Landmark tower is filling up
TransCanada solidifies its status as the downtown building’s biggest tenant
TransCanada has inked a lease expansion that solidifies its position as the biggest tenant in Bank of America Center, a building poised for updates as its namesake tenant prepares to depart in 2019.
The Canadian pipeline company will boost its space by three floors, or nearly 50 percent, in the downtown building at 700 Louisiana. The company, which acquired Houston-based Columbia Pipeline Group in 2016, has leased an additional 82,916 square feet for a total of 260,000 square feet, according to PM Realty Group.
Consolidating employees into Bank of America Center will enable TransCanada to accommodate future growth and enhance employee productivity, according to Louis Rosenthal, a broker with JLL who represented the company along with Bruce Rutherford.
TransCanada took over the space of two companies that relocated to higher floors within the building. Alvarez & Marsal, a consulting firm represented by JLL’s John Burke and Louis Rosenthal, extended its lease and expanded to 49,508 square feet. Arnold & Porter, a law firm represented by Kevin Saxe of CBRE, signed a direct lease with the landlord for 21,290 square feet on floors 40 and 41.
John Spafford of PM Realty Group represented the ownership, a group led by Houston-based M-M Properties, in the leases.
The deals bring the 56story neo-Gothic-style tower
“This building has always been able to attract a prestigious roster of tenants.” Ken Moczulski, CEO of M-M Properties
to 91 percent leased. Other large tenants include Piper Jaffray, Mayer Brown and Baker McKenzie.
Bank of America, which leases 165,000 square feet through late 2019, will be consolidating its downtown operations to 800 Capitol upon the building’s completion in 2019. The bank will also move its name to 800 Capitol. The next name for 700 Louisiana has not been determined, according to PM Realty Group.
Developed as Republic Bank Center by Hines, the building was constructed around the two-story Western Union building on the northeast portion of the block in 1983. A recent refinancing, arranged by HFF, will enable the owners to open the longclosed 20,000-square-foot Western Union building and incorporate a new restaurant into the space. Plans are also in the works to develop future amenities in the 10,000-square-foot banking hall along Capitol, according to Spafford. The building is near Jones Hall and other arts venues.
“This building has always been able to attract a prestigious roster of tenants; the challenge is to be able to anticipate the evolving expansion needs of our tenant base and to plan accordingly,” said Ken Moczulski, founder and CEO of M-M Properties.
The building’s 91 percent occupancy compares with 84.4 percent for Class A buildings overall, according to PM Realty Group. The 1.2-million-square-foot building, designed by Philip Johnson and John Burgee, competes with downtown’s newest buildings as well as trophy towers from the 1980s such as JPMorgan Chase Tower, Wells Fargo Plaza and Heritage Plaza.
“We think the planned modifications to the Western Union building and to the banking hall will continue to maintain the building’s status as a tier 1 option,” Spafford said.