Adding Value: 3 Greenway Plaza

Adding Value: 3 Greenway Plaza A Case Study

in

Commercial Redevelopment

View to lobby of Aeon sculpture by Danielle Roney

ZCA + Redevelopment Ziegler Cooper has completed numerous commercial

future development potential at a significant discount

office redevelopment projects to help clients reposition

to replacement cost.

aging

buildings

more

competitively.

Common

drivers for redevelopment include the retention of

With their acquisition of the 10-building, 4.4 million

existing tenants; tenant lease expiration resulting in

s.f. Greenway Plaza campus, Cousins faced the loss

low occupancy; ADA, LEED, mechanical, electrical,

of a major tenant as Exxon moved to its new campus,

plumbing, environmental and life safety upgrades;

while the real estate market also became increasingly

and building ownership transition. Projects range in

competitive. It was under these conditions that Cousins

scope from upgrades of common area finishes, life

turned to Ziegler Cooper to help successfully reposition

safety code, and LEED updates to major building

their asset.

re-skin and expansions that go beyond aesthetics to gain leasable square footage and deliver the level of

In addition to Cousins, Ziegler Cooper has been

amenities demanded in today’s office market.

privileged to work with building owners and managers such as Hines, Brookfield Properties, TPMC, Crescent,

The changing values and culture of a multi-generational

Shorenstein and Transwestern, among many others.

workforce has not only changed the way companies

Ziegler Cooper has redeveloped millions of square

do business, but is transforming how property owners

feet of commercial office buildings to add value,

manage their assets. As the global economy grows and

enhance marketing capabilities, increase sustainability,

absorbs workers, companies look to their spaces as a

and positively impact surrounding communities while

tool to attract and retain employees in a competitive

placing these buildings more competitively against

environment. Companies are looking to locate their

their rivals.

offices in light, bright, contemporary, energy-efficient buildings that have a high level of amenities.

The following pages present a case study of the 3 Greenway Plaza redevelopment and the process used

At the height of Houston’s new office building

to favorably reposition the client’s asset, as well as an

construction boom that accompanied the recent

extensive review of the real estate inventory for existing

economic recovery, Cousins Properties saw the

commercial office buildings as it existed at the time of

opportunity to acquire high-quality urban properties

the redevelopment of 3 Greenway Plaza.

with embedded net operating income growth and

“Ziegler Cooper saw an opportunity to transform the 3 Greenway lobbies and common areas into timeless spaces for art and for tenants to pause and enjoy to and from work. �

Kurt Hull, AIA, LEED AP Principal-in-Charge Nocturne, 2015 painting by Carolyn Carr

About Cousins From its earliest entrance into the commercial office market with the Cain Building in downtown Atlanta, Georgia in 1962, Cousins Properties has maintained a strong reputation for quality urban assets, including new development and redevelopment for modern business. Today, the company primarily invests in class-A urban office towers and mixed-use developments in the high-growth Sunbelt markets of Atlanta, Austin, Charlotte, Dallas and Houston. Cousins is selective about the projects in which it invests and is uncompromising about the possibilities they hold. With decades of experience and relationships, Cousins has the ability to identify, invest and succeed. This cultivation of excellence and quality relationships ensures solutions that create value.

“We want our office buildings and projects to be places where people find inspiration for big ideas.”

John McColl, Executive Vice President, Cousins Properties

Vision for 3 Greenway A leading office landlord in multiple major cities, Cousins has the vision of connecting their buildings with the spirit of the city by including significant artworks to create inspiring places for people to conduct their business. Art was a central design theme that was carried throughout the redevelopment of 3 Greenway.

The Greenway Plaza campus is well-known as one of Houston’s premiere office developments. Three Greenway had been 100 percent leased for so long that Cousins wanted a design that would not only be timeless, bright and modern but one that could deliver a full sensory experience that transcends time. For leasing purposes, landlords want prospective and existing tenants to experience a revelation that “this building is the right place to be” and this vision, well-executed, could provide that.

