This Week's Houston Deal Sheet
Houston-based Parkway — the real estate investment, operations and management firm formed in May by a partnership of Parkway Property Investments and Midway Holdings — bought two major Houston office assets from the company that formerly acquired Parkway Inc.
Parkway acquired Post Oak Central in the Galleria area and CityWestPlace in Westchase, totaling over 3M SF, in an all-cash deal. This is one of the largest transactions in the U.S. year-to-date, Parkway said in a news release, though it did not disclose the price.
Canada Pension Plan Investment Board was the previous owner of the properties, CoStar reported. CPPIB acquired Parkway Inc. in 2017. Parkway Property Investments was formed after the acquisition.
The newly renamed Parkway will continue to operate the office assets. Midway, which now acts as Parkway’s development partner, will oversee the redevelopment of Post Oak Central and the continued redevelopment of CityWestPlace, the news release states.
Post Oak Central is a three-building mixed-use development on Post Oak Boulevard with 1.2M SF of Class-A office space and 90K SF of pedestrian-oriented retail. The 17-acre campus was designed by Philip Johnson and constructed from 1975 to 1981.
CityWestPlace is a 39-acre campus off of the Sam Houston Tollway in the Westchase District. It was designed by architectural firms Keating, Mann, Kerrigan, Rottet; and Daniel, Mann, Johnson and Mendenhall. The four-building complex was built between 1993 and 2001 and includes 1.5M rentable SF, four parking garages and ground-floor amenities. CityWestPlace was fully renovated in 2020.
LEASES
PropNex Realty USA represented Western Post in its 317K SF lease in a Class-A property at Weiser Business Park in northwest Harris County. The building is at 14402 Fallbrook Drive in Cypress.
Western Post, founded in 2015, specializes in comprehensive supply chain logistics services, including ocean freight, customs service, drayage service, storage service and fulfillment, trucking and last-mile services.
PropNex Realty USA’s David Wang represented Western Post in the transaction. Lee & Associates’ Robert McGee and Taylor Schmidt and representatives from Trammell Crow Co. and Clarion Partners were also involved in the transaction.
SALES
Foxgate Capital, the Houston-based private equity arm of The Fields Cos., partnered with Amelia Homes to develop Capital Creek Ranch, a new community on 1,426 acres north of FM 1725 between Interstates 45 and 69 near Willis.
The deal marks the largest investment to-date for Foxgate Capital, a real estate investment firm led by CEO Jay Fields and chief development officer Eric Houston. Foxgate acquired the property in partnership with Amelia Homes principal Harry Klein. The Houston-based residential real estate company most recently developed Washington Heights at Chappell Hill, a community in Washington County.
The land parcel is Phase 1 of a generational real estate acquisition from the family that lived on the property since the 1850s. It will become a secluded residential community, earmarked for lots ranging from 1.5 to 3 acres. Capital Creek Ranch will offer pre-construction home sites starting at $79.9K per lot.
Amenities in the residential enclave include two 25-acre lakes with walk-in banks, 48.8 acres of nature areas and miles of trails adjacent to a 192.3-acre conservation easement on Winters Bayou.
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Cushman & Wakefield arranged the sale of two multifamily communities: Amalfi at Tuscan Lakes and Sorrento at Tuscan Lakes, which are both in League City and total 532 units.
John Carr, Jennifer Campbell, Ben Fuller, Josh Hoffman, Avery Klatt, Asher Hall and Grant Raymond of Cushman & Wakefield represented the seller in the transaction. Both multifamily communities were sold by Sachs Cos.
Amalfi Tuscan Lakes, at 1450 East League City Parkway, and Sorrento Tuscan Lakes, at 1455 Louisiana Ave., have 328 and 204 units, respectively. The communities were built in 2008, and amenities include pools, fitness centers, dog parks and picnic areas.
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Disrupt Equity, in partnership with Open Door Capital, purchased three apartment complexes in Texas for $93M, including one in Katy and one in Stafford.
