By Jeff Jeffrey – Reporter, Houston Business Journal
Nov 20, 2019, 2:19pm CST Updated Nov 20, 2019, 2:50pm CST
An Austin-based real estate investment firm is preparing to begin construction on a multimillion-dollar effort to upgrade three office buildings it purchased earlier this year.
CapRidge Partners said in a news release that the renovation project will also involve rebranding the three buildings, which are located at 1616 S. Voss Road, 7500 San Felipe Street and 6363 Woodway Drive.
Click through the slideshow above to see renderings of the transformation plans.
The interior renovations will include improved finishes in each building’s lobby, as well as enhanced building amenity packages, upgraded common areas, restrooms and elevator cabs. Exterior updates will include additional landscaping, a programable activity lawn, shaded seating areas and outdoor meeting space.
Construction is scheduled to begin in January, with an estimated completion in summer 2020.
Following the renovation project, 1616 Voss and 7500 San Felipe will be known as Memorial Tower I and Memorial Tower II, respectively. Meanwhile, 6363 Woodway will be dubbed Woodway Tower.
CapRidge Partners did not disclose how much the company will be spending on the upgrades. However, the news release said the improvements are part of a multimillion-dollar project.
Records filed with the Texas Department of Licensing and Regulation show this phase of renovations at 1616 S. Voss and 7500 San Felipe are expected to cost $1.1 million and $1.4 million, respectively, while those at 6363 Woodway are expected to cost $900,000.
When CapRidge Partners announced it acquired the three buildings earlier this year, the company said it planned to spend a total of $15 million to renovate and reposition the three buildings.
The three buildings were valued at $22.35 million, $20.35 million and $22.58 million, respectively, for 2019, according to the Harris County Appraisal District.
“Now is the time for this portfolio to elevate its presence in the Memorial neighborhood, and we are thrilled to share the exciting changes,” Dan Terpening, a director at CapRidge Partners, said in a statement. “From extensive interior improvements to upgraded tenant amenity packages, the project will provide a connected, engaging and people-first environment for our tenants.”
CapRidge Partners’ website lists 1616 S. Voss as a 179,062-square-foot, 10 story Class B office building that was built in 1980. 7500 San Felipe is listed as a 163,071-square-foot, 10-story Class B building built in 1979. 6363 Woodway is the largest of the three and is listed as a 198,428-square-foot, 11-story Class B building that was built in 1982.
The buildings’ listings on LoopNet do not state how much tenants will be expected to pay to lease space in the properties.
However, a recent CBRE report found that the average asking rent for Class B office space in Houston last quarter was $22.78 per square foot.
All three buildings are in close or immediate proximity to Whole Foods, Trader Joe’s and Kroger. In addition to the Houston Country Club, Piney Point Village, Hunter Creek Village and the Tanglewood Neighborhood are all nearby.
CapRidge is partnering with the Houston office of Dallas-based Stream Realty Partners for the leasing and marketing of the project. Craig McKenna and Matthew Asvestas with Stream will be providing leasing services. Abel Design Group was selected as lead designer for the project, Clark Condon as the landscape architect and O’Donnell/Snider Construction as the general contractor. All are based in Houston.
CapRidge Partners acquired the three properties in April from a partnership led by California-based Unilev Capital Corp. The terms of the sale were not disclosed.
CapRidge owns two other Houston properties at 12012 Wickchester Lane and 1300 W. Sam Houston Parkway.