This Week's Houston Deal Sheet
Cowen analysts have predicted that Amazon will unseat Macy’s as the leading apparel retailer in the US by 2017. The online retail giant has topped Walmart’s value by $30B already, with a $265B valuation. Well, brick-and-mortars are not going down without a fight. For instance, Macy’s is upping its omni-channel game to stay ahead of the pack, Forbes reports. It announced last week that it’s expanding its same-day delivery to Atlanta, Boston, Dallas, Honolulu, Las Vegas, Miami/Fort Lauderdale, New York City/Western Long Island, Orange County and Philadelphia, for a total of 17 markets.
And Macy’s isn’t the only brick-and-mortar retailer stepping up its services to compete with Amazon. Target is incorporating more technology, testing beacons at 50 locations across the US. It plans to roll out the in-store analytics technology to even more stores this year, NACSonline reports. Target has been offering a mobile app-powered curbside delivery service in San Francisco, New York and New Jersey since 2014. Meanwhile, Walmart is testing an online grocery pick-up service. WD Partners EVP of brand, strategy and design Lee Peterson believes the convenience of having someone put your items in your trunk is something that could give brick-and-mortar retailers a leg up over online retailers, because customers can just stop by on the way home from work. Naturally, your mileage may vary depending on how car-friendly your city is.
SALES
Baker Katz purchased a 4.5-acre property in Atascocita near FM 1960 and West Lake Houston Parkway. It will renovate two buildings totaling 33k SF, which were built in 1984. Construction will begin early next year. Investar Real Estate Services’ Jim Bayne repped the seller.
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Lone Star College purchased 8.3 acres in Generation Park and will build a 50k SF Process Technology Center to train the downstream workforce. Generation Park owner McCord Development donated 2.3 acres to the college.
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An undisclosed private investor purchased Cinco Professional Plaza II, a 10k SF retail property in Katy. Marcus & Millichap’s James Bell and Watt Harrison listed it at $3M.
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IHG Real Estate purchased a 34k SF office/warehouse at in Brittmoore Tanner Business Park. SRA’s Steven O’Connor and Marc Drumwright repped the buyer, and ICO Commercial’s Peyton Indermuehle repped seller Shah Holdings.
LEASES
Fishing Tackle Unlimited leased 28k SF in Sugar Creek Village Shopping Center. Pete Stewart Properties’ Pete Stewart repped the tenant, and United Equities’ Buster Freedman repped the landlord. This is Fishing Tackle Unlimited’s third Houston location.
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Gator Fabrication leased the former JM Eagle Plant in Conroe, two heavy manufacturing buildings totaling 81k SF. The property is on 18 acres and needed a total revamp for Gator, including all new electrical, building shell and crane upgrades. Newcor CRE’s Rob Banzhaf and Krissie Vanyo repped the tenant.
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Sweet Bee Farm leased a 42k SF warehouse at 3131 Pawnee. Boyd Commercial’s David Boyd repped landlord DIG Houston.
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Distribution International Southwest leased 34k SF at 6002 Murphy St. Stream’s Ryan Boozer and Drew Coupe repped the tenant, and Boyd Commercial’s David Boyd repped landlord Joann Gillebaard & Robert Joseph Gillebaard Stock Purchase Trust.
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Fluor Enterprises leased 6.3 acres of industrial land in Bayport North Industrial Park II in LaPorte. Cushman & Wakefield’s Kelley Parker, John Littman and Tim Thomas repped the landlord, Park Underwood. Cushman’s Coe Parker repped the tenant.
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An undisclosed financial services company leased 67k SF at the Northwest Commerce Building, Boxer’s property at 14405 Walters Rd. Boxer’s Brian Hines, Trey Miller and Alex Kakhnovets repped the landlord, and CBRE’s Rich Pancioli, Peter Livaditis and Ian Murphy repped the tenant. The building is now 98% occupied. Boxer renovated it last year.
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Ward, Getz & Associates expanded to 11k SF in the Woodlake Park office building (2500 Tanglewilde St). Moody Rambin’s Terri Torregrossa repped the landlord, and Stream’s Logan Gilliland repped the tenant.
FINANCING
HFF’s Jody Thornton, John Rose, Gregg Shapiro and Leon McBroom secured $166M in refinancing for a 25-property, 4M SF light industrial portfolio spread across Atlanta, Dallas, Denver, Houston and Minneapolis. The borrowers are subsidiaries of Colony Capital. The team arranged 10-year, fixed-rate financing through Prudential Mortgage Capital. The portfolio is 97% leased.
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LMI Capital’s Jamie Mullin arranged $5M in debt for the cash-out refinance of a garden-style apartment complex in Clear Lake. The loan is seven-year fixed-rate with full-term interest-only.
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LMI Capital’s Kurt Dennis arranged financing for a 140-unit self-storage facility in northwest Houston. He locked in a 75% LTV, five-year fixed-rate loan with one year I/O.
THIS AND THAT
Ziegler Cooper merged with Hall Barnum Lucchesi Architects, bulking up ZCA’s worship, education and community facilities capabilities. HBL’s Steve Lucchesi will lead that division as principal-in-charge.
