Power Heart I. Picture courtesy of Transwestern
Kiewit Engineering Group has expanded and prolonged its lease at Spear Avenue Capital’s Power Heart I in Houston, boosting its house on the 13-story, 334,000-square-foot Class A workplace constructing to 277,104 sq. ft to accommodate the corporate’s progress.
The constructing at 585 N. Dairy Ashford Street within the West Houston submarket is now 86 p.c leased, with two flooring remaining for future tenants.
Transwestern Actual Property Companies Govt Managing Director Eric Anderson and Senior Vice President Katy Gragg represented the owner within the transaction. Louie Crapitto of JLL and David Kimball of SquareFoot represented the tenant.
Kiewit first leased house on the constructing in December 2019, when the corporate’s oil and gasoline division relocated its headquarters to the 5-acre website throughout the metropolis’s Power Hall. The constructing was accomplished in 2007 and was acquired by Spear Avenue in January 2017 as a part of a $272 million portfolio acquisition from Columbia Property Belief. Spear Avenue paid $51.8 million for the asset and has a $69.5 million 10-year mortgage from Prime Finance Companions that matures in September 2029, in line with CommercialEdge knowledge.
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The Houston portfolio totaled 1.2 million sq. ft and included 5 Houston Heart, a 27-story, 581,000-square-foot workplace tower at 1401 McKinney St. in downtown Houston, and 515 Publish Oak Blvd., a 12-story, 274,000-square-foot constructing in Houston’s Galleria submarket.
When Kiewit initially leased house on the property, the homeowners had lately accomplished a $3.5 million capital enchancment program. Renovations on the time included the addition of a health heart, espresso bar with lounge seating, tenant convention facility and upgraded elevators. The workplace property additionally affords tenants versatile and environment friendly 25,538-square-foot floorplates, 24/7 on-site safety and 1,262 parking areas in a multi-level construction.
Anderson stated in a ready assertion Power Heart I is a wonderful facility that gives Kiewit’s workers with a productive and engaging work atmosphere. He stated it’s an instance of the flight-to-quality development seen throughout the Houston workplace market, noting tenants desire a snug worker expertise with first-class workplace house that’s handy and extremely amenitized.
The LEED Silver-certified constructing is adjoining to I-10 and Eldridge Parkway, offering optimum freeway entry.
Spear Avenue exercise
Spear Avenue, which has places of work in New York Metropolis and San Francisco, lately accomplished a capital enchancment program at one other one among its U.S. Class A workplace properties. Normal contractor Skender introduced the wrap up of renovations on the 615,000-square-foot 225 W. Wacker Drive in Chicago in January. Spear Avenue, which acquired the 31-story constructing in 2020 for $210 million, accomplished three totally different building initiatives on the property, together with upgrades to the decrease foyer and Franklin Avenue entrance, fourth-floor amenity house and roof deck. The revitalized asset acquired a LEED Recertification, reaching Gold stage standing.
In February, Spear Avenue topped out 300 Kansas, a six-story, 150,000-square-foot analysis and improvement superior manufacturing constructing in San Francisco. Development is slated to be accomplished this summer season, with the primary tenants arriving in September. The constructing on the nook of Kansas and sixteenth streets within the Design District, options an all-electric, zero-carbon design.
