This Week's Houston Deal Sheet
Zara is opening in Memorial City Mall as a three-in-one deal with three storefronts.
When the new store opens late this year, it will be the brand's second location in Houston. It'll feature men's, women's and children's clothes, each with its own storefront. Zara is spreading throughout the country, targeting a dozen more openings this year, including New York, Los Angeles, Chicago, Dallas, Boston, Seattle, San Diego, Sacramento and Las Vegas. Memorial City Mall has been expanding its list of retailers, and last year its sales topped $800/SF.
EXECS
Read King’s Tony Patronella was appointed to the board of directors of TIRZ #23. TIRZ #23 (aka the Harrisburg TIRZ) was created in 2011 to stimulate development in the East End. It will help finance $128M of improvements. Tony is a fifth-generation Houstonian with 35 years of real estate experience.
SALES
An undisclosed investor purchased 39 acres on AJ Foyt Road just north of FM 2920. Colliers’ Tom Condon Jr repped the seller, and Alamo Title’s Patti Kozole coordinated closing.
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NewQuest’s Ryan Sweeney repped the seller in four land sales:
• DR Horton purchased two tracts—22 acres and 19 acres—on Town Center Boulevard in Rosenberg. NewQuest’s Dave Ramsey repped the buyer in both.
• Arcadia Asset Development purchased nine acres at Breton Ridge and Willow Chase. Jeff Lokey worked the deal with Ryan.
• An undisclosed buyer purchased 36 acres at FM 2920 in Tomball. Jeff Lokey worked the deal with Ryan.
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An undisclosed buyer purchased a 59k SF flex building on 17 acres and 3.7 acres of adjacent land on Highway 290. Clay & Co’s Kevin Dalrymple repped the seller, Hockley Retail.
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Stag Industrial Holdings purchased a 185k SF manufacturing building on 17 acres at 1020 Rankin Rd. NAI Partners’ John Ferruzzo and Clay Pritchett repped the buyer, and CBRE’s Bill Rudolf repped seller Texas Best Land.
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Enerset Corp purchased a warehouse at FM 529 Commerce Industrial Park. Sycamore Commercial Properties’ Bob Latham repped the buyer, and NAI Partners’ John Ferruzzo repped the seller.
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An undisclosed buyer purchased a 46k SF industrial park at the corner of Vickery Drive and Aldine Bender. NAI Partners’ Travis Land repped the seller, and Red Oak Commercial’s Brian Ellisor repped the buyer.
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An undisclosed buyer purchased Baybrook Gateway, a 237k SF regional power center in Webster. Cushman & Wakefield’s Tom Salanty, Chris Harden and Kris Von Hohn repped the seller. The value-add deal (it’s 65% occupied) drew interest from around the country.
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A private New York investor (in a 1031 exchange) purchased a one-acre parcel in front of Southwest Corporate Center. The site has an absolute triple net ground lease to Bank of America with 15 years remaining term. CBRE’s Pierce Owens and Donna Kolius repped seller Ominent SWCC; they have additional pad sites adjacent listed and are also leasing the Southwest Corporate Center office space.
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John Williamson purchased 2.6 acres on SH 105 just west of Loop 336 in Conroe. Newcor’s David Alexander repped the seller and Lake Conroe Realty’s Nicole Meador repped the buyer.
LEASES
First Choice ER leased 43k SF in Victory Lakes Town Center in League City. NewQuest’s Rebecca Le repped the landlord.
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Spitzer Industries renewed 93k SF at 11250 Tanner Rd. Clay & Co’s Amy Silvey repped the tenant.
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Numotion expanded to 24k SF in Corporate Centre Kirby Business Park. WA Development’s David R David repped both parties.
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Womble Co leased 18 acres at 15410 Beaumont Hwy. Heins Properties’ Anthony Heins repped landlord HPI Land Investment.
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Houston Municipal Employees Pension System renewed 19k SF at 1201 Louisiana. CBRE’s Matt Dickson repped the tenant, and Brookfield’s Jon Dutton repped the landlord.
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Hometrust Mortgage Co renewed its full-floor 16k SF HQ at Yorktown Plaza. Newcor’s Rob Banzhaf repped the tenant, and also assisted it in renewing branch offices in Spring and The Woodlands, as well as adding a new branch office in Kingwood.
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The Galleria signed four tenants that are new to market: The Webster (its first location outside of Florida), LaPerla, Tod’s and Celine. The Galleria has a lot of work underway, including a $30M renovation (starting this spring), a new Saks store (opening this spring), redeveloping its former 110k SF space, and a new freestanding 14k SF retail building that recently broke ground on Westheimer. That building is designed by JPRA Architect, built by Beck, and will deliver in November. Simon is also investing $250M to elevate the shopping experience.
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Terry Lee DDS renewed 14k SF at 3800 North Shepherd. Xite Realty Healthcare Real Estate’s Patrick Valentz repped the tenant, and Hartman Income REIT’s Trey Young repped the landlord in-house.
FINANCING
Commercial Resource Capital’s Chris Dannatt arranged financing for the 111k SF Almeda Service Center. The loan was 4.2% non-recourse on a 15-year term through a life company lender.
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Q10 KDH’s Ryan Watson secured two permanent fixed-rate loans for Town Center Medical Office Park and 281 Industrial with correspondent lender Symetra.
THIS AND THAT
Hess Tower was designated a BOMA 360 Performance Building. The 845k SF LEED Platinum property opened Downtown in 2011 and has earned an Energy Star rating award each year since 2012.
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NAI Partners was selected to market TGS Cedar Port Industrial Park (formerly called Cedar Crossing), the largest master-planned rail-served and barge-served industrial park in the country. The developer is starting a $22M rail and site improvement expansion, which will complete this year. It’s adding two 9,000-foot interchange tracks and will increase the carrying capacity of much of the existing railroad. The 15,000-acre property has 11,000 acres available for sale or lease. NAI’s John Ferruzzo already has one large site under contract and has 20 active requirements looking at operating in the park.
