This Week's Houston Deal Sheet
Asia Cabinetry is doubling its HQ footprint with a 41K SF lease renewal and expansion at Alamo Crossing Commerce Center.
The property at 7875 Northcourt Road houses Asia Cabinetry’s distribution center, corporate offices and product showroom. JLL’s Jeff Venghaus and Geoff Perrott represented the tenant and Transwestern’s Darryl Noon represented the landlord, CPF Alamo Crossing LLC.
The 119K SF, Class-B distribution center in the Northwest submarket was built in 2002. Northwest Houston remains one of Houston’s top-performing industrial submarkets; it clocked 962K SF of positive net absorption in Q1. Houston’s overall industrial vacancy rate is 4.8%.
EXECS
Commercial construction and interiors firm Burton Construction named new leadership — Shawn McAlpin was named CEO, and Cullen Burton is becoming president, splitting the leadership role McAlpin has held alone. McAlpin has 27 years of industry experience and has been with the company since it was founded 14 years ago. Burton is the son of company founder Brad Burton, and joined the firm 12 years ago. Brad Burton died in 2015.
SALES
An investment platform sponsored by the Black Creek Group purchased Stafford Grove Industrial Park, three Class-A industrial warehouse buildings totaling 352K SF in Stafford. HFF’s Trent Agnew, Rusty Tamlyn and Dane Petersen represented the seller, a joint venture between Crow Holdings Industrial and its investment partner. Stafford Grove Industrial Park was delivered in 2017 on Airport Boulevard at the intersection of Murphy Road. It is 84.5% leased.
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An undisclosed buyer purchased Highland Plaza, a 74K SF property at 1520 South Mason Road in Katy. CBRE’s Matt Berry and Robbie Kilcrease represented the seller. The property is anchored by a 24 Hour Fitness, Sphier Emergency Room and Pei Wei Asian Diner.
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A subsidiary of furniture distributor East-West Furniture purchased a two-building distribution facility totaling 173K SF at 175 Southbelt Industrial Drive in Houston. East-West will move its entire physical operation from the Boston area to Houston. NAI Partners’ Clay Pritchett represented the buyer, TTD Houston Realty LLC, and Oxford Partners’ Derek Russell and Larry Gray represented the seller, Clark-Elliott LLC.
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West Ontario Management purchased a 4,300 SF office building at 1120 Dennis St. in Midtown. Newcor CRE’s Zack Wheeler and Rob Banzhaf represented the seller, Higar Property Management. Wheeler and Banzhaf also found Higar a new building to relocate and expand its HQ. NB Elite Realty’s Amy Karnani represented the buyer.
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Khaled Properties purchased Commons at Lincoln Green, a 103K SF property at 11303 Veterans Memorial Drive. Henry S. Miller Brokerage’s Shawn Ackerman represented seller Thomas Alan Wertheim Trustee, and Charles El Moussa represented the buyer. El Rancho Supermarket will occupy the anchor space in the multi-tenant retail center.
LEASES
Simmons & Company International leased 31K SF at 609 Main at Texas. The energy investment banking company will move Energy Specialists of Piper Jaffray into the 1.1M SF Downtown office tower this fall. Cushman & Wakefield’s Lou Cushman and Tim Relyea represented the tenant, and Colvill Office Properties’ Michael Anderson and Damon Thames represented landlord Hines. The tower is now 64% leased.
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Camp Bow Wow is opening a new dog care location in Sugar Land. Franchisee Mark Marconi, a family practice doctor, purchased the lot at 744 Crabb River Road last year and is building a 9K SF dog boarding facility with a 1,460 SF outdoor play area.
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Houston Installation Services leased 11K SF at 421 West Crosstimbers St., bringing its footprint to 42K SF in the property. NAI Partners’ Jake Wilkinson represented the tenant, and Bridge Commercial Real Estate’s Ed Bane and Jon Michael represented the landlord, CH Realty.
