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Houston Pavilions lands $140M construction financing

Houston Business Journal - 11:09 AM CDT Monday
by Jennifer Dawson
Houston Business Journal

Developers of the Houston Pavilions downtown mixed-use project have secured $140 million in construction financing from North Houston Bank.

The transaction makes it possible for construction to begin on the ambitious three-block development bounded by Dallas, Polk, Main and Caroline. Groundbreaking is set for Nov. 6.

It will take two years to build the $200 million project, which will contain roughly 800,000 square feet of retail, office and high-rise residential space.

William Denton and Geoffrey Jones of Houston Pavilions LP are the developers behind the project, which has already secured the House of Blues and Lucky Strike bowling lanes as tenants.

Jones says it was important to use a local bank on the project, which has been supported by North Houston Bank since it was conceived in July 2003. North Houston Bank is the Houston-based banking affiliate of FBOP Corp.

Mark Sixour, a managing director in the Houston office of Holliday Fenoglio Fowler LP, arranged the loan.

In addition to bank financing, the Houston Pavilions has lined up an $8.8 million development grant from the City of Houston, $5.5 million from Harris County, $1 million from the Downtown District and an undisclosed amount from partner Houston Catalyst LP. The project will be part of the Main Street/Market Square Tax Increment Reinvestment Zone.

Hellmuth, Obata + Kassabaum Inc. is the architect on the Houston Pavilions. Houston-based D.E. Harvey Builders will serve as general contractor for the project. Construction activities will be coordinated and supervised by the Wells Partnership of Denver.