the esperson...executive summary hff, as the exclusive representative of the owner, is pleased to...
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808 TRAVIS STREET & 815 WALKER AVENUE • HOUSTON, TEXAS
E X E C U T I V E S U M M A R Y
THE ESPERSONTHE ESPERSONTHE ESPERSON
HFF, as the exclusive representative of the owner, is pleased to offer for sale a 100% fee simple interest in
Esperson (the “Property”), a 19 and 27-story, 599,107 square foot office building located in Houston’s
central business district. Constructed in 1927 and 1941 respectively, Esperson is the only iconic structure
of Italian Renaissance in Houston’s most densified employment center. The property is currently 62%
leased with 4 years remaining average lease term and is situated on 1.447 acres, a full city block.
Located at the intersection of Rusk and Walker Street, Esperson has direct access to Houston’s METRO
Rail and 7.5 mile underground tunnel system. Over the last 36 months, ownership invested nearly $9
million in non-leasing capital, positioning the asset at the top of its competitive set. Today, considerable
value creation is achievable through rolling current in-place rents to market and through the lease up
of the remaining 226,561 square feet of vacant space. Redeveloping and expanding Houston’s CBD
infrastructure – realized through rebuilt streets – highways, new mass transit and enhanced public
utilities coupled with new office, multi-family, and retail projects have transformed Houston’s core into a
vibrant, modern 24/7 environment for people to live, work and play. Esperson offers investors prestige,
history, quality, abundant amenities, and a prime location in Houston’s largest employment center.
INVESTMENT SALESH. DAN MILLER, CCIM, SIOR
Senior Managing DirectorTel: (713) [email protected]
MARTIN T. HOGANDirector
Tel: (713) [email protected]
HOLT MCNAIRReal Estate AnalystTel: (713) [email protected]
JOHNNY KIGHTReal Estate AnalystTel: (713) 212-6575
CAPITAL MARKETS INQUIRIESSUSAN HILL
Senior Managing DirectorTel: (713) 852-3564
808 TRAVIS STREET & 815 WALKER AVENUE • HOUSTON, TEXAS
THE ESPERSONTHE ESPERSONTHE ESPERSON
INVESTMENT HIGHLIGHTS SUMMARY
• Nearly $9 million in completed and ongoing capital improvements
• Upside potential in the lease up of the remaining 226,561 square feet of vacancy
• Direct access to the METRO Rail along Rusk Ave.
• Four connections to the central business district’s underground tunnel system
• Esperson has been awarded a walk score of 98
• Diversified tenant base with limited exposure to the energy sector
• Recognized by BOMA as “The Outstanding Building of the Year” for 2016
• Built in 1927 and 1941, Esperson stands as one of the two major historical office buildings located in Houston’s Central Business District.
1THE ESPERSONHOUSTON, TEXAS 1EXECUTIVE SUMMARY THE ESPERSONHOUSTON, TEXAS
INVESTMENTOVERVIEWADDRESS: 808 Travis Street & 815 Walker Avenue
RENTABLE AREA: 599,107 SF
YEARS BUILT: Niels Esperson (1927), Mellie Esperson (1941)
NUMBER OF FLOORS: Niels Esperson (27) and Mellie Esperson (19)
PERCENT LEASED: 62.2%
SITE SIZE: 1.447 Acres
2THE ESPERSONHOUSTON, TEXAS 2EXECUTIVE SUMMARY THE ESPERSONHOUSTON, TEXAS
INVESTMENTHIGHLIGHTSSIGNIFICANT CAPITAL INVESTMENT
The Owner recently invested nearly $9 million in non-leasing capital.
The asset now features a redesigned and upgraded lobby, tunnel
access renovations including brand new escalators, installation of
new sprinkler lines, and elevator improvements. In addition, there
are new multi-tenant corridors, façade repairs, garage panel and fire
escape repairs and white box spaces.
