"A shortage of well-located, high-quality parking in downtown isan ever-increasing issue of importance as office vacancies drop tohistorically low levels and older properties with limited parkingreceive new lives as offices or living spaces," says Mark Cover,Hines' vice president. Houston's class A office market is 98%leased. More than 150,000 people work in the downtown, placingheavy demand on the CBD's 90,000 parking spaces.

An additional parking choke hold is being felt from the recentconversions of numerous class C office buildings into loftapartments and street-level retail as well as this month's openingof the Houston Astros' Enron Field baseball stadium.The garageexpansion is scheduled for completion in first quarter 2002, withVaughn Constructors serving as general contractor.

The 1100 Louisiana office building is 97% filled with such majortenants as King & Spalding, Equiv and PriceWaterhouseCoopers.The office property was developed in 1980 by Hines and sold fiveyears later to Capital Guidance Associates IV, an affiliate ofCapital Guidance Corp. Acting as the property's sole leasing andproperty manager since its completion, Hines formed a joint venturelast year with CalPERS to purchase the CBD property, paying $212million.

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