Former Spectra Energy Headquarters for Sale After Foreclosure

The building formerly known as the Spectra Energy Headquarters is now listed for sale.

The nine-story, 632,000-square-foot property at 5400 Westheimer Court was mostly vacated by Enbridge in 2022. Spectra was acquired by Enbridge Inc in 2017, and then moved to a smaller space in Houston’s Energy Corridor in 2022. Before the 2022 move, Enbridge occupied all but 12,000 square feet of space in the building, according to Bisnow.

Now, Enbridge’s lease has formally expired after a $52.5 million loan on the property was transferred to special servicing. PTAD Realty owned the building, which was sent to the lender, Argentic, on June 2. JLL has now begun formally marketing the building for sale, according to the outlet.

Over the course of a little over a decade, the building’s value tanked by over 75 percent. When the loan on the building originated in 2014, the appraised value was $84.5 million, according to the outlet. After its namesake moved out and pandemic economic conditions slashed the value of office space, the new appraised value is $20.7 million.

The office building complex is on 6.4 acres. Three acres of its parking lot were previously sold to Tanglewood Manor LP, according to the outlet. Harris County records that show a replat request was filed for the three acres sold, and that they could be converted into townhomes, according to the publication.

Around eight miles away, 919 Milam Street, an older, 20 percent-occupied office building was purchased, and could be slated for a residential conversion. 3000 Post Oak Boulevard hit a similar snag to 5400 Westheimer Court after Bechtel left the building 99 percent vacant in 2023, and is heading to foreclosure proceedings. A residential conversion could be on the table for the rest of 5400 Westheimer, or it could follow a recent Houston trend: the owner-occupier.

— Hunter Cooke