Panattoni Buys Archway for Houston Expansion

Earning the right to oversee all Houston projects, Dennis tells GlobeSt.com that all Archway projects will be merged into Panattoni's pipeline. The projects include a just-completed, 60,000-sf office building at 12650 N. Featherwood Dr., in the far southwest submarket, which is being marketed for lease, and Wortham-Green, a two-phase, 150,000-sf office project at FM 1960 and US Hwy. 290 on the northwest side. Wortham-Green is scheduled to break ground by April. Its all-in development cost will be $160 per sf to $190 per sf. Also rolling is a 103,000-sf call center at 6161 Rothway St. in the 159-acre West by Northwest Business Park, which was bought last year from locally based Reliant Energy Inc.

Dennis says the acquisition couldn't have come at a better time for Archway. "They have a larger platform internationally than we do at the local level," he explains, "and it provides us with larger opportunities to pursue."

Archway's acquisition also allows Panattoni more visibility in the Houston market. "They historically have done their Houston business out of the Dallas office and already have a small presence here," Dennis says. "They saw, frankly, with the petroleum industry and energy sector experiencing the growth it has, and with the prognosis good for the future, that Houston would be a good place in which to do business." In Houston, Panattoni owns the 130-acre Beltway 8 Corporate Center at Interstate 10 and US Hwy. 290, which Dennis says is 40% developed.