This Week's Houston Deal Sheet

The Kirby Collection has been sold by its developer, New York City-based Thor Equities Group, to an undisclosed buyer.

The 1M SF luxury mixed-use project in the River Oaks neighborhood between Lake Street and Kirby Drive was completed in 2017. Its 13-story office tower houses software, energy and real estate tenants, including Houston-based software company PROS, Hancock Whitney Bank, Novum Energy and Lukoil. The project also offers 65K of retail space and a 25-story residential building, with 199 apartment units, seven two-story townhomes and seven two-story lofts.

“The successful sale of the Kirby Collection is the culmination of a project we are all so proud of and its contribution to the Houston skyline, an amazing city,” said Thor Chairman Joe Sitt in a statement.

E.E. Reed Construction was the general contractor on the project, while Richard Keating Architecture was the design architect and Dianna Wong Architecture + Design was the interior designer. Walter P Moore was the structural engineer and WYLIE was the mechanical, electrical and plumbing engineer. 

PEOPLE

Houston-based Powers Brown Architecture promoted Jeanette Shaw and Kristen Stapper to associates. Both have worked on a variety of projects, with Shaw’s experience including condos and Kelsey Seybold clinics. Stapper has experience in hotels and industrial projects. Both architects will become shareholders in the firm.

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Stream Realty Partners promoted Weldon Martin to managing director of its Houston Occupier Services division. Martin’s tasks will include growing the division’s offering in the Houston market and coordinating efforts and collaboration with Stream’s 15 offices across the country.

SALES

Miami-based GDF Properties acquired Holly Hall Apartments, 2111 Holly Hall St., for just under $58M on Sept. 21, 2021, from Harbert Management Corporation FEICA/Holly Hall LLC. The 569-unit, 18.57-acre property sits near the Astrodome and adjacent to the Texas Medical Center. Lee & Associates South Florida principal Matthew Jacocks represented GDF Properties, while Lee & Associates South Florida principal Seth Denison, facilitated the finance structuring and placement for the deal.

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Alate Real Estate LLC acquired 1.25 acres of raw land at 1718 West 26th St. from Yaggi & Yaggi LP. Glenn Dickerson of NewQuest Properties represented the buyer. Preston Yaggi of DFW Lee & Associates represented the seller.

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Black Rock Coffee acquired a 0.59-acre tract in Cross Creek Commons at the intersection of FM 1463 and South Fry Road, Fulshear, from Cross Creek Commons Partnership B LP. J.J. McDermott and Andrew Alvis of NewQuest Properties represented the seller. Matt Parsons of JLL represented the buyer.

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Nate Newman Development Corp. announced several new acquisitions in October, including an off-market 22K SF retail center in Kingwood shadow-anchored by a Lowe’s home improvement store. NewQuest’s David Luther represented the buyer, and Kurt Dennis with Marcus & Millichap Capital Corp. secured financing. The company also purchased an 8,500 square foot office/warehouse in The Woodlands in an off-market 1031 exchange transaction adjoined by 8 acres it previously assembled for a future 120K SF business park development. In another 1031 exchange, the company purchased a net leased retail property at 222 South Frazier, within a Conroe opportunity zone.

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Houston-based Vortexa Cytp LLC purchased two Marriott hotels in Galveston from Plano-based Argentic Services LP. The hotels, Courtyard by Marriott Galveston and TownePlace Suites by Marriott Galveston, are located adjacent to each other on the 9500 block of Seawall Boulevard.  HVS Brokerage & Advisory team members Eric Guerrero, James Rebullida and Fadi Rawashdeh participated in the transaction.

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Group RMC has acquired 5718 Westheimer, a 491K SF Class-A office property in the Galleria submarket. JLL procured the buyer and secured the three-year, floating-rate acquisition loan with Sound Point Capital Management. The 22-story building is currently 67.6% leased and was updated in 2017, with a lobby, fitness center, full-service café and updated building systems. JLL Managing Director Kevin McConn and Director Rick Goings represented the seller and financing efforts were led by JLL Capital Market’s Senior Director John Ream.

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PHP Capital Partners purchased Point West Business Park, a 145.9K SF light industrial portfolio on 10 acres at 10161 Harwin Drive in southwest Houston near Westpark Tollway and Beltway 8. The off-market purchase is the firm’s first deal in the Houston area. Point West consists of three single-story light industrial buildings. 

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The Peanut Gallery, a La Porte preschool, was sold to an unnamed Washington limited liability company. The 43,560 SF facility at 3902 Underwood Road sold for $1.5M. Dominic Sulo and Eric B. Luhrsen, senior vice president and senior associate, respectively, at the Chicago Oak Brook office of Marcus & Millichap, listed the property for an unnamed Arkansas company. The buyer was represented by Maxwell McDonald, first vice president of Marcus & Millichap in Seattle. 