NON-LEASING CAPITAL INVESTED IN LAST 3 YEARS
Tenant Areas $2,655,000
Corridors, Restrooms, Elevators, White Box Space
Building Upgrades $2,165,000
Façade, Sprinklers, Curtain Wall, Fire Escape
Main Lobby & Tunnel $4,040,000
Lobby, Tunnel, Escalators
TOTAL $8,886,000
SIGNIFICANT UPSIDE POTENTIAL AT AN ATTRACTIVE BASIS
At 62.2% leased, the Building offers significant upside potential with
226,561 square feet available to lease. In addition, embedded upside
exists as average in place rents are 30% below current market. The
full 12th floor, over 30,000 square feet, is immediately available
along with five boutique high rise floors, ranging between 2,267
and 9,057 square feet, which are ideal for smaller tenants looking
for unique office space. Additionally, the building can be purchased
at a significant discount to replacement.
OUTSTANDING ACCESS AND VISIBILITY
Esperson is one of the most recognizable buildings in Houston. It is
the only office building in the Houston CBD designed after Italian
Renaissance architecture. Ideally located along the METRO Light
Rail, Esperson provides great ingress and egress for employees. The
METRO Light Rail connects Downtown, Midtown, the Museum
District, the Texas Medical Center, NRG Park and the South Fannin
Park and Ride lot. The Property is also easily accessible from the
surrounding major highways. Esperson is conveniently located at
Travis and Rusk Streets, which serve as main arteries into the CBD.
3THE ESPERSONHOUSTON, TEXAS 3EXECUTIVE SUMMARY THE ESPERSONHOUSTON, TEXAS
IRREPLACEABLE LOCATION IN HEART OF THE CBD
Esperson is located on a full city block at the geographic center of the
CBD. This central location is convenient to the Federal and County
court houses, all of the major CBD hotels, Minute Maid Park, the
Toyota Center and the Theater and Entertainment districts. More
than 30 restaurants and other retail amenities lie within a 2-block
radius of the building providing Esperson with a market-leading
walk score of 98.
DIVERSIFIED AND LOYAL TENANT ROSTER
The CBD submarket benefits from a diversified blend of companies
located within its boundaries featuring market leaders in the banking
and finance, energy, professional business service, and information
technologies sections. Mirroring the overall CBD tenant mix,
Esperson has minimal exposure to any one industry. The CBD’s
diverse blend of prominent companies coupled with Esperson’s proven
track record of attracting firms from a wide-array of sectors bodes
well for the lease-up of the project. Additionally, there is limited
tenant rollover thorough 2021.
TUNNEL ACCESS WITH UNMATCHED AMENITY BASE
Direct tunnel access is essential for downtown buildings and provides
an expansive amenity base for tenants. Esperson sits at the epicenter
of the Downtown tunnel system and is one of only two buildings
with four access points to the tunnel. Tenants and hotel guests in
two recent, high-profile developments in the CBD, BG Group Place
and the JW Marriott hotel, must walk through Esperson’s tunnels
to access the rest of the system. Recently, Ownership invested over
$3.1 million to the tunnel level amenities and food courts as well
as new escalators connecting the tunnel to the building lobby. The
tunnels consist of a 7.5-mile underground pedestrian tunnel system
connecting most major CBD buildings offering consumers over
400,000 SF of retail space. Major demand drivers on site and adjacent
to Esperson include Amegy Bank, Allstate Insurance, Schlotzsky’s,
Smoothie King, Mediterranean Grill, Peli Deli, Midtown Dentistry,
Texas State Optical, Memorial Chiropractic, and Vision Source. In
addition to the retailers, the Building offers valet parking, a tenant
bike room, an Uber pick up/drop-off location and 24 hour security.
