This Week's Houston Deal Sheet
As construction booms in Lake Jackson (spurred by petrochemical growth), Stream started renovations on Four Corners Shopping Center.
Four Corners, which Stream purchased in October, is in Lake Jackson’s primary retail zone (SH 288 and This Way Street). The 80k SF center was built in the late ‘70s, and Stream managing director Mark Sondock says it’s getting a new facade and new pylon sign on SH 288. It’s 80% leased and Mark tells us they’re working with restaurants, retailers and service tenants to fill the remaining vacancy, and because there’s been high demand for small tenants in the area, Stream’s also considering constructing a small tenant building instead of ground leasing the pad. Four Corners’ renovations will wrap up next month. It’s catty-corner to the Dow Chemical R&D facility, which opens its first phase this spring. Phase 2 is also underway.
Lake Jackson is seeing a flurry of new residential development to serve the strong population growth. To keep up with the boom (all sparked because the petrochemical industry has steadily grown, even through dropping oil prices), the City of Lake Jackson is planning a $26M Downtown revitalization that’ll attract new shops, restaurants and bars. It’s a hub-and-spoke trade area for retailers, drawing a high daytime population from small surrounding markets that aren’t served by retailers. Other development in the area includes a new single-family project, multifamily community, prototypical HEB at Oyster Creek and Oak Drive, and a new Kroger Marketplace at Oyster Creek and North Dixie Drive.
SALES
GVJ Investments purchased the Northgreen Atrium Building at 1300 North Sam Houston Pkwy. The 69k SF, Class-B office building was built in ’81. Tarantino Properties’ Peggy Rougeou repped the seller. Her team will continue leasing and managing the property while the new owner implements major renovations.
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TF Warren Group purchased 14 acres with 27k SF of crane-served office/warehouse at 14201 Wood Dr in Channelview. Cushman & Wakefield’s Kelley Parker and Coe Parker repped seller Diversified Group. Charter Title provided services, and Proximity Real Estate Advisors’ Matt Rogers and Leigh Anne Ahr repped the buyer.
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Rodrigo Hernandez and Carlos Ruiz purchased 1.9 acres on Aldine Westfield to open a new restaurant. Allsource Properties’ Angelica Beken repped the buyer, and Proximity Real Estate Advisors’ Leigh Anne Ahr repped seller Toluieh Maani. Charter Title’s Becky Greer provided services.
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The Levey Group purchased 44 acres near the intersection of Beltway 8 South and South Post Oak Road. It will develop 5 Corners Business Center. Boyd Commercial/CORFAC International’s Clay Peeples and Bo Pettit repped the seller, and M Kidd Properties’ Mark Kidd Sr and Mark Kidd Jr repped the buyer.
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Commerce Capital Partners purchased Cityside Crossing, a 360-unit multifamily community at 5514 Griggs Rd. The garden-style property was built in ’01 and renovated in 2013/2014. The Palm Center Light Rail Station (on the purple/southeast line) is slated to open adjacent to this asset this month. CBRE’s Ryan Epstein and Clint Duncan repped seller RRE Skyview Holdings.
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CenterPoint Properties purchased a 27-building (primarily rail-served) portfolio. The 3.6M SF is spread across nine business parks in Houston. The properties are mostly east of the CBD and offer excellent access to shipping channels like the Port and UP Settegast, UP Englewood, and Burlington Northern Santa Fe Mykawa yards. The majority of the facilities are designed for floor-stacked products with high turn ratios, a feature in high demand in Houston. They’re in the following parks: West Loop Business Park, Kempwood Industrial Business Park, Northway Park II, Turning Basin Subset, Market Street Industrial Park, Railwood Industrial Park, 1200 Lathrop Street, Navigation Business Park and 610/288 Business Park. HFF’s Jud Clements, Rusty Tamlyn, Trent Agnew and Robby Rieke facilitated. CenterPoint has bought 6.2M SF (45 buildings) in Houston in the last 24 months.
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JF Petroleum Machinery purchased a 13k SF office/warehouse at 8630 Fairbanks N Houston. Southwest Realty Advisors’ Steven O’Connor repped the buyer, and TNRG’s Mike Spears repped the seller.
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OHK purchased a 58k SF office/warehouse on six acres at 10906 Cash Rd in Stafford. Southwest Realty Advisors’ Marc Drumwright, Steven O’Connor and Patrick McKiernan repped seller Satake USA. NAI Partners’ Chris Caudill repped the buyer.
LEASES
AmSpec leased 62k SF in Carson Commerce Center in Pasadena.
