This Week’s Houston Deal Sheet
Custom Goods has leased 353.6K SF of industrial space at Bay Area Business Park in southeast Houston.
The tenant will occupy the entirety of the building, located at 9421 Bay Area Blvd. The facility is part of a 3.3M SF, 232-acre master-planned development owned by Principal Real Estate Investors in Houston’s Southeast/Port submarket.
Bay Area Business Park is located near the Bayport and Barbour’s Cut container terminals at Port Houston, which is attractive for importers and exporters of containerized goods. According to Stream, vacancies in the southeast submarket are falling substantially, due to a lack of new development and an uptick in leasing velocity.
“Development on the infill side of this submarket [south of the Houston Ship Channel] has become increasingly difficult due to the lack of obvious, developable sites and more stringent flood plain legislation that disproportionately impacts this area given its near sea level elevation,” Stream Realty Partners Managing Director Justin Robinson said.
“Our belief is the infill side of the market will see a substantial rent growth over the next few years for these reasons.”
Newmark’s Barry Hill and Doug Nicholson represented Custom Goods in the transaction, while Stream Realty Partners’ Justin Robinson and Woody Hillyer represented the landlord, Principal Real Estate Investors.
PEOPLE
Alliance Residential Co. launched Alliance Industrial Co., a new platform focused on essential warehouse logistics and distribution space development, in May. The firm’s national operations are led by CEO Cyrus Bahrami, also a senior partner in Alliance's residential platform.
The company has hired Chad Parrish, formerly a principal at Molto Properties, as managing director of Texas. He will oversee the development, investment and construction activities in Austin, Dallas, Houston and San Antonio. Other senior members of the Alliance Industrial management team include Chief Financial Officer Brandon Fleetwood, Vice President of Construction J.D. Devine, and Development Director David Adame.
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Brandon Campbell joined Patrinely Group LLC as vice president of Asset Management. Campbell previously served as vice president – Asset Management Division with Goldman Sachs in Dallas and was responsible for the performance of 3.3M SF of office, industrial and retail properties. Prior to that, he served as senior vice president with Capital Commercial Investments in Austin and managed its portfolio of 52 properties. His other fund/portfolio management experience includes Situs, Broe Real Estate Group and Prologis.
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Evan Wagner joined Partners Real Estate Co., the holding company of NAI Partners, Partners Capital and Partners Development, as a development manager. He will work directly with Vice President Julie Ward to help Partners Development deliver ground-up development investment opportunities and full-cycle fee development services, from site selection through building completion. Previously, Wagner served as a real estate development manager with DC Partners.
SALES
An affiliate of Equus Capital Partners purchased Park 845 Crossing, a five-building industrial park totaling 757.3K SF in north Houston. The Class-A properties were built from 2008 to 2014, and the property is 61.5% leased to 11 tenants. JLL represented the seller and procured the buyer, and also worked on behalf of the borrower to secure a three-year, floating-rate acquisition loan. JLL’s Rusty Tamlyn, Trent Agnew, Charlie Strauss, Katherine Miller and Jack Moody represented the seller, a joint venture between IDI Logistics and Heitman. JLL’s John Ream, Michael Johnson and Stuart Hepler secured the loan.
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Alco Designs purchased a 65K SF front-load distribution facility in Northwest Place Industrial Park II, located at 6552 West Little York Road in northwest Houston. Alco will occupy the vacant portion of the facility, while Tytan International will continue to lease the remaining 28.5K SF.
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An affiliate of Equus Capital Partners purchased The Parkway on Westlake, a 320-unit Class-A garden-style apartment community in Humble. The acquisition was made on behalf of Equus Investment Partnership XI LP, a fully discretionary $387.8M equity fund managed by Equus. The property was built in 2018 and offers a mix of one-, two- and three-bedroom units. Madison Apartment Group LP, the multifamily operating arm of Equus, will manage the community.
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An undisclosed buyer purchased Asher Oaks, a 330-unit apartment community at 21000 Gosling Road in Spring. The 18-acre property is now known as Savannah Oaks. The seller was Caldwell Cos.
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A-S 157 FM 1488-Magnolia Circle purchased 2.49 acres at 33108 Magnolia Circle in Magnolia from Magnolia Land LLC. NewQuest Properties’ Andrew Alvis represented the buyer.
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Amani Villa Senior Living Property Management purchased 2.8 acres on Huffmeister Road in Cypress. Lee & Associates’ Sandra Aronds represented the buyer.
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An undisclosed buyer purchased 33.7 acres at the northeast corner of FM 529 and Katy Hockley Cut-Off Road in Katy. Lee & Associates’ Taylor Schmidt represented the seller.
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An undisclosed buyer purchased a 4.4K SF manufacturing building on 10.46 acres at 6007 and 5927 FM 2218 Road in Richmond. Lee & Associates’ Taylor Schmidt represented the seller, the Plasenica family.
