HOUSTON — (Realty News Report) — DC Partners has broken ground on a new seven-story office and retail development at 4411 San Felipe, located near Loop 610 and Houston’s Galleria district.
The project will deliver 77,189 square feet of Class A office space and approximately 16,796 square feet of retail and restaurant space. Office space is already 60 percent leased, with Colliers International leading both office and retail leasing efforts.
The 4411 San Felipe development launches as Houston’s office market faces significant headwinds. Colliers International reported the citywide office vacancy rate reached 22.1 percent in the fourth quarter, up from 19.9 percent at the end of 2019, and projections indicate vacancy may continue to rise. Despite these market challenges, DC Partners says early leasing momentum reflects demand for modern, high-quality buildings.
“While there has been a lot of focus on the office and retail industry’s challenges as a result of the pandemic, we are very optimistic and excited to be 60 percent leased prior to construction,” said Acho Azuike, chief operating officer of DC Partners. “We have the opportunity to address the changing demands of office tenants and retailers and adapt our design to accommodate those needs. 4411 San Felipe offers a new type of live, work, and play with its prime location within steps of Houston’s most desirable high-rise living, shopping and dining, and neighborhoods.”
The project benefits from the broader “flight to quality” trend in Houston’s office market: new Class A buildings equipped with advanced HVAC systems, wellness-focused touchless hardware, and contemporary design are attracting tenants, while older buildings risk falling into obsolescence.
HOK designed the site plan and architecture for 4411 San Felipe. The building program includes seven office levels with a dedicated outdoor terrace, the retail and restaurant podium with outdoor dining areas, and three levels of parking that will include valet service.
Situated just inside the 610 Loop near Target and the upscale River Oaks District, the tower occupies a prime location convenient to high-end shopping, dining and luxury residential options. DC Partners previously developed the adjacent Arabella high-rise residential tower and plans to relocate its own Houston offices into the new building.
Confirmed building tenants include SIBS International Inc. and Advancial Federal Credit Union. Office leasing is led by Bill Insull and Blake Virgilio of Colliers, while retail leasing is handled by Colliers’ Hannah Tosch and Kimberly Lenardson.
Miami-based 3650 REIT provided $31 million in financing for the project.
DC Partners’ development portfolio exceeds 1.5 million square feet and spans office, mixed-use, hospitality, multifamily, and luxury high-rise condominium projects. Notable condominium developments in the firm’s portfolio include Astoria, Arabella, Marlowe, Chateau Ten and The Arts Residences at Thompson San Antonio. The company has collaborated with Houston residential developer Randall Davis on several projects.
Outside downtown near Allen Parkway, DC Partners is also developing The Allen, a large mixed-use community currently under construction that will include the Residences at The Allen, Thompson Houston, retail, restaurants and office space.
DC Partners has experience using EB-5 foreign capital in project financing. The EB-5 Immigrant Investor Program allows qualifying foreign investors to pursue permanent residency in the U.S. by investing capital that supports job creation and economic activity.
Construction on 4411 San Felipe is scheduled for completion in the fourth quarter of 2021.
Jan. 30, 2021 Realty News Report Copyright 2021
Caption: 4411 San Felipe. HOK architecture. Image courtesy DC Partners
File: Groundbreaking for Houston Office Building by DC Partners January 2021.
File: (2) G.T. Leach Construction. Groundbreaking for Houston Office Building by DC Partners of Houston. Colliers International. HOK. SIBS International Inc., Advancial Federal Credit Union. 3650 REIT.