John Quinlan, in partnership with DeBartolo Development and ARC3 Architecture, is moving forward with an office-to-residential conversion in Houston’s Energy Corridor. The project involves transforming the former ConocoPhillips and BP building at 550 Westlake Park Boulevard into a 311-unit apartment complex named The Watt.
The building, which was constructed in 1983 and has 420,000 square feet of space, was purchased for $21 million in 2022 through an online auction. This acquisition price is considered well below the cost to construct a new building of similar size. According to Scott Waddington of DeBartolo Development, “Conversions cost about $300,000 per unit.” He added that constructing a new multifamily development from the ground up would cost more than $500,000 per unit.
The Watt will offer amenities such as a rooftop pool, coworking spaces, a yoga and fitness center, bike storage room, club lounge with golf simulator, and pet-friendly features like a pet washing station. Rents will start at $1,968 for studios and go up to $4,375 for three-bedroom apartments.
Houston faces significant challenges with vacant office buildings. There are currently 318 completely empty office buildings in the city and another 625 that are less than half occupied. For office buildings completed before 2009, the vacancy rate stands at 27.5 percent.
Despite these market conditions, many landlords have been hesitant to pursue conversions due to engineering complexities and costs involved. However, this particular project benefited from existing infrastructure such as a large parking garage and updated mechanical equipment.
Zak Miller of the Energy Corridor District commented on the need for more housing in the area: “About 71,000 people work in the area, but there’s only 17,550 housing units.”
This marks Quinlan and DeBartolo’s third conversion effort; their previous project at Elev8 on Smith Street reached a leasing rate of 90 percent after opening in 2024.
