HOUSTON — (Realty News Report) – DC Partners has broken ground on a seven-story office and retail project on San Felipe Road near Loop 610 and the Galleria area of Houston,
The building, which will have 77,189 SF of office space, is already 60 percent leased. Colliers International is handling office and retail leasing for the project.
The project, 4411 San Felipe, is being launched when Houston’s overall office market is struggling through a rough patch that is being compared to the infamous 1980s.
Houston’s office vacancy rate in the fourth quarter was 22.1 percent, up from 19.9 percent at the end of 2019, Colliers International reported. The vacancy rate is projected to go higher.
“While there has been a lot of focus on the office and retail industry’s challenges as a result of the pandemic, we are very optimistic and excited to be 60 percent leased prior to construction,” said Acho Azuike, chief operating officer of DC Partners. “We have the opportunity to address the changing demands of office tenants and retailers and adapt our design to accommodate those needs. 4411 San Felipe offers a new type of live, work, and play with its prime location within steps of Houston’s most desirable high-rise living, shopping and dining, and neighborhoods.”
The 4411 San Felipe development also benefits from the prevailing trend in the Houston office market – the so-called “Flight To Quality.” It means that brand new buildings, outfitted with the latest HVAC innovations, wellness-inspired touchless hardware, and modern design, are attracting tenants. While the new Class AA office buildings lease space at a healthy clip, the disadvantage falls on older office buildings which slip toward obsolescence.
The site plan and architecture for 4411 San Felipe has been created by the HOK architecture firm.
The project will feature seven levels of 77,189 SF of Class-A office space, including an outdoor terrace for office tenants, 16,796 SF of retail and restaurant space, with additional outdoor dining space, and three levels of parking and valet parking service.
Located just inside the 610 Loop near Target, the 4411 San Felipe tower is situated near the River Oaks District, a high-end mixed-use development with restaurants and fashion retailers like Hermes.
DC Partners also developed the Arabella high-rise residential tower adjacent to the new 4411 San Felipe building. And DC Partners, a Houston-based firm led by Roberto Contreras, will move its own offices into the new building.
Other tenants in the building include SIBS International Inc. and Advancial Federal Credit Union,. Office leasing is being handled by Colliers’ Bill Insull and Blake Virgilio and retail leasing is by Hannah Tosch and Kimberly Lenardson of Colliers.
Miami-based 3650 REIT, provided $31 million in funding for the project.
DC Partners’ development portfolio consists of more than 1.5 million SF, of office, mixed-use, hospitality, multi-family, and luxury high-rise condominiums. Its condominium projects include Astoria, Arabella, Marlowe, Chateau Ten, as well as the recently completed The Arts Residences at Thompson San Antonio. The firm has partnered on some condo projects with Houston residential developer Randall Davis.
Just outside of downtown Houston near Allen Parkway, DC Partners is working a major mixed-use development called The Allen, currently under construction, which will include the Residences at The Allen, Thompson Houston, retail, restaurants, and office buildings.
DC Partners also is experienced with developing with EB-5 foreign capital. The EB-5 Immigrant Investor Program allows foreign nationals to obtain an expedited green card in exchange for stimulating the U.S. economy through job creation through foreign capital investment.
Construction on 4411 San Felipe is scheduled to be completed in the fourth quarter of 2021.
Jan. 30, 2021 Realty News Report Copyright 2021
Caption: 4411 San Felipe. HOK architecture. Image courtesy DC Partners
File: Groundbreaking for Houston Office Building by DC Partners January 2021.
File: (2) G.T. Leach Construction. Groundbreaking for Houston Office Building by DC Partners of Houston. Colliers International. HOK. SIBS International Inc., Advancial Federal Credit Union. 3650 REIT.