HOUSTON – (Realty News Report) – M-M Properties has announced that TC Energy (formerly TransCanada) has extended its lease for approximately 320,000 square feet at TC Energy Center, the 56-story tower with a distinctive gabled roofline that is a prominent feature of the Houston skyline.
The specific lease length and financial terms were not disclosed, but the renewal stands out as one of the most significant tenant commitments of 2020, a year in which office leasing activity slowed markedly due to the pandemic.
“The extended lease reaffirms TC Energy’s commitment to this landmark building and to Downtown Houston,” said Ken Moczulski, CEO of M-M Properties. “We remain committed to delivering a dramatic, fully amenitized and modern office environment for TC Energy’s employees and for other tenants in the building.”
Moczulski is overseeing a major redevelopment of the red-granite–clad tower, originally completed in 1983 by the late Gerald D. Hines, a renowned developer.
Located at 700 Louisiana Street, the tower was designed by architects Philip Johnson and John Burgee. Johnson and Burgee also designed Hines’ Pennzoil Place across the street, a project that had a major influence on global skyscraper architecture.
For the TC Energy Center redevelopment, M-M Properties retained Sydness Architects. Jeffrey Sydness, a principal at Sydness, was part of the original design team that worked with Philip Johnson. Sydness Architects have contributed to the design of the improvement program, which includes significant interior renovations. Ziegler Cooper Architects, a tenant in the building, has also participated in the new design and production work.
Previously known as the Bank of America Center until the bank relocated last year, the tower contained a grand, old-style banking hall with space for 35 tellers and a ceiling of more than 100 feet. That area is being converted to additional office space as part of the renovation.
The original Western Union facility, which had been concealed since the early 1980s, has been reopened and repurposed for active use by building occupants and visitors.
The iconic Philip Johnson–designed tower was officially named TC Energy Center in late 2019 after the company expanded its presence there. TC Energy currently occupies roughly 320,000 square feet of the building’s 1.2 million rentable square feet. TC Energy was represented by Louis Rosenthal and Bruce Rutherford of JLL; M-M Properties was represented by John Spafford and Madeline Gregory of CBRE.
D.E. Harvey Buildings is the general contractor for the renovation, which is scheduled for completion in the third quarter of 2021.
Landmark Houston Skyscraper Gains TC Energy Commitment
“TC Energy’s U.S. headquarters in Houston is home to roughly 1,200 members of our workforce and hosts many additional employees and guests across North America,” said Stanley Chapman III, TC Energy Executive Vice President and President, U.S. and Mexico Natural Gas Pipelines. “The updated space will foster greater energy and collaboration for our employees and for others downtown.”
TC Energy Center is in the second phase of a $16 million renovation program that will add a large tenant conference center, a coffee lounge and a fitness center. The scope also includes new mezzanine space on levels 2 and 3 above the former banking hall, with full-height glass facing Rusk Street and new windows on the Louisiana Street side. Phase One was completed earlier in 2020 and activated the former Western Union building at the northeast corner of the property. That phase created a reception area for TC Energy, imaginative office space on the second floor and a planned restaurant site on the ground floor.
When the building opened more than three decades ago—long before online banking—its name reflected its primary tenant at the time. Over the years the tower has been renamed multiple times as banking tenants changed: originally RepublicBank Center, then NCNB Center, followed by NationsBank Center, then Bank of America Center, and most recently TC Energy Center.
The building occupies the block bounded by Louisiana, Capitol, Smith and Rusk streets.
M-M Properties and its principals have conducted real estate investment and development activities across a broad portfolio that has included more than 29 million square feet of office projects and nearly 17,000 multifamily units, with a cumulative transaction volume of approximately $8.5 billion.
Dec. 11, 2020 Realty News Report Copyright 2020
Photo credit: Mabrey Campbell
Fille: Landmark Houston Skyscraper Gains