This Week's Houston Deal Sheet
Baker Katz purchased Federal East Shopping Center and is preparing a significant renovation.
The 106k SF shopping center is just off I-10 in east Houston. Baker Katz development partner Neal Wade led the acquisition and says the property is highly visible and has a strong daytime population and great access—Federal Road is really the only north/south artery between 610 and Beltway 8 with access across the ship channel, which makes it an expansive trade area. However, the property has been underutilized.
Neal says the acquisition was seamless, so the biggest challenge to the deal has been determining how they'll address the three core issues with the property: lack of visibility for tenants in a back portion of the property, lack of parking and branding. Baker Katz is renovating the façade, demolishing a portion to enhance visibility and add 60 parking spaces, and upgrading the tenant mix with a overall rebrand to attract national retailers. Construction will start this year. It’s anchored by a 34k SF Fitness Connection and 11k SF Pappas Meat Co restaurant; Neal tells us the team is working on a redesign plan with Fitness Connection to ensure it's highlighted in the project but with a storefront that's better integrated into the overall look and feel of Federal East Shopping Center.
EXECS
CBRE announced executive changes:
• Collin Grimes was named first VP. He specializes in office tenant rep.
• CBRE Hotels VP Drew Noecker relocated to Houston from Chicago.
• Matt Trozzo joined as SVP specializing in office tenant rep. He was previously with Cushman & Wakefield for 16 years.
• Graham Horton joined as SVP specializing in office tenant rep. He just finished his MBA at Acton School of Business and was previously with Stream.
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CoreNet Houston announced its new officers and board of directors. Gensler principal Dean Strombom is president and Balfour Beatty VP of acquisitions Dawn Landry is president-elect. Texas Children’s Hospital’s David Perryman is the immediate past president.
SALES
Mechanical Valves Solutions bought a 15k SF office/warehouse building in Haynes Commerce Park. Betz Commercial Brokerage’s Gloria Parrino repped the seller, Arnold and Norma Rodriguez Family LP. Assurance Commercial’s James Robertson Jr. and Brooks & Davis Real Estate Firm’s Michael Davis repped the buyer.
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Wet Zone purchased 1.6 acres at FM 2920 and TC Jester Road in Spring. Southwest Realty Advisors’ Marc Drumwright and Steven O’Connor repped the buyer, and NewQuest’s Bob Conwell repped seller T-37 2920 Roth LP.
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Panther FW Investments purchased Morgan West Oaks Apartments, a 671-unit community at 2400 Briarwest Blvd. Panther will rehab the interior and exterior to increase rents.
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Standards Interests purchased an 11k SF multi-tenant facility at 510 Chestnut Business Park Dr in Tomball. TNRG’s Ryan Searle and Patrick Wolford repped the buyer, and Coldwell Bankers’ Nancy Shaub repped seller Albers Properties.
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Ursafe purchased a 35k SF industrial investment property at 1605 & 1607 N Main St in Pearland from DTC Ventures. The multi-tenant facility is fully leased. TNRG’s Reed Vestal, Taylor Schmidt and Alex Wisnoski repped the seller in the lease-up and sale.
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Egypt Land Developments purchased 11 acres at the northeast corner of Research Forest Drive and Egypt Lane in Magnolia. J. Beard repped the buyer and will handle sales and leasing in the future mixed-use retail, medical and commercial development.
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Halberdier Real Estate assembled over 350 acres fronting FM 1774 across the street from the Renaissance Festival. Halberdier’s Trey Halberdier and Chris Boone handled the acquisition.
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San Jacinto College purchased 57 acres in Generation Park, just across Lockwood Road from the 173-acre FMC Technologies HQ. McCord Development donated 3.8 acres at the intersection of West Lake Houston Parkway and Lockwood Road to the college system.
LEASES
Pathmark Transportation signed four leases totaling 334k SF across the country, including 76k SF at 14810 North Fwy in Houston (pictured). Transwestern’s Cameron Maness repped the tenant in all four leases, and Colliers’ Walker Barnett repped the landlord in the local deal. Pathmark’s expansion was driven in part by the addition of Bed, Bath & Beyond to its client roster.
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Heritage Texas Properties leased 20k SF at 1177 West Loop S. NAI Partners’ Dan Boyle and Liz Westcott-Brown repped the tenant, and PMRG’s Michael Sieger and Wade Bowlin repped landlord Spire Realty.
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Euroworld leased 11k SF of office/warehouse space at 1298 N Post Oak. Cushman & Wakefield’s Tim Thomas, Kelley Parker, John Littman and Coe Parker repped the tenant. The landlord is Prologis.
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Airgas On-Site Safety Services leased 27k SF of office/warehouse space at 906 W 13th St in Deer Park. Cushman & Wakefield’s Beau Kaleel, Jim Foreman and Allison Hall repped the tenant, and Welcome Group’s Ryan Wasaff repped landlord GSP Partners Sub One.
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Rasch Graphic Services leased 45k SF at 8648 Glenmont Dr for its new HQ. TNRG’s Reed Vestal and Taylor Schmidt repped the tenant, and Insite Realty’s Clay Reichenbach, Rives Nolan and Logan Greer repped the landlord.
FINANCING
Q10 KDH VP Ryan Watson secured a $3M permanent 10-year loan for Cavalcade Industrial with correspondent lender Stancorp. Cavalcade purchased the facility and leased 100% of its space.
THIS AND THAT
Stream has added 1.8M SF to its local property management portfolio so far in 2015, bringing it to 26M SF managed across Houston. It’s partially possible thanks to nine new hires.
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PinPoint Commercial created a new company focused exclusively on developing senior housing: PinPoint Senior Living. PinPoint has already developed eight communities and has four in its pipeline. Its properties total 86 units per location and are tech-heavy.
