The Deal Sheet
Summit Hotel Properties purchased Hilton Garden Inn Energy Corridor. Intergroup Cos CEO Tandy Lofland brokered the deal, the second time he's sold the asset in less than three years.
The 190-room hotel opened in ’08. Summit bought it for $36M and will put $3.2M into renovating the property over the next 12 months. Tandy (here fishing in Alaska—he swears he isn't always fishing, but we have zero photographic proof of that) tells us it was a quiet, targeted sale process and was done off-market on a relationship basis. (That’s how he likes to handle all his sales; it cuts down on anxiety and confusion in the preliminary stages of the sale process.) This was an attractive property because of its location; it’s one of the top submarkets nationally and there are very few premium brands still available there. Tandy says it’s also the third Hilton Garden Inn he’s sold in Houston in two years—investors are drawn to the flag because it’s one of the top brands in its segment. Seller American Liberty Hospitality will continue to manage the property.
EXECS
André Satchell joined Marcus & Millichap Capital as associate director. He will be responsible for securing commercial debt financing across property types in Texas (with an emphasis on Houston). He was previously with Duff & Phelps.
SALES
Baytown Land LLC purchased 2.6 acres on the 6900 block of N. Main Street in Baytown for the development of a bakery distribution and retail facility. Claire Sinclair Properties’ Claire Sinclair Gavrel facilitated.
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MetLife Real Estate Investors purchased 3040 Post Oak Blvd, a 427k SF Class-A office building. HFF’s Jeff Hollinden, Danny Miller, and Trent Agnew repped the sellers, a JV between Five Mile Capital Partners and Crocker Partners. The 22-story property is part of the Lakes at Post Oak complex and has previously won an international TOBY award. It’s 80% leased.
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Boxer Property purchased Aerospace Plaza (2400 and 2450 NASA Parkway in Clear Lake), two four-story office buildings connected via sky bridge that total 161k SF. The property sits directly across from the Johnson Space Center.
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Pamarco Realty purchased a 13k SF office/warehouse at 15180 Nautique Way in Southbelt Industrial Park. NAI Houston’s Clay Pritchett and Michael Keegan repped seller Pampas Building, and Stream’s Josh Morrow and Jeremy Hunt repped the buyer.
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An undisclosed buyer purchased Cullen Commons, a 17k SF retail property at 12805 Cullen Blvd. Marcus & Millichap’s Jerry Goldstein repped the seller and listed the property at $3.7M.
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An undisclosed buyer purchased 242 Crossing, a 42k SF retail center in The Woodlands. Marcus & Millichap’s Nate Newman repped the seller and listed the property at more than $11.5M. The asset is at the SEC of I-45 and FM 242 at the north entrance to The Woodlands.
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Westmont Partners purchased 3217 Montrose, a two-story, 17k SF building. Braun Enterprises was the seller. Radius Realty’s Brian Kaplan repped the buyer.
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Carter Validus Mission Critical REIT acquired a 60% interest in Bay Area Regional Medical Center, a newly-constructed acute care hospital in Webster. The developer, Medistar Corp, retains 40% interest. CVMC REIT has committed additional capital for the future build-out of the four remaining shelled floors, which will likely occur within the next 18 months. The property is a nine-story, 373k SF hospital with 104 beds, five operating rooms, and an ER. It’s 100% leased.
LEASES
N2It Containers leased 33k SF of industrial space at 6002 Murphy St from landlord Gillebaard Trust. Boyd Commercial/CORFAC International’s David Boyd and Andrew Sowell repped both parties.
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Performance Contracting Group leased a 32k SF facility on 221 Beltway Green Blvd in Pasadena. TNRG’s Thomas Leger and Robert McGee repped the sublessee.
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AkinMears leased 20k SF on the 45th floor of San Felipe Plaza, bringing it over 90% leased for the first time since 2009. Cassidy Turley’s Eric Siegrist and JP Hutcheson repped landlord Parkway Properties and Colliers’ Jay Kyle repped the tenant. The transaction progressed from first tour to deal signing in less than 60 days.
FINANCING
HFF’s John Bourret and Colby Mueck arranged acquisition financing for the Hyatt Place Houston/Sugar Land, a 214-room hotel in Sugar Land.
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Greystone’s JD Stettin provided a $17M bridge loan (including funds for renovations) on a multifamily property in Pasadena. It closed in 40 days and is just one of a growing number of bridge loans Greystone is doing in Houston.
DEVELOPMENT
Prohibition SupperClub & Bar just opened on a whole block at Prairie and Main. The space was once the 1930’s Isis Theatre in Downtown, Texas’ first silent movie theatre. The 8k SF space will feature shows by Moonlight Dolls. In another throwback, BCN Taste and Tradition (with menu straight from Spain) is opening at the end of this month in a renovated 1920’s era Victorian home in Montrose.
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Morgan completed construction of Pearl Midtown, a 154-unit community at 3101 Smith St. It was designed by Wallace Garcia Wilson.
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D’Agostino Cos broke ground on The Offices at Sam Houston, a four-story office building in Sam Houston Crossing Business Park. The 113k SF tilt-wall building is scheduled for completion in June 2015 and is 60% preleased to Caterpillar Inc and Solar Turbines Inc. (That leaves 46k SF available for lease.) D’Agostino will seek LEED Silver. CBRE’s Steve Rocher, Kristen Rabel, and Parker Duffie are leasing the property. Metzger Construction is GC and Browne McGregor handled design.
THIS AND THAT
Greystone Multifamily was awarded management of Sierra at Fall Creek, a 252-unit community in Humble.
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NAI Houston was selected as the exclusive leasing and sales agent for the 2610 West Sam Houston Pkwy office building. The two-story property consists of 24k SF of Class-B office space. The entire second floor is available for lease. Doug Pack negotiated the assignment and will head up the sales process. Mark Brady will lead leasing.
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The Texas Supreme Court, hearing the Zachry Construction vs Port of Houston Authority case, affirmed the limited scope of no-damages-for-delay causes. According to an Andrews Myers’ recap of the decision, the Court recognized the traditional exceptions to the enforcement of no-damages-for-delay causes, including an owner’s active interference with a contractor of other wrongful conduct. The decision brings Texas in line with the majority of states.
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Catalyst Property Solutions and Hot Ocean merged to form Catalyst Property Solutions. With more than 6,000 single- and multi-family units under management and 250 employees, it’s now one of Houston’s largest property management firms. Catalyst founder Paula Forshee will serve as CEO of the merged company. Hot Ocean founders Alan Schnur and Dave Anderson will be principals. The trio has also formed Catalyst Syndications, through which the team will invest personal and investor capital. Alan and Dave are co-CEOs of this firm.
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CBRE has retained the leasing and management of 3040 Post Oak Blvd for new owner MetLife Real Estate Investors. The building was originally part of the Lakes on Post Oak complex. Cody Armbrister and Rima Soroka are still handling leasing, including a new 85k SF block of vacant space.
