A last-minute payment has prevented the foreclosure of the Exxon-Mobil tower at 800 Bell Street in Houston. The building’s owner, Bell Business Investments, wired over $16 million just before a scheduled auction on December 2, according to the Houston Chronicle. This move temporarily halts foreclosure proceedings and keeps open the possibility of a sale estimated at around $35 million.
The property, a 45-story structure totaling 1.2 million square feet, has been empty since Exxon moved its headquarters to Spring in 2015. Bell Business Investments is affiliated with New York-based CMI Developers. The company has faced challenges in converting the building from an office tower built in the 1960s into a mixed-use complex with residential components.
Chicago-based Sugar Pine Development had shown interest in acquiring the property and was expected to close on a deal by December 5. Court filings indicate that Sugar Pine has started assembling a redevelopment team but had not withdrawn from negotiations as of earlier this week.
Isaac Jacobowitz, a principal at Bell Business Investments, said: “We will either form the right team to revitalize the building or sell for a reasonable price.” When asked about an imminent sale to Sugar Pine, he stated that both that deal and another buyer remain possible.
Legal disputes surrounding the tower began after Bell Business failed to redevelop it as planned. The original lender sold its loan to an entity called 800 Bell Holdings, which declared default in July and initiated foreclosure efforts this fall. In response, Bell Business filed for bankruptcy protection in October but later withdrew the filing to pursue other transactions. When those did not materialize, foreclosure attempts resumed.
The recent payoff was made possible through $13 million in refinancing from Broadview Capital, with repayment due by January 2027. This gives Bell Business roughly one year to secure a buyer or restart redevelopment plans.
Despite these developments, significant issues remain regarding the building’s condition. Court documents detail water damage, broken windows, moldy drywall, and ongoing moisture problems. A Harris County judge allowed emergency repairs; about $380,000 worth of work was completed by approximately 40 workers under lender supervision. Concerns about asbestos remediation are still unresolved.
Downtown Houston continues to face challenges repositioning older skyscrapers for new uses despite interest from investors looking for opportunities.
