This Week's Houston Deal Sheet: 2 New Industrial Leases Total 330K SF
Two full-building industrial leases were announced in Houston this week, totaling 330K SF.
In the first transaction, Cooler Depot signed a 160K SF lease at Park 529 at 6840 Signat Drive in Northwest Houston. The commercial refrigerator supply company is taking 100% of Building 1 in the Class-A, cross-dock industrial development.
Transwestern’s John Ferruzzo and Brian Gammill, alongside NAI Robert Lynn’s Nick Peterson, represented the landlord, Cabot Properties, in lease negotiations.
In the second transaction, Junction Commercial Real Estate fully leased its newly built 170K SF Southeast 45 Logistics Park at 5115 S. Shaver St. in southeast Houston. Reed Vestal, John Erck and John Saucer of Junction represented an affiliate of Junction’s development and investment division. The tenant, 4Logic, was represented by David Wang of PropNex Realty USA.
PEOPLE
Transwestern hired Adam Altsuler as its chief financial officer. Altsuler is charged with setting fiscal priorities and overseeing all financial matters for Transwestern as it executes a transformation to support its mission of value creation. Altsuler succeeds Steve Harding, who held the CFO post for 21 years before being promoted to the role of chief transformation officer in 2023.
“Adam is a highly respected, accomplished leader adept at collaborating across a diverse organization,” Transwestern CEO Larry Heard said in a news release. “As Transwestern continues to evolve and grow, his foresight and broad financial expertise will propel our ability to capitalize on platform strengths, achieve strategic efficiencies, and execute business strategies.”
Altsuler was previously executive vice president and CFO of USD Group, which develops, owns and manages large-scale multimodal logistics centers and energy infrastructure in North America.
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Transwestern named Brian Delgado as senior managing director, global head of capital markets. In this role, Delgado will partner with Charles Hazen, president of Transwestern Investment Group, and Carleton Riser, president of Transwestern Development Co., to lead business development and capital-raising efforts for the Transwestern companies.
Delgado was previously head of international fundraising at Rockpoint Group and spent 15 years at GE Capital, most recently as head of capital raising and investor relations in the UK and Asia Pacific.
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Rand Construction Corp. hired Hunter Cook as director of its Houston office. Cook will co-manage the office with Steven Knowles.
Prior to joining Rand, Cook was the vice president of corporate interiors for Arch-Con Corp. While there, he completed more than 100 high-end corporate interior projects. He has more than 10 years of experience in the corporate interiors and construction industry.
SALES
Triten Real Estate Partners acquired three industrial distribution facilities in west Houston and the Port of Houston. The properties total 535K SF.
Kingsland 4, a 201K SF Class-A rear-load distribution center is 100% leased to Pods and Armstrong SCS, a third-party logistics firm.
The 140K SF Port 146 and 194K SF LaPorte Distribution Center in Houston’s port-adjacent industrial hub are 100% leased to Barsan Global Logistics and Hawthorne Global Logistics, respectively.
JLL’s Trent Agnew, Charlie Strauss and Lance Young represented the seller in the port transaction, and Lee & Associates’ Taylor Schmidt and Robert McGee represented the seller in the west Houston transaction.
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Partners Real Estate, in conjunction with Compass Real Estate, arranged the sale of Twin Oaks, a 168-acre ranch at 5390 Interstate 10 E. in Columbus. Partners’ Alex Makris and Patrick Keegan, along with Tonya Currie of Compass, represented the seller, the estate of Charlie Thomas, in the transaction.
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Sunstone Two Tree, a California-based developer and operator of rental housing communities, acquired a 384-unit multifamily property in Houston and has plans to renovate. The company purchased the property on Elmside Drive in the Westchase District for $28.9M and will spend $10.5M on upgrades. Sunstone Two Tree is handling the construction, which has already started, with an anticipated completion date in 2025.
The Villas Del Paseo community was built in 1978. Sunstone Two Tree will renovate the interiors of all 384 units. On the exterior, it will invest in new paint, replace the roof, improve the landscaping and signage, and repair the balconies and parking lot. It will also update the clubhouse and pool and add dog parks and barbecue areas.
The renovations will take place in two phases. The first will include the 144 units east of Elmside Drive, with the remaining 240 being completed in Phase 2.
