The Deal Sheet
InSite Realty Partners purchased 2950 and 3030 South Gessner, a recently renovated two-building office property in Westchase. (The two buildings will have to ask 3000, 3010, and 3020 South Gessner to pass notes back and forth to each other.)
The two buildings total 122k SF and are 80% occupied. They’re anchored by ITT Educational Services, which has been a tenant since 1994. CBRE’s Todd Casper and Mike Hassler repped the seller, a JV of Peloton and Pennybacker Capital. They say investors were drawn to the building because it’s in Westchase, right in the heart of one of our significant growth corridors. Todd says the property is also unique in that it’s situated on a very large site, 7.7 acres. (That's enough land for a tenant to bring a modest sheep farm with them.) The property features an above-market parking ratio and several spec suites, which have significantly increased leasing activity. Todd and Mike have quite a bit on their plate; they’re also marketing Woodlands 45 Corporate Center, 6464 Savoy, 2400 & 2450 NASA Parkway, 3500 Sage Road, 5810 Wilson Road, and 600 Gemini for sale.
EXECS
Michael Palmer joined Transwestern’s tenant rep group as SVP. He has more than 27 years of industry experience, particularly in the industrial market. He has closed 1,100 transactions exceeding $1.2B.
SALES
Colliers’ Jason Tangen repped the seller in four deals:
• A private trust purchased 11.2 acres at 25811 Gosling Rd, just south of The Woodlands’ Village of Creekside. Avalon Home Selling Team repped the buyer.
• CSV Donwick purchased a 27k SF multi-tenant office/warehouse at 16753 Donwick Dr. It was 95% occupied at TOS. J Beard’s Brett Tynes repped the buyer.
• RBM Capital Partners purchased 24 acres along SH 75 along SH 75 north of League Line Road. The property has the potential use for future access to I-45 via surviving easement. The proposed use is office/warehouse. Lake Conroe Realty’s Ronnie Cooper repped the buyer.
• The City of Houston purchased 32.2 acres from Green Bank on Kirby Drive south of Mowery Road. The Houston Parks Board was involved throughout the purchase. Commonwealth Funding repped the buyer.
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An undisclosed buyer purchased six acres at the NWC of Post Oak and Richmond. McAlister Real Estate’s James Kadlick, Chris Hutcheson, and Matthew Herring repped seller Deyaar Development.
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RGI purchased three acres at 17130 Groeschke. Southwest Realty Advisors’ Steven O’Connor and Marc Drumwright repped seller IKE Enterprises and Panoptic Realty’s Michael Blount repped the buyer.
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Greystar purchased White Oak Apartments, a 77-unit community. Marcus & Millichap’s Juan Cuevas repped seller Brightside Properties. Greystar will demolish the property and build a new mid-rise multifamily community. It purchased the site for its location adjacent to White Oak Park and its unobstructed views of the Downtown skyline.
LEASES
TTS Marine leased 15k SF at the Vickery Industrial Plaza (14730 Vickery). NAI Houston’s Travis Land repped landlord United Equities and DTZ’s Bruce Fehn repped the tenant.
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Tellworks Communications leased 18k SF in Greenspoint Business Center (51 Esplanade). Cushman & Wakefield’s Tim Thomas, Kelley Parker, John Littman, and Coe Parker repped the tenant and IDI’s Ben Newell repped the landlord.
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Caisson Fabrication Co leased 37k SF of industrial space at 4208 Fidelity Rd. The Texas Development Co’s Michael Farris repped the landlord and Houston Realty Advisors’ Ed Ayres repped the tenant.
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Dent Wizard leased an 11k SF facility at 3200 Greens Rd. TNRG’s Ryan Searle and Mike Spears repped landlord MSDH Ventures.
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HD Supply White Cap Construction Co leased a 15k SF industrial building in Stafford Business Park. CBRE’s Carlton Anderson and Joseph Smith repped the tenant and NAI Houston’s John Ferruzzo and Darren O’Conor repped landlord SBP-Development IV. The landlord is breaking ground on Buildings 6 and 7, the final two buildings in the park.
DEVELOPMENT
Hanover West University Apartments is officially open. The luxury community is at the intersection of Kirby and Bissonnet, just south of 59.
FINANCING
Centerline Capital’s James Kelly provided a $19.2M Fannie Mae conventional loan to facilitate the acquisition of Wynhaven at West Oaks. The 323-unit apartment complex is being acquired by Southstar Capital Group for $25.2M. The loan was structured with a five-year term and two years of I/O. The property has been renamed Parkland at West Oaks. It’s 97% occupied.
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BMC Capital’s Patrick Short arranged a $1.1M cash-out refinance loan for a 22-unit multifamily property. The loan featured a seven-year fixed rate at 5.2%.
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BMC Capital’s Tony Talamas arranged two loans:
• $2.2M cash-out refinance for a 72-unit multifamily community. It featured a five-year fixed rate at 3.5%.
• $2.5M refinance for a CVS. It was fixed at 4.5% for five years.
THIS AND THAT
Houston is the fourth greenest CRE market in the country, according to a study by CBRE and Maastricht University. The 2014 Green Building Adoption Index, as they call it, shows that 55% of Houston’s CRE is certified as green (EPA Energy Star label, LEED, or both). Minneapolis is greenest, with 77% of its buildings certified. Across the US, Energy Star labelled buildings have increased 600% since 2005. In that time, the proportion of buildings certified LEED jumped from less than 0.5% to 5% (a 1,000% increase).
