This Week's Houston Deal Sheet: Interra Capital Acquires 3-Building Office Portfolio
Houston-based Interra Capital Group acquired Remington Square, a three-building Class-A office portfolio in Houston.
The complex totals 392K SF across 17 acres along Beltway 8 at 10603, 10613 and 10713 W. Sam Houston Parkway in Northwest Houston.
Completed in 2008 and 2015, the complex offers amenities that include a restaurant with catering, a fitness center and locker rooms, a tenant lounge and a conference facility.
JLL represented the seller, BGO, and procured the buyer. The JLL Capital Markets investment sales and advisory team representing the seller was led by Kevin McConn, Marty Hogan and Rick Goings.
“Interra is decisively in acquisition mode, aggressively pursuing opportunities to expand our portfolio with assets that demonstrate significant upside potential and strategic value,” Interra Capital Group Director of Acquisitions Anita Kundaje said in a news release. “We are actively seeking properties that align with our rigorous criteria for sustainable growth and investment returns. Our recent acquisition of Remington Square is a testament to this focused approach.”
SALES
MedProperties Realty Advisors acquired a 45K SF medical office building in Cypress on the Memorial Hermann Cypress Hospital campus. The building at 27646 Northwest Freeway was completed this year and is 100% leased to Memorial Hermann Health System and Athlete Training and Health.
MedProperties used discretionary equity capital and available debt financing for the acquisition. Debt was provided by Capital One and Siemens Financial Services.
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DML Capital acquired 4625 San Felipe, a 209K SF, 14-story office tower inside Loop 610 near The Galleria. Available spaces in the building range from 1,500 SF to 17K SF. The building has move-in-ready speculative spaces and monument signage available for certain users.
Stream Realty Partners’ Brad Fricks and Matt Asvestas will oversee leasing. Stream will also manage the property and construction.
Building amenities include a covered outdoor space with a putting green, seating, a TV and a cooling system. On the sixth floor, The Getaway has a lounge environment with WiFi, TV, drinks and snacks. Level 10 features a training room and executive-style boardroom.
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An out-of-state private investor purchased an unoccupied 45K SF behavioral health hospital at 11500 Space Center Blvd. in Houston.
The building was previously occupied by Sacred Oak Medical Center, which shut down due to state regulatory violations, according to Marcus & Millichap. The buyer is a medical practitioner and investor who plans to repurpose the facility for an undisclosed medical use.
Marcus & Millichap’s Alex Wolansky and Gus Lagos represented the seller, an undisclosed ownership group, and procured the buyer.
Built in 2008 and converted to a behavioral health facility from 2015 to 2016, the property spans 4 acres and includes 10 rooms with 20 beds, medical evaluation spaces, a commercial kitchen and common areas. It is in the Village at Clearpoint Crossing medical office park.
LEASES
Oxford Partners represented Polytec in a lease renewal and expansion of 10K SF at 9000 Clay Road in Houston. Oxford Partners’ John Harris and Stephen Hazen represented the tenant. The landlord, Stonelake Capital Partners, was represented by Jude Filippone of Transwestern.
CONSTRUCTION & DEVELOPMENT
Clay Development & Construction Inc. started construction on the 2.3M SF Northwest 99 Business Park on 172 acres at the intersection of Grand Parkway and Mueschke Road in Northwest Harris County.
The first two speculative buildings in the development are the 425K SF Northwest 99 Distribution I, which can accommodate up to four tenants, and the 70K SF Northwest 99 Spec I, a single-tenant manufacturing building.
Mark Nicholas and Will Clay of JLL, as well as Copeland Rhea of Clay Development & Construction, are handling leasing of Northwest 99 Distribution I. Ed Frantz, Joseph Smith and Cape Bell of CBRE, along with Rhea, are brokers for Northwest 99 Spec I.
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Constellation Real Estate Partners, an investor and developer of logistics properties, acquired 23 acres at 11891 N. Houston Rosslyn Road in Houston for the development of Constellation Rosslyn, a 285K SF industrial building.
The building was designed by Powers Brown Architecture. Construction will begin in the fourth quarter of 2024, and completion is slated for the third quarter of 2025. Faron Wiley and Ed Frantz of CBRE will lease the property.
THIS & THAT
Four Westlake, a 564K SF vacant office tower in the Energy Corridor, is undergoing renovations to add a food hall and revamp the lobby and conference center.
A fully upgraded fitness center will be accessible from the first floor. A new food hall will provide a range of dining options and 120 seats. The new conference center will have meeting spaces that can hold up to 200 people.
The project is expected to be completed in May. Gallant Builders is the general contractor and IA Interior Architects is providing architectural services.
JLL’s Tyler Garrett and Matt Pruitt are leading leasing efforts at Four Westlake. JLL’s Lisa Skelton will handle property management. JLL’s Stefanie Jordan and Natalie Wilkins are overseeing the lobby renovation process with JLL’s project development services group.
The 20-story building was formerly fully occupied by BP and is adjacent to its Westlake Campus, but it subleased the space years earlier and the last subtenants moved out last year. The renovations are projected to cost $15M, according to the Houston Chronicle.
