Trammell Crow Company and Principal Real Estate Investors today announce that global integrated energy company Hess Corporation has signed a long-term lease to occupy the entire 844,763 square foot Discovery Tower office building located at 1501 McKinney Street in downtown Houston. Previously unveiled to be a 30-story, 871,000 square foot building, the tower has been customized to accommodate Hess Corporation, including several design modifications to maximize flexibility, long term growth and desire for employee amenities. Discovery Tower will now stand at 29 stories tall and be the first LEED® Gold certified office building ever constructed in Houston’s Central Business District (CBD). The building will be renamed Hess Tower in honor of Hess Corporation’s significant occupancy commitment.
Construction began in March 2008 and the building is expected to be completed in Summer 2010. Hess Corporation will relocate from Allen Center and occupy Hess Tower in its entirety in 2011. Given the stage of construction, Hess was able to customize various aspects of the building, including floorplates and ceiling heights to address specific space requirements.
“This lease is one of the most significant leases signed in Houston over the past several years,” said Aaron Thielhorn, Principal of office development for Trammell Crow Company. “Not only are we able to deliver what will be one of the most recognizable buildings in Houston’s skyline, but we are also fortunate to secure a company that contributes significantly to Houston’s employee base and economy as the building’s sole tenant.”
Located in the eastern entertainment district of the CBD, Hess Tower site sits adjacent to Discovery Green, Houston’s $122-million, 12-acre downtown park, offering unobstructed views and pedestrian access to the park and surrounding amenities such as the Toyota Center, Minute Maid Park, George R. Brown convention center and Hilton Americas Hotel.
Hess Tower is the fifth project and second in Houston, built under the national office development program established by Trammell Crow Company and Principal Real Estate Investors in 2006. The program is focused on the development of $750 million to $1 billion of new, Class A office buildings in markets throughout the United States.
Joe Wanninger, Investment Director of Asset Management for Principal Real Estate Investors added, “We are pleased to partner with Trammell Crow Company in the development of this high-quality asset. We welcome Hess Corporation and its employees to this new, cutting-edge facility.”
Hess Corporation was represented by Vice Chairman Tim Relyea of Cushman & Wakefield, Inc. in the transaction. Senior Vice President John Pruitt and Senior Associate Cody Armbrister with CB Richard Ellis represented Trammell Crow Company and Principal.