Financial details were not released, but rents in the building are quoted at $18 per sf. Foxconn took the second and third floors of the building at 20475 Texas 249, part of a corporate campus originally developed in 1985 for Compaq Computer Corp. Hewlett-Packard Corp. inherited the campus when it bought Compaq in 2002 for $19 billion.
Last year, the campus' 44-acre central piece was sold to Dallas-based Macfarlan for $32 million. Since then, Macfarlan has invested another $25 million to renovate three existing office buildings and convert a manufacturing building to office space. The resulting project will have 630,000 sf.
Macfarlan partner and investment principal John Jenkins says Foxconn expressed interest in leasing space at the property early in the acquisition process. "They had done work with HP and it was kind of a natural affinity for them," he tells GlobeSt.com. "When they saw what they were doing in terms of renovations, they became ever more certain. We loved the idea of having the affirmation of a great tenant."
Foxconn is consolidating administrative operations from several locations in Houston. The move-in will take place shortly.
Representatives from Foxconn say the project not only met the criteria for their space and design requirements, but also offers the amenities, environment and flexibility for the company to function effectively and grow over the term of the lease. Foxconn is a global provider of joint-design, joint-development, manufacturing, assembly and after-sales services to computer, communication and consumer-electronics companies.
Unlike most office environments, Jenkins says the Centre at Cypress Creek offers large outdoor areas suitable for walking, jogging or just relaxing. "Since it was developed as a corporate campus, it's a unique opportunity to have a kind of environment that's normally not available in multi-tenant properties," he says.
Jenkins says the company is negotiating with several other prospective tenants, but none of the deals is reportable at this point. However, he expects to have the three office buildings' 400,000 sf fully leased by the time the conversion of the manufacturing building is complete in mid '09.
"Fortunately we do have some good momentum," Jenkins says. "We've been very deliberate about positioning the property correctly and it seems to be paying off. We've got some very good deals we're working on."
Foxconn was represented in the transaction by NAI Houston principal and co-founder Brad Marnitz. Macfarlan was represented by Michelle Wogan, Dani Allison and Jennifer Leroy, all with Transwestern Houston.
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