This Week's Houston Deal Sheet

Daikin Industries’ $417M development is even bigger than we thought—it’s breaking world records.

Daikin is building a 4.1M SF tilt-wall concrete building, the largest tilt-up facility in the world according to the Tilt-Up Concrete Association. The current record holders are a Target warehouse in Savannah, GA (2M SF footprint), and Gateway Theatre of Shopping in South Africa (3.4M SF of floor area), according to Tilt-Up Today. The building will incorporate a 1.8M SF distribution center, 1.7M SF manufacturing space (plus 197k SF of mezzanine), 232k SF of labs, and a 203k SF office all under one roof, Tilt-Up Today reports. Powers Brown is designing the mega-facility, LJB is handling engineering, and DE Harvey is GC. The project incorporates more than two miles of panel length and will use 360,000 cubic yards of concrete and 29,000 tons of steel. [TUT]

SALES

JF Petroleum Machinery purchased a 13k SF facility at 8630 Fairbanks N Houston Rd. TNRG’s Mike Spears and Mark Ward repped seller EWC Fairbanks N. Houston LP. Steve O’Connor repped the buyer.

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Exchange Right Real Estate purchased a 10k SF CVS at 959 Bay Area Blvd. Colliers’ Jon Busse and Charlie Herder repped the seller, Burlingame Gulf. Wells Net Lease Group’s David Wells repped the buyer, a TIC entity that got the property for $4.7M.

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An undisclosed buyer purchased an Ace Hardware at 9001 Spring Cypress in Spring. Marcus & Millichap’s Jerry Goldstein and Kelley Workman listed the 16k SF property at $2.8M. 

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An undisclosed buyer purchased Centre at South Shore Harbor, a 28k SF retail property in League City. Marcus & Millichap’s Matthew Mignerey and Derek Hargrove listed the property at $6.8M. 

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Two real estate investment programs sponsored by Griffin Capital Corp purchased Westgate II and III, Class-A offices serving as Wood Group Mustang’s HQ. The buildings were completed in 2014 and total 412k SF. HFF’s Robert Williamson and Danny Miller repped seller Westgate RE.

LEASES

Southwest Risk leased 12k SF in the Galleria Financial Center. Colvill’s Brad Beasley, Michael Anderson, and Marilyn Guion repped landlord Unilev Management, and Transwestern’s Michael Griffin and Michelle Wogan repped the tenant. Unilev recently announced a capital improvement campaign to the 252k SF office building.

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Woodfield Distribution leased 49k SF of industrial space at 1113 Gillingham Ln in Sugar Land. NAI Partners’ Darren O’Conor repped the tenant, and Stream’s Michael Flowers and Justin Robinson repped landlord IIT Sugarland Interchange DC.

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Nuera Transport leased 14k SF at 4555 Brittmoore Rd. NAI Partners’ Jake Wilkinson repped the tenant and landlord Brittmoore Investments repped itself.

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JLL negotiated 141k SF of leases:
• Starplast USA renewed 76k SF at Bay Area Business Park. JLL’s Ryan Fuselier and Travis Secor repped the tenant, and Stream’s Kyle Valentine and Justin Robinson repped landlord Bay Bluff LP.
• EDP Renewables renewed 63k SF at the Esperson Building. JLL’s Louie Crapitto and David Bale repped the tenant, and Cameron Management’s Jano Nixon Kelley repped the landlord in-house.
• VertsKebap leased 2k SF in a new development at the southwest corner of Katy Freeway and Greenhouse Road. JLL’s Matt Parsons and Mark Raines repped the tenant, and Capital Retail Properties’ Anderson Smith repped landlord Wile Interests.

DEVELOPMENT

Trammell Crow and Artis REIT are gearing up Park 8Ninety, a 127-acre industrial business park in Missouri City. It could accommodate over 1.75M SF of build-to-suit or spec office/warehouse, distribution and manufacturing space. The first phase includes three buildings totaling 330k SF and will break ground this summer with estimated completion in spring 2016. The property is at the south corner of Highway 90A and Beltway 8, and buildings will front both major thoroughfares. Trammell Crow and Artis had to assemble tracts, buying from Ellis Management (repped by Barney Van Huss) and a local investment group repped by Betz Cos’ Ron Dagley. Boyd Commercial’s Bo Pettit and Alexander Reilly repped the buyers and will market Park 8Ninety.

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McCarthy Building Cos and METRO broke ground on the METRO Harrisburg Overpass project that will be the final piece of the light rail’s Green Line, which travels through Downtown to the Magnolia Transit Center. Pictured are McCarthy’s Andrew Tangarife, METRO’s Michael Tegethoff and Gilbert Garcia, McCarthy’s Lexi Wikstrom, METRO board member Diann Lewter, and McCarthy’s Kurt Knebel. The $27M project will take 12 months.

FINANCING

NorthMarq’s Warren Hitchcock arranged acquisition financing for the Shops at Spencer, a 12k SF retail property in La Porte. The new construction/long-term transaction was structured with a 15-year term and 25-year amortization schedule and historically low rate through a life insurance company.

THIS AND THAT

The Greater Conroe EDC has selected Avison Young (using both its Houston and Dallas offices) to promote Deison Technology Park and nearby residential, retail and amenity growth. Greater Conroe EDC’s Fred Welch and Avison Young’s Josh LaRocca and Michael Kennedy negotiated the partnership. 248-acre Deison Technology Park has infrastructure in place and is development-ready for Class-A product and is adjacent to Lone Star Executive Airport.