The Design Concept + Project Scope The building was originally completed in 1973 in the international style by Lloyd, Morgan and Jones and had been renovated several times. In the early 1990s the interior spaces and elevators were transformed from the classic modernist design to historicist Italian renaissance architecture, with domed ceilings, marble flooring and faux marble columns. The overarching design goal was to upgrade the interior public areas, lobbies, elevators and restrooms while incorporating an elevated art program.

One of the key design goals for 3 Greenway was to create a modern lobby that was lighter, brighter and in keeping with the original architecture. Soaring ceilings once again progress from the entry, to the lobby and on to the elevator lobby.

The art program, aimed to elevate the visitor experience, includes a two-story cable sculpture connecting the two lobby levels and twin paintings at the plaza level.

Mural walls in the basement parking passageways below carry the art gallery theme throughout the renovation. The new design transforms the dimly lighted entry sequence into a bright, inviting space.

Design challenges included incorporating existing materials of the building that would remain in place through the redevelopment. The warm tones of the original Botticino Classico marble on the lobby walls and some of the original bronze required the incorporation of warmer tones in the veining in the new marble flooring that would prove hard to find. The general contractor suggested the team visit Italian stone yards. The search for a balance between cool greys and warm inclusions in the marble that would create an effect reminiscent of the platinum-on-gold look of a classic Rolex, took the team to nine stone yards in Forte dei Marmi. The team decided on a block of Versilia marble, a recently discovered stone, making 3 Greenway one of two buildings in the United States to use this unique material.

Soaring ceilings and a 40-foot vault between lobby levels provides for a unique experience of the Aeon sculpture by Danielle Roney from multiple vantage points

Art Selection In keeping with Cousins’ overall commitment to art playing a key role in each of the buildings within their portfolio, Cousins involved an art consultant to bring in the artists early in the process. The “Aeon” cable sculpture by Danielle Roney, along with several other murals and paintings were commissioned and conceived specifically for 3 Greenway Plaza.

According to the artist, Danielle Roney, the art consultant was a very important intermediary, who ensured that the artistic interpretation was a good fit for the client’s vision and facilitated a thoughtful conversation. The artistic process for this piece needed to take the physical aspects of the installation into account from the beginning.

Specifically, the process devised for sliding cables upwards from the floor to a height of 37 feet needed to be repeatable 2,000 times. Ensuring consistent tensioning of each piece was a rigorous undertaking that required total commitment from the entire project team.

Once the design was developed, it became apparent that the sheer scale of the piece would require some amendments to the architecture of the lobby. Walter P. Moore designed a special structure for the installation of the massive sculpture. The opening between floors that would house the structure was enlarged to create “breathing room” for the piece and to add greater safety, for the protection of the piece as well as for visitors. Special lighting above the sculpture was added to accentuate the 12,000 ceramic orbs that are set on thin steel cables.

View of concourse Stories we told II, 2015 painting by Deborah Zlotsky

“In creating a piece of art, the process always has its foundation in questioning the perception of reality. This piece, titled “AEON” captures the moment of flux within personal and universal interactions as spatial experience.”

Danielle Roney, Artist

Collaboration + Process Proven process is important to a project’s success, but a team that works well together can lead to extraordinary results. Senior management from Cousins provided inspiration and framework and communicated a clear vision for the space that was shared by the entire team. This vision became the guiding force behind every decision and resulted in choices from each team member that most benefited the project as a whole. The synergy of the team enabled a seamless project and construction management.

“Great communication and a willingness to put the best interest of the project as first priority was key to this project’s success.”

Leanna Gatlin, AIA, LEED AP Project Manager and Associate Principal, Ziegler Cooper Architects

The client’s on-site construction manager was a vital resource to the team, providing day-to-day liaison between all disciplines. Lastly, the general contractor was conscientious to the goals of the owner and the design. The entire team spared no effort to create a masterfully crafted final project, which came in on budget and with the highest standard of execution. From a landlord’s point-of-view, not only is it necessary to have the right product, but also the right operational team to deliver the class-A experience.

