HOUSTON – Third Palm Capital has launched a $1 billion plan to develop a 35-acre tract in Houston’s Energy Corridor.
When completed in a decade or so, the mixed-use project will include 2.6 million square feet of office space, 100,000 square-feet of retail and restaurant space, two hotels and 800 multifamily residential units.
Third Palm Capital, a South Carolina-based firm, has significant access to foreign capital.
The Energy Corridor site, located on Houston’s west side, south of Interstate 10 and west of North Eldridge, was formerly the site of Exxon Mobil Chemical. Exxon recently vacated the site as part of its consolidation into its new campus on the north side of Houston.
Designed with New Urbanism principles, the Energy Corridor project, called Republic Square, has a project team including: Elkus Manfredi Architects, Pickard Chilton, Kirksey, Sasaki Associates, TBG Partners and Blakefield’s Tom D’Alesandro.
Locally-based PM Realty Group is handling the Republic Square development.
West Houston has no immediate need for more office space. The Energy Corridor currently has 3.5 million square feet of office space under construction and about 1 million square feet of sublease space is on the market. Class A occupancy was over 99 percent in 2013, but that declined to 92 percent in the first quarter of 2015 and oil prices fell sharply in recent months.