The Deal Sheet
American Realty Capital purchased The Solana at Cinco Ranch, a 184-unit, Class-A seniors housing project in Katy. Given the Cinco Ranch location, you won’t be surprised to hear it was a hotly contested asset. (At Cinco Ranch, the saying is location, location, location, location, location.)
HFF managing director Ryan Maconachy and director Chad Lavender repped sellers Formation Development Group and affiliates of The Carlyle Group; they tell us the property is a core asset in a core location, so it received tons of attention. There was one challenge: The community was originally built as 158 units and last year added 26 assisted living and memory care units. Those weren’t open or licensed when the HFF team first hit the market, so potential buyers had to accept a bit of risk. (Above, Ryan and Chad busted out their iPhones last night to snap this pic for us.)
Not much risk, though: The community is now 98% occupied and the new wing has hit the ground running. American Realty capital purchased it for $71M ($387k/unit) free and clear of financing. Ryan and Chad believe the asset is one of the premier seniors housing facilities in the market thanks to impressive amenities (including being adjacent to LaCenterra at Cinco Ranch--no easier place to spoil a grandchild than a mall), high-end finishes, and strong historical occupancy and rent growth. The duo run HFF’s national seniors housing practice and tell us they’ll be hitting Houston with more product later this year.
EXECS
Derrick Jones joined Colliers as VP in its Woodlands office. He has 10 years of experience repping industrial owners and tenants and has negotiated over 3M SF of leases totaling $60M.
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Cherry’s Joe Rizzo was elected to a two-year term on the board of directors for the Houston Contractors Association. The org has over 400 members who perform over $2B of civil construction annually.
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George Weatherall joined Oldham Goodwin as market manager and VP of brokerage services. He formerly spent 15 years with Cencor Realty/The Weitzman Group—he opened and ran its Houston office as city partner and EVP.
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Kim Small joined Wood Partners as regional VP. The firm is bulking up its management experience in the Central Region (including Texas, Colorado, Arizona, Utah, and Chicago), where it has over 6,000 stabilized units and 1,500 units in the pipeline. Kim was previously head of The Morgan Group’s national property management company, and she served as the 2011 president of HAA.
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Darrell Roth formed Roth Management Group. He was previously director of corporate services (real estate and facilities) for Energy Transfer for over 20 years.
SALES
An undisclosed LLC purchased a 70k SF office property at 8300 FM 1960 West. Marcus & Millichap’s Ron Hebert and Chris Jones listed the property; it received nine offers (primarily from out-of-state and out-of-area investors). The asset is 100% leased.
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An undisclosed buyer purchased 3.5 acres at Highway 6 and Memorial Drive. NAI Houston’s Adrian Ramirez and Tami Pearson repped the seller.
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New Millennium Glazing Systems purchased an 18k SF industrial building at 925 East Airtex Dr. NAI Houston’s Travis Land and John Ferruzzo repped seller Steadfast Development Co. TNRG’s Mike Spears repped the buyer.
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KM Bridgeview Plaza purchased Bridgeview Plaza at 19620 Kuykendahl Rd in Spring. The 20k SF strip center is 87% occupied. Marcus & Millichap repped the seller and KM Realty Management repped the buyer. KM Realty Advisors’ Nelson Spitz will lease the shopping center.
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Sam’s Real Estate Business Trust purchased 15 acres at Bellaire Boulevard and Parkway Lakes Lane in Richmond. NewQuest’s Ryan Sweeney and Danny McCormack repped seller RF Westpark Investment, and CBRE’s Brendan Lynch repped the buyer.
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EKE Holdings purchased a 21k SF industrial building at 12626 North Houston Rosslyn Rd. NAI Houston’s Michael Keegan repped the buyer and colleague John Ferruzzo repped seller Arrowrock Tres-Industrial.
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AK Capital 6 purchased a 130k SF strip center at 9929 Homestead. Coldwell Banker’s Mark McGinley repped the seller and John Paul Hilton repped the buyer.
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New Westgreen Investments purchased two acres at I-10 and Westgreen in Katy. NewQuest’s heather Nguyen and Bob Conwell repped the buyer and Giammalva Properties’ Vincent Giammalva repped seller Westgreen I-10 East Investment.
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180 Rankin Road LLC purchased 7.6 acres at 180 Rankin Rd (Zuma Fun Center). NewQuest’s Dave Ramsey repped the seller, CLP North Houston FEC. He also repped the seller of 7.6 acres at 515 E. Huffsmith in Tomball. That was purchased by Rafael Diaz, repped by Realty Brokers’ Kathina Diaz.
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EIC purchased a four-acre unimproved tract on Mueschke Road near Highway 290 in Cypress. Southwest Realty Advisors’ Steven O’Connor and Marc Drumwright repped the buyer and Caldwell Cos’ Clay Roper repped seller Cypress Land Development.
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Dza Tuyen purchased 1.1 acres on Spring Cypress Road in Cypress. NewQuest’s Jeff Lokey repped seller Ismail Bhai, and ATOM Realty’s Eva Pham repped the buyer.
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Whole Win purchased a 20k SF community center at 11509 Veterans Memorial. Coldwell Banker’s Mark McGinley repped the seller and Gulf South Investment’s James Lee repped the buyer.
LEASES
Dalton Medical renewed 11k SF at Main Park Service Center (3605 Willowbend Blvd). NAI Houston’s John Ferruzzo and Chris Kugle repped the tenant and Transwestern’s Jude Filippone repped the landlord.
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Harbor Freight Tools leased 15k SF in Point Nasa Shopping Center in Webster. Scarborough Real Estate’s Rod Scarborough repped the tenant and Wulfe & Co’s Wes Miller and Kristen Barker repped the landlord.
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Kuraray America renewed and expanded to 22k SF at 2625 Bay Area Blvd. Studley’s Derrell Curry repped the tenant and CBRE’s Matt Dunn and Dena Wren repped landlord Metro Clear Lake Office Partners.
FINANCING
Berkeley Point facilitated $63M in acquisition financing for three apartment communities, Carrington Place, Carrington at Champion Forest, and Carrington Park at Huffmeister. Each was funded as a 10-year, adjustable rate loan under the Fannie Mae DUS program. The borrower was Steadfast Income REIT. Berkeley Point’s Charlie Haggard and Kevin Mignogna facilitated.
THIS AND THAT
A private trust selected KM Realty Management to provide brokerage services and retail development on 144 acres at the SWC of I-10 and Highway 146 in Baytown. Reliant Commercial will assist with the listing. KM’s Nelson Spitz will lead brokerage and colleague Steven Stone will handle leasing and retail development.
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KM Realty Management was awarded leasing for The Center at Rosenberg, a 175k SF former Super K-Mart retail development at the NEC of Southwest Freeway and Highway 36 in Rosenberg. It's 45% occupied. Nelson Spitz will handle leasing.
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Ziegler Cooper Architects’ office in Bank of America Center received LEED CI Gold. The firm is the 56-story tower’s first tenant to receive the cert. (The building itself is LEED OM:EB Gold.) ZCA moved into the office in December 2012.
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Simon Property spun off all its strip center business and small enclosed malls into an independent publicly traded REIT, SpinCo. The company will initially own or have interest in 54 strip centers and 44 malls (which generate annual NOI of $10M or less) totaling 53M SF in 23 states. Simon will now focus on its global portfolio or larger malls, mills, and premium outlets.
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PageSoutherlandPage is now going simply by Page. It’s undergoing a number of changes, including new business organization with expanded ownership—it will begin an employee stock ownership plan.
