This Week’s Houston Deal Sheet
Lexicon Pharmaceuticals has sold five buildings totaling 261K SF at 8800 Technology Drive in The Woodlands to an unnamed buyer.
The sale was the single-largest commercial real estate transaction in the life sciences sector in Houston in 2020, according to NAI Partners, which brokered the deal. The main building on the campus is a 128.4K SF Class-A office building with laboratory space. Additional properties on the site include a one-story flex property with lab and office space, as well as two special-use facilities.
Houston’s life sciences sector is experiencing a boom, spurred by several large developments underway in the Texas Medical Center and Midtown. Many firms have also continued to raise capital during the coronavirus pandemic, and are looking to expand their real estate footprints in the city.
NAI Partners’ Dan Boyles and Jon Silberman represented the seller, Lexicon Pharmaceuticals. Lexicon will be relocating its corporate headquarters to a new location in The Woodlands.
PEOPLE
Meredith Cullen joined Cushman & Wakefield as a director based in the firm’s Houston office. He will partner with Cushman & Wakefield Vice Chairman David Cook to lead the seven-person land brokerage team. Cullen joined Cushman & Wakefield from Cullen Realty Group, a firm he created in 2013 that specializes in marketing, dispositions and acquisitions of land, ranches, buildings, homes, condominiums and other properties.
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The Houston Apartment Association has announced its 2021 executive committee. Veritas Equity Management’s John Boriack will serve as president, Judwin Properties’ Christy Rodriguez will serve as president-elect, Signorelli Cos.’ Stephanie Graves will serve as secretary/treasurer and The Dinerstein Cos.’ Clay Hicks will serve as immediate past president.
The vice presidents at large are Creative Property Management’s Scott Douglas, GWR Management’s Gina Erwin, Morgan Group’s Shelley Watson and Barvin’s Tracie Yoder.
SALES
EverWest Real Estate Investors purchased a 109K SF, Class-A warehouse facility at 1301 South 16th St. in La Porte for $8.75M. The building is the last warehouse project built in the area, following an industrial development moratorium by the city of La Porte. EverWest’s Mark Bigarel represented the buyer, while Phelan-Bennett Development’s Justin Bennett represented his firm, the developer and seller, in the transaction.
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An undisclosed buyer purchased a 300-unit garden-style multifamily property in Pasadena. JLL’s Chris Young, Joey Rippel and Kyle Whitney represented the seller, 29th Street Capital.
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Merit Hill Capital purchased Strack Road Storage, a 198K SF self-storage property at 4717 Strack Road. Marcus & Millichap’s Dave Knobler had the exclusive listing to market the property on behalf of the seller, a local partnership. The buyer was also secured by Knobler.
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An undisclosed buyer purchased the 23.5K SF Corrigan Plaza at 5402 Broadway St. in Pearland. Rencher Properties’ Nolan Rencher represented the buyer, while RESOLUT RE’s Jim Thompson and Benny Nguyen represented the seller.
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A California-based LLC purchased Ashley’s Storage Portfolio, a 96.3K SF self-storage portfolio in Channelview and the greater Houston area. Marcus & Millichap’s Dave Knobler had the exclusive listing to market the property on behalf of the seller, a Texas-based LLC. Knobler also secured the buyer.
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USA Waste of Texas Landfills Inc. purchased 63 acres at Atascocita Road, northeast of Wilson Road in Humble. The firm intends to use the site to build a facility. Avison Young’s Tommy LeBlanc and John-Michael Kamel represented the seller, Sowell & Co.
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Newman Kelly Real Estate Investment Services purchased a 17.5K SF value-add retail center and an industrial building on FM 2978 at 25245 Hufsmith Kohrville. The firm intends to redo the facade, lease the property and sell it in the future. Newman Kelly Real Estate Investment’s Nate Newman represented the buyer in the off-market transaction. The firm also purchased 5 acres adjacent to the same retail center, which will be kept for future development. That purchase was also an off-market transaction.
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Newman Kelly Real Estate Investment Services purchased 16.78 acres in Conroe at the intersection of Loop 336, FM 2854 and Airport Road. Newman Development Corp. is in the civil engineering design phase of a future business park development there. Newman Kelly Real Estate Investment Services’ Nate Newman represented the buyer, while Newcor Commercial’s David Alexander represented the seller.
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Long View Equity purchased 6015 Skyline Drive, a 36.6K SF industrial net-leased building. The property was acquired through a sale-leaseback transaction with long-term occupant Accent Sign & Awning. The acquisition is among the first for the firm's newest fund, Long View Equity Partners IV.
