HOUSTON – (Realty News Report) – The Ion innovation hub, a redevelopment of the former Midtown Sears building, has secured its first tenant: Chevron.
The Art Deco building, erected in 1939 on Main Street near the former Delman Theater, is being transformed into The Ion, a collaborative innovation campus intended to support startups and foster interaction among technology companies, entrepreneurs, and community partners.
The former Sears at 4201 Main Street sits within a 16-acre urban assemblage owned by Rice University’s endowment.
Rice Management Company, which manages the university’s real estate holdings, is overseeing the redevelopment of the 300,000-square-foot building. The project moved forward after Houston was not selected among the top contenders for Amazon’s HQ2.
“Our first tenant at The Ion is one of the most recognizable brands in the world,” said Ryan LeVasseur, Managing Director of Real Estate at Rice Management Company. “They’ll be the first of many companies, local startups, and business owners who make a home at and around The Ion as we continue to develop this groundbreaking, mixed-use space.”
Chevron has signed a lease for space within The Ion. Officials did not disclose the square footage, an uncommon omission in commercial real estate announcements and possibly an indication the leased area is modest.
According to The Ion’s press release, Chevron’s space will be used “for collaboration among Chevron teams, startup companies, and community organizations contributing to Houston’s innovation ecosystem. Chevron’s space will be led by the Chevron Technology Ventures group and will be available for all Chevron employees for networking, professional development, and opportunities to collaborate with other innovation ecosystem players.”
Although Chevron’s headquarters remain in San Ramon, California, the company employs thousands of people in Houston, long known as the Energy Capital of the World.
“We have a long history in Houston with its role as the global energy capital. We believe The Ion will help to ensure that Houston retains that distinction and plays a leading role in the energy transition through innovation,” said Barbara Burger, president of Chevron Technology Ventures.
Founded 141 years ago, Chevron traces its corporate roots to Pacific Coast Oil Co., established in 1879 in California.
The Ion’s LEED-certified building in Midtown Houston is scheduled to open in spring 2021.
Hines is managing the redevelopment, with design work led by architects Gensler and James Carpenter. Commercial real estate veteran Drew Morris of Savills is handling leasing for the project.
Substantial construction has been completed. The multi-level Sears building is being reconfigured by removing large sections of interior floors to create an expansive central atrium and introduce natural light deep into the structure.
Renovation also removed an unsympathetic metal cladding added during a 1960s remodel, restoring the building’s original Art Deco facade.
When complete, The Ion plans to include prototyping and immersive reality labs, approximately 70,000 square feet of public and shared spaces for events and programming, and facilities for business incubation and acceleration.
The Midtown Sears closed in 2018, the same year Sears Holdings filed for Chapter 11 bankruptcy. Today, fewer than 100 Sears stores remain nationwide. One of the last Sears locations in Texas, on North Shepherd Drive in Houston, was announced to be closing this summer.
The Ion’s arrival in Midtown marks a new chapter for the site, replacing the former retail landmark where generations of Houstonians once shopped for clothing, Craftsman tools, and Kenmore appliances.
Aug. 20, 2020 Realty News Report Copyright 2020
File: Chevron Leases Spot in The Ion
File: Midtown Houston gets a new tenant as Chevron leases space in The Ion.