Lincoln Property Company is auctioning off two pieces of the former ExxonMobil campus less than a decade after pumping $80 million into renovating the office complex.
Bids for CityNorth 1 and CityNorth 6 start at $1.85 million and $2.4 million, respectively. The buildings will be auctioned starting Feb. 10.
City North 1, at 233 Benmar Drive, is a 12-story building that spans 254,000 square feet and was built in 1982. Bidding starts at a little over $7 per square foot. CityNorth 6, at 12450 Greenspoint Drive, includes a 356,000-square-foot office building that rises 14 stories. The starting bid is under $7 per square foot. CityNorth 6 was built in 1987 and has a 519,000-square-foot parking garage.
Both properties are vacant, according to the listings.
The Dallas-based developer spent two years upgrading the six-building office park, wrapping up in late 2019, the Dallas Business Journal reported. The renovation wasn’t just for the property; Lincoln Property also sought to rehabilitate the reputation of the Greenspoint neighborhood, referred to as “Gunspoint,” thanks to the area’s high crime rate.
As part of the renovation, Lincoln Property built a new fitness center, a 10,000-square-foot conference center and a 6,000-square-foot entertainment facility with a golf simulator.
Houston continues to struggle with high office vacancy rates, especially for older properties.
The market’s vacancy rate was 25.7 percent in the fourth quarter, according to the Greater Houston Partnership. The rate peaked at the end of 2022 at 28.2 percent. The high vacancy translates to $1.56 billion in lost rental revenue each year, Bisnow reported, citing data from Cushman & Wakefield.
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