Marathon Oil Tower

Houston, Texas

Active Investment

 

NRSF: 1,189,748 Acquisition Date: 01/30/2018 Status: Active

 

Marathon Oil Tower is a 41-story, 1.2 million square foot trophy office tower located within Houston’s renowned Uptown / Galleria submarket. Originally developed in 1983 as the headquarters for Marathon Oil Company, this Class A office tower has attracted a roster of quality tenants who value its high quality finishes, large floor plates and extensive on-site amenity base.

Opportunity

 

  • Capitalize on Marathon Oil Tower’s inherent quality and strategic location to enhance, revitalize and reposition the property to ensure its status as a best-in-class leader and to meet the needs of today’s office tenants.
  • Acquire property at favorable basis and significant discount to replacement cost to support capital repositioning and a balanced leasing strategy.
  • Leverage management team’s deep Houston experience, strong relationships and hands-on property management to execute on key value creation opportunities.

 

Property Strategy

 

  • Maintain property as an iconic Class AA asset to attract and retain high quality tenants.
  • Exceed market expectations with excellent tenant-focused service.
  • Implement a $25+ million capital improvement program to reposition and upgrade the property.
  • Leverage the iconic status of the building, its tenants, and its strategic location while also revitalizing and amenitizing the property to create a clean, contemporary, high-tech, and exciting world-class office environment.
  • Planned renovations include:

 

    • Activation and amenitization of the ground floor of the Building including additional conference facilities, additional food and beverage options at varying price points and menu types, including a destination restaurant with indoor and outdoor seating and exterior street presence.
    • Renovation of the level 2 concourse connecting the parking garage with the building as well as improvements to the garage to enhance operations and increase capacity, including the conversion of below grade levels to valet/visitor and executive parking.
    • Improved meeting facilities and collaboration zones through architectural and technology upgrades.
    • Cosmetic upgrades to common areas, improved signage and additional enhancements to meet the needs of today’s demanding and diverse professional workforce.