This Week's Houston Deal Sheet: Tilman Fertitta Acquires Prime Memorial Drive Property

Billionaire Tilman Fertitta acquired a commercial property at 5757 Memorial Drive, adjacent to his White House venue and Brenner’s on the Bayou restaurant. 

The 18K SF, two-story building on the property is occupied by Comerica Bank until the summer of 2024. Fertitta hasn't specified plans for the building and 1.6-acre property.

“We are constantly evaluating real estate opportunities and I am thrilled to add this premium location to our expanding portfolio,” Fertitta said in a press release. “This property represents more than real estate; it is a great asset strategically positioned to create opportunities that will only further elevate the already dynamic area.”

Fertitta acquired the upscale White House venue, which is directly behind the newly acquired property, in 2022.

“Memorial Drive is a renowned thoroughfare in Houston, and the synergy with Brenner’s on the Bayou nearby made the decision simple,” he said in the release. “The adjacency of River Oaks and Memorial Park only enhances the appeal of this location, and we look forward to expanding our business in this area.”

Comerica Bank plans to move once its lease is up, a spokesperson told the Houston Chronicle, and Fertitta is exploring development opportunities. 

PEOPLE

Houston-based Satterfield & Pontikes Construction named Nicholas Flannery as president. Flannery will work alongside S&P Chairman and CEO George Pontikes Jr. 

Flannery has a 20-year history with S&P, starting as the company’s first summer intern. 

S&P’s construction portfolio includes education, transportation, healthcare, commercial and government projects, as well as retail distribution and manufacturing facilities.

SALES

Waller Independent School District purchased a 15.3-acre parcel within The Grand Prairie, Ember Real Estate Investment & Development’s 1,730-acre master-planned community. The site will eventually be home to an elementary school. 

The Grand Prairie broke ground in June and is slated to host a grand opening in the second quarter. 

Consolidated Property Advisors represented Ember in the transaction. 

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Buchanan Capital Partners, an Austin-based commercial real estate investment firm, acquired Dakota at Bingle, a five-story apartment complex in Spring Branch.

The firm acquired the 258-unit complex, which was built in 2021, in an off-market transaction. The acquisition aligns with Buchanan’s strategy to invest in properties with an acquisition basis below replacement cost, according to a press release.

Since the acquisition, the complex has been rebranded Belle Spring Branch and is now managed by Valiant Residential. 

LEASES

Howard Hughes Holdings Inc. executed leases with seven office tenants at Hughes Landing, a 79-acre mixed-use development in The Woodlands. The leases total more than 60K SF and include the following:

• Waste Connections leased an additional 27K SF at Three Hughes Landing. It already occupies 117K SF in 3 Waterway, its U.S. headquarters. The Southern region office and headquarters will occupy the new space.
  
  Waste Connections was represented by Jason Whittington with Partners Real Estate. Howard Hughes was represented by JLL’s Scott Fikes and Jack Russo.
  
  
• Houston-based national certified public accounting firm Weaver is moving into an 11K SF office at One Hughes Landing. The branch will have 35 new team members, complementing its Houston Galleria-area headquarters. 
  
  Citadel Partners’ Scott Morse and Katherine Jessen represented Weaver. Howard Hughes was represented by Colliers’ Norm Munoz and Jillian Fredericks. 
  
  
• Design Tech Homes, a family-owned custom homebuilder, leased 11K SF at Two Hughes Landing. Design Tech Homes was represented by Michael Evans and Mitchell Oxman with MHW Brokerage Services. Howard Hughes was represented by Fikes and Russo. 
  
  
• Beusa Energy signed an expansion of 4K SF for its finance and accounting department at Three Hughes Landing, expanding its square footage to 24K SF. Beusa Energy was represented by Cindy Morris with Morris Realty.

The Woodlands office portfolio for Howard Hughes is 89% leased.