Record $450 Million Tower
A $450 million record breaker: Houston trophy tower sets a new sky-high price standard
A winning $450 million bid for a Houston trophy tower noted for spurring downtown growth has set a new office tower sales record in the Bayou City based on price per square foot.
Chicago-based LaSalle Investment agreed to finalize the deal with an Invesco Real Estate partnership for the 36-story skyscraper at 1000 Main Street an amount about $10 million more than initial market expectations, as first reported by ReAlert.com. CultureMap real estate guru Ralph Bivins predicted a history-making sale for the building designed by the Gensler architecture firm last August.
The previous Houston record was set in 2011, when H&R REIT of Toronto paid $524 per square foot, or $442.5 million, for the 20-story Hess Tower, also a Gensler development and located at 1501 McKinney St. adjacent to Discovery Green.
The previous Houston record was set in 2011, when a Toronto company paid $524 per square foot, or $442.5 million, for the 20-story Hess Tower.
The building of the tower at 1000 Main Street 11 years ago triggered a boom of office construction along the avenue, which had fallen into disrepair with low-end retail outlets along the then-bus stop street. Then along came Richard Everett of Houston-based Century Development, who wanted to make the 1000 Main building a catalyst and start a revitization on Main Street.
Today, Main Street is the site of major development activity including Hines’ 609 Main office tower that’s under construction near the Rice Hotel; the new 24-story Skyhouse Houston apartments; the new 328-room JW Marriott hotel which opened in late September; the redevelopment of the old Savoy Hotel into a Holiday Inn; Alliance Residential’s 207-unit apartment project at Main and Bell and a lot more.
Plus, in 2011, Hines opened the 46-story BG Group Place office tower at 811 Main. And now the street's the site of an all-time Houston real estate record.