January 8, 2015

Bisnow Exclusive: Tanglewood Buys Commerce Green One

Tanglewood Property Group closed out 2014 by purchasing Commerce Green One. With two other office acquisitions last year, the firm increased its Houston footprint by 40%.

Tanglewood's portfolio now tops 1.5M SF of office product. President Henry Hagendorf (pictured with acquisitions manager Cliff Rudolph; they worked the deal together) tells us Tanglewood has been targeting office properties with upside opportunity (either in vacancy or below market rents), great locations (this year, it bought in the Galleria, Sugar Land and on Beltway 8), and solid tenant bases. Commerce Green One, the latest addition, is a 110k SF property in Sugar Land Center. It's 84% leased with no near-term expirations. Henry tells us the challenge was timing—the deal closed Dec. 30, and it was hard to lock in financing over Christmas.

Tanglewood was in expansion mode last year; besides purchasing the three buildings totaling 400k SF (including 5300 West Sam Houston Parkway N and 2000 Bering), it was a close second on several other properties (if you can't get first place, a participation medal ain't bad). He hopes to be active in acquisitions again in 2015, but will be more cautious because of the uncertainty in the energy markets. In addition to Houston, Tanglewood will be looking to diversify in other Texas markets. It's also been leasing up its portfolio—the team signed 150k SF of leases in 5444 Westheimer last year, bringing it to 82% leased.

  Share: Email Facebook Twitter LinkedIn  
Moody Rambin (NorthBelt2015) HOU
Bisnow (Niche-White) HALF

Top stories on Bisnow.com

Mergers Hit Seven-Year Peak in 2014 DFW's Wealthiest Real Estate Moguls
In 2014, U.S. Renters Paid $441 Billion in Rent BGC's Lutnick Ups Ante in GFI Group Takeover Battle

Radco Enters Texas With Portfolio Buy

The Radco Cos entered Texas with a portfolio grab, acquiring three multifamily properties totaling 916 units, two in Houston and one in San Antonio. Locally, it now owns Country Place (122 units in the Energy Corridor) and Saddle Ridge (458 units in the Northshore/Wood Forest submarket). Founder/CEO Norm Radow tells us all three properties were foreclosed on in 2011 by Fannie Mae, which was the seller. They're well-located with good bones and modern features, but are underperforming, which gives him a compelling execution opportunity. