This Week's Houston Deal Sheet
A striking transformation is on the way for Palace Bowling Lanes in Houston.
Originally built in 1955, the two-story building at 4191 Bellaire Blvd. will undergo renovations to create Southside Commons, a mixed-use offering by developer Triple Crown Investments.
Arch-Con Construction broke ground last week to begin removing and replacing the front facade. Southside Commons is scheduled to open late next summer.
“Out of all of the uses our team explored during the redevelopment process, the best, and not necessarily most economical, was to preserve the building and bring back family entertainment and other amenities that the community so desires,” Triple Crown Investments Managing Partner John Morton said.
The first floor will have 10K SF of retail and 30K SF of entertainment/retail space. The top floor will accommodate 40K SF of office and medical offices.
While redevelopment projects are on the rise within the Inner Loop, developers may still face some challenges. The original roof structure is too low for today's office market demands, Arch-Con Senior Vice President Marc MacConnell said. The construction crew will replace with columns to increase the height of the roof by about four feet.
Michael Hsu and architect of record Tramonte + Johnson Architects will design the property.
SALES
8203 MSR Properties LLC purchased a 125K SF industrial property at 8203 Market St. in Houston. NAI Partners’ John Ferruzzo and Clay Pritchett represented the seller, 8203 Market Street Road LLC (The Marston Cos.). Belvoir Real Estate Group’s Matthew Goldsby represented the buyer.
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Davis Commercial’s Barrett Von Blon represented Harry Reed & Co. in three dispositions:
- Streetwise Properties LLC purchased a 2.8-acre tract on Hiram Clarke Road and Brentwood Park Drive to develop a convenience store or gas station.
- Bayron De Leon and Maria De Leon Vasquez purchased a 1.9-acre tract for future development. Re/Max’s Cecilia Cardenas represented the buyers.
- Garza Home Rentals Inc. purchased a 1.4-acre lot near Beltway 8 and Lee Road. Martha Turner’s Vanessa Bruegger represented the buyer.
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HCA Houston Healthcare purchased North Cypress Medical Center, a 139-bed acute care facility in Northwest Houston. The deal also includes four free-standing emergency centers in Barker Cypress, Spring Cypress, Fairfield and along Highway 249.
Jim Brown was named CEO of North Cypress Medical Center. He previously served as a chief development officer for the Gulf Coast Division and joined the company in February 2017.
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Emmaus Road Katy purchased 10 acres on FM 529 in Katy. Keys & Capital Global Realty’s Rachel Gonzalez-Dunham represented the buyer. Lee & Associates’ Reed Vestal, Taylor Schmidt and John Erck represented the seller, Katy Freeman LLC.
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OCP RI LLC purchased 2 acres at the intersection of Highway 6 and Oyster Creek Drive in Missouri City. NewQuest Properties’ J.J. McDermott and Jon Jamison represented the seller, Lleven Van Riet. Realty One’s Beau Evans represented the buyer.
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An undisclosed limited liability company purchased Comfort Suites Spring, a 62-room hotel at 323 Louetta Road in Spring. Marcus & Millichap’s Andrew Frosch, Allan Miller and Chris Gomes represented both parties.
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An undisclosed buyer purchased a 23K SF industrial property at 5999 West 34th St. in Houston. NAI Partners’ Jason Ridenbaugh represented the seller, 600 Southwest Military.
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GAIA Real Estate and its partners Menora Mivtachim Insurance and Grand China Fund sold five properties in Houston. The assets include The Veranda at Centerfield, Club at Copperleaf, Lighthouse at Willowbrook, Villas at Coronado and Enclave at Mary’s Creek in Pearland.
LEASES
SMA Solutions, a global provider of IT and business automation solutions, signed a lease for 26K SF at Gateway II at 15333 JFK Blvd. in Houston. This deal will relocate and expand SMA’s headquarters from Humble. PMRG's Wade Bowlin, Marci Phillips and Angelina Hsieh represented the landlord.
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Old Navy inked a 12,500 SF deal at Brazos Town Center in Rosenberg. NewQuest Properties will break ground soon on a new building — on a vacant tract tucked between Kohl’s and Gordmans in Phase 1 of the development — to be completed in February. Old Navy is planning to open in the spring. NewQuests’ Bob Conwell and Austen Baldridge represented the developer. Edge Realty Partners’ Culver Stedman represented the tenant.
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Ross Dress for Less inked a 22K SF lease at Chambers Town Center in Baytown. NewQuest Properties’ Bob Conwell and Brad Elmore represented the landlord. NewQuest Properties' Matt Reed represented the tenant.
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Exterran Energy Solutions leased 59K SF at 11000 Equity Drive in Houston. Transwestern’s Eric Anderson and Tyler Garrett represented the landlord, The Seligman Group. JLL’s Louie Crapitto and Dan Bellow represented the tenant.
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Netherlands-based Akzo Nobel NV leased 232K SF at 4111 Malone Drive in Bayport North. This location will serve as a hub for all the company’s marine and protective coatings warehouses. Palmer Logistics operates the new facility.
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PAS Global LLC signed a 30K SF lease at 13100 Space Center Blvd. in Houston. Savills Studley's Derrell Curry represented the tenant.
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Two companies signed leases at the Clear Lake Tech Center at 17146 Feathercraft Lane in Webster. Mechatronics expanded by 12K SF and Acuren leased 7K SF. The Beck Group's Derek Beck represented the landlord.
