This Week's Houston Deal Sheet

A local private fund — led by Tim Phillips of TRECAP Sam Houston Parkway Partners — purchased Transcore Plaza, a 56K SF industrial building in Northwest Houston.

The industrial/flex building is on 4.8 acres at 2701-2801 West Sam Houston Parkway North, near the intersection of Beltway 8 and Kempwood Drive. It is 100% leased with triple-net leases to the Harris County Toll Road Authority and Transcore (a wholly owned subsidiary of Roper Technologies). Colliers’ Jason Tangen represented the buyer, and Keen Realty Advisors’ Payton Indermuehle represented the seller.

EXECS

Fifth Corner, a new company founded by former AmREIT execs, hired Tim Ng and Brad Blazar, closed its initial round of capital commitments and acquired the first two properties in its Fifth Corner Property Fund I. The fund will purchase high-quality retail and mixed-use assets, beginning with the buys in Sugar Land and the Washington Avenue Corridor in Houston, which total 39K SF. It has two other properties under contract and slated to close in Q3.

Ng, a 15-year industry vet who has participated in $1B of CRE transactions, will focus on acquisitions and asset management. Blazar will raise capital for future growth; he has raised more than $1.9B in his career.

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Ware Malcomb expanded its Texas services, adding interior architecture and design services for commercial and corporate clients to its roster. It brought on Heather Griffin as studio manager of interior architecture and design to lead the growth and management of the interior design practice in Houston. She has 13 years of experience.

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Micheal Palmer joined CBRE as a senior vice president of industrial. He has 28 years of experience and has closed transactions topping $1.4B.

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Maria Rucks rejoined Gensler Houston. She was previously director of architecture for Landscape Vision Corp. at its HQ in Panama City and before that was in Gensler’s Washington, D.C., office. She has more than 20 years of experience and specializes in hospitality, sports, professional services firms, education and corporate interiors projects.

SALES

Fidelity Business Partners purchased a 21-unit Class-C apartment complex at 115 Arbor St. in Baytown. The San Diego-based buyer plans to keep the property in its current use. Davis Commercial Real Estate’s Ryan Neyland represented the sellers, Gary Parater and Peter Swales.

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An undisclosed buyer purchased Dover Place Apartments, a 32-unit apartment property at 4317 Dover in Houston. Marcus & Millichap’s Jeff Fript and Christian Mazzini marketed the property.

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International Church of the Four Square Gospel purchased a 218K SF, 5-acre property at 17310 North Eldridge Parkway in Tomball. CBRE’s Alex Makris represented the buyer, and Spartan Real Estate Services’ David Ross represented the seller, the estate of Dorothy Mae Brinkley.

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One Real Estate Investment purchased the Southwest Two Pack, a 412-unit, two-property multifamily portfolio. The properties are Airport Gardens (172 units, built in 1982) and Airport Landing (240 units, built in 1983). Institutional Property Advisors’ Jennifer Campbell and Will Balthrope handled the negotiations for the purchase.

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Ray Salti, founder of Pepperoni Inc. and owner of Bollo Pizza, purchased 2.3 acres on Sugar Ridge Boulevard just south of West Airport in Stafford. He will build a commissary kitchen to serve his Houston restaurants. Davis Commercial Real Estate’s Ryan Neyland represented the seller, Arapahoe Texas.

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G. Ramirez purchased a 14K SF, three-building office/warehouse property on 1 acre at 31719 FM 2978 in Magnolia. J. Beard’s Ryan Hutson represented the seller, Continuum Investments. Walzel Properties’ Vicky Kuczbel-Rogers represented the buyer, who will occupy the property.

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An undisclosed local private investment group purchased Halliburton’s former Oak Park campus, a 48-acre property in the Westchase District that includes a 568K SF office building, a 17,500 SF fitness facility, a daycare center, a central plant and a parking garage. It was built in 1979 and upgraded in 2013. Williams & Williams held an auction for the property April 27 in conjunction with JLL’s Rudy Hubbard, Kevin McConn, Rick Goings and Dan Bellow, who represented the seller.

LEASES

Ricoh USA leased 10K SF at The Woodbranch Building, 12012 Wickchester Lane. NGKF’s Dina Deutsch and David Husid represented the tenant, and Stream Realty’s Craig McKenna and Matthew Asvestas represented the landlord, CapRidge Partners.

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Stream Realty’s Matteson Hamilton and Jeremy Lumbreras closed a slew of deals:

• Frameworks Manufacturing leased 65K SF at Interstate Commerce Center. Stream represented the landlord, Copeland Commercial and Hillwood Investment Properties. Moody Rambin’s Ryan Fassett represented the tenant.

• Kratos Public Safety & Security Solutions leased 15K SF at Northwest Industrial Center. Stream represented landlord Black Creek Group, and Colliers’ Blake Gibson represented the tenant.

• Solarcraft Inc. renewed 36K SF at Sugar Land Southwest Business Center. Stream represented landlord DRA Advisors, and Boyd Commercial’s David Munson represented the tenant.

• Service Experts Heating & Air Conditioning leased 18K SF, and Applied Industrial Technologies Inc. renewed 12K SF, at Northwest Industrial Center. Stream represented landlord Black Creek Group.

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LJA Engineering leased 26K SF (a 4K SF expansion and 22K SF renewal) at 1904 West Grand Parkway in Katy. Stream Realty’s Anthony Squillante and Dustin Devine represented the tenant, and Transwestern’s Eric Anderson and Parker Burkett represented the owner, 1904 Grand Parkway North L.P.

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The new Heights Plaza Shopping Center at 2400 North Shepherd is now 100% leased. Two new tenants will join Verizon Wireless and Krisp Bird & Batter: JuiceFix Juicery leased 850 SF for its second location, represented by Rubicon Realty Group’s Elena Cooksey. Upscale Cleaners leased 800 SF. Davis Commercial Real Estate’s Ryan Neyland represented landlord 24th Street Market LLC in both deals.

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Protec Ambulance Transport Corp. leased 6,880 SF at Wilson Road Warehouse (2624 Wilson Road in Humble). Retail Solutions’ Rick Guiterrez represented the landlord, and JLA Realty’s Wayne Knippers represented the tenant.

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Evoqua Water Technologies signed a new 107K SF industrial lease at World Houston Business Park, 15414 International Plaza Drive in North Houston. The company currently occupies approximately 45K SF within the park but will consolidate three Houston-area locations there in Q4. JLL’s David Buescher and Geoff Perrott represented the tenant, and InSite Realty’s Logan Greer and Rives Nolen represented the landlord, EastGroup Properties.

DEVELOPMENT

Tannos Land Holdings III, an affiliate of Tannos Construction & Development, has broken ground on a $10M mixed-use building in Friendswood. The four-story building will total 63K SF of retail, restaurant and office space. It is expected to be complete by early 2019.

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Crow Holdings Industrial broke ground on a 349K SF Class-A cross-dock tilt-wall distribution building called Victory Commerce Center. It will have 32-foot clear height, 185-foot truck aprons and outdoor storage and will deliver in Q1. Colliers’ Jon Lindenberger, Walter Menuet and Paul Dominique will lease the property in the Southeast industrial submarket, serving the port.

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Transwestern Development Co. and Spear Street Capital are building a mixed-use project at the former Exxon Mobil Campus on 16.9 acres at 3120 Buffalo Speedway. It will likely include a mid-rise residential building, an approximately 275K SF office building and retail, the Houston Business Journal reports. The property is just outside of Greenway Plaza and already has interest from a 125K SF office user. It will break ground next year.

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Memstar USA, part of Beijing-based CITIC Envirotech Group, is opening its 40,500 SF manufacturing facility inside Conroe Park North June 29. The $31M Conroe facility, which produces reverse osmosis membranes for water filtration and desalination, is the company’s first in the United States. The Conroe Economic Development Council collaborated with the Greater Houston Partnership to bring Memstar USA to Conroe. Memstar USA focused on the Houston area due to the region’s infrastructure, including Port Houston. The Conroe location is within a foreign trade zone and received tax abatements.

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Copeland Commercial and Hillwood are kicking off Phase 2 of Interstate Commerce Center now that the 414K SF Phase 1 is fully leased. Phase 2 will consist of two buildings totaling 334K SF.

FINANCING

LMI Capital’s Jamie Mullin placed financing for the acquisitions of four multifamily complexes. He closed loan assumptions for two complexes totaling 570 units in Westchase for one borrower. Those deals closed in less than 80 days. He also originated acquisition debt for a 100-unit asset in Southwest Houston with 76% loan-to-value and three years interest-only, and a $9M acquisition loan for a 250-unit property in Westwood with funds enabling a property renovation.

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LMI Capital’s Brandon Brown and Jamie Safier closed on the financing of three multifamily properties, a $6.6M bridge loan for a 125-unit complex in Inwood, a $10.6M permanent loan for a 150-unit complex in North Houston and a $6.7M loan for the acquisition of a 140-unit property in Spring Branch.

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HFF’s Cortney Cole and Jeff Lucia arranged acquisition financing for Landmark of Conroe, a 200-unit, Class-A garden-style apartment complex in Conroe. The borrower was Hilltop Residential, which got a seven-year loan with a fixed interest rate of 4.57% and five years interest-only. Hilltop will upgrade the property’s amenities and renovate units as they turn.

THIS AND THAT

JLL was selected by Lingerfelt CommonWealth Partners to lease Burns & McDonnell Plaza, 1700 West Loop South in Houston. Scott Fikes will lead marketing and leasing efforts for the 273K SF, Class-A office building, which was built in 1976 and renovated in 2013. It is 85% leased.

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A Houston property was named a finalist for the Urban Land Institute Terwilliger Center for Housing’s annual Jack Kemp Excellence in Affordable and Workforce Housing Award, which honors developments that ensure housing affordability for people with a range of incomes. Properties must be affordable to householders earning less than 120% of the area median income. The winner will be announced in October at ULI’s fall meeting.

The Houston finalist is Avenue Place/Avenue Terrace in Near Northside, a dense, largely Hispanic community. Developers converted 20 acres of industrial wasteland into the property with linkage to public transportation and accessible green space.