The owner of one of Houston’s most recognizable skyscrapers has filed for bankruptcy, marking the latest setback for downtown’s long-stalled revival.
Bell Business Investments, the owner of the 45-story ExxonMobil tower at 800 Bell Street, filed for Chapter 11 protection last week after its residential conversion plans collapsed and its lender moved to foreclose, Bisnow reported.
The 1.2 million-square-foot building — once the headquarters of Humble Oil, a predecessor to ExxonMobil — has been vacant since Exxon left for its Spring campus in 2015.
The borrower, managed by Brooklyn developer Isaac Jacobowitz of Carnegie Management, acquired the property from San Francisco-based Shorenstein Properties in early 2023 through an affiliate, reportedly paying half the $50 million Shorenstein spent on it a decade earlier.
The 2023 purchase included a $14.5 million loan from Shorenstein, and the debt was sold at a discount in April to a Nevada entity, 800 Bell Holdings LLC. That entity sued to foreclose, accusing Jacobowitz’s firm of blocking access to the property, neglecting maintenance, and failing to share financial records.
The landlord disputes the allegations, calling them “bogus non-monetary defaults” and claiming the lender turned aggressive soon after acquiring the note. While property taxes have since been paid, the lender’s attorney, Houston-based Sanford Dow, said the building is in disrepair, citing broken windows and water damage.
“BBI had a sweetheart deal and couldn’t get out of their own way,” Dow said in an email to the outlet, describing the bankruptcy as an effort to stall foreclosure.
The bankruptcy filing temporarily halted foreclosure proceedings and a separate lawsuit while the court considers next steps. A hearing is scheduled for Nov. 13. In court documents, the landlord said it has a contract to sell the building for $35 million, with closing set for this Friday — a deal that would require court approval.
Once envisioned as a marquee residential conversion that could anchor downtown Houston’s post-pandemic rebound, 800 Bell is now emblematic of the city’s office-to-housing struggle.
The 1962 tower — briefly the tallest west of the Mississippi — was added to the National Register of Historic Places this year — a designation that could aid future redevelopment but hasn’t yet saved it from financial freefall.
— Eric Weilbacher
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