This Week's Houston Deal Sheet
Quattro Venture purchased seven shopping centers in Greater Houston in an off-market portfolio deal.
The seven assets total 137K SF. Each property is a mix of retail, service and restaurant tenants and has upside potential, said EDGE Capital Markets’ Josh Jacobs, who represented the seller with colleague Burdette Huffman.
The properties are:
- Coles Crossing III — 20K SF in Cypress.
- River Pointe Center — 16K SF in front of Memorial Hermann Sugar Land Hospital in Richmond.
- River Gate Center — 22K SF in Richmond.
- Highway 290 and Mueschke — 20K SF along 290 near Houston Methodist Emergency Care Center in Cypress.
- Canyon Lakes Shopping Center — 18K SF in Humble.
- Clay Road Crossings — 20K SF new build along the Grand Parkway in Houston.
- Miramesa Retail Center — 22K SF in Cypress.
EXECS
Transwestern's Justin Brasell was promoted to executive vice president to lead the healthcare advisory services team in Houston. Transwestern’s Houston healthcare team executed $253M in transactions totaling 1M SF last year. It leases and manages 61 properties totaling 4.9M SF.
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Chris Bone was named senior managing director of project management for the Texas-Oklahoma region of CBRE. He has 25 years of corporate real estate experience and has been with CBRE 10 years. He will oversee all project management activities in the region, including the growth of CBRE’s third-party opportunities. Most recently, Bone led CBRE’s global corporate facilities organization, where he was responsible for implementing its Workplace360 strategy and managing its global corporate real estate portfolio.
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Tim Gregory joined JLL as senior vice president in its Houston healthcare practice. He will focus on leasing medical office buildings and ambulatory surgery centers. Gregory has 24 years of experience as a healthcare provider and 14 years in healthcare real estate. JLL hired its first healthcare and life sciences practice lead — Chris Wadley — in March.
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Steve Garven joined JLL as vice president of public institutions to grow its partnerships with government and higher education sectors. He has 20 years of experience.
SALES
An undisclosed buyer purchased Beverly Palms, a 362-unit Class-B apartment property near the Galleria. Seller Westmount Realty Capital had owned the property since October 2012 and spent $1M on renovations.
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Nickson Tomball Industrial Ltd. purchased 6.1 acres on Spell Circle in Tomball Business and Technology Park. Nickson Industrial Warehouses, led by Charles Nickson, is developing two spec office/warehouse buildings totaling 56K SF. Colliers’ Tom Condon Jr. represented the seller, Tomball Economic Development Corp. ACC Realty represented the buyer and Stewart Title-Tomball’s Jane Matthews coordinated closing.
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An undisclosed local private investor purchased a 25K SF flex property in Freeport Southwest Business Park in Stafford. The building is 100% leased to three tenants. Colliers’ Jason Tangen represented the seller, Direct Capital. First Houston Properties’ Patrick McKiernan represented the buyer.
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An undisclosed out-of-state investment firm purchased Ammex Mini Storage, a 49K SF self-storage facility in Spring Branch with 353 units. Marcus & Millichap’s Dave Knobler marketed the property for the seller, who had owned the property for 41 years.
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800 Builders purchased Echo Lane, a 189K SF Class-A office complex in Hedwig Village. Seller Velocis has owned the property since 2012; in that time occupancy jumped from 83% to 97%. JLL’s Rudy Hubbard, Kevin McConn and Rick Goings represented the seller.
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An undisclosed buyer purchased 2.4 acres at 19218 Clay Road in Katy. CMI Brokerage represented the seller.
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ALS Investments purchased a 17,500 SF industrial property at 8411 Villa Drive in Houston. NAI Partners’ Chris Caudill represented seller McDonough Construction Rentals. Greater Houston Commercial Properties’ Stuart Rosen represented the buyer.
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American Realty Advisors purchased Tanglewood Court, a 125,000 SF fully leased shopping center in the Galleria/Uptown submarket. HFF’s Rusty Tamlyn, Ryan West, John Indelli and Charlie Strauss represented the sellers, Fidelis Realty Partners and BayNorth Capital. Fidelis’ Alan Hassenflu, Lynn Davis and Glenn Airola represented their firm, which built the property in 2012 and will continue to lease and manage the center after the sale. BayNorth’s David Cronin represented his firm, and ARA’s Jessica Harrison represented the buyer. HFF’s Colby Mueck and Michael Johnson arranged acquisition financing with a national life insurance company. The center includes ownership of the H-E-B anchor, rare since H-E-B typically owns its own stores.
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An undisclosed local buyer purchased Del Isle Apartments at 4321 Bernardo De Galvez Ave. in Galveston. River Oaks Equity Partners represented the seller.
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Clean as New Gulf Coast LLC purchased 6 acres in Thompson Ten Business Park. Lee & Associates’ Robert McGee and Thomas Leger represented the buyer, and Fuller Realty Partners’ Stephen Darnall represented the seller, Fuller Thompson Ten Ltd.
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An undisclosed buyer purchased a 25K SF industrial building at 2814 South Main St. in Pearland. Lee & Associates’ Thomas Leger and Justin Cole represented the buyer, and Streetwise Land’s Scott Gardner and Ryan Sweeney represented the seller, McCoy Real Estate Solutions.
