This Week's Houston Deal Sheet: Pagewood Fully Leases New 500K SF Industrial Facility

Pagewood, a commercial real estate owner, operator and developer with a growing regional footprint, completed construction and leasing of The Great 290 Distribution Center — a Class-A cross-dock facility in Northwest Houston near Highway 290 and the Grand Parkway.

Daikin Comfort Technologies Manufacturing LP, a provider of air conditioning and heating solutions for residential, commercial and industrial applications, leased 501K SF in the building for its logistics and distribution operations. Daikin’s lease accounts for 100% of Great 290’s leasable square footage.

Designed by architect Powers Brown Architecture in collaboration with Pagewood, The Great 290 sits on 64 acres with visibility along Highway 290 and frontage access.

Nathan Wynne and Jason Dillee with CBRE represented Pagewood, and Seth Koschak, Tyler Maner and Heath Donica with Stream Realty Partners represented Daikin. 

Pagewood leased the entire center the same month it received its certificate of occupancy. 

LEASES

Transwestern Real Estate Services facilitated two leases totaling 46.9K SF at Reserve at Westchase, a 195K SF Class-A office building at 3250 Briarpark Drive in Houston’s Westchase submarket. Transwestern’s Jack Scharnberg and John Heard represented the landlord in the transactions:

• Taylor Morrison, a homebuilder and developer, executed a new 29K SF lease, relocating its Houston office from 2929 Briarpark Drive. CBRE’s Jon Lee and Claire Douthit represented the tenant in negotiations. 
• Meritage Homes of Texas LLC, a wholly owned subsidiary of homebuilder Meritage Homes, renewed its 17.9K SF lease. Meritage has occupied its space at the building since 2018. Cresa’s Neil Elliott, Dustin Cruz and Lawson Martin represented the tenant in negotiations.

Earlier this year, Mattress Firm signed a 55.8K SF lease in the building, relocating its headquarters. The asset is undergoing renovations to the lobby and common areas.

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Group 1 Automotive signed a long-term 45K SF lease covering two full floors at Town Centre Two. Bob Cromwell and Kevin Nolan of Moody Rambin represented the landlord in the transaction, bringing Moody Rambin’s total leasing volume for the office development to 113K SF. 

The 167K SF Class-A development at Town & Country Village is scheduled for completion this quarter and is 68% leased. Town and Country Village is a 41-acre mixed-use development owned and managed by Moody Rambin.

Andy Iversen, Joshua Brown and Audrey Selber of Newmark represented Group 1 Automotive in the transaction. 

SALES

Sublime Properties LP sold Allied Power Group's manufacturing and maintenance facility near George Bush Intercontinental Airport to a Canadian family office in an all-cash transaction for more than $10M. Marc Peeler of NewQuest Properties represented the seller in the direct deal.

The 76K SF facility on 6.5 acres was completed in 2017 and expanded in 2021. Sublime developed the industrial complex for Nexgen Advanced Fuel Systems, which subsequently was sold to APG.

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Zoya Enterprises sold 6502 and 6506 Gulf Freeway in Houston, represented by Richard Glass of Lee & Associates. Ryan Neyland of Palo Duro Commercial Partners represented the seller, Adler Restaurant Equipment Co. The single-tenant industrial building is 13.9K SF.

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Partners Real Estate arranged the sale of an 8.1-acre recreational vehicle park at 8625 TX-35 in Liverpool. Partners’ Landan Dory and Cole Little represented the seller, Liverpool RV Park LLC, in the transaction. The buyer was represented by Dakota Schmidt of Birdsong Real Estate.

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Newmark completed the sale of three multifamily properties totaling 673 units across Austin and Houston. The properties include Stonecreek at 20000 Saums Road in Katy, which has 208 units with an average size of 830 SF, and Waterstone Place at 516 Stafford Springs Place in Stafford, with 168 units averaging 1K SF. The properties were built between 1997 and 2001.

Newmark’s Zach Springer, Jim Young and Carter Mizell represented the seller, Houston-based privately held real estate investment firm Nitya Capital, in the sale to Disrupt Equity, a Houston-based multifamily real estate investment firm.

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Montgomery County Emergency Services District No. 10 closed on two Magnolia properties, 18600 Patricia Lane and 15500 Coe Loop, that will house future fire stations for Magnolia Fire Department. 

The Patricia Lane property was purchased for $830K and includes more than 5 acres. The Coe Loop property includes nearly 32 acres and was purchased for $2.5M. Plans and designs are underway, but construction start dates and timelines have not been determined. ESD 10 does not plan to develop all 32 acres of the Coe Loop property.  

FINANCING

BGFP International, a newly created partnership between BG Capital and FreezPak Logistics, received $75.9M in funding from two lenders to finance the construction of a new cold storage facility outside of Houston that will be leased by FreezPak Logistics. 

The approximately 282K SF building is within TGS Cedar Port, one of the largest master-planned rail and barge industrial parks in the U.S. 

PGIM Real Estate provided $25.9M in construction mezzanine financing on behalf of its structured debt lending strategy, and Bank OZK provided $50M in senior construction financing for the project. The total estimated capital investment from the newly formed partnership is estimated to be just over $100M.  

BGFP International has approval for a second phase of development on the site, which allows for an additional 260K SF improvement to the parcel. The plan is to build the overall 543K SF facility over two phases of construction to help FreezPak Logistics with demand absorption.