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Woodfield Distribution leased 49k SF at Sugar Land Interchange Distribution Center. Stream’s Justin Robinson and Michael Flowers repped landlord Industrial Income Trust, and NAI Partners’ Darren O’Connor repped the tenant.
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Dahill Office Technology leased 33k SF at Intrepid Business Park. Stream’s Justin Robinson and Jeremy Lumbreras repped landlord Triten Real Estate Partners, and Colliers’ Charles Fertitta and Mia Jarrell repped the tenant.
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AV8 MRO leased 19k SF at West by Northwest Business Park. Stream’s Michael Flowers and Blake Warren repped landlord Agellan Capital Partners, and Cushman & Wakefield’s Stephen Schneidau repped the tenant.
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Stream’s Jeremy Lumbreras and Blake Warren repped landlord Stockbridge in two transactions.
• Transcend Solutions leased 16k SF at Interwood Business Center. Exceed Realty’s Paul Cote repped the tenant.
• MaxHome renewed 12k SF at Astro Business Park. Colliers’ Mike Taetz repped the tenant.
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The Care Group of Texas renewed 12k SF at Commerce Park Medical Center. Stream’s Matteson Hamilton and Jeremy Lumbreras repped landlord Industrial Income Trust. Great Southwest Realty’s Randy Frnka repped the tenant.
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Brookshire Brothers renewed 45k SF at Renaissance Shopping Center in Magnolia. Stream’s Court Richardson, Mark Sondock, Ralph Tullier and Andrew Bangall repped landlord RSC Magnolia Partners.
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Regus leased 12k SF in 6575 West Loop South. PMRG’s John Spafford and Allie Hubbard repped landlord KBS.
DEVELOPMENT
Bay Area Regional Medical Center is building out floors six through nine (141k SF). The property opened last year with 104 beds and is expanding to 200. This second phase includes expansion of the cardiology department.
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Houston First and Hilton Americas-Houston are converting part of the hotel’s ground-floor lobby into a 4k SF Starbucks. The store will be one of the largest coffee retail outlets in Texas and one of the first Starbucks Evenings stores serving wine, beer, appetizers and desserts after 4pm. It’ll also include Starbucks Reserve, which roasts coffee beans and brews for select retail outlets and individual orders. It’ll open in October with signage on the Hilton façade and exterior doors to serve Discovery Green and the GRB, similar to the Pappasito’s Cantina.
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KSCM Holdings is expanding Clearpoint Crossing, developing the second of three MOBs and building two 75k SF facilities. The first building delivered last June and is 100% leased to UT Physicians and Memorial Hermann. The new 18k SF MOB is in pre-leasing. Negotiations are being finalized for two medical users (each building a 75k SF building) on a 21-acre tract in Clearpoint Crossing.
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UTMB is changing the name of its 62-acre medical complex (formerly Specialty Care Center at Victory Lakes) to UTMB Health League City Campus. Construction is underway adding 142k SF for a hospital, emergency department, and wider range of inpatient and outpatient services. It’ll deliver in August with 11 labor delivery/recovery rooms and 10 medical/surgery rooms (with room to expand to 37). The original 110k SF building opened in 2010.
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Construction is underway on a new spec industrial building in Bayport North Industrial Park. The 366k SF property is in La Porte’s ETJ.
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Wycoff Development & Construction started construction on Magnolia Court Business Park in Webster. Several new leases are already in place ranging from 7,500 to 35k SF. Wycoff itself will occupy 10k SF. Three 10k SF buildings will be constructed as office condos for users needing at least 2,500 SF, and there’s vacant land available.
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Walmart is breaking ground soon on a 40k SF Neighborhood Market at the corner of FM 518 and Landing Boulevard in League City.
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NewQuest is breaking ground this year on the Marketplace at Ninety-Six, a 36-acre project. It’s anchored by a 123k SF Kroger on League City Parkway at Hobbs Road. It’ll include 25k SF of inline retail and some pads and is slated to deliver next year.
FINANCING
Q10 KDH’s Ray Driver and Dave Holland secured financing for The Mission Cos to purchase Ashford II and III from InSite Realty. The 10-year fixed-rate perm loan was secured through Thrivent Financial and included I/O and minimal escrows.
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Q10 KDH’s Travis Fite closed three loans totaling $6.8M for retail centers in Spring and Katy. They were financed with correspondent lender StanCorp and include two refis and one acquisition loan.
THIS AND THAT
Transwestern was awarded the 2015 Energy Star Partner of the Year for the 12th consecutive year. The firm has benchmarked more than 71M SF and has reduced total site energy consumption across its managed portfolio by 85.5M kBtu (a 2.6% decrease).
