The Deal Sheet
Sometimes the small deals are the hardest and most complex. That was the case for a recent $1.6M industrial building refi next to Hobby.
Angelic Real Estate’s Gabriel Silverstein (pictured with a striper he caught off Block Island) and Louis D’Lando secured the $1.6M refinancing and expansion construction loan. Gabriel says the challenge was taking a small transaction in a weaker local submarket, with a tenant that had limited financial credit, and further layering in a construction component to the deal. Financing was placed with a local bank. The Houston-based private equity ownership syndicate has owned the property for nearly 10 years, and just renewed the tenant Kenmore Electric, including agreeing to an 8,000 SF building expansion. (It’s currently 25k SF.)
EXECS
Marcus & Millichap’s Jeff Fript and Justin Miller were promoted to VPs of investments. Jeff specializes in multifamily investment sales and is also a director of the firm’s National Multi Housing Group. Justin focuses on retail properties.
***
Stream Realty’s Matteson Hamilton was promoted to managing director. He will co-lead the industrial team, which has a 19M SF leasing/management portfolio.
SALES
An undisclosed national investment group purchased a 118k SF shopping center at 1801 N. Pruett St in Baytown. Coldwell Banker’s Donna Winfrey-Varner repped the seller.
***
Dornin Investment Group purchased Columbia Centre. JLL’s Rudy Hubbard, Kevin McConn, and Rick Goings repped the seller. Rudy says it’s one of the best Class-B assets in the market, and is in Westchase, which has seen growing office investor appetite. Columbia Centre is 167k SF and was built in ‘83.
***
An undisclosed local investment group purchased Market at Bees Creek, a 22k SF shopping center at 4225 Sienna Pkwy in Missouri City. Coldwell Banker’s Mark McGinley repped the seller and Gulf South Investments’ James Lee repped the buyer.
***
An undisclosed industrial user purchased 2.6 acres on Fellows Road in Pearland. Coldwell Banker’s David Hummel repped the seller and Evans Properties’ Joe Evans repped the buyer.
***
Hartman Income REIT (through its Short Term Properties XX fund) purchased Gulf Plaza, a 121k SF office building. It leveraged the asset at 50% to increase its capacity on its line of credit—Hartman added $7M of availability on its credit facility with Texas Capital Bank. Dave Wheeler and Julian Kwok repped Hartman in-house, and Elizabeth Falco repped lender Texas Capital Bank.
LEASES
Phoenix Tower is 94.3% leased. Cassidy Turley was awarded leasing when Parkway bought the asset in Q4 ’12—at the time, the property had 16.4% vacancy. Since, the team has closed nine leases totaling 50k SF. Most recently, HOK leased 39k SF in the building. The building is quoted at $28/SF triple net, the highest among existing Class-A properties in Greenway.
***
Medical Transportation Management leased 17k SF of warehouse space for at 5400 Mitchelldale. Jennifer Rabon repped the landlord, Hartman Income REIT.
DEVELOPMENT
Kopke & Marek Investments broke ground on a multi-tenant office/warehouse in Conroe, targeting industrial growth in the Montgomery County corridor. The 19k SF flex facility will be ready for occupancy in February 2015. It sits on Loop 336 in Conroe. Newcor CRE’s David Alexander and Rob Banzhaf will lease the project.
***
Adkisson Group is developing a 43k SF industrial building on 4.5 acres at 14155 W. Hardy. The building will be 20-ton crane ready with drive-thru capabilities. TNRG’s Chase Cribbs, Robert McGee, and Thomas Leger are handling leasing. It’ll be shell complete in Q1 ’15.
***
Paragon Outlet Partners are developing Paragon Outlets Houston, a 400k SF retail project along I-69 in Rosenberg. Bury is handling civil engineering. The property sits at Spacek Road and will be the only outlet mall in Southwest Houston when it opens in 2016.
***
Triten Real Estate Partners has begun construction on the final building at Intrepid Business Park on Brittmoore Road. The first three buildings totaled 200k SF. Stream’s Justin Robinson and Jeremy Lumbreras will handle leasing of the latest project, a 26k SF spec front-load tilt-wall distribution facility. It can accommodate multiple tenants and will deliver in Q1 ’15.
FINANCING
Hartman Short Term Income Properties XIX (an affiliate of Hartman Income REIT) completed a new line of credit with East West Bank. Hartman pledged two shopping centers, Haute Harwin SC (33k SF) and Fondren Road Plaza (93k SF) and received an initial availability of $5.3M. Dave Wheeler and Julian Kwok repped the borrower in-house, and Esau Liu repped the lender.
THIS AND THAT
Clarion Partners selected JLL to lease and manage Westchase Corporate Center. Chrissy Wilson, Chris Dekker, Russell Hodges, and Laura Carr will lead leasing, and Peyton Collins and MaryBeth Salas will handle property management. The Class-A office property is 184k SF and was built in ’99.
***
NAI Houston was selected to lease the US National Bank Building at 2201 Market St, an 80k SF Class-B office building in Galveston. Doug Pack negotiated the assignment for NAI, and Drew Crawford will lease leasing.
***
Prime Property Investors designated Greystar to oversee leasing and management at Estates at Fountain Lake, a 14-acre luxury multifamily community. Pictured, PPI co-CEOs Barb Gaffen and Michael Zaransky at the 306-unit property. PPI bought the Fort Bend asset from TCR earlier this year and has been upgrading it. Estates at Fountain Lake is 98% leased with average rents of $1,300/month.
***
NAI Houston was chosen to lease 1201 Dairy Ashford, a 54k SF Class-B MOB in the Energy Corridor. Doug Pack negotiated the assignment for NAI, and Drew Crawford will handle leasing.
***
Lincoln Harris CSG was awarded leasing/management of 36 MOBs totaling 1.3M SF in Arizona, Florida, North Carolina, and Texas. That includes management and leasing of Houston Orthopedic Hospital and MOB, a 127k SF hospital and 100k SF multi-tenant MOB that was recently purchased by CNL Healthcare Properties. The property sits at the intersection of 59 and 610 in the Galleria.