LEASES
RGN Houston I LLC, doing business as Regus, leased 18.1K SF at One Westchase Center. CBRE’s Kevin Saxe and Corbin Janssen represented the tenant, while Transwestern’s Louann Pereira, Doug Little and Matthew Seliger represented the landlord, Nitya Capital.
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Sourcepoint Inc. leased 34.9K SF in the Westbelt Office Center at 8101 West Sam Houston Parkway South. Colliers International’s Bob Parsley, Darren Gowell and Mia Jarrell represented the tenant, and JLL’s John Pruitt represented the landlord, RMA American Realty LP.
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First Investors Financial Services renewed 38.8K SF at 5757 Woodway. NAI Partners’ Dan Boyles represented the tenant, and Braun Enterprises represented the landlord, 5757 Woodway Realty Ltd.
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Experiential art museum Seismique leased 40K SF at 2306 Highway 6 South in West Houston. It is the museum’s first location in Texas and opened on Dec. 26. NAI Partners’ Jason Gaines represented the tenant.
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Martin Preferred Foods LP renewed 73.6K SF at 2017 White St. M Kidd Properties’ Mark Kidd Sr. and Mark Kidd Jr. represented the tenant, while Prologis’ Ryan Patronella represented the landlord, Prologis.
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Onus Global Fulfillment Solutions expanded its lease by 89.5K SF at Carson 249, 12202 Cutten Road. United Heroes Realty’s Pablo Ng and Savills’ Dillon Dummit represented the tenant. Stream Realty Partners’ Justin Robinson and Jeremy Lumbreras represented the landlord, The Carson Cos.
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SpaceManager Closets leased 28.6K SF at Prologis Bondesen, 10633 West Little York Road. Colliers International’s Chase Spence represented the tenant, while Stream Realty Partners’ Jeremy Lumbreras and Jeff Pate represented the landlord, Prologis.
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TT Stone expanded and renewed its lease of 70.2K SF at Northwest Industrial Park, 5750-5730 Campbell Road. JLL’s Geoff Perrott and Jeff Venghaus represented the tenant, and Stream Realty Advisors’ Boone Smith and Garret Geaccone represented the landlord, DRA Advisors.
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Monolithic Precision Technology renewed its 10.8K SF lease at Commerce Park Northwest, 8601 Jameel Road. Stream Realty Partners’ Jeremy Lumbreras and Boone Smith represented the landlord, Link Industrial Properties.
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Pronto Vending renewed its lease of 17.1K SF at Agellan Minimax, 2301-2399 Minimax Drive. Cypressbrook Cos’ George Montes represented the tenant, while Stream Realty Partners’ Boone Smith and Garret Geaccone represented the landlord, Agellan Commercial REIT.
FINANCING
JLL Capital Markets has arranged refinancing totaling $40M for 5300 Memorial and 10497 Town & Country, office buildings totaling 303K SF in Houston. JLL worked on behalf of the borrower, an affiliate of Equus Capital Partners, to secure the five-year, floating-rate loans through East West Bank. The JLL Capital Markets team representing the borrower was led by John Ream.
5300 Memorial is a recently renovated 153.7K SF, Class-A boutique office building that is connected to a 444-space parking structure. The 11-story property is 93% leased to a diverse tenant roster comprising legal, health care, government, real estate, financial services and energy tenants.
10497 Town & Country is a recently renovated, Class-A office building totaling 149.3K SF in CityCentre. At 91.5% leased, the asset is home to key tenants, including Freese & Nichols, Regus and T&C Family Physicians.
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New York Life Real Estate Investors announced the financing of the Katy 90 Fulfillment Center, a 1M SF industrial property in Brookshire. The property was developed in 2018 as a build-to-suit. The transaction is a five-year, fixed-rate senior mortgage loan to an investment partnership managed by the Mirabaud Group.
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StackSource Capital Advisors’ Beth Mercante and Zach Wagner placed transitional financing with a private debt fund for a 517-unit, 415K SF multifamily property in Pasadena. The property was developed in 1971 and suffered damage from past hurricanes. The sponsor, a foreign buyer, plans on renovating the property and leasing it up over a 12-month period.
StackSource sourced a private debt fund that was able to underwrite and close within two weeks, a week ahead of the purchase contract's year-end deadline. The loan featured a 9.49% rate over a 12-month term at 80% loan-to-cost.
