A rendering shows how big the Houston Convention District will become. Photo Credit: Courtesy of Houston First
The city of Houston and the Houston First Corp., the Texas city's destination management organization that oversees the George R. Brown Convention Center, have announced the sale of approximately $1.38 billion in hotel-occupancy-tax and special revenue bonds to fund the first phase of the Convention District Transformation Project. The city says the money will cover the initial phase of the master plan, although early estimates said the project would cost $1.8 billion.
Expanding the campus
The first phase of the transformation project will construct GRB South, a 700,000-square-foot building that will connect to the existing convention center, as well as a new, 100,000-square-foot pedestrian plaza linking the facility to the Toyota Center, home of the NBA's Houston Rockets. Building on the city’s unique layout — where three major sports venues are within a several-block radius of the convention center — the project will transform underused blocks into a walkable district.
"The overall success of this bond sale speaks to the confidence the markets have in Houston as a city moving in the right direction," said Mayor John Whitmire. "This project has been a priority of mine since I was a state senator, and I’m excited as mayor to see it materialize and set the tone for what the future of downtown Houston will become."
Houston First and the city structured the bond financing with three objectives: affordability, flexibility and multiple pathways to access future funding.
"We could not be more pleased that we have reached this important milestone in this generational project for Houston," said Michael Heckman, president and CEO of Houston First. "This is a highly complicated and ambitious project, but we have set a standard for how to move an initiative of this scale forward efficiently and effectively and bring it to market."
Despite the current market volatility, investor demand for the series led to bond over-subscription, indicating confidence in the success of the project.
GRB South space
The new building will feature two exhibit halls, flexible indoor-outdoor and atrium space, the largest ballroom in Texas, and dedicated ground-level spaces for retail and restaurants. Design elements will be drawn from Houston’s bayous and native prairie landscape. Aiming to open in May 2028, the building’s environmental footprint will be reduced by incorporating low-carbon materials, high-efficiency building systems, and native landscaping in a living roof, with potential solar integration.
The project team includes global real estate firm Hines as development manager, Populous as the architect of record, and Gilbane | Flintco as construction manager under a joint venture.