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Jackrabbit Road Industrial LLC purchased a 33.6K SF industrial building on 26 acres at 9118 and 9330 Jackrabbit Road in northwest Houston. Lee & Associates’ Trey Erwin III represented the buyer.
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Industrial Realty Group LLC purchased 23.8 acres along the Houston Ship Channel. The site features vessel/deep water barge unloading with approximately 862 feet of frontage on the Houston Ship Channel, multiple railway tracks and heavy truck loading. A portion of the site has been leased to MTF Holdings, and the remaining acreage is available for other commercial or industrial opportunities.
LEASES
Colliers International renewed and expanded its lease to 37K SF at Park Towers, a Class-A office property at 1233 West Loop South in the Uptown submarket. The firm has been located in the building since 2013. Colliers International’s Jay Kyle represented the tenant, while Transwestern’s Doug Little, David Baker, Kelli Gault and Jack Scharnberg represented the landlord, Regent Properties.
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Buffalo Industries renewed and expanded its lease to 60K SF at 6311 Brookhill Drive in southeast Houston. NAI Partners’ Joel Michael represented the tenant in the transaction, while Bridge Commercial Real Estate’s Ed Bane represented the landlord.
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Crunch Fitness leased 32.2K SF in the First Colony Commons Shopping Center, located at 15385 Southwest Freeway in Sugar Land. NewQuest Properties’ Neal Thomson represented the tenant, while Wulfe & Co.’s Kristen Barker and Katherine Wildman represented the landlord.
CONSTRUCTION AND DEVELOPMENT
McNair Interests intends to break ground on its 24-acre residential development, Remy On The Trails, in July. Located on the west side of Beltway 88 near Midway’s CityCentre, the development will include a 330-unit multifamily community totaling 400K SF. The groundbreaking is slated to be the first of two phases of the development, which will be built alongside a 3-acre private lake and will feature three- and four-story buildings. Additional features include event areas and a separate building for flex office space that includes private offices, open seating and conference rooms.
Remy On The Trails is scheduled to begin leasing during the third quarter of 2022. Project partners include architecture by The Preston Partnership, interior design by Mayfield and Ragni Studio and landscape design by Kimley-Horn. Arch-Con is the general contractor for the project. Capital partners include Bluerock Residential Growth REIT Inc. and Veritex Community Bank.
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Capital Development Partners has broken ground on Phase 1 of Cedar Port Logistics Center, an 800.4K SF dual rail service industrial facility with immediate access to Port Houston. Phase 1 will be 100% occupied by Plastic Express Inc., with a planned occupancy by December. Cedar Port Logistics Center is 12 miles from Port Houston in the Cedar Port Industrial Park.
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The Houston Housing and Community Development Department and an affiliate of Atlantic Pacific Communities announced the groundbreaking of Heritage Senior Residences, a new senior living community that will replace housing lost during Hurricane Harvey. The mixed-income housing development was awarded $14.35M in Community Development Block Grant – Disaster Recovery funds.
Heritage Senior Residences is expected to be completed in late 2022. The mixed-income residential development will consist of 30% market rate and 70% affordable apartment homes. Market rental prices will range from $1,304 (one-bedroom) to $1,624 (two-bedroom) while affordable rental prices will range from $445 to $1,189 for one-bedroom units and $534 to $1,426 for two-bedroom units.
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Wolff Cos. has awarded a $2.9M contract for the construction of Beacon Hill Boulevard, as well as related underground utilities in Beacon Hill, to Beyer Construction. Beyer previously completed the paving infrastructure in the master-planned community. The street construction project will mark a total of approximately $13M invested in Beacon Hill infrastructure to date. Construction is slated to begin in about four weeks, with completion expected in late September.
THIS AND THAT
BDFI LLC will accept bitcoin as legal tender to purchase 50 Briar Hollow, a two-building, 3.17-acre multi-tenant office complex in Uptown Houston. The property is being advertised as the first to accept bitcoin in the Greater Houston area.
Developed in 1978 and 1979 and last renovated in 2013, the five- and seven-story buildings total 62.6K SF and 137.1K SF, respectively. One building is totally vacant, while the other is only 30% occupied, the aftermath of tenants’ pandemic-related business setbacks, according to BDFI. BDFI has retained NewQuest Properties’ Glenn Dickerson, Brad LyBrand and Charles McGahren to sell the asset.
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CBRE has been awarded the exclusive leasing and management assignment for Four Oaks Place, a five-building office complex totaling 2.3M SF of Class-A office space in Houston’s Uptown Galleria submarket. CBRE’s Russell Hodges, Bubba Harkins, Kristen Rabel and Jenny Mueller will represent the property on behalf of ownership, a joint venture between Nuveen Real Estate and Allianz.