View of concourse Stories we told I, 2015 & Stories we told II, 2015 painting by Deborah Zlotsky

phase

II: Greenway amenity value add

Cousins’ redevelopment of Greenway began with addressing 3 Greenway’s entrance sequence, elevator cabs, restrooms and art program. Ziegler Cooper’s design team is currently working on the redevelopment of the building’s shared amenity spaces including the creation of a fitness center with locker rooms and showers, as well as a food service and cafe seating. The project team continues to focus on elevating the tenant experience and the amenities currently in design will serve tenants in 3 Greenway, 4 Greenway and 5 Greenway. The 5,178 s.f. gym with adjoining 2,395 s.f. of locker rooms and showers is under construction with an estimated June 2015 completion, along with the 12,000 s.f. food service area and 11,000 s.f. seating area.

GARAGE ENTRY LOBBY

3 GREENWAY PLAZA

ELEVATOR LOBBY

SUNKEN AREA

SKYLIGHT

FOOD COURT CAFE SEATING

FITNESS CENTER

4 GREENWAY PLAZA

5 GREENWAY PLAZA

PHASE 1 GREENWAY PLAZA CONCOURSE FOOD COURT © ZIEGLER COOPER ARCHITECTS 2014. ALL RIGHTS RESERVED. ZIEGLER COOPER OWNS THE OVERALL CONCEPTUAL DESIGN PREPARED AND DEVELOPED FOR THE PROJECT AND THE INTANGIBLE EXLUSIVE RIGHTS OR COPYRIGHT HEREIN

PHASE 2

Rendering of Phase II of Cousins’ Greenway redevelopment which includes the design of a fitness center and locker rooms.

Rendering of Phase II of Cousins’ Greenway redevelopment, sunken plaza and food court promenade, currently in design.

The Data-Driven Redevelopment Process The redevelopment process begins with an assessment of the building and the way it relates to its environment, specifically with regard to comparable buildings in its market. Ziegler Cooper makes a quantifiable comparison of key aspects of the subject-building with competitive buildings in the sub-market to facilitate decisionmaking and identify goals for the redevelopment. Perhaps the most integral aspect of the redevelopment process is the ability to maintain a fully functional building for existing tenants.

The key characteristics analyzed are tailored to the specific scope of the project and can include building site identification and visibility; landscape; main entrance; lobby/atrium; elevator lobbies, elevator cabs, corridors and restrooms; parking garage and building entrance.

Once Ziegler Cooper shares the building evaluation with clients, goals and recommendations are set, the appropriate budget comes into focus and the design effort begins. With data and quantifiable analysis, Ziegler Cooper is able to lead the client to a solution to give them a competitive edge in their market while making capital investment budget constraints.

“To keep a building fully operational during a big renovation like this, you have to have constant communication.

We have some very valuable customers here. Our existing tenants are very happy with the renovation and it will help bring in new tenants, even in a soft market.”

Kirk O’Neal, Property Group Manager, Cousins Properties

For this study Ziegler Cooper sampled data for 300 Houston area high-rise and mid-rise commercial office buildings, then grouped the data by building class and sub-market and averaged the data in terms of building age and age at renovation. Because the departure of a major tenant is a leading driver for building redevelopment, we further analyzed the data in terms of percentage leased and physical attributes of the buildings that affect lease decisions. A larger survey of 1,691 buildings in the Houston area, recently published by Colliers in their Third Quarter Report corroborates the vacancy data and shows 70 buildings with 100,000 SF or more of vacant space.

average age of building Northside/Other

& age at renovation by sub-market and class

10

30.92 17 18

Westchase/Energy Class A

28.83

Greenway Plaza

34.13 25.24

Uptown/Galleria

32.03 26.59

CBD

33.03

Northside/Other

23.11 20.91

Westchase/Energy

33.35

Class B

27.66

Greenway Plaza

38.71 24.4

Uptown/Galleria CBD

36.17 50.55

26 34.5

Westchase/Energy Class C

23

Greenway Plaza

44.25 60.66

CBD

10

20

30

40 YEARS

Average age at renovation Average age of building

50

60

75 70

80

average percentage leased

83.44

86.71

& load factor by sub-market & building class 88.47

88.53

91.00

89.95 88.45

81.00 77.00 66.01 61.34

49.68

29.00

19.00 16.00

Central Business District

Uptown

17.38 14.99

Greenway

Class A

West

15.92

North

17.00

Central Business District

16.00

Uptown

19.00

17.23 15.36

Greenway

Class B

West

16.25

16.00

North

Central Business District

Greenway

15.00

West

Class C

Percentage Leased Load Factor

Research and analysis by Ziegler Cooper Š 2015

Houston Office Market And Redevelopment Climate Buildings in the Central Business District remain competitive to an older age than their

