Plans Unveiled: Two-Phase Mixed-Use Redevelopment Project - Slated to Commence 2013
HOUSTON, TX - PM Realty Group (PMRG), a nationally recognized, full service commercial real estate firm, announces the acquisition of 3333 Richmond Avenue and unveils plans for a two-phase redevelopment of the 4.97 acre site in the heart of the Greenway Plaza submarket in Houston, Texas. Along with its equity partner, the INDURE Fund, PMRG closed on the land on November 16th, 2012. Construction of phase one is expected to commence in late 2013 with a completion anticipated in late 2014 or early 2015.
Located in Greenway Plaza at the southeast corner of Richmond Avenue and Buffalo Speedway, the 4.97 acre site includes an existing 97,000 square foot office building, 140 car two-story parking garage, surface parking and approximately 3 acres of excess land. Phase one, which will be built on the excess land, will include a 400,000 square foot, 18-story, Class A LEED certified office tower, a 3.5/1000 7-level structured parking garage and a complete amenity package to include a ground floor restaurant and terrace atop the parking structure that will be accessible by office tenants. The new building is approximately 20% pre-leased to two tenants, one of which is the seller Solvay America, Inc. Upon completion, Solvay America, Inc. will occupy approximately two full floors in the new building. Solvay America, Inc. was represented by Trey Strake, Tim Relyea and Matt Trozzo, of Cushman & Wakefield.
The 400,000 square foot Class A office building will benefit from easy ingress and egress from Highway 59 and close proximity to Interstates 610, 45 and the Westpark Tollway. Tenants will enjoy panoramic views of Houston, including the CBD, The Galleria, River Oaks and the Medical Center as well as convenient access to numerous shopping and dining centers, such as Highland Village. Floor plates will be an efficient 25,800 square feet.
Once phase one is completed, the existing 97,000 square foot office building will be demolished to make way for phase two. Phase two is anticipated to include a single high-rise tower comprised of a full-service hotel on the bottom-half of the tower and a 250 unit high-end apartment building on the top-half of the tower. The hotel and apartments will be joined by a high-end resort styled amenity deck to which both hotel guests and apartment residents will have exclusive access. From concierge services and in-residence dining to a dedicated residential management team, the apartment residents will experience unparalleled comfort and elegance in the heart of Houston.
Leasing efforts will be led by Wade Bowlin, EVP and Managing Director of PMRG's Central Division and John Spafford, EVP and Director of Leasing. "This project will offer many attractive features that will allow us to compete very favorably in the inner-loop market," said Bowlin. "This project marks the first new Class A multi-tenant office development in Greenway Plaza in over 20 years." Current Greenway Plaza Class A submarket occupancy is 92.5%% and is projected to exceed 94% by 2014. Additionally, the ingress and egress access points to the site via Buffalo Speedway and Richmond Avenue are superior to interior Greenway Plaza buildings and most of the Galleria.
The PMRG Development Team will be led by industry veteran Dan Leverett, EVP and Managing Director of Development; formerly of The Woodlands Development Company. "This high quality, transformative, mixed-use project is precisely the type of development that PMRG is now focused on. We are very excited to be able to build a live, work, play environment in a sustainable manner in the core of Houston," said Leverett. "Our plans for development also include preserving several acres of Heritage Live Oaks on the site and incorporating them into the project. Saving these trees took an extremely unique development strategy, but it is the right thing to do for the environment and it creates an amazing park setting for the users and residents. It truly sets this project apart from the standard developments in terms of sustainable design. The park area that incorporates the trees will also create a vibrant sense of 'place' that will attract tenants, hotel guests and residents."
"PMRG is excited about transforming five acres of existing, underutilized space into a vibrant amenity-rich mixed-use project," said Roger Gregory, PMRG's EVP and Chief Financial Officer. "Additionally, this project marks the third development PMRG has launched in the Houston market in the last 15 months in partnership with investment entities managed by National Real Estate Advisors (NREA) of Washington, D.C."
PMRG has selected the architectural design team consisting of Elkus Manfredi, lead design architect, Sasaki, lead landscape design architect, OJB, landscape architect of record, and Kendall Heaton, architect of record, and has commenced the full design process.
The project is owned by Houston-based PMRG and the Washington, D.C. based INDURE Fund (INDURE).
For more information, contact Wade Bowlin, EVP and Managing Director, Central Division, of PMRG at firstname.lastname@example.org or (713) 209-5753; or Dan Leverett, EVP and Managing Director of Development of PMRG at email@example.com or (713) 209-5898.
About the INDURE Fund and National Real Estate Advisors
The IBEW-NECA Diversified Underwritten Real Estate Fund, or INDURE Fund, is a commingled, open-ended real estate investment fund designed to complement the portfolios of pension trusts and other institutional investors. INDURE invests in institutional quality, geographically-diversified properties. The investments are further diversified by product type and through a mix of debt and equity.
National Real Estate Advisors, LLC (NREA), INDURE's manager, invests based on its "Build-to-Core" philosophy in carefully selected development projects which are added to the core portfolio. This strategy is designed to create value and a modern portfolio. NREA, based in Washington, DC, manages its flagship INDURE Fund in addition to real estate separate account investments on behalf of other institutional investors. NREA is a wholly-owned subsidiary of the National Electrical Benefit Fund.
For additional information, visit www.natadvisors.com.