This Week’s Houston Deal Sheet

Brookfield Properties has completed extensive renovations of the Houston Center campus in Downtown Houston.

The renovations focused on upgrades to LyondellBasell Tower and 2 Houston Center. Gensler was the project architect and Clark Condon was the landscape architect. Construction began in February 2019 and was led by Harvey Builders. 

Updates include a new central plaza featuring a digital water wall, flexible entertainment space and a stair connection to two landscaped terraces above; renovation of the 2 Houston Center and LyondellBasell Tower lobbies and completely reclad skybridges connecting the complex to a shopping and retail center.

In addition, the renovations introduced a fitness center, conferencing venues and lobby coworking spaces, including a new outdoor sky deck; new multi-tenant corridor and restroom finish design; creation of a glassbox stair and elevator along Rusk Street; and upgrades to the 4 Houston Center lobby.

Gensler relocated its Houston office to 2 Houston Center in early 2020.

SALES

Venterra Realty purchased Elation at Grandway West Apartments in Katy. The 324-unit community consists of one- and two-bedroom garden-style apartments. The off-market transaction was brokered by CBRE’s Matt Philips and Clint Duncan. The loan was originated by CBRE’s Michael Thompson.

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JRK Property Holdings purchased Carrington Park at Gulf Pointe in Houston. Built in 2007, Carrington Park has 258 apartment homes across 10 three-story residential buildings on a 16-acre site at 11666 Gulf Pointe Drive.

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Northeast View LLC purchased a 15.1K SF retail center at 27230 Highway 290 in Cypress. The new owner will occupy 5.2K SF of the property and will lease the remaining space to other tenants. The 1.5-acre center is situated at the hard corner of the Highway 290 frontage road and Louetta. NewQuest Properties’ David Luther represented the buyer, while Blue Ox Group’s Joshua Jacobs represented the seller, 290 Louetta Project Ltd.

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Tri-Star Super Inc. purchased 1.5 acres at FM 518 and Brandywyne in Friendswood. The buyer intends to develop a convenience store at the location. Zann Commercial Brokerage’s Jason Kieschnick represented the buyer, while Evergreen Commercial Realty’s Lilly Golden represented the seller, Hausman Interests Ltd.

LEASES

Ring Energy Inc. subleased 16K SF at 1725 Hughes Landing Blvd. in The Woodlands. The company relocated its corporate headquarters from Midland, Texas. Ring Energy Inc. is an oil and gas exploration, development and production company. NAI Partners’ Charlie Neuhaus and Harry Holmes represented the tenant, while JLL’s Jerrod McQuain represented the sublandlord.

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Source Logistics leased 157.8K SF in building two of Cypress Preserve Logistics Center, located at 22003 Cypress Slough Road in north Houston. Newmark’s Trace Elrod represented the tenant, while Colliers International’s Walker Barnett and Ryan Byrd represented the landlord, David Commercial Development.

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Miner Material Handling leased 16.5K SF in building three of Cypress Preserve Logistics Center. CBRE’s Bill Rudolf and Kyle Golding represented the tenant, while Colliers International’s Walker Barnett and Ryan Byrd represented the landlord, David Commercial Development.

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CaDaAs Re-Distribution Center Corp. leased 19.2K SF of industrial space at 7818 Kempwood Drive. The firm is a distributor of food-grade containers. NAI Partners’ Jake Wilkinson represented the tenant.

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Brucha Corp. leased 15.4K SF at Prologis Park IAH Logistics Center. Stream Realty Partners’ Jeremy Lumbreras and William Carpenter represented the landlord, Prologis.

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Bravado Spice leased 10.2K SF at 8801 Jameel Road. Stream Realty Partners’ Heath Donica and Tyler Maner represented the tenant, while Stream’s William Carpenter and Garret Geaccone represented the landlord, Link Industrial Properties.

CONSTRUCTION AND DEVELOPMENT

Pelican Builders has broken ground on Westmore, a new luxury residential condominium mid-rise in the Upper Kirby district of Houston. The project, located at 2323 West Main St., was designed by Mirador Group. Westmore will contain 33 residences spanning seven stories. Ranging from 1,560 to 1,800 SF, residences start at $960K. Westmore will also offer four penthouses, which average 2.5K SF and start at $1.7M.

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Regency Centers Corp., in partnership with CDC Houston, announced a ground-up development, called Eastfield at Baybrook, at the intersection of I-45 and El Dorado in the Baybrook area of Houston. H-E-B will anchor the first phase with a new store scheduled to open in Q4 2021. In addition to the grocery component, Eastfield at Baybrook will have 30K SF of multi-tenant retail and six outparcels.