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Larkspur Shadow Creek LLC purchased 9.5 acres in Pearland’s Shadow Creek Ranch and intends to break ground on a senior living project this summer. The site is the first of five shovel-ready development tracts in Shadow Creek Ranch’s commercial reserves. NewQuest Properties’ Brad LyBrand and Brad Elmore represented the seller, A-S 143 SC Ranch L.P., a single-purpose entity of NewQuest Crosswell. BWH Capital’s Kennedy Davis represented the buyer.
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NewQuest Properties’ Rob Whitaker brokered two sales in Magnolia:
- Cobalt 201 Ltd.'s purchase of 15.1 acres at the intersection of FM 1488 and Old Hempstead Road from the Edwin J. Thomas Trust.
- Depado Partners' purchase of 2.6 acres at the intersection of FM 1097 and Plez Morgan Drive from RTL Management Group.
LEASES
Transwestern’s Doug Little, Louann Pereira and Matthew Seliger signed 26K SF of new office leases at One Sugar Creek, a 194K SF Class-A building in Sugar Land. Landlord Equus Capital Partners completed a $3M renovation there last year. The new leases, which bring the property to 90% leased, are:
- Wholesome Sweeteners leased 15K SF.
- Hydro Resources leased 8K SF.
- Baker Mortgage leased 1,906 SF.
- Viza Valves leased 1,699 SF.
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Elway Industries renewed 26K SF of industrial space at 8339 Kempwood Drive in Houston. NAI Partners’ Darren O’Conor and Jake Wilkinson represented the tenant.
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CMI Brokerage’s Gary Triplett and Trent Vacek combined signed 10 leases totaling 44K SF in Beltway Industrial Park in Houston for landlord Blum Beltway:
- NDT-PRO leased 14K SF at 6529 Cunningham Road.
- Banner Labs leased 1,600 SF at 11875 West Little York.
- Hi Tech Precision leased 1,800 SF at 11875 West Little York.
- Extreme Polymers leased 3,600 SF at 11875 West Little York.
- JD Engineering Services leased 6K SF at 6529 Cunningham Road.
- Adrenaline Fitness & Performance leased 3K SF at 11875 West Little York.
- Canopy Property Solutions leased 7,562 SF at 11875 West Little York.
- Guadalupe Cantu leased 1,800 SF at 11875 West Little York.
- Lohman Co. leased 3K SF.
- RB Liquidation Service leased 1,800 SF at 11875 West Little York.
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TS Moly-Lubricants leased 16K SF at 6205-6245 Brookhill Drive in Houston. NAI Partners’ Chris Caudill represented the tenant. Studewood Management’s Bruce Kuhrt represented the landlord in-house.
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Comfort Systems USA extended its 18K SF office lease at 675 Bering Drive in Houston. Lee & Associates’ Chris Lewis and Jill Nesloney represented the landlord, Griffin Partners 675 Bering L.P. JLL’s Anya Marmuscak represented the tenant.
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Titan Gas expanded to 15K SF of office space at 3355 West Alabama St. Lee & Associates’ Chris Nash and Rob Johnson represented the tenant; Granite Properties’ Steve West represented the landlord.
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J2 Fabrication leased an 11K SF industrial building at 327 Magnolia Business Park in Magnolia. Lee & Associates’ Mike Spears and Patrick Wolford represented the landlord, Trace Legacy Holdings. Top Guns Realty on the Lake’s Adolph Wischnewsky represented the tenant.
DEVELOPMENT
Star Cinema Grill began construction on a theater in District West, its seventh Houston theater and ninth overall. Star Cinema Grill Richmond/Katy at 22125 FM 1093 will have 12 screens and a bar with 12 beers on draft. Phase 1 of District West, which will have upscale retail, restaurant, office and hotel development, will deliver in fall 2019; the Star Cinema Grill will open at the beginning of the year. Wulfe & Co.’s Kristen Barker is handling leasing for the property.
FINANCING
Citizens Bank provided a three-year bridge loan to refinance the construction loan on Westway Plaza. The 315K SF Class-A office building was developed by Transwestern Development in 2015 and is fully leased.
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HFF’s Eric Tupler, Josh Simon and Cortney Cole arranged $173M in refinancing for five apartment communities totaling 1,534 units in Denver and Houston. Working for borrower Advenir, HFF secured five separate seven-year fixed-rate loans through Freddie Mac’s CME program. The Houston-area properties included are Advenir at Eagle Creek (258 units in Humble) and Advenir at Woodbridge Reserve (288 units in Sugar Land).
THIS AND THAT
A monument to President Lyndon Baines Johnson in Downtown Houston has been approved. Foster LLP’s Charles Foster and the George Bush Presidential Library Foundation’s David Jones obtained approval from the city for the bronze monument to be built in Little Tranquility Park, on a Downtown block bound by Capitol, Walker, Bagby and Smith streets. The monument will have a major entrance on Bagby and an 8-foot sculpture of LBJ surrounded by a semicircular wall with quotes from the former president and a timeline of his career, plus recordings of his voice. It will highlight his ties to Houston, including his influence in bringing the Johnson Space Center here.
“Great cities are characterized by great public art, including art that memorializes significant historic figures associated with the city,” said Foster, co-chair of the LBJ Presidential Monument Advisory Board. “The Lyndon Baines Johnson Presidential Monument will complement the George Bush Presidential Monument, as they both open on Bagby Street, which will become a major thoroughfare with walking and bicycle lanes and enhanced landscaping, according to city plans.”
The Brown Foundation of Houston has made a $250K matching grant to start the capital campaign for the project.
