Houston Office for Sale - CBD
Rare opportunity to own a two-story historic office/retail building located at 421 Fannin Street in the historic downtown core of Houston, Texas. Originally built in 1920 and renovated in 2006, the building consists of two stories totaling ±20,000-RSF with ±10,000-SF on each floor. The building is completely vacant and offers ground-floor retail with upper-floor office space proximate to the Harris County Courthouse Complex. The property is in shell condition, and the flexible floor plan is suitable for a variety of retail, office, and professional uses. 421 Fannin Street offers abundant natural lighting encased with framed windows giving high visibility of premier office space along Fannin Street. The property offers a unique opportunity for owner-occupants to absorb some of the vacancy and also offers significant value enhancement via strategic long-term leasing strategies for the available space at market rates (asking rents of $21 NNN, according to CoStar). Stabilizing the property will allow investors to enjoy an increased cash flow stream and significant capital appreciation upon future disposition. Additionally, current market rents are unsupportive of new construction, creating strong barriers to entry. This property also benefits from its location within a Federal Opportunity Zone and would also take advantage of the New Markets Tax Credits. The program provides federal tax incentives for investors to reinvest their capital gains through Opportunity Funds. Additionally, given the current market, this property offers investors the ideal opportunity to lock into record-low interest rates. Houston is the fourth most populous city in the nation, trailing only New York, Los Angeles, and Chicago, and is the largest in the southern U.S. and Texas. Houston is also the fastest-growing metro area in the nation. Houston’s population growth rate in 2019 was projected to be over two times greater than the national average, with the nation’s second-youngest median age among large metropolitan areas. Furthermore, Houston ranks fourth in the country for being home to Fortune 500 major corporate headquarters. The property is strategically located in Harris County in Houston's Downtown CBD submarket within the revitalized historic downtown core, Houston's original town center. The property offers a great location on the corner of Fannin St and Prairie St near the upcoming city infrastructure project known as Pierce Elevated Construction Project, which is an extensive city project to integrate the CBD and the Midtown micro-markets and potentially boost commerce and continued market development. The property also offers prime positioning near numerous area amenities and demand generators. It is just minutes away from downtown hotels, restaurants, Minute Maid Park, George R. Brown Convention Center, the Toyota Center, Jones Hall, Wortham Theatre Center, and the University of Houston Downtown, to name a few. The property is located near I-45 and is primed for easy access anywhere inside Houston’s 610 Loop. The building offers a high foot traffic situs with excellent accessibility near the METRO Downtown Houston Transit Station and METRO Rail PC Station, which runs from the University of Houston to Reliant Park. 421 Fannin Street is centrally located within the CBD and offers excellent accessibility with a Walk Score® of Walker’s Paradise (96) and a Transit Score® of Excellent Transit (86). The property's location offers excellent real estate fundamentals within a robust area and extremely dense and compelling demographics with a 2020 population estimate of ±26,434 and ±254,228 and an average household income of ±$124,465 and $102,607 (one-mile and three-mile, respectively). In 2020, the total estimated specified consumer spending within a one-mile radius of the property accounts for ±$201,275,349, and there are ±4,687 businesses and ±145,377 employees. This office/retail building offers an exceptional owner-occupancy opportunity or a value-add opportunity for investors through stabilization via strategic leasing strategies and capitalizing on the premier location and robust market fundamentals.
