HOUSTON – An energy company has signed a substantial lease in the tallest building in Texas: the 75-story JPMorgan Chase Tower in downtown Houston.
Indigo Resources Inc. and its affiliate, M5 Midstream LLC, have committed to 67,710 square feet in the tower at 600 Travis, a Hines development.
Savills Studley executive vice president and co-branch manager Mark Russell represented the tenant group, while Clark Thompson of Houston-based Colvill Office Properties represented the landlord.
The agreement is both an expansion and an extension of the tenants’ lease. Indigo Resources and M5 Midstream share management and are significant operators in the Haynesville Shale. Indigo Resources acquires and develops operated oil and gas properties, primarily in North Louisiana, while M5 Midstream focuses on developing high-quality greenfield midstream projects to serve Indigo and third-party customers.
“This transaction will expand Indigo and M5’s downtown Houston footprint and facilitate recruitment and retention of top talent within both companies,” said Bill Pritchard, Executive Chairman of Indigo Resources Inc. “Securing these long-term objectives on favorable lease terms while remaining at our current address is a major success.”
The tenant plans to occupy the newly renovated space at the end of the first quarter of 2017.
“This is a trophy space for a distinguished company,” said Mark Russell of Savills Studley, who has handled numerous lease transactions in the Chase building over the years. Russell previously served as president of Prime Asset Leasing and as an asset manager for the Chase Tower.
“Following cooperative negotiations with this sophisticated ownership group, we were able to strengthen and improve our client’s position in the marketplace,” Russell added. “The continued growth of this marquee tenant within the Chase Tower benefits both the energy sector and downtown Houston.”
The 1.7 million-square-foot Chase Tower occupies the block bounded by Travis, Milam, Capitol and Texas Avenue near the Theater District. Designed by I.M. Pei and completed in 1981, the tower stands 1,002 feet tall and is the tallest five-sided building in the world.
The skyscraper sits at the center of Hines’ downtown holdings. Nearby, Hines developed the iconic Pennzoil Place and the 717 Texas Avenue building. Directly across from the Chase Tower, Hines is demolishing the former Houston Chronicle building to clear the way for a future project. Hearst Corporation sold the Chronicle building in 2015 for $54 million, and the newspaper relocated from downtown to the suburbs at the former Houston Post facility on the Southwest Freeway.
Feb. 23, 2017 Realty News Report. Copyright 2017.