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This Week's Houston Deal Sheet

Houston Deal Sheet

October 9, 2018 Tierra Smith, Bisnow

In the race to meet flourishing industrial demand, Triten Real Estate Partners broke ground on 330K SF of speculative distribution space near Port Houston.

Wikimedia Commons/United States Coast Guard, PA2 James Dillard

Houston Ship Channel

The two new buildings, dubbed Bayport North Logistics Center I and II, will deliver in early 2019, Triten's Will Hedges told the Houston Business Journal. They will be at 9701 New Decade Road and 4100 Malone Drive.

The buildings were designed to fulfill the need for large distribution space but can also accommodate a tenant as small as 20K SF, Hedges said.

Port Houston remains one of the most in-demand areas for industrial space. Industry experts told Bisnow that only five large tracts of industrial land remain near the area. Those tracts will get even more attention with anticipated increased energy-related activity due to the rising price of oil, which is predicted to reach $100 a barrel by year-end.

This is the second large announcement in a week about new speculative development in Houston. Last week, Clay Development & Construction Inc. released plans to break ground on Dec. 1 on a 214K SF speculative distribution center in Northeast Houston, HBJ reports.

While Houston has been notorious for overdevelopment in the speculative development office and industrial markets, Cresa principal Will Condrey expects conservative speculative industrial development going forward.

"The 2007 crash rained a lot of the speculative development in both sectors," he said to Bisnow. "To this point, developers have been pretty responsible not to deliver too much speculative product at one time."

Houston-based Triten is also constructing a 404K SF distribution center at 4600 Underwood Road, HBJ reports. It is expected to wrap up in early 2019.

Angler Construction will serve as the general contractor and Method Architecture as the architect of Bayport North Logistics Center. Cushman & Wakefield will be responsible for leasing efforts.

Courtesy of Holt Lunsford Commercial

Holt Lunsford Commercial Managing Principal Tod Harrison

EXECS

Tod Harrison was promoted to managing principal of the Houston office leasing team at Holt Lunsford Commercial. Harrison brings three decades of commercial real estate experience and will oversee the office leasing and property management platforms in Houston. He will also be responsible for the development and execution of strategic planning and business development for the group.

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Chris Bosler was hired as vice president of property services in the landlord services division at NAI Partners. He joined the company from Stream Realty Partners, where he spent six years managing half of the company's industrial product that totals 10M SF across 65 buildings in and around Houston. In his new role, he will oversee the day-to-day operations of the division, including assets across three markets: Houston, San Antonio and Austin.

SALES

Sky Light Hospitality LLC purchased the Best Western Plus Houston North at 14753 North Freeway near East Airtex Drive. CBRE's Michael Yu, Rahul Bijlani and Tyler Bean managed this transaction.

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North Houston Athletics purchased a small facility on 1 acre at 33318 Coe Lane near FM 1488 and FM 2978 in Magnolia. The company provides athletic and team apparel and equipment to schools and companies in the Greater Houston area. Newcor Commercial Real Estate's Zack Wheeler and Mikale Vadell represented the buyer. TX Global Partners' Lewis Walker represented the seller.

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Transwestern Investment Group and partner Virtus Real Estate Capital purchased a 114K SF medical office property at 2051 South Greenhouse Road in West Houston. The three-story building will be leased and managed by Transwestern’s Cindy Niles and John Wheeler. Transwestern’s Justin Brasell and Christian Connell will provide leasing services. Brasell represented the buyer.

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T F Warren Group purchased a 33K SF office building at 25000 Pitkin Road in Houston. The buyer plans to remodel the building and occupy the space in early 2019. T F Warren Group provides single-source solutions for storage tanks, structural products and corrosion protection within the oil and gas energy sector. Newcor Commercial Real Estate's Rob Banzhaf, David Alexander and Ryan Dierker represented the buyer and the seller, Rayford Professional Building Ltd.

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Core Lumber & Rebar purchased 9.42 acres on Bammel Road in Houston. Lee & Associates' Thomas Leger and Robert McGee represented the buyer. JLL's Richard Quarles represented the seller, Vigavi Realty LLC.

