November 12, 2014

The Deal Sheet

Are we about to see a dip in office occupancy? The WTI spot price seems to think so. (Is that also good at predicting NFL games? We need that info for...something other than gambling.)

During the last decade, CBRE director of research and analysis Sara Rutledge says Houston's office occupancy has closely followed oil price trends. As the WTI has increased steadily since '09, our year-over-year occupied space growth has climbed to 4%. But now oil prices are plummeting (they dropped 2.2% just today, putting us at $78.77—one year ago we were sitting pretty at $94.56). But don't freak out just yet—Sara says the drop in pricing needs to persist for it to pass through to real estate. (Here's to a big WTI spike tomorrow!)

EXECS

Jamie Weaver joined EDGE Realty as VP. He specializes in retail tenant rep and was previously with Baker Katz.

SALES

Brookfield intext-4 HOU

Mosh Polo & Torshi purchased a 25k SF office building on at 9200 W Sam Houston Parkway S. CRC Real Estate's Richard Glass repped the seller (Abundmer Inc., Mary's Inc. and HWA) and Realm Real Estate Professionals' Beth Rohani repped the buyer.

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Industry Capital purchased Cypress Business Center, a 104k SF flex distribution facility. It's 74% leased. HFF's Rusty Tamlyn and John Indelli repped seller Cypressbrook Co.

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Mills Lodging Group purchased 1.5 acres at the SEC of Eldridge and FM 1960. NewQuest's Bob Conwell repped the seller, and NewQuest's Brad Elmore repped the buyer.

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Allendale Investment Series purchased 16957 Chapel Rd to build a multifamily property. MHW Real Estate's Jody Czajkoski and Todd Graff repped seller Holly Estates.

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Homes Renew purchased Tiffany Bay Court, a multifamily community at 16505 Tiffany Bay Ct. Coldwell Banker's Patrick Buckhoff repped the seller and Jerry Turner Realty's Jerry Turner repped the buyer.

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A private investor purchased Northlake Forest Shopping Center, a 20k SF retail property in Cypress. Marcus & Millichap's Watt Harrison and James Bell listed the asset at $3.7M.

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ROPA purchased nine acres at 2539 Spring Cypress (near Exxon's campus) to develop a retail, storage and office/warehouse project. NewCor CRE's David Alexander repped the buyer and NewQuest's Ryan Sweeney repped seller Kilday Realty.

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Ferguson Enterprises purchased a 27k SF spec building at 9851 Genard. NAI Houston's Chris Kugle and John Ferruzzo repped seller Brennan Investments and Cassidy Turley's John Nicholson repped the buyer.

LEASES

RST Global Solutions Gulf of Mexico leased 15k SF of industrial space. NAI Houston's John Ferruzzo and Michael Keegan repped landlord Woodvine Capital Partners and Leasesquarefeet.com's Greg Egan repped the tenant.

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Layton Corp renewed 10k SF at 2100 West Loop South. Stream Realty's Anthony Squillante and Jeremy Hunt repped the tenant and Transwestern's Doug Little and Louann Pereira repped landlord Buchannan Street Partners.

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Poynter Commercial Properties' Kevin Poynter repped the tenant in three leases:
Friede & Goldman leased 38k SF at Briarpark Green. Granite Properties' Steve West repped the landlord.
McGlinchey Stafford leased 20k SF at 1001 McKinney. Cameron Management's Joe McCluan and Dougal Cameron repped the landlord.
Skyline Executive Suites leased 22k SF at Kirkwood Tower (11757 Katy Fwy). PMRG's Mike Martin repped the landlord. (Kevin is also owner/GP of Skyline, which has been expanding in the Energy Corridor for 14 years.)

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Henry Avocado Corp leased 17k SF of industrial space at 4300 Windfern Rd. NAI Houston's Darren O'Conor and John Ferruzzo repped the tenant and DCT Industrial's Will Hedges repped landlord DCT Fairbanks.

DEVELOPMENT

Marquette Cos (in JV with Hunt Development and Ares Management) has broken ground on Catalyst Houston, a 28-story luxury multifamily community at 1423 Texas, in the CBD. It'll deliver in summer '16. Ziegler Cooper has designed the 361-unit property, which is being built by Pepper Lawson. US Bank provided construction financing.

FINANCING

Capitol One provided $74M in loans to refi two local apartment complexes, the San Cierra Apartments (362-unit garden) and North Post Oak Lofts (330-unit midrise). John Reichenbach and Clay Wright originated the transaction for borrower Sueba, which developed the Class-A properties in '08 and '09.

THIS AND THAT

Edens Investment Trust is acquiring AmREIT in a $763M all-cash transaction. At $26.55/share, the deal is a 40% premium over AmREIT's closing stock price on July 9 (and a 21% premium over Regency's buyout offer). The transaction should close in Q1. Jefferies advised AmREIT financially and Morrison & Foerster and Venable were its legal advisors. Goldman Sachs & Co. acted as financial advisor to EDENS and King & Spalding was legal advisor.

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Stream Realty was awarded leasing of Energy Center I, a 332k SF Class-A property that's fully occupied. It was built in '08 and is LEED Silver. Paul Coonrod and Brad Fricks will handle leasing.

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HFF's Jeff Hollinden and Robert Williamson were pegged to sell Five Post Oak Park, a 567k SF Class-A office tower in the Galleria. The seller is Shorenstein.  The newly improved property is 98% leased, but Amegy Bank has a below-market lease expiring soon.

  
  
PMRG (8300FM) HOU
Avison Young (DecorativeCenter2) HOU
Sugar Land (Success3) HOU
Brookfield (PremierSpace2) HOU
Moody Rambin (Wildwood8)
Howard Hughes (3HughesLanding) HOU
Bisnow (Healthy) WS
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Perforation

Don't Miss our Retail Summit!

Retail development was the last shoe to drop in Houston's commercial real estate market. But with grocers leading the way, the sector's construction activity is picking up. Join us Nov. 21 to learn how developers are getting creative to make retail investments profitable, how mixed-use is adding value, and which submarkets are growing the fastest. Register now, and we'll see you at the Houstonian at 7am on the 21st!

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