The portfolio includes Stonecreek Apartments in Katy, purchased for $27.9M, and Waterstone Place in Stafford, purchased for $16M.
Disrupt Management, an in-house multifamily property management firm of Disrupt Equity, will handle the assets. It manages more than 7,000 units in the Austin, Dallas, Houston and San Antonio markets.
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Newmark arranged the sale and financing of Stone Brook, a 376-unit multifamily asset at 619 Rollingbrook Drive in Baytown.
Newmark’s Zach Springer represented the seller, Knightvest Capital, a Dallas-based private equity investment firm that specializes in repositioning multifamily assets. Newmark’s Tip Strickland helped arrange the 10-year fixed-rate loan on behalf of the buyer, Bluebird, a multifamily investment firm. The financing was secured through Freddie Mac at a loan-to-value ratio above 80%, with seven years of interest-only.
Built in 2000, Stone Brook is a garden-style apartment complex that features one-, two- and three-bedroom floor plans. The property offers amenities such as a resort-style pool, a playground, a dog park, gated access and covered parking.
CONSTRUCTION & DEVELOPMENT
Caldwell Communities opened a new 55-plus rental community, Cadence Creek at Towne Lake, in Cypress. The community features apartment homes, lifestyle cottages, amenities and a robust schedule of activities.
At 11411 Greenhouse Road within Caldwell’s Cypress master-planned community of Towne Lake, Cadence Creek at Towne Lake offers one- and two-bedroom apartment homes as well as cottage homes for those seeking a single-story home and a yard.
Apartment homes range from 760 SF to 1,230 SF and feature stainless steel appliances, quartz countertops, walk-in closets, in-home washer and dryer, and individual patios and balconies. Cadence Creek also has one- and two-bedroom cottage homes with the same interiors along with a private yard and attached garage. Cottage homes range from 900 SF to 1,200 SF.
Amenities include a library, a dining lounge and demonstration kitchen, a theater room with surround sound, an arts and crafts studio with gift wrapping station and a game room. The gated apartment community also offers controlled access, pavilions, an event lawn, multiple outdoor seating areas and WiFi in common areas.
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Arch-Con Corp. topped out the co-living and multifamily project Uniti Montrose. The nine-story building developed by Civitas Capital Group’s residential development subsidiary, The Shelter Cos., plans to provide attainable rental housing.
Uniti Montrose, at 701 Richmond Ave., will be one of the first co-living developments in Houston, offering 161 private rooms within 48 shared suites. This is in addition to 190 traditional studio, one- and two-bedroom units. The units will be fully furnished with amenities including routine cleaning services, basic household supplies, in-unit laundry and events.
Pre-leasing is expected to begin in the second quarter of 2024, and Uniti Montrose is on track to open in the summer of 2024.
Uniti Montrose has 156K SF of multifamily living on a 1-acre site. Six floors of multifamily sit on top of a 104K SF, three-level parking garage. Designed by Meeks + Partners, the development includes 10.7K SF of amenities, balconies, a fourth-floor pool and courtyard, a ninth-floor lounge and rooftop deck and 4K SF of retail space on the ground floor.
THIS & THAT
Concourse Development LLC, a privately held real estate company specializing in land assembly, community design and residential development, merged with the U.S. sister company of international real estate investment and development firm Maquina Holdings. The two companies are now operating as Ember.
Concourse co-founders Harry Masterson and Jordan Mack will work together with Maquina President and CEO Vicente Rangel on large-scale land development in industrial, infrastructure, commercial and luxury residential projects. The managing principals are Masterson, Mack and Rangel.
The seed for the newly formed company was first planted after Rangel moved from Mexico to Houston in 2012 to launch a U.S.-based sister consortium to Maquina, which builds single-family houses throughout Mexico in addition to developing and operating infrastructure projects like toll roads and industrial parks. He later met and worked on projects with Masterson.
In addition to acting as the equity partner and asset manager on luxury condominium projects such as The Hawthorne and The Lexington, the company said it is on the precipice of announcing new multifamily and industrial projects both in and out of state.
