Bank of America Center
Acquisition Date: 8/16/2007
Bank of America Center is a 56-story office tower (“BOAC”) that was developed in 1983 and is located in Houston’s Central Business District. The office tower was designed by Philip Johnson and John Burgee and is recognized as an architectural icon and a fixture of the Houston skyline.
- The asset required some repositioning due to deferred maintenance and a corresponding erosion of rental rates.
- In-place rents approximately $14 below market with an acquisition price $100/SF below replacement cost – recapture revenue delta as in-place leases roll to market.
- Capitalize on BOAC’s competitive advantages which include its iconic status, unobstructed views to the north and west, and historical high occupancy rates.
Value Enhancement Strategy
- Ownership is undertaking $10.6 million in capital improvements to reposition BOAC to the top of the market and maximize rental rates.
- Convert former vault space to reserved executive parking with convenient access to the tunnel and lobby areas.
- Large tenant on multiple upper floors relocated to more efficient lower floors as part of a long-term lease renewal with 33% higher rent than prior lease. Ownership is re-leasing upper floors at premium rates.
- New leases and renewals have outperformed original underwritten average lease rates by up to 15%.