Hines Begins Construction on Downtown Houston Skyscraper at Chronicle Site
Hines’ next addition to the Houston skyline, shown in this evening rendering just left of the Bank of America Center, was designed by Pelli Clarke Pelli Architects. The building will rise on Texas Avenue at Travis Street on the former Houston Chronicle site. The 47-story tower will include roughly 36 floors of office space above a podium with parking, street-level restaurants, retail and a prominent lobby. Hines developed most of the towers visible in this rendering of northern downtown Houston. Design: Pelli Clarke Pelli Architects.
HOUSTON – Realty News Report: Hines has announced plans to develop a new downtown Houston skyscraper — a roughly one million-square-foot office tower on the former site of the demolished Houston Chronicle building.
Founded in Houston in 1957, Hines will relocate its corporate headquarters to the new 47-story tower. The firm will retain a portion of its existing presence at Williams Tower near the Galleria while occupying approximately 155,000 square feet in the new building.
The prominent Vinson & Elkins law firm, represented by Cushman & Wakefield, has committed to about 212,000 square feet. Michael Anderson of Colvill Office Properties is handling leasing on behalf of the ownership group.
The development sits on Block 58, bounded by Texas Avenue, Travis, Milam and Prairie. Hines is partnering with Canadian real estate investor Ivanhoé Cambridge for the project.
Block 58 will feature outdoor gardens and terraces similar to those that made Hines’ 609 Main at Texas attractive to tenants. Despite a sluggish downtown office market overall, newer buildings with thoughtful design and modern amenities continue to draw tenants by supporting employee recruitment and retention.
“This tower promises to be a true next-generation office building, informed by research and best practices from our developments around the world,” said Hines President and CEO Jeff Hines. “We are excited not only to build it, but also to move our headquarters there.”
Rendering showing Hines’ 717 Texas Avenue (left), the new Hines tower (center) and Hines’ Chase Tower (right).
Pelli Clarke Pelli Architects designed the Block 58 tower for Hines. The two firms recently collaborated on the 61-story Salesforce Tower in San Francisco, the city’s tallest office building.
Hines acquired the Block 58 site — plus a half-block that had served as the Chronicle’s parking garage — in October 2015 from Hearst Newspapers for approximately $54 million. The Chronicle relocated to an office on the Southwest Freeway near Loop 610 in a former Houston Post building. After demolition of the downtown Chronicle structure, the site has been used as surface parking.
Hines has a long development history near Block 58, including the 75-story Chase Tower across the street, which remains the tallest building in Texas. Within a short walk are other recent Hines projects such as 609 Main at Texas and the Aris Market Square residential tower, along with multiple additional Hines office properties in downtown Houston.
Market participants say there is urgency to begin construction to meet a 2021 occupancy target. Vinson & Elkins’ lease at 1001 Fannin (formerly First City Tower) expires in 2021, so timely construction will be necessary to accommodate the firm’s relocation.
Vinson & Elkins was represented in the transaction by Tim Relyea, Scott Wegmann, Kevin Snodgrass, Jim Bailey and Brooke Wommack of Cushman & Wakefield.
Hines first shaped Houston’s skyline with One Shell Plaza in 1971. Nearly fifty years later, this Block 58 project represents the company’s 12th ground-up office tower and its 29th development in downtown Houston.
“This building will be a game changer for office product in Houston and across Texas,” said Mark Cover, senior managing director and CEO of Hines’ Southwestern U.S. Region. “Having raised the bar with 811 Main and 609 Main at Texas, we will push those standards even higher here through a larger, activated lobby, enhanced tenant experience and design features that address the needs of a changing workforce in ways the Texas market has not yet seen.”
