This Week's Houston Deal Sheet
Levey Group acquired a 38-acre tract in Pearland to develop what could become the city’s largest logistics facility.
The Houston-based Levey Group plans to develop Levey Logistics Park on the tract near South Sam Houston Parkway and Alameda School Road, according to a news release. Levey Logistics Park will consist of two Class-A industrial buildings, one cross-dock and one rear-load, spanning about 650K SF, according to a release.
The project is in the design phase, with construction expected to begin in Q4 2023.
The parcel is in Pearland’s Lower Kirby District, a 1,200-acre mixed-use development in the northwest portion of the city, fronting South Beltway 8 and State Highway 288.
Levey Group worked with the Pearland Economic Development Corp. and the city of Pearland to secure the infrastructure required to close on the transaction and develop the project, according to the release.
Paul Dominique, Jon Lindenberger and Jason Tangen of Colliers represented the seller in the transaction.
SALES
Trophy Club-based GN Hospitality Inc. purchased a 74-key Chinatown location of Comfort Suites from Houston’s PA Hospitality.
The hotel at 7707 West Sam Houston Parkway S was built in 2013. HVS Brokerage & Advisory served as broker for the deal, which it announced Thursday.
The property has experienced a robust recovery during the pandemic, with booking revenue increasing 45% in 2021 compared to 2019, according to a press release. Revenue increased 13.7% in the first two quarters of 2022 compared to the previous year.
The buyer secured a long-term franchise license agreement with Choice International Inc. and plans to renovate the hotel, according to the release.
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Marcus & Millchap brokered the following sales:
— A private investor purchased Crossroads Plaza, a 26K SF retail property at 19708 Northwest Freeway in Jersey Village, Texas. Marcus & Millchap handled the sale for the seller, also a private investor.
— A private investor sold the La Quinta Inn & Suites Alvin, a 55-room hospitality property at 880 TX-35 Loop in Alvin, Texas. The buyer, also a private investor, was secured and represented by Frosch and Manuel. The property was built in 2009 and spans 1.39 acres.
— An individual/personal trust purchased Bissonnet Beltway Plaza, a 29K SF retail property at 9990 Bissonnet St. in Houston. Marcus & Millchap handled the sale for the seller, and the buyer was procured by Wolansky and Lagos.
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Shaw Commercial Properties brokered the purchase of a 0.9-acre pad in Mont Belvieu, northeast of Baytown, the site of a recently opened Dutch Bros. Coffee.
Greg Shaw with Shaw Commercial Properties represented the seller, and Greg Slusky with Sluco Realty Services represented the buyer. The drive-thru coffee shop is at 9835 Eagle Drive in Mont Belvieu.
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Houston-based Capital One Hotels purchased the 96-key Holiday Inn Express & Suites Houston NW – Cypress Grand Parkway from Ta Vu LLC.
HVS Brokerage & Advisory brokered the sale of the IHG hotel at 21410 Fairfield Place Drive in Cypress.
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Fuller Realty Interests has added 116K SF to its Texas portfolio with the purchase of two business centers in the Houston area.
Fuller this month acquired Westway Business Center at 2313 West Sam Houston Parkway N and Pineway Business Center at 13230 Hempstead Highway, principal Johnny Kight said. The business centers are 62K SF and 54K SF, respectively, and there are two buildings at each location. The buildings have a combination of grade-level overhead doors, drive-in ramps and dock loading doors, Kight said.
The buildings were 97% leased when the deal closed, he said, adding they expect to spend some capital to update the buildings.
Fuller has 5.7M SF of assets under management throughout Texas, including light industrial/flex, office and land tracts, and it is “still actively and aggressively acquiring more throughout the state,” Kight said.
LEASES
CRBE arranged 82K SF of new leases at Wildwood Corporate Centre I and II in The Woodlands, bringing the two buildings to 100% leased.
