This Week's Houston Deal Sheet
A local private investor purchased Cunningham Industrial Park, a 143k SF office/warehouse park. Moody Rambin’s Jim Autenreith and Dan Nguyen repped the buyer and tell us this is the latest in a spree of acquisitions for the group, and it's got more to come.
Jim and Dan have helped this group amass 500k SF in Houston since 2012 and are leasing/managing it all. The Cunningham property includes 15 freestanding metal buildings ranging from 9k to 12k SF. It's been family-owned since the '70s and was developed in waves. Many of the buildings were ahead of their time, Jim tells us—even the smallest buildings are 10-ton crane served, something you only see on larger properties these days. (He says they're like starter manufacturing buildings.)
The property has maintained high occupancy, but lost two tenants during the two-year sale process—Jim and Dan backfilled one space within two weeks and have a prospect working on the only remaining vacancy. The rents are below market, Jim says, which gives the buyer a value-add opportunity. The local investor also purchased 2.4 acres of adjacent land at 11614 Tanner Rd, and Jim and Dan also helped it purchase a 36k SF deal out of bankruptcy. (The opportunity popped up in the middle of the Cunningham transaction, and the team quickly negotiated for it as well.)
EXECS
Jackson Walker hired five new partners in its real estate and finance practice: Alfie Meyerson, Thad Armstrong, David Jones, David Robins and Lewis Kasner. Briggs Knight also joined as an associate. Alfie, Thad and the two Davids join the firm from Thompson & Knight; Alfie was the chairman of its real estate and banking group. Jackson Walker has been aggressively expanding its real estate practice group across Texas—it now has 50 attorneys dedicated to the industry in the state.
SALES
Omninet Capital purchased Northwest Corners, a 466-unit garden-style multifamily community in Spring Branch. The asset has consistently high occupancy and was 98% occupied at TOS. Its size and location in the Spring Branch ISD made it a unique investment, according to CBRE’s Ryan Epstein and Clint Duncan (who repped seller Cottonwood Capital Property Management).
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An undisclosed buyer purchased Cancun Apartment Homes, a 324-unit community. Transwestern’s multifamily team (Ryan Mendez, Ed Cummins, Tim Gregory, Lupe Olivares and April Darner) sold the asset off-market in a quick deal—it was under contract within three weeks of getting the listing and took only 60 days from contract to closing.
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RealPo purchased 20 acres in Bayport North Industrial Park II in Pasadena. Cushman & Wakefield’s Kelley Parker, Tim Thomas and Coe Parker repped seller Park Underwood, and Re/Max Grand’s Samuel Garcia repped the buyer.
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Inland American Real Estate Trust purchased Green Tree Shopping Center, a 148k SF power center in Katy. It was 99% leased at TOS. HFF’s Ryan West, Rusty Tamlyn, Matt Berry and Robbie Kilcrease repped the seller, a TIC ownership group managed by RealTax’s Joseph and Henry Mandelbaum. Ryan says it’s important to note that the team took offers just prior to the rapid decline in oil prices, but recently closed at the initial pricing. Green Tree was renovated in ’04.
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The Source Church purchased a five-acre site for a new church at 815 Massey Tompkins Rd in Baytown. Claire Sinclair Properties’ Claire Sinclair Gavrel facilitated.
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The Marcel Group purchased five acres at FM 1488 and Carriage Hills in Magnolia. It will build a mixed-use development, breaking ground in Q2. Marcus & Millichap’s Derek Hargrove repped the buyer.
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Riverstone Commercial Development purchased 9.6 acres at the southeast corner of University Drive and LJ Parkway in Sugar Land. Johnson Development’s Jennifer Johnson repped the seller, and Wulfe & Co’s Kristen Barker repped the buyer. It will subdivide into smaller pad sites for retail, restaurant, medical, daycare and office uses.
LEASES
Brunel Energy leased 14k SF at 9811 Katy Fwy in Memorial City. MetroNational’s Scooter Hicks repped the landlord in-house and Stream’s Anthony Squillante and Greg Marconi repped the tenant.
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Tei Associates leased 16k SF at the Texas Eye Institute building at 7710 Beechnut St. Moody Rambin’s Kurt Kistler repped landlord General Electric Credit Equities.
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General Transmissions leased a 25k SF office/warehouse facility at 27361 Spectrum Dr in Oak Ridge North Commerce Park. SRA’s Marc Drumwright and Patrick McKiernan repped both parties. The landlord is N-S Industrial.
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Harbor Freight Tools leased 18k SF in Northway Center at 10911 Northwest Fwy. Scarborough Real Estate’s Jeff Scarborough repped the tenant and Wulfe & Co’s Paula Hohl repped the landlord.
DEVELOPMENT
Songy HighRoads topped out the Hyatt Regency Galleria. The 325-key hotel will deliver in Q3, and the adjacent 156-room Hyatt Place Houston Galleria will follow in Q4.
FINANCING
HFF’s Susan Hill and Michael Johnson secured refinancing for One City Centre. Accesso owns the 609k SF Class-A, 32-story office tower and two parking garages Downtown. It secured a 10-year, fixed-rate loan through JP Morgan Chase and used the proceeds to retire existing debt that was used to purchase the property in 2012. One City Centre is 86% leased.
THIS AND THAT
The Sugar Land Marriott Town Square is 12 years old, but it’s not falling behind newer models. The 300-key hotel was named the top full-service Marriott in Texas for overall guest satisfaction in 2014, which also landed it third in the country and fifth worldwide. The Sugar Land Marriott Town Square was a PPP with the City of Sugar Land, which funded the construction of the 27k SF conference center and 600-space parking garage.