AWARD WINNING AND EFFICIENT DESIGN
Esperson has recently been recognized for several honors. In
2016, The Building Owners and Managers Association (BOMA)
acknowledged Esperson as The Outstanding Building of The Year
(TOBY) in the Historical category. It was recognized as one of seven
buildings nominated in North America. The Building has also been
awarded the Energy Star label in 2002, 2007 – 2012, and 2015
– 2016 from the U.S. Department of Energy and Environmental
Protection Agency. These awards are a significant honor particularly
for a building of this vintage.
MINUTE MAID PARKCHEVRON I & II
HOBBY CENTER OF THE PERFORMING ARTS
DISCOVERY GREEN
ONE PARK PLACE
5 HOUSTON CENTER
HESS TOWER
MARKET SQUARE TOWER
1000 MAIN
THE ESPERSON
717 TEXASHILCORP TOWER 609 MAIN
ST. JOSEPH’S HOSPITAL
1711 CAROLINE APARTMENTS
SKYHOUSE
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George R. BrownConvention Center
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ChristusSt. JosephHospitalComplex
JonesHall
MarketSquare
AlleyTheatre
WorthamTheater
LyricCentre
HoggPalace
717 Texas
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Bob CaseyU.S.
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JonesPlaza
LanierPublicWorks
PennzoilPlace
J.P. MorganChaseTower
Julia IdesonBuilding
HeritagePlaza
1100 SmithGarage
1100Louisiana
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OldCotton
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917Franklin
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5 HoustonCenter
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1800Texas
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1401 SmithGarage
1400 LouisianaGarage
RegencyGarage
HyattRegency
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CityHall
Annex
DowntownAquarium
Hobby Centerfor the
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RootSquare
Minute MaidPark
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Garage
1301Fannin
SouthTexas
Collegeof Law
PublicLibrary
George R. BrownConvention Center
ToyotaCenter
ChristusSt. JosephHospitalComplex
JonesHall
MarketSquare
AlleyTheatre
WorthamTheater
LyricCentre
HoggPalace
717 Texas
BayouPlace
Bob CaseyU.S.
Courthouse
JonesPlaza
LanierPublicWorks
PennzoilPlace
J.P. MorganChaseTower
Julia IdesonBuilding
HeritagePlaza
1100 SmithGarage
1100Louisiana
CenterpointEnergy
Americana HoustonChronicle
OldCotton
Exchange
MajesticMetro
UH DowntownClassroomBuilding
HarrisCountyAdmin.
HarrisCounty
CivilCourts
HarrisCounty
JuvenileJusticeCenter
HarrisCounty
CivilJusticeCenter
HarrisCountyParkingGarage
HarrisCounty
CriminalJusticeCenter
HarrisCountyFamily
LawCenter
HarrisCounty
D.A.Bldg.
CongressPlazaJury
Assembly
HotelIcon
IslamicCenter
BayouLofts
SpaghettiWarehouse
917Franklin
OneShellPlaza
919Milam
1010Lamar
FanninGarage
HowellBuilding
FirstCity
TowerGarage
FourSeasons
Hotel
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Centre
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Club QuartersHotel
5 HoustonCenter
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Cathedral
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700 Louisiana
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EAST ENDCHINATOWNTHIRD WARD
MIDTOWN
SIXTH WARD FIRST WARD
Shopping DistrictTheater DistrictSkyline District/Houston Center AreaHistoric DistrictOpen SpaceDowntown Tunnel System
2017 Houston CBD Block Map
FOR MORE INFORMATION PLEASE CONTACT
HFF9 Greenway Plaza, Suite 700Houston, Texas 77046Phone: (713) 852-3500Fax: (713) 521-7334www.hfflp.com
INVESTMENT SALESH. DAN MILLER, CCIM, SIORSenior Managing DirectorTel: (713) [email protected]
MARTIN T. HOGANDirectorTel: (713) [email protected]
HOLT McNAIRReal Estate AnalystTel: (713) [email protected]
JOHNNY KIGHTReal Estate AnalystTel: (713) [email protected]
CAPITAL MARKETS INQUIRIESSUSAN HILLSenior Managing DirectorTel: (713) [email protected]