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A 16K SF industrial property at 7011 Brittmoore Road has changed hands. The property was sold by a private investor and listed by Senior Managing Director of Investments Adam Abushagur and associate Maria Pappas, both of Marcus & Millichap. The nearly 40-year-old property sits on an acre of land.

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New York City-based Ellingstone Group, along with an individual investor, purchased Ten West Corporate Center. The fully leased, 199K SF Class-A office building is at 17420 Katy Freeway in the Energy Corridor. It was purchased from California-based KBS, which bought the property in 2006. Kevin McConn and Marty Hogan of JLL represented KBS. Susan Hill of JLL represented the buyer. 

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Balmoral Woodland Hill #2 LLC sold a 4.2-acre tract of land in Balmoral, a master-planned community in Humble, for an undisclosed price. Houston-based Satya purchased the property. Balmoral Woodland Hill #2 was represented by Jerry Turboff, president at Prime Capital Corp. Satya represented itself. 

LEASES

Houston-based Waterbridge Holdings, KM Realty, Blakely & Weeks-Thome and U.K.-based RSK UK signed leases at 5555 San Felipe, formerly the Marathon Oil Tower. John Spafford, Elliott Hirshfield and Madeline Gregory of CBRE represented the landlord, M-M Properties, while Kevin Kushner and William Padon at CBRE represented Waterbridge Holdings; Kevin Hodges and Lizzie Prochazka with Savills represented RSK UK; Don Foster and Samuel Slovacek with JLL represented KM Realty; and Joe Bright with NAI represented Blakely Weeks-Thome.

M-M Properties has spent $15M on the building’s interior renovations so far, including a restaurant space,  fitness center, café and lobby. According to CBRE, the building has 540K SF yet to be leased. 

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NAI Partners arranged a 255,704 SF industrial lease at Seton Lake Logistics Center at 14611 Tomball Parkway. NAI Partners’ Joel Michael represented the tenant, Pollock Orora, in the transaction while the landlord was represented by Faron Wiley with CBRE.

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Global energy consultants Opportune signed a long-term, 62.5K SF expansion and renewal at Pennzoil Place at 711 Louisiana St. Opportune will occupy the 31st through 34th floors at the two-building property. Transwestern’s Tyler Garrett and Eric Anderson provided agency leasing services on behalf of landlord Metropolis Investment Holdings Inc. CBRE Vice Chairman Lucian Bukowski represented Opportune in lease negotiations.

CONSTRUCTION

Woodlands-based Cornerstone Development Group will deliver the first phase of a new Katy development in fall 2022. Porter Lake Crossing, a four-building 40K SF retail development, will sit at Porter Lake Road and Stockdick School Road in northwest Katy. Sarah Thobae, an associate with the Houston branch of Weitzman, is leasing the project along with Weitzman Senior Vice President Kyle Knight. Construction is set to begin this December.

THIS AND THAT

Seventeen new Houston projects were recognized in the 2021 AIA Houston Design Awards. The winners included:

• Munoz + Albin Architecture and Planning Inc. for Lyric Center Garage, Architecture Less Than 50K SF

• Studio Red Architects for Houston Farmers Market and Michael Hsu Office of Architecture for Springdale General for Houston Farmers Market, Architecture Greater Than 50K SF

• The University of Houston Student Team for Strange Fruit: Peace and Justice Center Dialogue, Conceptual 

• Kirksey for Congregation Beth Israel, Divine Detail

• MC2 Architects for Greater Houston Pediatric Dentistry and Perkins&Will for Waste Management Headquarters, Interior Architecture 

• DLR Group for Arthur A. Richards Pre-K-8th Grade School, On The Boards

• Michael Hsu Office of Architecture for MKT, Transcend Architecture for Agape Development, Community Center, Page for Robinson-Westchase Neighborhood Library and Harry Gendel Architects for Soccer Shots, Renovation Restoration, Content Architecture for Allston Residence, M + A Architecture Studio for Hammer Residence and Michael Hsu Office of Architecture for Tiny Victories, Residential Architecture

• Associates UltraBarrio LLC for Houston Metro: Transit Environment Programming Catalog and Rios for Lynn Wyatt Square for the Performing Arts, Urban Design

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Saul Valentin, founding principal of Houston-based development, architecture and project management firm Collaborate Architects, was among eight honorees in Comcast’s sixth annual Hispanic Hero Awards. Timed to coincide with Hispanic Heritage Month, the awards celebrate making a difference in the community through volunteerism, mentorship, advocacy and civic engagement.