The announcement included six new leases signed in the past year, including a 43K SF commitment from Strike Construction, a 19K SF commitment from FCC Environmental Services and a 6K SF lease from Daily Grace Enterprises within Wildwood Corporate Center I.
The buildings at 470 Wildwood Forest Drive offer a combined 330K SF of Class-A office space, according to a news release. Wildwood Corporate Centre I, built in 2014, is 128K SF and three floors, and the adjacent Wildwood Corporate Centre II, built in 2016, is eight floors and 202K SF.
Steve Rocher and Jason Presley of CBRE’s Landlord Representation Group in Houston represented the property’s ownership, GeoSouthern Budde Rd. Lease terms weren't disclosed.
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Killam Development leased 7K SF of office space at 3131 Eastside St. to Rise Association Management Group.
Killam Development was represented by Monte Calvert of Transwestern Real Estate Services. Ray Lopez of Colliers represented Rise Association Management Group in the transaction.
The property is in the Greenway Plaza office submarket, which contains 13.1M SF of office space. The submarket is 79% occupied, and the average asking gross rental rate is $33.58 per SF, according to a news release.
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NewQuest Properties announced the following leases:
— Wild Fork Foods, a Florida-based specialty grocer, leased a 4K SF former Wells Fargo Bank location at the Shoppes at San Felipe, at the intersection of San Felipe Street and South Voss Road. Construction should begin in the coming weeks for a Q2 2023 opening, NewQuest said. Kevin Sims and Nick Ramsey of NewQuest Properties represented the landlord. Matt Reed of Shop Co. represented Wild Fork Foods.
— Fred Astaire Dance Studio leased 2,800 SF of retail space at Waterside Commons, 9825 South Mason Road in Richmond. Austen Baldridge and Brett Strake of NewQuest Properties represented the landlord. Bruce Frankel of Frankel Development Group represented the tenant.
CONSTRUCTION AND DEVELOPMENT
Construction has begun for a new project from MLB Capital Partners, the commercial real estate investment company that revitalized the Houston Farmers Market.
The project will bring Underbelly Hospitality’s Wild Oats and Underbelly Burger and Wakefield Crowbar’s The Decoy to a 1.53-acre site at the corner of Witte Road and Westview Road in Spring Branch.
The Decoy is a 21-and-older bar with sand volleyball courts, according to a news release. It will occupy 2,500 SF. Wild Oats is a restaurant offering “a fresh take on traditional Texas” and will occupy 4,500 SF. Underbelly Burger serves burgers, fries and shakes and will occupy 1,300 SF.
The project is redeveloping a former warehouse.
“We saw potential early on to reinvigorate this site as a community lifestyle destination in the fast-growing Memorial area,” said Jeff Lindenberger, partner at MLB Capital Partners.
The project is 100% leased and expects a grand opening in Q2 2023.
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Kajani Capital Group purchased 10.8 acres in the Kingwood/Humble area for a Class-A multifamily development.
The Kingwood Place development at the corner of Highway 59 and Northpark Drive will feature 300 multifamily units, according to a news release.
The development will be built alongside the existing H-E-B-anchored multi-use retail center, which is 90% leased.
Chris Bergmann Jr. of JLL represented the buyer, Kajani Capital Group, and Joan Collum of Collum Commercial represented the seller, Stratus Properties, in the off-market land acquisition.
THIS AND THAT
Midway opened East River 9, a public, nine-hole golf course, along with Riverhouse Houston, a family-friendly restaurant and bar, at its 150-acre East River development in the Fifth Ward.
The real estate investment and development firm hopes to make this an active, outdoor destination. It also features six pickleball courts, according to a news release. The golf course at 65 Hirsch Road features a 300-yard driving range and stadium lights for evening play.
Riverhouse Houston is a new concept with the DKC Group and serves American fare, beer, wine and spirits.
The East River development is within a mile of downtown and overlooks Buffalo Bayou.
