Partners to Lease 980 KSF Houston Office Tower
Sovereign Partners acquired the 46-story asset in 2023.
San Felipe Plaza is currently undergoing an extensive renovation program. Image courtesy of CommercialEdge
Sovereign Partners has tapped Partners Real Estate as exclusive leasing agent for San Felipe Plaza, a 980,472-square-foot Class A office tower in Houston’s Galleria submarket. Senior Vice Presidents Vince Strake, Lesley Rice and Andy Parrish will handle all leases at the property.
Sovereign Partners picked up the 46-story building in early 2023 from Parkway Properties Investments for $82.8 million, according to CommercialEdge information. Onex Corp. provided a $62.3 million acquisition loan.
Originally completed in 1984, San Felipe Plaza is a LEED Gold-certified office high-rise and includes floorplates between 19,985 and 23,400 square feet, 22 passenger elevators, a fitness center and 2,940 vehicle parking spots, CommercialEdge data shows. Notable tenants include Toyota Tsusho America Inc., Lincoln Property Co. and Chase Bank.
READ ALSO: Houston’s Office Market Struggles to Find its Footing
San Felipe Plaza is currently undergoing a renovation program that is focused on upgrading the common areas while also improving the work environment. The revamp will result in an upgraded fitness center, new conference rooms, exterior recreational facilities, an indoor golf simulator, a movie theater and pickleball courts.
The 5-acre property at 5847 San Felipe St. is close to interstates 610 and 10, as well as to multiple bus stations. The location is 10 miles from downtown Houston, 19 miles from William P. Hobby Airport and 26 miles from George Bush Intercontinental Airport.
Houston’s vacancy rate, second-highest in the U.S.
Houston’s office vacancy rate clocked in at 24.4 percent in February, down 30 basis points year-over-year, a recent CommercialEdge report shows. The value was the second highest in the U.S., after Detroit’s 31.3 percent.
One of the metro’s largest leasing deals in recent months was Lionstone Investments’ 41,114-square-foot lease at The Minute Maid Building in Sugar Land, Texas. SouthWest Water Co. signed a 15-year commitment at the 185,000-square-foot building in December.
The same month, Agellan Commercial REIT inked two leases totaling 66,000 square feet at Beltway 8 Corporate Centre, a 362,452-square-foot three-building office campus in Houston. US Med-Equip and Moody Rambin are the latest tenants at the Class A office complex.
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