Historic downtown tower trading hands
A downtown building listed on the National Register of Historic Places is under contract to Houston-based TRC Capital Partners, a privately held investment firm, according to sources familiar with the deal.
The 24-story tower known for its address, 1001 McKinney, hit the market late last year amid an uptick of high-profile office transactions.
One such deal was the nearby Houston Center, which was purchased by Brookfield Properties late last year. The company is planning a $50-plus million renovation.
Other office transactions in Houston’s core are imminent. The 1010 Lamar building and adjacent parking garage that once housed the Sakowitz department store was recently listed for sale, it’s owner citing an upswing in the energy industry.
New York-based Silverpeak Real Estate Partners owns 1001 McKinney with Houston-based Cameron Management as a minority partner. Neither companies, nor TRC Capital, would comment.
The 375,440-square-foot tower was designed by Alfred C. Finn and built in 1947 to house City National Bank. It was commissioned by Houston lawyer and banker James A. Elkins Sr. and hailed as the first post-World War II skyscraper of the southwest.
The building was 74 percent leased with 97,122 square feet of vacant space, according to information previously released by HFF, the commercial real estate firm hired to market the property.
HFF had noted that existing rents in the building were at below-market rates, representing the potential for financial upside to a buyer, and that the price represented “a significant discount to replacement cost.”
Recent renovations included a new art deco entrance on McKinney, conference facility, redesigned lobby and skybridge to the parking garage. There is a Morton’s steakhouse on the street level.
TRC Capital, formerly known as the Redstone Cos., is also involved in the development of an upscale hotel and multifamily development in the Texas Medical Center area. Other projects have included BBVA Compass Plaza in Uptown, the Redstone Building and Houstonain Hotel, Club & Spa.