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F-45 Fitness leased 2,400 SF at 3091 College Park Drive in The Woodlands. Newcor CRE’s Zack Wheeler and Rob Banzhaf represented the tenant. J. Beard Real Estate’s Jeff Tinsley represented the landlord, CH Realty VII/R Houston College Park.
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Clayton Foundation renewed 11K SF at One Riverway. JLL’s Ed Prejean and Diana Bridger represented the tenant. CBRE’s Marilyn Guion, Kristen Rabel and Parker Duffie represented the landlord, Riverway Holdings L.P.
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Stream Realty signed three leases:
- Spring Lighting Group leased 20K SF at Stafford Grove Industrial Park. Stream’s Matteson Hamilton represented the landlord, Black Creek Group.
- Gruma Corp. renewed 20K SF at Beltway Crossing Business Park. Stream’s Justin Robinson and Jeremy Lumbreras represented landlord GLP, and Cushman & Wakefield’s Nathan Wynne represented the tenant.
- Cinco Energy Management leased 7,296 SF at 1616 South Voss Road. Stream’s Dustin Devine represented the tenant, and CBRE’s Parker Duffie, Steve Rocher and Kristen Rabel represented the landlord, Unilev.
DEVELOPMENT
TMC3, a 30-acre, 1.5M SF research campus, is breaking ground in 2019 for a 2022 delivery. A double helix-shaped, multistory building will be the centerpiece of the campus, which will include core laboratories, restaurants, retail and commercial space. There will also be a public park elevated 60 feet above the campus, designed by High Line landscape architect James Corner, and a TMC Hotel and Conference Center. The partnership behind TMC3 includes the Texas Medical Center, Baylor College of Medicine, Texas A&M University Health Science Center, The University of Texas Health Science Center at Houston and The University of Texas MD Anderson Cancer Center — TMC3 will be the first time these groups have shared space on a major scale.
“The TMC3 campus will establish Houston as the Third Coast for life sciences, attracting the best scientific minds from around the globe,” TMC CEO Bill McKeon said.
The project is anticipated to generate $5.2B of economic impact to Texas and create 30,000 jobs.
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Hunt Cos. and Marquette Cos. delivered Catalyst Houston, a 28-story luxury residential high-rise in Downtown. The 359-unit property with 7,400 SF of ground-floor retail is on a full city block bordered by Texas Avenue and Austin, Prairie and La Branch streets. Equity Partner Ares Management and Ziegler Cooper Architects are on the development team.
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Structura broke ground on 121 Vision Park Medical Office Building, a 58K SF Class-A medical office building on 3.5 acres in Shenandoah. Zeigler Cooper is designing the three-story property, which will deliver by the end of the year. J. Beard Real Estate’s Lisa Hughes and Tim Maczko are handling leasing for developer Everson Developments and have locked down Gill Plastic Surgery and Dermatology to occupy the first floor. J. Beard’s Sean Durkin represented the tenant.
FINANCING
HFF’s Wally Reid and Matthew Putterman secured refinancing for 3737 Buffalo Speedway, a 384K SF Class-A office tower in the Greenway Plaza submarket. Ownership, a partnership of PMRG and National Real Estate Advisors, received a three-year, floating-rate loan to retire existing debt and complete leasing. The building is 73% leased.
THIS AND THAT
Primrose Schools is expanding into more than 200 midsize markets and 14 larger markets, including Houston. The system has 160 schools under development and is looking for more sites in Houston toward a goal of adding 125 locations across the country by the end of 2020.
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CF Real Estate Services received property management assignments from Provident Realty Advisors for five multifamily properties in Dallas, Houston, Austin and San Antonio. CF will now manage:
- Hyde Park at Ribelin Ranch in Austin.
- Tintara at Canyon Creek in Austin.
- Hyde Park at Enclave in Houston’s Energy Corridor.
- Hyde Park at Montfort in Addison.
- Manor at Castle Hills in San Antonio.
