This Week's Houston Deal Sheet
A restaurant village will soon be cooking up Asian flavor in Katy.
NewQuest Properties is constructing a 54K SF Asian village of upscale restaurants and retail in Katy Grand Phase 2. Tim Ho Wan, a popular dim sum brand, has leased 5,160 SF in a new 19K SF building.
"The fact that Michelin-rated Tim Ho Wan has chosen Katy for its first location in Texas shows how special the city and NewQuest's project are," NewQuest development partner Heather Nguyen said. "Katy Grand will be 'the place' to go to try a concept and know it's best of the best."
Tim Ho Wan is based in Hong Kong and has more than 46 restaurants in Asia as well as in New York, Las Vegas and Irvine, California.
Dim sum specialties include BBQ pork buns, rice rolls, pan-fried turnip cake, Sui Mai, Har Gow and steamed egg cake.
The restaurant is set to open in the winter. This marks the first location in Texas and fourth in the United States.
NewQuest is also pre-leasing a second building totaling 17K SF in Katy Grand.
Within the 5-mile trade area of Katy Grand, the population is pushing 267,000, an increase of 35.8% since 2010, with an average household income of $115K per year, per the release. Nearly 11% of the population is Asian or Pacific Islander and it grows to 13% within the 10-mile trade area.
"We convinced Tim Ho Wan that Texas is the market to enter because of its continued high growth, low corporate taxes and strong demand for Asian concepts," NewQuest Vice President John Nguyen said. "And, Katy Grand is the best possible springboard for an Asian restaurateur."
EXECS
Kamecia Mason was hired as diversity director, Southern region for McCarthy Building Cos. This is a new regional role for McCarthy, a part of the firm's long commitment to diversity outreach. Mason will develop policy, create programming and partner with leadership to set the strategic direction for the region’s diversity outreach efforts.
SALES
NorthPoint Development has acquired 190.6 acres at Highway 90 Road, Houston. NorthPoint 90 Logistics Center is under construction on the site. Two spec buildings will deliver in Q2 2020. NorthPoint has the ability to build over 2.5M SF, including a 1.5M SF facility. Colliers International's Blake Gibson and Ryan Byrd represented the buyer. NAI Partners' Michael Keegan represented the seller, Sowell Equities-Forestwood L.P.
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A private East Coast-based investor purchased a single-tenant net-leased McDonald's property at 20310 Highway 59 in New Caney for $1.8M. The property is an outparcel to a new-construction Walmart Supercenter and near other retailers, including Walgreens, Chase, Taco Bell and Jack in the Box. The Boulder Group's Randy Blankstein and Jimmy Goodman represented the seller, a Texas-based real estate investment firm.
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Houston-based investment firm Three Pillars Capital Group acquired Camino Del Sol Apartments, 1120 Red Bluff Road, Houston. The 122-unit, Class-C property has outdated units and rents 15% below market. Three Pillars plans to spend about $1.5M to renovate the property built in 1969. The plans have not been finalized yet. Three Pillars represented the buyer in-house.
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Quasar Logistics IAH Ltd. purchased a 71.8-acre site at Highway 59 and Rankin Road in Humble. The site was previously proposed as International Logistics Park but will be repositioned by the new owner to capture the rising demand for logistics and distribution space in Houston. NAI Partners’ Clay Pritchett represented the buyer. NAI Partners’ John Ferruzzo, Nick Peterson and Ryan Searle represented the seller, Platinum Ridge L.P.
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An undisclosed company acquired a 13K SF multi-tenant neighborhood center on 1.1 acres at 1830 Highway 6 South, Houston. The retail center is 100% leased. Weitzman's Evan Altemus, Byron Howard and Brett Levinson represented the seller.
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An undisclosed buyer acquired Cashel Springs, a 300-unit, value-add property in Houston. New York-based GAIA Real Estate, along with Menora Mivtachim Insurance and Amitim Senior Pension Funds, sold the property, which was acquired as part of a five-asset portfolio. The portfolio consisted of 1,376 residential units for $88.4M. Newmark Knight Frank's Matt Saunders represented the buyer.
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An undisclosed buyer purchased Rebecca Village, a 54K SF industrial property at 3315 Spring Cypress Road, Spring. Marcus & Millichap’s Thomas Costello represented the seller, a partnership.
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Lima One Capital closed on three multifamily complexes totaling 350 units of workforce housing for $10M, including one in Houston. All three deals were completed in less than 30 days and closed in the same week in mid-July. The 224-unit complex in Houston has one-, two- and three-bedroom apartments with a 98% occupancy rate. The portfolio also includes a two-building property in Cuyahoga Falls, Ohio, and a 61-unit complex in Texarkana.
LEASES
BK Industrial Solution LLC signed a 10K SF industrial lease at 6812 Bourgeois Road, Houston. Finial Group's Jack Gaffney and John Buckley represented the tenant.
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Burns & McDonnell extended and expanded its lease at 1700 West Loop South, Houston. The company’s square footage increased from 158K SF to 218K SF on floors eight to 11. The company plans to hire 300 employees by 2021. JLL's Scott Fikes and Jenny Mueller represented the landlord, Lingerfelt CommonWealth Partners, which acquired this building in 2017. Cushman & Wakefield’s Joe Peddie represented the tenant.
DEVELOPMENT
Lakeside Row The Residences has begun pre-leasing. The Howard Hughes Corp. project offers multifamily units and for-rent townhomes in Bridgeland, a northwest Houston master-planned community. Lakeside Row features up to three bedrooms with smart technology. On-site amenities include a resort-style pool, a dog park, a fitness center, a yoga and spin studio, a kids’ playroom, WiFi and activated event spaces.
FINANCING
JLL secured refinancing for 1225 North Loop, an 11-story, 200K SF office building in Houston. CUNA Mutual Group provided a 25-year, fixed-rate loan to the borrower, 1225 North Loop Investments Inc. The property features the Hightower Deli, a new conference room, extensive parking, 24-hour security and free WiFi. JLL's Michael Johnson, Jett Lucia and Robby Derrick represented the borrower.
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CPM Holdings LLC secured the financing on a 222K SF industrial portfolio totaling 17 buildings. The portfolio is made up of Enterprise Park, a 154K SF, 14-building center at Corporate Drive and Town Park Drive; and Town and Country Center, a 68K SF three-building industrial center at Sam Houston Tollway and Shadow Wood Drive. Newmark Knight Frank’s Spencer Hough and Tip Strickland represented the borrower. St. Louis-based Reinsurance Group of America Inc. provided the financing.
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Bravo Capital Management purchased two multifamily properties in the Spring Branch submarket. The portfolio consists of Amelia Apartments, a two-story apartment building with 32 units at 2002 Johanna Drive; and Jacquelyn Place Apartments, a three-story apartment building with 36 units at 7630 Amelia Road. Newmark Knight Frank’s Spencer Hough and Tip Strickland represented the borrower. Ready Capital provided bridge financing.
THIS AND THAT
Bank of America Tower, formerly Capitol Tower, was certified LEED Version 4 Platinum for Core and Shell by the U.S. Green Building Council. V4 is the most stringent LEED version to date and Platinum is the highest level of green building certification offered by the USGBC.
The tower's designation is the first in the United States and the highest score in the world. Environmental features include daylight harvesting technology, a 40% parking reduction, tenant metering, alternative vehicle charging stations and a rainwater collecting facade system. Bank of America Tower is a 35-story office building in Downtown Houston.
