Houston's 15 Biggest Deals of 2015, Part 2
Even in a slow year, Houston's activity tops national and international charts. The remainder of our top deals list (check out Part 1) includes some projects breaking records around the globe.
Memorial Hermann's Westward Growth Tops National Lists
Memorial Hermann is not only the largest healthcare system in Houston, it now claims the largest healthcare tilt-wall project in the US. The $85M expansion at its Katy Hospital campus includes a new six-story, 229k SF patient tower, opening in fall 2016. Tilt-wall specialist Powers Brown teamed with healthcare experts FKP Architects on the design.
Daikin Starts Texas-sized Facility
Daikin Industries broke ground this year on a 4M SF new manufacturing and distribution facility in Waller. It’s the largest industrial project under construction in the US AND the largest tilt-wall project in the world. Daikin will employ 4,000 people at the $420M plant, slated for completion in mid-2016.
New Owner, New Look for San Jacinto Mall
Fidelis Realty Partners purchased San Jacinto Mall from TriYar Cos and intends to overhaul the aging 1.2M SF center. It’ll be at least five years before demo and construction are complete. Out with the '80s décor and into the new century!
Museum of Fine Arts Houston Breaks Ground
Redevelopment of the 14-acre MFAH campus got underway in October. Big donors like Fayez Sarofim and the Kinder Family Foundation are helping fund the $450M undertaking, which will include three new buildings plus two public plazas. Starchitect Steven Holl along with Lake+Flato Architects and Kendall Heaton are handling design. McCarthy Building Cos is the contractor.
River Oaks District Opens Luxury Shopping Mecca
No detail was too small to ensure tenants like Hermès, Dolce & Gabbana and Chopard would be happy in the new 252k SF River Oaks District from OliverMcMillan. Gensler master planned the six-block site and worked directly with many tenants on interior design. No wonder rents are as high as $200/SF. Besides raising the bar on rent checks, some pros expect the River Oaks District to change how Houstonians feel about walkable retail centers, perhaps spurring more.
Tilman Fertitta’s Newest Project
He’s not a billionaire for nothing. Tilman Fertitta broke ground on Houston’s first vertical fully mixed-use development, The Post Oak. It will encompass 680k SF and stand 36 stories. Plans call for a 250-key hotel, 22 residential units, the first Texas outpost of Maestro’s Steakhouse, and 140k SF of boutique office space (with available Bentley airport service). Tilman expects the project will be one-of-a-kind in Houston for years to come, saying most developers wouldn't undertake such a thing because it doesn't pencil out.
1000 Main Sale One of Houston’s Biggest
The tower that transformed Main Street sold in one of Houston’s biggest realty deals ever. After LaSalle backed out, German firm Union Investment Real Estate bought 1000 Main for a reported $440M from Invesco. At $525/SF, the property comes in a close second to the 2200 Post Oak sale for the cost-per-SF record.
Grand Parkway Opens
The highly anticipated Grand Parkway, spurring new development years before completion, opened several new sections in 2015. Stretches are open from 59 S (Sugar Land) to I-10 W (Katy) to 290 (Cypress). On the east side, drivers will enjoy the new sections from I-10 E (Mont Belvieu) south to FM 1405 (Baytown). Heavy rains delayed the full opening, expected in early 2016, but projects are popping up along its expanse unabated.