Chevron has offloaded a vacant office tower in north Houston to Austin-based Capital Commercial Investments at a notably reduced price. The real estate firm, led by Doug Agarwal, paid $18.2 million for the property and its adjacent parking garage, dramatically less than the $130 million it fetched when occupancy rates were higher. This purchase is part of Capital Commercial’s broader strategy to acquire over 1.2 million square feet of office space in the Houston area amid rising market vacancies.
The 10-story building at 1001 Noble Energy Way, which previously housed Noble Energy staff before their relocation to Chevron’s downtown offices following a 2020 acquisition, is now under Capital Commercial’s ownership. This acquisition is among several in Houston for the firm in 2024. Properties such as 19219 Katy Freeway, Energy Crossing II, and One and Two Westway are part of Capital Commercial’s growing portfolio, which now rivals the space of Houston’s iconic Williams Tower.
The firm has strategically focused on properties near suburban areas, particularly those within high-rated school districts, to attract businesses catering to employees seeking reduced commutes. This approach aligns with expectations of a robust return-to-office movement coupled with demographic shifts as more individuals relocate from states like California.
Steve Triolet, Vice President at Partners, highlighted Capital Commercial’s aggressive purchasing strategy, acquiring office properties well below replacement costs. The firm’s financial prudence allows it to hold properties and gradually increase occupancy, as evidenced by its progress with the Compaq Circle Center building.
Capital Commercial plans to market the newly acquired Chevron tower as a “plug and play” facility, complete with existing amenities like office furniture, a cafeteria, a gym, and extensive parking. The focus will be on attracting government service agencies and employers interested in the area’s proximity to Tomball schools.
Negotiations for this transaction were handled internally by Capital Commercial and JLL on behalf of Chevron. The sale did not include a nearby 20-story former Noble Energy building, which remains available for sublease. This latest acquisition highlights Capital Commercial’s continued influence in reshaping Houston’s office space market.
