Brookfield Tackles Another Redo in Downtown

HOUSTON — (Realty News Report) – Brookfield Properties, nearing completion one of the biggest office redo programs ever attempted in Houston, has announced renovation plans for its 3 Houston Center, a 51-story downtown building also known as Fulbright Tower.

This building renovation is believed to be one of the final upgrades remaining in Brookfield’s overhaul of its huge downtown portfolio, which includes Houston Center, Allen Center, Heritage Plaza, and Total Plaza.

At the Allen Center, Brookfield Properties started its first big renovation about six years ago, carrying a price tag of $48.5 million. Since then, Brookfield has spent hundreds of millions on additional upgrades to its many downtown properties.

The 3 Houston Center office tower located at 1301 McKinney Street in downtown Houston. The renovation of 3 Houston Center marks “the exciting final phase in the reimagining of the iconic Houston Center campus,” Brookfield said.

Brookfield Properties buildings in Houston Center are:

LyondellBasell Tower – 46 stories; 1.1M SF at 1221 McKinney St.

2 Houston Center – 40 stories; 1M SF at 909 Fannin.

Fulbright Tower – 51 stories; 1.2M SF at 1301 McKinney.

4 Houston Center – 16 stories; 674,000 SF on Lamar Street

The Shops at Houston Center – 3 stories; 196,000 SF of retail on McKinney Street. (The multi-story retail center will be renamedThe Highlight at Houston Center.)

“When Brookfield Property Partners acquired Houston Center in 2017, we pledged to make meaningful capital upgrades that would completely transform the campus into a dynamic and vibrant downtown destination,” said Travis Overall, Executive Vice President and Head of the Texas Region for Brookfield Properties. “With this next chapter of renovations focused on 3 Houston Center, we can proudly say that we have honored our commitment.”

Brookfield acquired Houston Center in 2017 for $875 million and the price tag for the 4.2 million SF Houston Center was considered one of the biggest real estate transactions ever completed in Houston. The seller was J.P. Morgan Asset Management.

Construction on 3 Houston Center is expected to commence in May 2022 and end in early 2023. Brookfield Properties has enlisted global architecture and design firm Gensler as the project architect. Construction will be led by Harvey Builders.

Renovating aging buildings is the key to success in the Houston office market. New buildings, such as Hines new 47-story Texas Tower, have been completed recently, offering the latest in amenities, design features, operating systems and sustainability.

To remain competitive, landlords in downtown Houston have launched property renovation programs. Vacancy has been high as Covid has caused emptiness and employees work from home.

In February 2021, Brookfield Properties completed the first phase of the repositioning of Houston Center. Initial renovations focused on a renewed central plaza and greenspace along McKinney Street, including an iconic monumental stair connecting two landscaped terraces, renovations to the 2 Houston Center and LyondellBasell Tower lobbies, a new world-class fitness center, conferencing venues, lobby co-working space, and an outdoor sky deck.

Recently, Brookfield Properties also announced plans to renovate and rebrand The Shops at Houston Center. Upgrades to the existing retail center – which will be renamed The Highlight – will create a fresh, modern destination in the heart of downtown Houston, and provide a thoughtful amenity mix for tenants and visitors alike.

Construction on 3 Houston Center is expected to commence in May 2022 and end in early 2023. Brookfield Properties has enlisted global architecture and design firm Gensler as the project architect. Construction will be led by Harvey Builders.


March 23, 2022 Realty News Report Copyright 2022

Photo: Courtesy Brookfield Properties

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