This Week's Houston Deal Sheet

Wolff Cos. and the Texas Department of Transportation broke ground on the $16M U.S. 290 Beacon Hill interchange, intended to improve access along U.S. 290 in Waller to Wolff’s Beacon Hill development.

Construction on the interchange is expected to be completed in 2024. The project is funded through a public-private partnership between Wolff and TxDOT, with Wolff providing capital as well as the right of way for the project.

According to the most recent TxDOT traffic counts, U.S. 290 at Beacon Hill saw 43,273 vehicles daily in 2021, a 10% increase over 2020 and a 14.7% increase over five years.

Hines purchased nearly 80 acres in Beacon Hill in January for a future build-to-suit project. West of Beacon Hill Boulevard and fronting U.S. 290, the Hines project can accommodate up to 1.3M SF of distribution, manufacturing or logistics space.

Long Lake Ltd. is developing a master-planned residential community on a 270-acre tract in the northernmost section of Beacon Hill. The residential subdivision now features nearly 80 of the planned 870 homes. More than 100 lots in an additional two sections will be ready for development in early 2024. At build-out, the community will feature 30 acres of green recreational spaces, including ponds, miles of paved trails and a community recreation center.

SALES

Andover Properties acquired a 47K SF self-storage facility in Galveston. The facility, previously operated as Watson & Taylor Self Storage, will be rebranded under Andover’s Storage King USA brand.

The property offers 416 storage units that are climate controlled and a variety of conventional units. The Storage King USA portfolio now totals 157 facilities in 18 states across the country, mainly in the Sun Belt. There are 53 facilities in Texas. 

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SVN | J. Beard Real Estate – Greater Houston completed the sale of the inline retail portion of Grogan’s Mill Village Center in The Woodlands to The Howard Hughes Corp. At the intersection of Grogan’s Mill Road and Buckthorne Place, the retail center is in the heart of The Woodlands’ first residential enclave, the Village of Grogan’s Mill. Built in 1974, the 10K SF buildings are in the traditional style, with brick, wood and glass storefronts. 

Jeff Beard of SVN | J. Beard Real Estate represented the seller, Grogans Mill Retail Center LLC.

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MedProperties Realty Advisors acquired the 62K SF Class-A Medical Center of Tomball. MedProperties, a Dallas-based healthcare real estate private equity firm, closed on the acquisition of the recently completed, multitenant outpatient medical building in May.

The building at 155 School St. in Tomball is 92% occupied with tenants, offering services including primary care, MRI and diagnostic imaging, orthopedics, gastroenterology, nephrology, pain management, behavioral health and an on-site pharmacy.

LEASES

SESCO Cement leased 9K SF in Tanglewood Property Group’s 5444 Westheimer, a 382K SF 20-story Class-A office building. Nick Bockhorn with CBRE represented the tenant and Dean Wilkens and Ashley Wensrich with TPG represented the landlord.

SESCO Cement is a vertically integrated cement company and part of an international conglomerate with presence in more than 30 countries.

TPG remodeled the lobby, exterior, and elevators at 5444 Westheimer. In 2021, TPG completed the construction of a conference, lounge and fitness facility.

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CAM Industrial Solutions signed a 10K SF lease at 1500 CityWest in Westchase. This Class-A office building boasts a prominent Westchase location, newly renovated lobby, on-site café, lunch drop service and on-site security and property management. Transwestern's Kelli Gault, Louann Pereira and Doug Little represented the landlord, BioUrja Trading, in the transaction.

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Benihana renewed and expanded its lease at Regency Garage in downtown Houston to 9K SF. Transwestern’s Loch Cook and Danielle Schidlowski represented the landlord in the transaction at 611 Clay St.

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Partners Real Estate arranged a 16K SF lease with US Foods Inc. at 14720 Vickery Drive in Houston. Partners’ Clint Hankla represented the landlord, BOLCOF Lieberman Family,  in the transaction. CBRE's Nick Bergmann represented the tenant in the transaction.

CONSTRUCTION & DEVELOPMENT

Texas A&M has selected partners to advance toward a summer groundbreaking for the Aplin Center. Supported by a $50M gift from former student Arch “Beaver” Aplin III, owner of Buc-ee’s, the academic center will serve as an immersive learning laboratory for students. 

Houston-based Hines has been selected as the development manager to facilitate the T3 project. T3 is Hines’ new generation of heavy timber buildings that are focused on innovation, wellness and sustainability. Architectural firms Pickard Chilton and DLR Group will lead the design of the facility. Landscape architect Design Workshop will transform the surrounding 8 acres at the corner of Wellborn Road and John Kimbrough Boulevard into green space. The university will break ground in the fall.

The Aplin Center will include outdoor and indoor student recreational space, as well as retail and food service areas managed by students and faculty through the educational programs.

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Clay Development & Construction Inc. began construction on Main Central I, a 524K SF, cross-dock distribution center. Main Central I is on 33.42 acres at 13393 South Main St. in Houston, at the intersection of South Main/Highway 90 and the Fort Bend Toll Road. Completion is scheduled for Q3 2023.

Main Central Distribution Center I will have 36-foot clear-height ceilings, 60-foot loading bays and 52-by-50-foot column spacing.

Jim Foreman and Allison Bergmann of Cushman & Wakefield, along with Copeland Rhea of Clay Development & Construction, are leasing Main Central I.

THIS & THAT

The Houston Housing Authority announced a new training center it says represents a milestone in advancing the affordable housing industry. In partnership with Nan McKay, an organization known for delivering innovative solutions for communities nationwide, HHA will provide comprehensive training courses for housing authorities, property management companies and municipalities, locally and across the country.

MetroNational completed its $25M renovation of Memorial City Plazas, which features three Class-A office towers totaling close to 1M SF. MetroNational originally built Memorial City Plazas in the 1980s and 1990s to be Class-A office towers.

The development includes One Memorial City Plaza, a 12-story tower at 800 Gessner, Two Memorial City Plaza, an 18-story tower at 820 Gessner, and Three Memorial City Plaza, a 14-story tower at 840 Gessner.

MetroNational’s biggest asset is Memorial City, a city-within-a-city and 300-acre mixed-use development located in the heart of West Houston. The company owns approximately 3.5M SF of office space with a 95% occupancy rate across its portfolio of 11 office buildings.

The renovation of Memorial City Plazas’ towers includes a fitness center, a conference center and meeting rooms, touchless technology featuring key card access, 24-hour security, and air-conditioned skywalks interconnecting all three towers and parking garages. 

The project team for Memorial City Plazas includes MetroNational, the owner and developer; Ziegler Cooper, the architect of record; Design Workshop, the landscape architect; and EE Reed Construction and O’Donnell/Snider Construction, the general contractors. T&D Engineers serves as the project engineer.