Sunstone Two Tree purchased Villas Del Paseo from Comunidad Partners, which has managed the property since 2019. Matt Saunders with Newmark represented the seller.
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Marcus & Millichap facilitated the sale of a 14,600 SF former CVS at 16155 Spring Cypress Road in Cypress. The vacant building was built in 2002.
James H. Bell and Watt Harrison of Marcus & Millichap had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer is a national brand, but specifics weren't disclosed.
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Richard Glass of Lee & Associates – Houston represented Cameron International Corp., a division of Schlumberger, in its sale of 4.98 acres at the corner of 29501 Katy Freeway on the turnabout of Texas Heritage Parkway. The buyer, Texas Petroleum Group, plans to build a Timewise.
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Partners Real Estate arranged the sale of 12.6 acres at 2500 S. Bypass 35 in Alvin.
Partners’ Alex Makris and Patrick Keegan represented the seller, East Bay Partners. Danny Elliott and Thomas Tyng with CBRE represented the buyer, Culberson Construction. The property will be used for a 55K SF Murdoch’s Ranch & Home Supply.
LEASES
GameTime leased 69K SF in Willowbrook Pavilion from NewQuest, taking the last piece of iT’Z Family Food & Fun's former space in the development at 18355 Tomball Parkway. GameTime is a family-owned amusement vending operator with 22 locations in its home base of Florida.
GameTime acquired iT’Z furniture, fixtures and equipment in Houston. GameTime has been handling the day-to-day operations of the restaurant, arcades and bowling lanes in Willowbrook since it acquired the business. The strategic plan calls for a year of transitioning the space to the new owner's brand.
NewQuest previously leased the former anchor's 44K SF theater space to EōS Fitness, which is under construction on a major renovation. A summer opening is planned.
NewQuest’s Kevin Sims and Nick Ramsey represented the landlord.
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Integrated Global Services, an international provider of surface protection solutions, leased 38K SF of industrial space at 9404 Zaka Road in northwest Houston. Jason English of Lee & Associates – Houston represented the tenant, and Zane Carman of Partners Real Estate represented the landlord.
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Leidos signed a renewal and expansion for a total of 68K SF at 555 Forge River Road in Webster. The landlord, Fort Capital, was represented in-house by Rob Brandt.
CONSTRUCTION AND DEVELOPMENT
OHT Partners broke ground on Lenox Timbergrove, a 293-unit, five-story complex at 2825 W. 11th St. in Houston’s Lazybrook/Timbergrove area. The Class-A complex will feature studio, one- and two-bedroom units ranging from 500 to 1,150 SF.
Community amenities include a resort-style pool, outdoor pavilion with gas grills and a kitchen, an indoor pet spa, a 24-hour coworking space and an artificial turf game lawn. The project is slated to open near the end of 2025.
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Children of America, an early childhood educator, plans to build a third Houston-area location at 20327 Longenbaugh Road in Cypress. The 10K SF building will have 12 classrooms with capacity for nearly 175 students. It plans to open in 2025.
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Landmark Properties acquired a 23.5-acre site and began construction on The Everstead at Conroe, a 190-unit build-to-rent community at 7711 Longmire Road in Conroe. The project was acquired and will be developed with joint venture partner Open House Group Co.
The community will total 287K SF of residential space with a mix of 56 two-bedroom and 134 three-bedroom ranch homes and townhomes in 136 one- and two-story buildings. The development will also include a 2,817 SF clubhouse with a fitness center and amenity spaces, a resort-style swimming pool, a dog park, a playground, pickleball and bocce courts, on-site maintenance and management, and parking for 567 vehicles.
Landmark Construction, the construction arm of Landmark Properties, will be the general contractor for the project, with the first units expected to be delivered early next year and project completion expected in late 2025.
FINANCING
AFC Gamma Inc. funded a $28.2M mezzanine loan to DC Partners as sponsor of The Allen, a 35-story mixed-use project on Allen Parkway and the Buffalo Bayou Park in Houston. The Allen offers luxury residential condominiums, a Thompson-flagged Hyatt hotel, various restaurants and retail. The loan is projected to have a high-teens yield to maturity.