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Allied Orion Group has broken ground on Granary Flats, a 324-unit luxury apartment community in the Harvest Green development in Richmond. Granary Flats will be the first multifamily property built in the 1,300-acre master-planned community by Johnson Development Corp. Developed by Allied Orion Group and designed by Sage Group, Granary Flats is located at 4647 Harvest Corner Drive. The community will offer one-, two- and three-bedroom units and is slated to open in Q4 2020.

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Realty Link has announced the development of a new cold storage building in Houston. The 272K SF development can be expanded to 540K SF and will be constructed within TGS Cedar Port Industrial Park. At 15,000 acres, TGS Cedar Port is the largest master-planned rail-and-barge-served industrial park in the U.S. RealtyLink’s Thomas Eldridge is the lead developer. Boyd Commercial’s David Boyd represented RealtyLink in securing the land for the project, and will also be handling the marketing and leasing of the facility, along with Boyd Commercial’s Dave Munson and Garrett Thomas.

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Read King Commercial Real Estate has broken ground on The Waterview, a 295-unit luxury multifamily community in Richmond. A joint venture with Austin-based multifamily developer Wayfinder Real Estate, The Waterview will be the first residential development for Read King, which is most recognized for its retail and build-to-suit developments. The community is also the first Houston-area development for Wayfinder. The Waterview is slated to open in Q1 2022 and will aim to serve a growing demand for new apartments in an area that has seen significant growth, including the construction of a new Amazon fulfillment center that is expected to employ up to 1,000 workers and will open later this year.

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The Harris County Housing Authority and development partner LDG Development have broken ground on The Hollows, a 192-unit multifamily development in the Channelview area. The community will replace housing lost during Hurricane Harvey in 2017 and will be financed with Harris County's Community Development Block Grant — Disaster Recovery funds in conjunction with construction and private permanent financing from Citi Community Capital and tax credit equity from Hunt Capital Partners. The Hollows is expected to begin leasing in 2022. Rents will range from $384 to $848 for a one-bedroom unit, $532 to $1,065 for a two-bedroom unit and $615 to $1,230 for a three-bedroom unit.

FINANCING

JLL Capital Markets has arranged acquisition financing for Chartwell Court, a garden-style apartment community at 15100 Ella Blvd. JLL worked on behalf of the borrower, REEP Equity, to originate the 12-year, fixed-rate Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital LLC, a Fannie Mae DUS lender. The property was built in 1995, and REEP Equity intends to renovate 40% of unit interiors and the property’s exterior. The JLL Capital Markets team representing the borrower was led by Mark Brandenburg and CW Sheehan.

THIS AND THAT

Town Center Lofts, a 309-unit apartment community in Rosenberg, has opened. The property, located at 7204 Town Center Blvd., is adjacent to Brazos Town Center and offers one- and two-bedroom apartments. Three other Houston-area projects by Sueba USA are under construction: Boardwalk Lofts in Katy, San Tierra in Katy and San Estrella in the Energy Corridor.

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Skanska USA Commercial Development selected JLL to handle property management services at 1550 on the Green, a 375K SF, 28-story, Class-A office development adjacent to Discovery Green in Downtown Houston. 1550 on the Green is the first phase of Discovery West, a mixed-use development that will include restaurants and retail. The building is set to break ground in 2021 and deliver in 2024. JLL’s property management efforts will be led by Connie O’Murray.

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Serendipity Labs has opened its first Houston location at 5555 San Felipe, the transformed Marathon Oil Tower. The 28K SF space on the 20th floor has high-end finishes, private offices and team rooms, socially distanced coworking, meeting space and 360-degree views of the Galleria submarket and Tanglewood. Serendipity Labs Galleria Uptown has drop-in and monthly memberships for private offices, coworking and meetings.

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Pre-leasing is underway for Creekside Park The Grove, a 360-unit luxury multifamily residential community in Creekside Park Village Center in The Woodlands. The property, developed by Howard Hughes Corp., contains six four-story buildings with elevators, and it offers one-, two- and three-bedroom apartments. Creekside Park The Grove is the second multifamily development in the Village of Creekside Park and its village center, located at 8440 Creekside Green Drive.

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Evergreen Commercial Realty has been selected by POAG Shopping Centers as the retail leasing partner for LaCenterra at Cinco Ranch, a 409.5K SF mixed-use development with retail, Class-A office space and 271 luxury apartments. Evergreen Commercial Realty’s Lilly Golden, Blair Golden and Haley Golden, along with POAG Shopping Centers’ Vince O’Toole, will serve as the leasing contacts for the property.