This Week's Houston Deal Sheet
Mars Properties broke ground on High Point West, a 90K SF industrial distribution center in Katy.
The facility, which is at 1039 Schlipf Road, will have access to the Interstate 10 corridor to Houston, Austin and San Antonio. It will have 32-foot clear heights, heavy power capabilities and access to controlled truck courts. The 7.25-acre site is expected to be delivered next spring.
CBRE will lead the marketing for the High Point West project.
The demand for Class-A industrial assets in the Houston market is on fire. As a result of the tightening sector, industrial tenants are aggressively pursuing available space, CBRE wrote in the deal's news release. Vacancy sits at 5.1%, according to the latest report from CBRE Research.
Total construction is at a two-year high, with a heavy concentration in northwest Houston, which includes parts of Katy, according to the release. Demand is keeping pace; close to 50% of the new product in the northwest submarket is already pre-leased.
EXECS
Preston Hodges was promoted to vice president of the Houston division for McCarthy Building Cos. He will lead business development and client service efforts and will focus on maintaining and growing McCarthy’s healthcare, research and higher education presence in the Houston area as well as other key markets.
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Brian Watson joined Alliance Residential Co. as vice president of construction for the South Texas division. Bringing more than 25 years of experience in construction, he will be responsible for overseeing the construction process throughout Houston, Austin, San Antonio and College Station. Previously, Watson served as head of construction for Martin Fein Interests.
SALES
An undisclosed buyer purchased a stand-alone bank building at 11417 Veterans Memorial Drive. The building will be converted into a medical clinic. Belvoir Real Estate Group LLC's Cary Latham represented the seller, MidSouth Bank.
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SJBC Commercial XIX purchased a 75K SF office building at 2700 Research Forest in The Woodlands. The property is 100% leased by eight tenants. J. Beard Real Estate Co. represented seller Dallas-based Novel Office Systems/Soft-Tech SM.
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American Landmark purchased Hilltops Apartments, a 208-unit multifamily asset in Conroe. The company plans to invest about $800K in capital improvements. Hilltop Apartments, which was built in 2017, is at 2200 North Loop 336 West. The property was 92% leased at the time of sale.
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Capital Square 1031 purchased a 10K SF, Class-A memory care facility in Spring. The newly constructed 16-bed facility is 100% leased for 15 years on an absolute net basis to Village Green Alzheimer's Care Home. Bear Real Estate Advisors represented the buyer. Edge Realty Capital Markets' Bill Pyle represented the seller, Verdad Real Estate.
LEASES
EY, formerly Ernst & Young LLP, has inked a 121K SF lease at 5 Houston Center at 1401 McKinney St. in Downtown Houston. The lease is a relocation and extension within the same building. The 580K SF Class-A office tower was built in 2001. Recent renovations include a state-of-the-art fitness center, a reimagined lobby with a curated coffee concept and a high-tech tenant lounge. Transwestern represented the landlord, Spear Street Capital. CBRE's Glenn Dyke, Sanford Criner and Jeff Cairns represented the tenant.
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Smart Warehousing LLC leased a 150K SF industrial space at the Port of Houston’s Energy Commerce at 615 East Sam Houston Parkway in Pasadena. Lee & Associates' Trey Erwin and Mike Spears represented the tenant. NAI Partners' Holden Rushing and John Simmons represented the landlord, Clay Development | Clay Partners – 615 E. Sam Houston L.P.
FINANCING
LMI Capital closed on financing for two apartment complexes in Houston:
- LMI's Brandon Brown secured $26M of debt for the acquisition of a 460-unit multifamily asset in the Briar Forest/Westchase submarket. The first mortgage featured a 4.82% fixed rate and seven years of interest only.
- LMI's Jamie Mullin arranged the cash-out refinance of a 360-unit residential development in the Woodlake/Briar Meadow submarket. The $23M loan included a 4.85% fixed rate and four years of interest only.
DEVELOPMENT
Stonelake Capital Partners expects to break ground on its third phase at Park Place | River Oaks in January. The 11.5-acre mixed-use project is at 4200 Westheimer Road in the River Oaks area. The third phase will include a 15-story, Class-A office building at Westheimer Road and Mid Lane. It will offer 200K SF of premier speculative office space. Colvill Office Properties' Brad Beasley and Connor Saxe will be responsible for leasing Park Place. Harvey Builders will construct the building that has been designed by Beck Architecture. Park Place will be available for occupancy in the spring of 2020.
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New Hope Housing celebrated the grand opening of its first residential development for homeless and at-risk families last week in Houston. The community is on 7 acres at 2605 Reed Road and includes 187 one-, two- and three-bedroom rental apartment units. NHH is a provider of permanent, affordable and supportive single-room occupancy housing for adults on a limited income.
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Houston First Corp. is reopening the Wortham Theatre Tuesday after extensive repair and renovations due to damage from Hurricane Harvey.
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Trammell Crow and partner Artis REIT broke ground on a 520K SF, Class-A rail-served distribution facility for Plastic Bagging & Packaging Inc. The built-to-suit facility will be on the Grand Parkway in Cedar Port Industrial Park and is expected to be completed next summer.
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Cacao & Cardamom opened its second location at the River Oaks Shopping Center at West Gray Street and South Shepherd Drive in Houston.
THIS AND THAT
Edna Meyer-Nelson, the founder, president and CEO of The Richland Cos., was inducted into the Real Estate Forum's 2018 Women of Influence National Hall of Fame. She joins 48 women in the county to earn this honor since its inception in 2013. This is her second time making the list.
