West Houston Campus
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WEST HOUSTON CAMPUS SIGNATURE CAMPUS - 1.3 MSF PRIME REDEVELOPMENT SITE - ±63 DEVELOPABLE ACRES PREMIER WEST HOUSTON LOCATION OFFERING MEMORANDUM HOUSTON, TEXAS EXCLUSIVE MARKETING ADVISORS PRIMARY CONTACTS JARED CHUA BRANDON CLARKE Senior Vice President Executive Vice President +1 713.787.1975 +1 713.881.0976 [email protected] [email protected] ADDITIONAL CONTACTS STEVE HESSE NOLAN MAINGUY Vice Chairman Senior Associate +1 713.881.0904 +1 713.577.1841 [email protected] [email protected] DEBT & STRUCTURED JOHN FENOGLIO JEFF STEIN Executive Vice President Senior Vice President +1 713.787.1911 +1 713.787.1906 [email protected] [email protected] For additional information regarding this opportunity, please visit the property website at www.westhoustoncampus2020.com. © 2020 CBRE, Inc. All Rights Reserved. TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 01 02 PROPERTY DESCRIPTION 09 03 SUBMARKET SNAPSHOT 25 OFFICE MARKET OVERVIEW 34 MULTIFAMILY MARKET OVERVIEW 37 HOTEL MARKET OVERVIEW 39 RETAIL MARKET OVERVIEW 41 04 HOUSTON MARKET 55 WEST HOUSTON CAMPUS EXECUTIVE 01 SUMMARY OFFERING MEMORANDUM 1 HOUSTON, TEXAS 2 PREMIER HEADQUARTERS CAMPUS & INVESTMENT OPPORTUNITY CBRE, as exclusive advisor to The Howard Hughes Corporation®, is pleased to present to qualified users and investors a truly unique and extraordinary opportunity to acquire the West Houston Campus (the “Property” or the “Campus”) in Houston’s world- renowned Energy Corridor. Situated on ±63 developable acres, this 1.3 million-square- foot complex comprises one of Houston’s premier corporate campuses and represents the most exciting development opportunity across the entire market. The Property was The West Houston Campus represents the premier large-scale land tract in all originally developed for the corporate headquarters of ConocoPhillips, which relocated of Houston and would be an ideal redevelopment across multiple uses. directly across Interstate Highway 10 in late 2018. The West Houston area is one of Houston’s most sought-after locations and is home to a significant number of global companies and facilities such as BP®, ConocoPhillips®, MD Anderson®, Methodist Hospital®, Shell, Sysco Foods®, TechnipFMC®, Texas Asset profile Children’s Hospital®, and Wood Group®, among others. This critical mass of some of the world’s top companies in energy, technology and other critical industries, coupled 600 North Dairy Ashford Drive ADDRESS: with the attractive demographic population to both the east and west, ensures the Houston, TX 77079 Energy Corridor’s long-term viability across all uses. TOTAL GROSS AREA: 1,302,597 SF Given its surrounding natural barriers, the west Houston area has become relatively LEASED: 0% dense with limited tracts available for future development. As such, the West Houston # OF STORIES: Three (Plus Basement Level) Campus represents an ideal corporate headquarters campus as well as an opportunity YEARS BUILT: 1984; 2007 for a large-scale, mixed-use development and is advantageously positioned at the FLOOR PLATE SIZES: ±13,000 to ±66,000 SF heart of the submarket. The Property’s high level of visibility and favorable ingress/ SITE: ±63 Developable Acres egress are perfectly positioned for the success of office, multifamily, retail, and N. Eldridge Parkway: ±897.6 feet (±0.17 miles) hospitality uses. FRONTAGE: N. Dairy Ashford: ±2,798.4 feet (±0.53 miles) RECENT CAPITAL Over $170 Million since 2007 INVESTMENT: The Howard Hughes Corporation owns, manages OWNER: and develops commercial, residential and mixed-use real estate throughout the U.S. 3 | WEST HOUSTON CAMPUS AERIAL VIEW per day: ±40,000 NORTH ELDRIDGE PARKWAY 1,302,597 SF ±63 DEVELOPABLE ACRES N OR TH D AIRY ASHFORD ROAD 10 KATY FREEWAY per day: ±300,000 EXECUTIVE SUMMARY | 4 WELLNESS CENTER & RECEPTION BUILDING FIRST-CLASS, ON-SITE AMENITIES Full complement of first-class, on-site amenities in demand among today’s most discerning office users. Café/Full dining facility Two-story fitness center World-class wellness facilities Soccer field SIGNATURE CORPORATE HEADQUARTERS CAMPUS Olympic-size salt water swimming pool + Generously landscaped, ±63-acre developable site + Floor plates range from ±13,000 to ±66,000 square Full-size basketball court features a unique, well-elevated park-like setting feet and offer efficient space planning and significant + Constructed as ConocoPhillips’ corporate headquarters flexibility for a wide range of uses Multiple exercise rooms and, along with the neighboring Shell Oil Co. campus, + Structured and covered surface parking provide an was the initial development in the Energy Corridor, overall ratio of 2.45/1,000 SF, which can be easily known as Woodcreek expanded as needed Outdoor (lit) running track + Comprised of 17 individual three-story buildings with + Governed by Woodcreek Park protective covenants interconnecting walkways and bridges, nine acres of and restrictions, provided in its entirety on the Virtual Medical and dental office space lakes and 24 acres of extensive landscaping Deal room of the property website + World-class Wellness Center & Reception Building added in 2007 Indoor/outdoor event spaces Significant Capital Recently Invested Banking services space + More than $170 million invested since 2007 - New Wellness Center & Reception Building completed in 2007 for ±$78 million Conference center facilities - New Central Plant completed in 2016 for ±$42 million - Detailed schedule provided in the Property Description section of the Offering Memorandum - The Campus did not sustain any flooding during Hurricane Harvey in 2017 Redundant power with back-up systems 5 | WEST HOUSTON CAMPUS FIRST-CLASS On-site amenities & features FITNESS CENTER NEW CENTRAL PLANT CONFERENCE CENTER FACILITY OUTDOOR SIDEWALK CORRIDOR EXECUTIVE SUMMARY | 6 FIRST-CLASS ON-SITE AMENITIES FITNESS CENTER SOCCER FIELD FULL-SIZE BASKETBALL COURT OLYMPIC-SIZE SALT WATER SWIMMING POOL 7 | WEST HOUSTON CAMPUS FIRST-CLASS ON-SITE AMENITIES CAFÉ / FULL DINING FACILITY FINANCIAL OFFICES MEDICAL & DENTAL OFFICES WORLD-CLASS WELLNESS CENTER & RECEPTION BUILDING EXECUTIVE SUMMARY | 8 CONROE George Bush Intercontinental World-Class west hosuton Location Airport The Energy Corridor is a proven, leading destination in Houston due to its significance as a global center to a major industry, its historical performance and future growth prospects resulting from robust, continuous demand. WEST GLOBAL ECONOMIC CENTER HOUSTON CAMPUS + “Energy Capital of the World” and Houston’s second-largest employment center + Concentration of energy, technology and healthcare companies and facilities + Exceptional demographics, leading population growth and superior amenities KATY WEST HOUSTON/ ENERGY CORRIDOR MEMORIAL RIVER VILLAGES OAKS CBD GALLERIA/ UPTOWN WESTCHASE Global or U.S. Headquarters Locations William P. Hobby Airport Ellington Airport BP One of Houston’s Leading Office Submarkets + Perennial leader in office fundamentals with a concentration (66%) of Class A space Significant & Strategic Campuses + Greatest demand and lowest vacancy of any Houston submarket over the last 25 years + Premier corporate address and the new heart of the Houston workforce Exceptional Regional Access + Immediate access to North Eldridge Parkway — the most significant north/south thoroughfare between Beltway 8 and State Highway 6 + Strategic location at the corner of I-10 and Eldridge — creates The West Houston Campus is advantageously situated at the very heart of the unmatched access in all directions globally renowned Energy Corridor. 9 | WEST HOUSTON CAMPUS HOUSTON, TEXAS One of the nation’s most resilient and dynamic markets, Houston is also one of the few true “necessary cities" globally. Unparalleled Local Economy Leading Destination for Individuals One of the World’s Leading Cities + “Energy Capital of the World” and Business + 4th Largest city in the U.S. - Oil, natural gas and green/alternative fuels + Fastest-growing metro in the nation (between (behind NYC, LA and Chicago) - Serves every facet of the energy industry 2000-2010 and 2010-2017) + 4th Most Fortune 500 HQs in the U.S. globally + 3rd Highest metro population growth in U.S. — (behind NYC, Chicago and DFW) + Houston Technology Center — Largest technology 92,000+ New residents + 3.6% Unemployment rate (December 2019) business incubator/accelerator in Texas in past 12 months + A.F.I.R.E. Ranked for “Global Real + Increasingly diverse economy — healthcare, + High quality of life — Low cost structure, Estate Investment” technology and distribution — buffers against positive employment, attractive/affordable national trends and provides stability and growth housing, quality public education + Port of Houston + Leader in corporate locations, relocations, and LEADING GLOBAL MARKETPLACE - 10th Largest in the world expansions Houston is firmly established as a premier global city - 1st in U.S. for imports and total tonnage + Central location (equidistant to both coasts) and is a top destination for investment by all capital + Texas Medical Center — Largest medical center in + Pro-business environment sources due to its unique combination of stability and the world + Low cost destination compared to other major dynamic growth potential. + One of the nation’s busiest airport systems metropolitan areas + One of the nation’s busiest rail centers + NASA’s Johnson Space Center HOUSTON IS HOME TO OVER 500 DIGITAL + HP Inc. + BMC Software + PAS TECHNOLOGY COMPANIES + HP Enterprise + Oracle + Cardtronics + IBM + NetIQ + Empyrean Benefits Solutions The