HOUSTON – (Realty News Report) – Skanska has sold its remaining 10 percent ownership stake in the Bank of America Tower, the downtown Houston skyscraper it developed.
An affiliate of Beacon Capital Partners agreed to acquire the stake for $24 million. Skanska reported the transaction is expected to close in the third quarter.
The 35-story, 780,000-square-foot Bank of America Tower occupies a downtown block bounded by Capitol, Travis, Milam and Rusk streets.
Construction of the Bank of America Tower was completed in the second quarter of 2019. Tenants include Bank of America, Waste Management, Winston & Strawn, Quantum Energy Partners and Skanska’s own offices.
At the end of 2019, Beacon Capital Partners purchased a 90 percent interest in the tower from Skanska for $373 million. Nearly two years later, Beacon is acquiring the remaining 10 percent for $24 million.
Downtown Houston’s office market has been soft, with elevated vacancy levels. According to Madison Marquette, downtown vacancy stood at 22.9 percent in the second quarter, while the downtown availability rate exceeded 29 percent. New and renovated office buildings are outperforming older properties, attracting tenants with enhanced technology and contemporary design—an advantage commonly referred to as a “flight to quality.”
Skanska’s Next Downtown Tower Breaks Ground
Skanska USA Commercial Development recently broke ground on another downtown Houston project. Called 1550 on The Green, the 28-story, 375,000-square-foot office building will sit adjacent to Discovery Green urban park.
A major tenant has already signed on: Norton Rose Fulbright. CBRE is handling leasing for the project. The building is being developed on a portion of an assemblage of surface parking lots near Dallas, Lamar and La Branch streets that Skanska acquired in 2019 for $55 million.
Matt Damborsky, Skanska’s executive vice president overseeing Houston, says the high-rise—slated for completion in 2024—has generated strong early interest from prospective tenants.
“When we started looking at the site, we thought it could be many things. We didn’t think office at the beginning. But we were able to pivot and come up with an office plan that’s very unique with a side-core design. I don’t think you see a lot of those in Houston. So that will give us the ability to have a lot of views into the park,” Damborsky says. Locating elevators and restrooms to the side allows more natural light into elevator lobbies and restroom areas, enhancing interior daylighting and overall occupant experience.
July 20, 2021 Realty News Report. Copyright 2021.
Bank of America — Photo courtesy Skanska
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available in ebook and print editions.
File: Skanska Sells Remaining 10 Percent
File: Bank of America, CBRE, Matt Damborsky, Skanska Sells Remaining 10 Percent Stake in Bank of America Tower to Beacon Capital.