In that sub-market, all classes of buildings remain at a higher absorption rate.

counterparts in other sub-markets. The difference is most pronounced for Class B and

The effect of available space that will come online from several Class A office

C buildings, as demonstrated in the graph below. When comparing the average

buildings soon to be completed in the CBD appears to be reflected by the

age of Class B and C buildings in the CBD at renovation with those in other sub-

data in the illustrations. Another factor significant to the competitiveness of

markets, the CBD buildings remain competitive twice as long as their competition.

older buildings in the current commercial real estate climate is the additional

Class A buildings tend to undergo renovation in the CBD at a slightly older age than

space that is likely to become available in Class A inventory as a result of

their Class A competition in other submarkets. The CBD absorbs a slightly higher

mergers and acquisitions activity brought about by the 2014-2015 drop in

load factor, which decreases as the distance from the city center increases. Class C

oil prices and its affect on the energy industry.

buildings tend to have the most available lease space, with the notable exception of the Westchase/Energy Corridor.

average building age by sub-market and class 75

44

33

32

36

34

38 33

36

34

30 26 18

Central Business District

Uptown

Greenway

Class A

Research and analysis by Ziegler Cooper Š 2015

West

North

Central Business District

Uptown

Greenway

Class B

West

North

Central Business District

Greenway

Class C

West

View of concourse Stories we told II, 2015 painting by Deborah Zlotsky

3 Greenway Redevelopment Team OWNER/DEVELOPER Cousins Properties Inc

ARCHITECT Ziegler Cooper Inc

John McColl Executive Vice President

Kurt Hull, AIA, LEED AP Principal-in-Charge

Katherine Molyson V.P. of Development

Warren Johnson, AIA, LEED AP Design Principal

Bob Boykin Senior Vice President

Leanna Gatlin, AIA Senior Project Manager

Kirk O’Neal Property Group Manager

Stephanie Lively Project Designer

Aaron Winger Construction Manager

MEP ENGINEER Wylie Consulting Engineers Ben Wylie

GENERAL CONTRACTOR Trademark Construction Chris Hines Bruce Weed Jim Suh Brian Martin Chuck Micus Kristi Bulot

STRUCTURAL ENGINEER Walter P. Moore & Associates Dennis Wittry Sarah Evans

ART CONSULTANT Consultant Inc

ARTISTS

Danielle Roney | Sculpture Debra Zlotsky | Paintings Plaza Carolyn Carr | Painting Concourse Sebastien “Mr. D” Boileau | Basement Levels

“By bringing the space up to state-of-the-art modern office standards featuring the latest architectural and technological specifications, we anticipate even more interest and activity at the property.�

Bob Boykin Senior Vice President, Leasing Cousins Properties, Inc.

ZC REDEVELOPMENT PROJECT LISTING

Park Laureate

Fulbright Tower

2000 St. James Place

1300 Main

Post Oak Central

777 Post Oak

Post Oak Tower

1,2 & 3 Allen Center

2 Riverway

Leep Central I, II & III

Four Oaks Place

500 Fannin

1 Riverway

One Westchase (10777 Westheimer)

5433 Westheimer

America Tower

515 Post Oak

Brookhollow I, II & III

363 North Belt

3, 5, 9 11 & 20 Greenway Plaza

3355 West Alabama

Woodlands Park Plaza

2000 West Loop South

800 Bell

801 Travis

3050 Post Oak

2200 West Loop South

801 Louisiana

5444 Westheimer

15375 Memorial

300 Post Oak

One City Centre (1021 Main)

Total Plaza (1201 Louisiana)

Contact Us JIM ZEMSKI, AIA Principal-in-Charge of Urban Architecture Ziegler Cooper Architects 713.374.0000 | jzemski@zieglercooper.com

ZIEGLER COOPER