HOUSTON – (Realty News Report) – Heritage Plaza was one of the last skyscrapers to rise during Houston’s major construction boom of the early 1980s. By the time the downtown tower was completed in 1987, the Houston economy was struggling: financial institutions were failing, foreclosures weighed on the real estate market, and downtown office vacancy reached crisis levels.
Now, a fully refreshed version of the 53-story building is being reintroduced to the Houston market in 2021 as the city recovers from the pandemic and last year’s historic oil price collapse. Office vacancy remains elevated—the city’s overall vacancy rate reached 24.4 percent in the second quarter, according to NAI Partners—but the owners of Heritage Plaza believe the building’s high-end renovation positions the tower to stand out.
Located at 1111 Bagby, Heritage Plaza offers approximately 1.1 million square feet of Class AA office space and 29,000 square feet of retail, and it connects to the downtown tunnel system. The redesign, led by Houston-based Kirksey Architecture, expanded the sense of interior volume and refined the geometry of public spaces, replacing a darker, heavy palette with lighter finishes and brighter materials to create a modern, welcoming atmosphere.
Building’s Top Inspired by Mayan Temples
A distinctive stepped crown that echoes Mayan temple forms makes Heritage Plaza a familiar element in many promotional images of the downtown skyline. M. Nasr & Partners originally designed the building.
Renovation work began in October 2019 with O’Donnell/Snider Construction serving as general contractor.
“The delivery of Heritage Plaza serves as a major milestone moment for our Houston portfolio,” said Travis Overall, Executive Vice President and Head of the Texas Region for Brookfield Properties. “We have spent the last five years transforming our Houston assets into best-in-class work environments that offer unmatched amenities and destination retail. The renovations are reflective of the changing workforce and meet the needs of current and future tenants.”
Brookfield Properties, like other downtown owners, has invested heavily to modernize aging assets amid a competitive office market. Many of Houston’s 1980s-era towers are now competing with newer buildings, such as Hines’ Texas Tower, a 47-story project scheduled for completion later this year.
Massive Downtown Redo Program
Brookfield’s renovation program began in earnest about five years ago with a major overhaul of the Allen Center that carried a $48.5 million price tag. Since then, the company has renovated most of its roughly 10.4 million square feet of downtown holdings and redeveloped the 354-room Doubletree Hotel, rebranding it as the C. Baldwin.
Other recent projects include renovations at Houston Center and Total Plaza, with Heritage Plaza completing the latest phase of the program. Including the hotel conversion, Brookfield’s downtown investments have been estimated at around $200 million, and additional upgrades are planned.
In February 2014, Brookfield Office Properties Inc. entered a joint venture with AEW Capital Management, L.P., on Heritage Plaza, with AEW the majority owner. Brookfield continues to manage leasing, property operations, and redevelopment efforts. AEW’s investment in the tower was reported at roughly $475 million—about $413 per square foot—for a stake believed to be around 85 percent.
“We believe that providing a first-class tenant experience is key to the long-term performance of our assets, and we are very excited about the new Heritage Plaza,” said Michael Byrne, Chief Investment Officer and Head of Private Real Estate and Debt at AEW. “In partnership with Brookfield Properties, we believe that we have executed on a project that will solidify Heritage Plaza’s place as one of Houston’s trophy office destinations.”
The “Reconceptualized Arrival Experience”
Highlights of the renovation include a reconceptualized arrival experience featuring a new exterior glass curtain wall at the corner of Dallas and Brazos Streets. Kirksey replaced the previously dark, opaque façade with a three-story Kawneer 1600 Wall System that opens unobstructed sightlines between the building interior and the street while bringing natural light into the lobby.
The lobby now feels more transparent and open. A central escalator that once bisected the space was removed and replaced by a stair relocated to the left side of the lobby, creating a more flexible floor plan. A new social stair anchors the space and provides an alternative setting for informal work or gatherings, complete with banquette seating and abundant power and USB outlets.
Malarkey: “Hospitality-Driven Palette”
“We wanted to really open up the crowded lobby by eliminating many of the entry columns and central escalator while not ignoring the decorative nature of the original space,” said Brian Malarkey, Executive Vice President and Director of Interior Architecture at Kirksey Architecture. “The result is a much more inviting lobby with a more hospitality-driven palette.”
Kirksey focused on creating a warm, human-centered environment through the use of natural materials, wood accents, and plantings, choosing timeless finishes that celebrate materiality. Playful, jewel-toned rugs and furniture in blues and purples were selected to complement the natural materials and bring color to the space.
Heritage Plaza also includes a skybridge connection to the adjacent C. Baldwin hotel, enhancing amenities and convenience for tenants and visitors.
Major tenants include energy company EOG Resources, which occupies more than 350,000 square feet for its corporate headquarters, and Deloitte, which in January 2019 extended its 204,210-square-foot lease after about a dozen years in the building.
Brookfield acquired Heritage Plaza in 2010 from Goddard Investment of Atlanta in a deal reported to be around $321 million, or roughly $280 per square foot, though the exact sale price was not officially confirmed.
July 26, 2021 Realty News Report Copyright 2021
Heritage Plaza photo credit: Ralph Bivins, Realty News Report. Copyright 2021
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