Construction on the 270,000-sf project will begin in 2001 and isanticipated for a 2003 completion. The bank has purchased 13 acresof land on Allen Parkway near Taft St. for its new building. Theparcel was the former site of Jefferson Davis Hospital, which wasdemolished last year. The project's architect will be selected nextmonth.

The Federal Reserve Bank, which has 300 employees in Houston,has outgrown its 90,000-sf building in downtown Houston where ithas been located since 1958. The bank has already sold its existingbuilding, 1701 San Jacinto St., in a leaseback deal to aninvestment group led by Hakeem Olajuwon of the Houston Rockets ofthe NBA. The bank will remain at its current office until the newfacility is finished.

The Cushman & Wakefield Inc. real estate firm representedthe bank in both transactions. The bank assembled the site with twotransactions, purchasing land tracts from the Finger Cos. ofHouston and the Service Corp. International.