The Group 21 project

Project Description

The Group 21 project will consist of the redevelopment and new vertical construction of the former Texaco Company World Headquarters Building in Houston, Texas. The redevelopment and construction efforts will transform the facility into an urban mixed-use development. The building is currently vacant and in “shell condition” and the developer has began preparing the surrounding project site for new construction activity. The project is expected to consist of a total of 408,415 square feet of vertical improvements including all renovation required upon the project site to facilitate all new vertical improvements. Upon completion of redevelopment, the project will be comprised of a sixteen (16)-story apartment building and an eighteen (18)-story apartment building serviced by a newly constructed parking garage. Following the completion of the redevelopment and new construction activities, additional amenities are anticipated to include approximately 8,000 square feet of retail space, approximately 7,000 square feet of storage space, a fitness center, a wine cellar, coffee area, media rooms, business center, party rooms, and pool deck. As currently planned, future development activity for the project will provide access to the downtown Houston tunnel system, still under development. Originally constructed in 1915, the Texaco World Headquarters Building also underwent subsequent renovations and updates in 1936 and 1958. The approximate 1.495 acre site of the project’s footprint covers a full city block within the City of Houston, Texas. Additionally, the project site is listed on the National Register of Historic places due to its architectural integrity and its association with The Texas Company allowing the project to be eligible for historic tax credits. A portion of the historic tax credits are expected to be pledged as a form of collateral under the agreement. Currently, the former Texaco World Headquarters Building has been re-zoned for Multi-Family use. Preliminary construction activities have commenced and are anticipated to be complete by early 2015. With this, Group 21 funds will be utilized for interior demolition, abatement of the existing structure, infrastructure and utility upgrades, full interior build out, external façade improvements and vertical construction activities. Project costs are estimated to be $97 million. CMB funds will represent $31.5 million of the total capital stack with the remaining balance to be comprised of funds stemming from historic tax credits, Houston Housing Finance Corporation TIRZ, and a senior construction loan.