Yeah, as much as I like the concept and the vision, it seems that the ground level retails asthetics is missing something. It's not unattractive but it seems rather generic.

Then again, it's just a model. It could look like anything once the renovations are done and they sign actual tenants.

Yeah I agree in the rendering it looks generic, but probably just because there aren't any real business signs there, maybe because they haven't leased to anyone yet, I don't know.

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Yeah, that parking lot continues to look cheaper and cheaper with each month that passes by. It doesn't help that the owners of the Montague Hotel don't seem to care one way or another about the appearance of that area. People go into that Hard Hat Deli and they leave paper from in front of that door to down both Fannin and Rusk in both directions. I realize that a lot of construction crew is in that area but still... you're running a business.

Funny how one or two buildings can have a prominent affect on the rest of the immediate surroundings. I agree about 1111 Rusk (as well as the notorious West Bldg). The Stowers Marketplace, however, could be a catalyst in revitalizing a handful of blocks in that area.

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