HOUSTON – (Realty News Report) –Skanska, a Stockholm-based development and construction firm, has acquired property at the key intersection in Houston’s Montrose area for a major planned development.
Skanska paid a $27 million for the 2.86-acre tract at the southwest corner of Westheimer and Montrose Boulevard. A 44,000-SF retail center anchored by Spec’s liquor store is located there now.
Skanska is expected to demolish the existing retail center to construct high-rise residential, retail and restaurants.
“Montrose is the cultural heart and soul of the city. It illustrates Houston’s changing urban landscape and signals our ongoing commitment to the market,” said Matt Damborsky, Executive Vice President at Skanska USA Commercial Development in Houston. “Skanska is continuously looking for opportunities to diversify our Houston offerings while developing projects that reflect the strong culture and sense of community in this city.”
In downtown, Skanska USA recently completed the 35-story Bank of America Tower, which has a Michael Hsu-designed food hall called Understory.
The Montrose deal comes on the heels of Skanska’s recent acquisition of some downtown tracts near Discovery Green. The 3.5-acre assemblage, purchased in late 2019, is intended to be Skanska’s first mixed-use, multifamily offering in Houston. At one time, there was speculation that office towers would be part of the downtown development, but the office market has been in turmoil and uncertainty due to the coronavirus and groundbreaking on new office space is hard to fathom currently.
Skanska acquired the Montrose property, bounded by Westheimer, Montrose, Lovett and Yoakum Blvd., from a partnership controlled by the Madison Marquette real estate firm. The site is two blocks from the former Chinese Consulate building, which was shut down last month by the order of the U.S. State Department. Across the street from Skanska’s newly acquired property is a Kroger store, which serves the ‘Lower Westheimer” area and wide swath of Montrose corridor, extending down to the Museum District.
A couple of blocks to the south of Skanska’s site, Hines is completing its 34-story residential tower and the redeveloped La Colombe d’Or hotel.
Skanska USA, which has about 7,900 employees, developed the West Memorial Place I and II in the Energy Corridor of West Houston.
Worldwide, the Skanska organization’s 35,000 employees work in the Nordic region, Europe and the U.S.
Aug. 5, 2020 Realty News Report Copyright 2020
Caption: Skanska demolished the Houston Club building in downtown Houston and constructed the Bank of America Tower. Photo credit: Ralph Bivins of Realty News Report. Copyright 2020.
File: Skanska Buys Montrose Site. File (2) Skanska Buys Montrose Site from Madison Marquette.