FirstBank Southwest Tower
Transformation of a Downtown Landmark.
Occupancy increased from 44% to 100% and NOI increased by 230%
Key Highlights
- 44% → 100% occupancy within a few years
- 230% increase in NOI
- $20M+ capital and tenant improvement projects managed
- Historic tax credits secured through National Historic Register designation
- Downtown TIRZ incentives including cash incentives and a 20-year tax freeze
The Opportunity
In 2018, the building experienced a sudden drop in occupancy from 98% to 44% when three large tenants coincidentally vacated within a short period of time. One tenant constructed its own facility, another purchased a larger building, and a third downsized its footprint in the Amarillo market. The simultaneous departures created significant vacancy and required a strategic leasing and repositioning effort.
The Strategy
Gaut Whittenburg Emerson implemented an aggressive leasing and asset repositioning strategy while overseeing significant capital improvements to enhance the building’s competitiveness. Major upgrades included installation of a fire sprinkler system across 31 stories, a new fire panel and detection system, new chillers, a new building EMS system, elevator modernizations, parking lot expansions and renovations, ADA restroom conversions, LED lighting upgrades, security improvements, and lobby and common area renovations.
As part of the repositioning strategy, two upper floors were converted into luxury residential units known as the Residences at 600, introducing a mixed-use component that enhanced the property’s appeal and diversified revenue streams. The team also assisted ownership in securing Downtown TIRZ incentives, including cash incentives and a 20-year property tax freeze to help offset the substantial costs associated with developing apartments within an existing office building.
The Results
Within a few years, occupancy increased from 44% to 100%, securing several high-profile, long-term tenants.
The successful lease-up increased the building's NOI by approximately 230%, while energy improvements reduced operating costs.
The team managed more than $20 million in capital and tenant improvement projects, and the property was added to the National Historic Register, enabling ownership to utilize historic tax credits to offset a portion of the repositioning costs.
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