The owner of the ExxonMobil Building in downtown Houston has filed for bankruptcy, marking a significant development for the city’s efforts to revitalize its central business district.
Bell Business Investments, which owns the 45-story skyscraper at 800 Bell Street, sought Chapter 11 protection last week after plans to convert the property into residences fell through and a lender began foreclosure proceedings. The building, spanning 1.2 million square feet, has been vacant since Exxon moved its headquarters to Spring in 2015.
The current owner is managed by Isaac Jacobowitz of Carnegie Management in Brooklyn. Bell Business Investments acquired the property from Shorenstein Properties in early 2023 through an affiliate. The purchase price was reportedly about half of what Shorenstein paid a decade ago.
As part of the transaction, Shorenstein provided a $14.5 million loan, which was later sold at a discount in April to 800 Bell Holdings LLC, based in Nevada. This new lender sued to foreclose on the building, alleging that Jacobowitz’s firm blocked access to the property, failed to maintain it properly, and did not provide financial records.
The landlord denies these allegations and described them as “bogus non-monetary defaults,” stating that the lender became aggressive soon after acquiring the note. According to Sanford Dow, an attorney for the lender based in Houston, “BBI had a sweetheart deal and couldn’t get out of their own way,” describing the bankruptcy as an attempt to delay foreclosure. Dow also said that while property taxes have been paid, the building remains in poor condition with broken windows and water damage.
The bankruptcy filing has paused both foreclosure proceedings and a separate lawsuit as the court reviews possible next steps. A hearing is set for November 13. Court documents indicate that Bell Business Investments has secured a contract to sell the building for $35 million, with closing scheduled for Friday pending court approval.
Originally intended as a high-profile residential redevelopment project that could support downtown Houston’s recovery after the pandemic, 800 Bell now highlights challenges facing office-to-residential conversions in major cities. Built in 1962 and once briefly holding the title of tallest building west of the Mississippi River, it was added to the National Register of Historic Places this year—a status that may assist future redevelopment but has not prevented its current financial difficulties.