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GSTPCT Investments purchased a 23K SF industrial space at 5999 West 34th St. in Houston. Lee & Associates' Chase Cribbs and Justin Cole represented the buyer, and NAI Partners' Joshua Lass-Sughrue and Jason Ridenbaugh represented the seller, 600 Southwest Military Ltd.

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St. Louis-based Emerson purchased the vacant 151K SF office building at 6001 Rogerdale Road. The two-story building served as a single-tenant corporate campus since it was completed in 2008. JLL's Rudy Hubbard, Kevin McConn and Rick Goings represented the seller, 111 Realty OPO LLC. Axiom's Curt Stanton represented Emerson.

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HOU Properties Inc. purchased a 15K warehouse near Interstate 45 by the University of Houston. The firm plans to renovate the property and lease it. Buffalo Real Estate's Justin Patchen represented the buyer. Davis Commercial's Ryan Neyland represented the seller, Dr. Mike Spratt.

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An undisclosed buyer purchased 6.2 acres on Veterans Memorial Drive in Houston. Retail Solutions' Mohamed Gamal represented the seller, Gamal Enterprises' Kareem Gamal.

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Raja Foods purchased 4.6 acres of industrial land on Stafford Road in Stafford from Clay Development & Construction. ICO Commercial's Mike Gornek and Peyton Easley represented the seller, The D'Agostino Cos.

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Kenner Investments purchased The Breakers, a 272-unit residential property in Texas City. Kenner Management will manage the property while renovations are handled by Kenner Construction. The Breakers is a garden-style community in Galveston County less than 1 mile from Interstate 45.

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An undisclosed buyer purchased Advance Auto Parts at Hempstead Road and 43rd Street and El Ahorro Supermarket, a 15K SF net-leased property in Houston. Marcus & Millichap’s Gus Lagos and Nik Kapetanakis represented the undisclosed seller, a partnership.

Courtesy of REIS Associates LLC

11999 Katy Freeway in Houston

LEASES

Louisiana-based firm Keystone Engineering Inc. signed a lease expansion at 11999 Katy Freeway. The 12K SF lease doubles the company's office footprint. Keystone anticipates growth in the Houston market driven by increasing demand for the firm's services from numerous major clients. Daniel Cantrell represented the tenant. Gary Loh and Leslie Nystrom represented the landlord, Cotter Katy Freeway Bldg. L.P.

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Montenegro Enterprises LLC inked a 14K SF industrial lease at 8433 Gulf Freeway in Houston. Lee & Associates' Stephen Hazen represented the landlord, Zoya Enterprises Ltd. Matrix Realty Group's Carolina Beltran represented the tenant.

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Starplast USA LLC signed a 20K SF lease at 15882 Diplomatic Plaza Drive in Houston. Finial Group's Doc Perrier, Jack Parsons and Mitch Hall represented the landlord.

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MetroNational's Brad MacDougall represented three tenants in leases in Memorial City:

Southland Title LLC inked a three-year lease at 9821 Katy Freeway in August. Great Southwest Realty Services' Randy Frnka represented the tenant.
Mutual of Omaha Insurance Co. signed a five-year lease at Three Memorial City Place at 840 Gessner. Colliers International’s Jay Kyle represented the tenant.
BancorpSouth Bank moved into MetroNational’s newest six-story, Class-A office complex at 10100 Katy Freeway.

DEVELOPMENT

Danton's Gulf Coast Seafood and Steak is relocating from its Chelsea Market location and reopening at 1985 Welch St. as Eugene's Gulf Coast Cuisine. The new location will also feature a new menu.

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Clay Development & Construction will build a 214K SF spec distribution center in Sheldon Business Park in the Channelview area. The cross-dock distribution facility is on 11.2 acres at North Lake Houston Parkway and East Sam Houston Parkway North. The groundbreaking is scheduled for Dec. 1 and the project will be completed in Q2 19.

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Pluckers Wing Bar is opening a new location in Stafford. The fifth area location will be on Highway 59 South between Kirkwood and Airport roads. The restaurant is slated to open next year.

Courtesy of AIA Houston

Perkins+Will, Remaking Historic Emancipation Park

THIS AND THAT

The winners of the 2018 AIA Houston Design Awards were announced at Midtown Art and Theater Center Houston in late September. The 12 selected projects from a group of 110 submissions include: