This Week's Houston Deal Sheet
The Bank of America Center has begun its renovations, with a price tag topping $20M.
The renovations for the property at 700 Louisiana St. will include updating the existing banking hall and adding an amenities package that will include a coffee/wine bar, seating for social gatherings and coworking and a conference center.
The splashiest addition will be unique to Houston: two new floating glass box floors.
The Western Union building, the original structure on the site around which everything else was built, is being revitalized with an 8K SF high-end restaurant and 10K SF of creative office space.
“This iconic building has long been considered one of the most beautiful on Houston’s skyline and we are now are adding some great amenities and creative workspaces to create the environment today’s tenants are looking for in an office location,” M-M Properties CEO Ken Moczulski said.
The renovations were announced last year after anchor tenant Bank of America announced it will leave the building in early 2019 to move into Capitol Tower.
Since many of the office buildings in downtown were built in the 1970s and '80s, developers are investing in renovations to compete with new Class-A office space like Hines' 47-story, 1M SF property entering the market on the former Houston Chronicle building site. It also helps attract tenants in a soft market, which Houston has been suffering during the oil downturn. The worst of the office slowdown may behind the city, as the vacancy rate fell in Q2, so repositioned buildings may be able to capture increased activity.
Bank of America Center owner M-M Properties brought on Sydness Architects to design the renovations. Sydness founding principal Jeffries Sydness worked on the Johnson/Burgee team that did the original designs for 700 Louisiana 35 years ago.
Ziegler Zooper and D.E. Harvey Builders are also working on the revitalization. PMRG's John Spafford leads leasing for the office space, and Transwestern's Nick Hernandez and Crystal Allen will lease the new restaurant space.
SALES
An undisclosed buyer purchased a 110K SF manufacturing facility at 1318 Bammel Road in Houston. NAI Partners’ Ryan Searle, Nick Peterson and John Ferruzzo represented the seller, Granger Associates. Raintree Commercial’s Corey Ferguson represented the buyer.
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2230 WGC L.P. purchased a 16K industrial property at 2230 West Governors Circle in Houston. Avison Young’s Charlie Neuhaus and Harry Holmes represented the buyer. Lee & Associates’ Chris Nash and Patrick Wolford represented the seller, T.F. Hudgins Inc.
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Fifth Corner purchased Garden Oaks Center, 3406 North Shepherd Drive in Houston. The 14K SF retail center is 100% occupied and tenants include Shepherd Park Draught House, Pinks Pizza and Molly’s Mutt House. Marcus & Millichap's Justin Miller and Davis Hansen represented the seller, a local developer. Marcus & Millichap’s Jerry Goldstein represented the buyer.
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An undisclosed buyer purchased the Tomball Parkway Shopping Strip, a 10K SF retail property at 28523 Highway 249 in Tomball. The asset sold for $4.1M. Marcus & Millichap’s Brian Parmacek and Jake Parmacek represented the seller.
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AEW/Weingarten purchased Cullen Plaza at 9400 Cullen Blvd. in Houston. Cullen Plaza is an 85K SF retail center anchored by Fiesta Mart. EDGE Realty Capital Markets’ Kevin Holland represented the tenant.
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An undisclosed buyer purchased a 20-building, Class-A light industrial portfolio totaling 1.25M SF for $148M. The deal includes three properties in Houston: Bammel Business Park, Business Center at Park 10 and Legacy Park. HFF’s Adam Herrin, Stephen Bailey, Rusty Tamlyn, Chris Norvell, Trent Agnew and Patrick Nally represented the seller.
LEASES
NAMCO Manufacturing Inc. signed a 21K SF lease for a free-standing office/warehouse building on 1.6 acres. The property is at 1729-A Brittmoore Road in Houston. NAI Partners’ Zane Carman and Clay Pritchett represented the tenant. The landlord, Brittmoore Investments Ltd., an affiliate of Samuel L. Bryant Investments, represented itself.
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T.F. Hudgins Inc. signed a deal for 14K SF of industrial space at 10811 Vinecrest Drive in Houston. Lee & Associates’ Patrick Wolford and Chris Nash represented the tenant. InSite Commercial’s Logan Greer represented the landlord, EastGroup Properties L.P.
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Stewart Title Co. inked a 10K SF lease at Sugar Creek Place I, 14100 Southwest Freeway. Lee & Associates’ Robert LaCoure represented the tenant. Stream Realty Partners’ Mathew Volz and Matthew Asvestas represented the landlord, Sugar Craft Owner LLC.
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Cotton Commercial USA signed a 55K SF lease at Claymoore Business Park at 3010 Claymoore Drive. Caldwell Cos.’ Ron Roberson represented the tenant. Stream Realty Partners’ Blake Warren and Bryan O’Hair represented the landlord, Prologis.
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Motion Industries Inc. signed a 30K SF lease at Silber Road Business Center I, 1200 Silber Road. Boyd Commercial’s Conrad Bernard represented the tenant. Stream Realty Partners’ Matteson Hamilton and Bryan O’Hair represented the landlord, AFO Capital.
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Schenker Inc. signed a 17K SF lease at Beltway North Commerce Center, 971 North Sam Houston Parkway East. Savills Studley’s Noah Kruger represented the tenant. Stream Realty Partners’ Justin Robinson and Blake Warren represented the landlord, TH Real Estate.
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Insight Logistics Solutions leased 10K SF at Prologis Park IAH Logistics Center, 3340-D Greens Road. Newmark Knight Frank's Griffin Rich represented the tenant. Stream Realty Partners’ Matteson Hamilton and Jeremy Lumbreras represented the landlord, Prologis.
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WORKSUITES signed a 20K SF lease for the top floor of 77 Sugar Creek, which was recently acquired by Velocis and is undergoing renovations. ESRP’s John Pelletier and Greg Burns and NAI Partners’ Dan Boyles and Michael Mannella represented the tenant. Stream Realty Partners’ Mat Volz and Craig McKenna represented the landlord.
EXECS
Holly Gruy was promoted to chief operating officer at The Woodlands Area Economic Development Partnership. She has been at the EDP for almost 20 years, serving as vice president of operations for the last eight years.
FINANCING
NorthMarq Capital’s Warren Hitchcock arranged financing for Deer Park Marketplace. The 35K SF retail property is anchored by Planet Fitness in Deer Park. The deal is for a 10-year term with five years interest only.
DEVELOPMENT
Spaghetti Warehouse is being reinvented as a new concept called Warehouse 72. The restaurant will open in late 2018 or early 2019 at the Marq*E Entertainment Center.
