This Week’s Houston Deal Sheet
Sage Dulles Ltd., an affiliate of Lovett Industrial LLC, plans to build a new Class-A industrial development of more than 320K SF in Sugar Land Business Park.
The project will redevelop the former National Oilwell Varco site at 500 Industrial Blvd., one of the largest parcels in the business park. Lovett Industrial purchased the site in 2019.
Boise Cascade Building Materials Distribution LLC will be the first tenant in the new development, leasing about 163K SF in the southern portion of the building. The company’s regional operations have been in Sugar Land since 2002, and the new development will allow the firm to expand its business operations.
The development is the result of an agreement approved by the Sugar Land Development Corp. with Sage Dulles and Boise Cascade. In addition to SLDC’s agreement, Fort Bend County incentivized the project to support continued industrial development in the city. Details of the incentives were not disclosed.
Lovett Industrial is a newly formed development company led by Frank Liu and Charlie Meyer that comprises a management team with significant experience in the commercial and residential development industry.
PEOPLE
Kevin Freels joined Midway in a managing position within the firm’s Investment and Development team. He will build on the firm’s equity relationships and execute new business initiatives across Midway’s various development, value-add and acquisition strategies. Prior to Midway, Freels served as a director in the Seattle office of JLL Capital Markets, where he specialized in institutional-grade assets and developments across the West Coast.
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Todd Moore joined Colliers International as a principal within the firm’s Houston investment sales team. He was previously an investment sales director at Stan Johnson Co., representing buyers and sellers of net-leased assets.
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Allen Hartman, CEO of the Hartman family of non-traded REITs, announced that general counsel, corporate secretary and Chief Operating Officer Mark Torok will take on the chief executive role when Hartman steps down. An official timetable has not been established for the change, but the parties anticipate a long transition period. Hartman will remain chairman of the board of the various companies. Torok joined Hartman as a securities attorney in June 2015 and became general counsel and corporate secretary in 2016.
SALES
An undisclosed buyer purchased 1200 Durham, a 19.2K SF parcel of land in Houston’s Inner Loop. Marcus & Millichap’s Justin Miller, Cary Latham and Adam Abushagur had the exclusive listing to market the property on behalf of the seller, a Houston-based investor. The buyer will be redeveloping the site.
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A Dallas-based LLC purchased West Bellfort Self Storage, a 42.9K SF self-storage facility in southwest Houston. Marcus & Millichap’s Dave Knobler and Charles LeClaire had the exclusive listing to market the property on behalf of the seller, a Houston-based LLC. The property is situated on 4.35 acres with eight metal-framed, single-story buildings. The 350-unit storage facility was built in 2008.
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A private investor purchased 5th Street Business Park, a 20.3K SF industrial property at 30415 Fifth St. in Fulshear. Marcus & Millichap’s Michael Lea had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer was also secured by Lea.
LEASES
Yang Ming Marine Transport Corp. leased 34.5K SF at Reserve at Westchase, located at 3250 Briarpark Drive. According to Transwestern research, it was the largest new deal done in the Westchase submarket since the coronavirus pandemic hit. JLL’s Don Foster represented the tenant, which was previously located at 3 Sugar Creek Center in Sugar Land. Transwestern’s David Baker, Jack Scharnberg and Kristen Baker represented the landlord.
CONSTRUCTION AND DEVELOPMENT
Finial Group LLC is breaking ground on Phase 2 at Independence Business Park in southwest Houston. Clearing on the site has been completed, and Phase 2 is expected to be completed by Q3 2021. Phase 2 will consist of two additional free-standing crane buildings that will include office and will be move-in-ready. Each building will be between 17K SF and 25K SF with approximately 10% office build-out, will be 10-ton crane ready and will have grade-level doors.
Independence Business Park is a joint venture between Finial Group and Senterra and will be executed in four consecutive phases. The finished park will have seven free-standing buildings and total 145.2K SF.
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WattBridge Energy has announced the development of the Braes Bayou Power Station, a 288-megawatt natural gas-fired power generation facility. The station is being developed by WattBridge, the owner, and will be constructed by ProEnergy. The Fort Bend County Commissioners Court unanimously approved an incentive package for the project.
THIS AND THAT
Allied Orion Group has been chosen to manage Hollister Oaks, a 60-unit community in Spring Branch. Developed by Ibiza Hollister Oaks LP, Hollister Oaks is located at 1920 Hollister St. The community is close to I-10, Highway 290 and Beltway 8, and it is zoned to Spring Branch Independent School District.
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Hartman Short Term Income Properties XX Inc. and Hartman vREIT XXI Inc. announced that the boards of the respective companies have voted to merge Hartman XX into vREIT XXI, with vREIT XXI as the surviving company. The parties anticipate a stock-for-stock consideration, but terms of the merger are still in negotiations between the parties. An S-4 proxy and registration statement will be filed with the Securities and Exchange Commission, and a shareholder vote is tentatively scheduled for late Q2 or Q3 2021, depending on federal and state regulatory approvals.
