The Deal Sheet

Midway announced the latest stage of its Kirby Grove project. It’s launching construction of Avenue Grove, a 270-unit multifamily community in Upper Kirby.

Midway EVP of development Shon Link (pictured) and Dana Harms tell us the eight-story project will have a unique setting as it overlooks the Kirby Grove mixed-use development. It’s financed by JP Morgan and Cadence Bank and will begin leasing in fall 2015. Shon says the biggest challenge to the project was relocating nine very large century oaks into Levy Park. (Nobody ever talks about how lazy trees are, but when you think about it, they hardly ever move.)

Here’s Avenue Grove, as rendered by munoz albin. It’s the second building to commence in the project—developer Midway is already well underway with an office tower, and the $10M reinvention of Levy Park (under direction from the Upper Kirby Redevelopment Authority) is chugging along. Shon tells us Midway has been hoping to take its City Centre concept (a central green space and a few core buildings) and replicate it in an urban area. He says it’s been a great partnership with the City—it’s handling the Levy Park renovations (which will debut as soon as spring 2015, depending on what the groundhog has to say next year)—and Shon hopes this will be a model for how the City can revitalize aging parks.

EXECS

Cushman & Wakefield announced a slew of promotions. Walter Montague was promoted to director of apartment brokerage services. He has 15 years of CRE experience. John Littman and Jeff Peden were named executive directors in the industrial and land services group. John has 33 years of experience and Jeff has 16 years. Beau Kaleel was promoted to senior director in that group—he has 11 years of experience—and Coe Parker was named associate director there. Morgan Relyea was named associate director in the office services group, and Tim Thomas is now associate director in the industrial and land services group. He has 14 years of experience.

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Trey Lipsitz joined Newmark Grubb Knight Frank as managing director of retail investment sales. He will cover all Texas markets.

SALES

The Richland Cos purchased Fairmont PH Business Park, a two-building complex in the southeast industrial submarket. The property totals 67k SF over five acres and was built in ’08. It’s 100% leased.

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Chevron Phillips purchased one acre at I-10 and Sjolander in Baytown. Claire Sinclair’s Claire Sinclair Gavrel facilitated the sale. The seller was Sjolander Truck Stop.

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Baker Katz purchased four retail properties throughout Texas. That includes a 2.5-acre, 10k SF project at SH 288 and 332 in Lake Jackson. It’s occupied by Ryan’s Steakhouse. In Tomball, it bought a former gas station at FM 2920 and Hwy 249 and will build a small retail center, which will complement the larger center Baker Katz purchased across the street in 2010. 

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Hayman Co purchased The Lodge at Shadowlake, a 518-unit garden apartment community. It will add value by renovating the property. The firm now owns over 12,000 units and has purchased 3,031 units in the last 12 months alone.

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White Oak Partners purchased Colorado Club Apartments, a 300-unit multifamily community in East Houston. HFF’s Chris Curry, Todd Marix, Todd Stewart, and Tre Banks repped the seller, Capital Equity Group. The property is 98% leased.

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Poroo Baker Investments purchased a 58k SF office/warehouse facility at 5721 Harvey Wilson. Southwest Realty Advisors’ Steven O’Connor and Marc Drumwright repped the buyer and NAI Houston’s Chris Kugle and John Ferruzzo repped the seller.

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KO Developing purchased a 30k SF office/warehouse facility at 14990 Wagg Way in Westland Business Park. Southwest Realty Advisors’ Steven O’Connor and Marc Drumwright repped the buyer and CBRE’s Gray Gilbert repped seller PPE Satsuma.

LEASES

Gulf Coast Conversions leased a 13k SF facility at 12243 FM 529. TNRG’s Stephen Kuper and Ryan Searle repped the tenant. 

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Westchase I & II signed three new tenants totaling over 27k SF, boosting the occupancy to 92%. Client 1st’s Randi Smith repped the landlord. Schweitzer Engineering Laboratories leased 16k SF (repped by Cushman & Wakefield’s Chad Beck), Chemstations leased 7,013 SF (repped by CBRE’s Jon Lee and Rich Pancioli), Victor O Schinnerer & Co leased 5,226 SF (repped by Colliers’ Jay Kyle), and Terra Surveying renewed 3,252 SF (repped by NAI Houston’s Brad Marnitz). 

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Key Energy Services renewed 89k SF at Fulbright Tower. NAI Houston’s Dan Boyles repped the tenant.

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Lone Star Marble Corp leased 10k SF of industrial space at 4315 Clark Rd. Boyd Commercial/CORFAC International’s Greg Barra repped the tenant and Capital Real Estate Commercial’s Hart Schleicher repped landlord Hollister Rd. Partners.

FINANCING

Q10 Kinghorn, Driver, Hough & Co VPs Matt Franke and Larry Peters arranged financing for a 30k SF office building acquisition and redevelopment for GE Oil & Gas. The Class-A tilt-wall, freestanding building was built in 2002 on three acres in West Houston. This building is the third property financed by KDH within Westway Business Park. 90% LTV financing was provided by a Texas-based regional bank.

THIS AND THAT

NAI Houston was selected as exclusive leasing agent and property manager for the River Oaks Building at 4216 Southwest Fwy, a 17-story, 140k SF office building in Greenway Plaza. Doug Pack negotiated the assignment, and Sam Hansen and Drew Crawford will lead marketing. The building has 58k SF available for lease and is primarily occupied by medical-based tenants.