This Week’s Houston Deal Sheet
Principal Real Estate Investors and Stream Realty Partners have completed the construction of the 3.3.M SF, Class-A Bay Area Business Park near Port Houston.
The final three speculative buildings, totaling 1.3M SF, within Bay Area Business Park delivered on June 8. That space was about 20% pre-leased prior to completion.
Principal and Stream broke ground on the original 137 acres in 2007, with the intention of building a few speculative buildings in multiple phases. Phase 1 was 1.2M SF across three buildings and delivered in 2008. Phase 2 was 850K SF across four buildings and delivered in 2016.
Last year, Principal purchased an additional 95 acres for the park for Phase 3, which just delivered the 1.3M SF. The property now totals 232 acres and is one of the largest single-owner industrial parks in Houston.
Since 2007, Stream has overseen the development, leasing and property management of Bay Area Business Park.
PEOPLE
Brandon Buell joined Berkadia’s Student Housing Group’s investment sales group. He will be partnering with Senior Managing Director Kevin Larimer. Prior to joining Berkadia, Buell was with Newmark Knight Frank’s Student Housing group, where he served as a managing director. He will be based in Berkadia’s Houston office.
SALES
Avid Realty Partners and Electra Capital have formed a joint venture and acquired The Pines at Woodcreek Apartments, a property built in 2015 totaling 330 units in Humble. Electra Capital invested $12.2M of preferred equity into the deal, while Avid Realty Partners worked with Acuity Partners to invest $4.1M of common equity into the deal. It is Avid Realty Partners' third multifamily property acquisition in Houston.
LEASING
Ryan LLC leased 66.8K SF at Park Towers, 1233 West Loop South, in the Uptown submarket. Park Towers is a Class-A, 545K SF office property composed of two 273K SF, 18-story buildings. Transwestern’s Doug Little, David Baker, Kelli Gault and Jack Scharnberg represented the landlord, Regent Properties.
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The Burger Joint leased 35.9K SF on Bay Area Boulevard, in front of Baybrook Mall in Friendswood. The restaurant is scheduled to open in the fall and will have a large outdoor patio and bar area. Shop Cos.' Chris Reyes and Tyler Trevino represented the tenant, while Wulfe & Co’s Elise Weatherall represented the landlord.
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The Center for ENT leased 20.8K SF of office space in the newly redeveloped Southside Commons on Bellaire Boulevard. The practice occupies half of the second floor and is the first tenant in the building, which is nearly fully leased. The majority of its space is either under construction or complete. Arch-Con Corp. renovated Southside Commons and also oversaw the build-out for The Center for ENT. Moody Rambin’s Josh Marcell represented the tenant, while the landlord was represented in-house.
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JLL has been selected to market and lease 6624 Fannin Tower in the Texas Medical Center. The 450K SF, 27-story building is owned by Texas Children’s Hospital and is home to nearly 30 institutional and private practices. JLL’s Chris Wadley and Mallory Douthit are leading the leasing assignment. JLL also manages the property on behalf of Texas Children’s Hospital.
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Vertical farming company Kalera leased 83.4K SF at the Parc 59 urban industrial development in Humble. The company has leased the space in Building A, which will house its new growing facility and will be the largest vertical farming facility in Texas. Lee & Associates’ Mike Spears and Derek Riggleman represented the tenant, while CBRE’s Jason Dillee and Nathan Wynne represented the landlord, Jackson-Shaw.
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Robert Half International renewed and expanded its lease for 20.3K SF at Energy Tower, 11700 Katy Freeway. JLL’s David Bale and Don Foster represented the tenant, while Poynter Commercial Properties Corp.’s Kevin Poynter and Peyton Poynter represented the landlord, Atlas Energy Tower LLC.
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A Better Tripp Moving and Storage renewed 13K SF at 5151 Mitchelldale in Houston for five years. JLL’s Jarrett Venghaus represented the tenant and Justin Harrity represented the landlord, Hartman Income REIT.
CONSTRUCTION AND DEVELOPMENT
Transwestern Development Co. has sold its final phase of West Ten Business Park, including a 238K SF last-mile facility fully leased by Amazon. Stonelake Capital Partners purchased the 41-acre tract from a joint venture between Transwestern and UBS Realty Investors.
The total site includes the Amazon building, as well as a 15-acre surface parking lot used for delivery staging, and a 14-acre tract for future development. Stonelake intends to break ground on the 14-acre site with a 180K SF distribution center on a speculative basis.
JLL’s Rusty Tamlyn, Trent Agnew and Charlie Strauss represented the seller. Transwestern’s industrial services team, led by Brian Gammill, executed the sale of the adjacent land parcel.
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Bridgeland, the 11,400-acre residential development in Cypress, made the list of top 10 best-selling master-planned communities in the U.S. during the first half of 2020, according to a report from national real estate consultant RCLCO. The development, owned by Howard Hughes Corp., sold 425 new homes as of June 30. Bridgeland entered the top 10 on the national list for the first time and is the highest-ranked master-planned community in Texas.
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Kiddie Academy Educational Child Care broke ground on a location at 13909 Mandolin Drive in Cypresswood. Opening of the 10.5K SF build-to-suit day care property is planned for early 2021. 1912 Ventures’ Maury Bronstein and John S. Wall Sr. represented Kiddie Academy and Dallas-based Woodmont Land Co., the land buyer. Sluco Realty Services’ Greg Slusky represented the seller, Lakhany Holdings LLC.
