Chasewood Technology Park

Chasewood Technology Park is a master-planned office park in northwest Houston, Texas. The 32-acre office park was acquired in 1997 and 1998 with two existing office buildings (One Chasewood and Two Chasewood) and a parking garage. Two additional office buildings and an additional parking garage were developed due to strong market demand. The Chasewood Technology Park currently consists of four office buildings and two parking garages with a combined net rentable area of 461,109 square feet:

Opportunity

• The GenCap Group recognized an opportunity to further develop and improve an existing office park
• The two existing Class B office buildings and garage were undermanaged and did not respond to demand in the market
• The large land reserve provided sufficient room to construct additional Class A office buildings as well as hotel and retail development
• The office park is located adjacent to Hewlett-Packard Enterprise (HPE) North American Division campus with approximately 9,000 employees
• Both HPE’s vendors and suppliers, as well as other traditional office tenants, create high demand for Class A office space which was not available in the market
• Houston’s strong population growth keeps expanding into the northwest area
• The office park is located along a major freeway in northwest Houston, is close to nearby major retail, upscale residential neighborhoods, parks and hike and bike trails and has fast and easy access to Houston’s primary international airport

Strategy

• Reposition the office park to create a ‘premier park’ to capture local demand
• Renovate the two existing office buildings to Class A space to attract national and international tenants while generating higher income
• Develop new Class A office buildings as demand and market conditions warrant
• Target credit tenants and diversify tenant base
• Sold the remaining land asset to a hotel developer and a GenCap related apartment development partnership. The Marriott branded hotel was completed in 2019 and construction of a 300+ unit apartment complex is anticipated to start in 2021.
• The remaining retail land is planned to be sold when the apartment development is completed to maximize the disposition value.

Execution

• Acquired Chasewood Technology Park and immediately rebranded and repositioned the entire park – resulting in market rents increasing by 50%
• Renovated the two existing office buildings (One Chasewood and Two Chasewood) from Class B space to Class A office space
• Developed two additional office buildings due to high tenant demand:
  • Three Chasewood (opened in 2000) and Four Chasewood (opened in 2008)
  • Achieved highest rental and occupancy rates of any project in the submarket.
• Maintain above market historic average occupancy
• Attracted a diverse tenant base including Regus, Hitachi, Samsung, BB&T, Cambrian Consultants, Scala Energy, VLK Architects, Asset Risk Management, US Navy, among others