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CNS-Houston LLC signed a 16K lease for a full floor at 253 Medical Center Blvd. in Webster.
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DaVita Dialysis inked an 11K lease at 7520 Spencer Highway in Pasadena. Qualified Properties' Alix Fox and Cushman & Wakefield's Louis Carpenter handled the negotiations.
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Western Post USA inked a 122K SF lease at Cutten Road Distribution Center at 11833 Cutten Road in Houston. This deal marks the first tenant at the newly constructed spec distribution building. NAI Partners’ Chris Caudill and John Ferruzzo represented the tenant. Cushman & Wakefield’s Allison Bergmann and Jim Foreman represented the landlord, Industrial Property Trust.
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Just Play Sports signed a 17K SF lease at 10510 Westview Drive in Houston. The store is expected to open by early November. NAI Partners’ Jason Whittington represented the tenant. Boyd Commercial’s Greg Barra represented the landlord, JL Landco LLC.
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Haynes and Boone LLP renewed a 73K SF lease at LyondellBasell Tower, the Class-A office tower at 1221 McKinney St. Downtown. The company will occupy the 38th, 39th and 40th floors. JLL’s Steve Burkett, David Bale, Ed Prejean and Diana Bridger represented the tenant. Transwestern’s Doug Little, David Baker and Kelli Gault and Brookfield Properties’ Clint Bawcom represented the landlord, Brookfield Properties.
FINANCING
LMI Capital arranged the financing for three apartments assets in the Spring Branch and Garden Oaks neighborhoods. The multifamily loans provide a three-year, interest-only period along with rehab proceeds to accommodate the borrowers’ renovation plans for these value-add plays. LMI Captial’s Brandon Brown and Jamie Mullin represented the borrowers.
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LMI Capital closed on the financing of four multifamily acquisitions throughout southeast Texas. The first deal was a $9.5M loan for a 170-unit asset in Brazoria County, the second for a 100-unit asset in Jefferson County, the third a five-year fixed-rate loan for a 20-unit property in Galveston County and lastly a $6.1M loan on a 150-unit in Brazoria County. LMI Capital’s Brandon Brown, Kurt Dennis and Jamie Safier represented the borrowers.
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NorthMarq Capital’s Warren Hitchcock secured financing for Jacinto Palms Apartments in Houston. The acquisition loan will allow the new owner to improve the property and renovate unit interiors.
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Tarantino Properties purchased Ascension on the Bayou, a newly built, 280-unit luxury multifamily community at 150 West Sam Houston Parkway in Houston. HFF secured financing for the owner with a 10-year acquisition loan with a fixed interest rate of 4.43% with six years of interest-only payments. The complex was completed in 2017. Colliers International’s Teresa Lowery represented the seller. HFF’s Cortney Cole and Sterling Curry represented the borrower.
DEVELOPMENT
Unilev Management Corp., Azrieli Group and CBRE are planning a multimillion-dollar infrastructure upgrade and renovation project at One and Three Riverway. The portfolio of Class-A office buildings, totaling 880K SF, is in the Galleria area. Notable tenants include Texas Capitol Bank, King Ranch, Martin Energy and Thompson Coe. Ziegler Cooper Architects will lead design. CBRE’s Kristen Rabel, Marilyn Guion and Parker Duffie will be responsible for leasing. Unilev Management Corp. will provide on-site management.
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Liberty Property Trust broke ground on a 657K SF distribution center for Conn’s HomePlus at 1401 Rankin Drive in North Houston. The development will serve as a warehouse, distribution center, clearance and customer pick-up center. The project is slated to be completed in Q2 2019.
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Fort Bend County Public Transportation broke ground on a new administration and operations facility in Rosenberg. The new 20-acre location will consolidate all three of the county’s facilities into one near the Fort Bend County Fairgrounds. The project will include an 18K SF office facility, a 29K SF maintenance facility for bus service and repair, a bus wash and a fueling station. The $21M construction project is scheduled to completed by fall 2019.
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Enterprise Products Partners started construction of an ethylene export terminal at its Morgan’s Point facility on the Houston Ship Channel. The terminal will have the ability to export 2.2 billion pounds of ethylene a year. Ethylene is a building block for the production of plastics. Operations are set to start in late 2019.
EXECS
James Henrie was promoted to chief operating officer at Land Tejas, a Houston-based firm. He joined the company in 2001 as a project manager overseeing larger master-planned communities, including Canyon Lakes West in Cypress. He most recently served as director of land acquisition and development. In his new role, he will be responsible for the company’s growth, operations, sales and marketing activities.
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Melanie Mangel was promoted to chief financial officer at Land Tejas. Since joining the company in 2005, she has served as the company’s controller with direct responsibility for all accounting, land transactions, cash management and office management. In her new role, she will also be in charge of all financial planning, financial reporting and banking relations.
THIS AND THAT
Trinity Church will host the celebration of life for Daniel Barnum, known as the Mayor of Midtown for his urbanization efforts in the area, on Friday. The church is at 1015 Holman St.
Barnum, who died Aug. 15, served as a chair of the research foundation of Houston Tomorrow and attended regular breakfast discussions of the Houston transit coalition until his death. In lieu of flowers, it is requested donations be made to the Trinity Church Endowment Fund, the Rice University School of Architecture or the charity of your choice.
