HOUSTON-Skanska USA Commercial Development’s acquisition of the 350,000-square-foot Houston Club Building puts an end to this more than 60-year-old building’s recent troubles. The Houston Club Building, named after its main tenant, which currently leases approximately 120,000 square feet, was foreclosed on a year ago by Wells Fargo Bank NA.
The building, located at 811 Rusk St. in the city’s CBD, traded owners for an undisclosed price. The Harris County Assessment District values the asset at $8.5 million.
The transaction between Skanska USA Commercial Development and Wells Fargo Bank NA means the Houston Club, the city’s oldest social club, will have to relocate elsewhere and plans to do so in 2013. The Houston Chronicle reports that the Houston Club has been given financial assistance for agreeing to vacate the building two years before its lease expires. The Houston Club has occupied space in the building since the late 1940s.
The Houston Club's departure is about the only thing set in stone in regards to this acquisition. The building on 811 Rusk Street is less than 50% occupied. The Chronicle reports Michael Mair, Skanska USA Commercial Development’s executive vice president and regional manager, as saying that expired leases won’t be renewed. Mair also told the Chronicle that the company will hire an architect to help decide the building’s future.
Though Mair has been mum on the asset, the Chronicle and Houston Business Journal note that, at the very least, a redevelopment is likely, though an adaptive re-use isn’t likely. “The building has lost its efficiencies,” Mair told the Houston Business Journal.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
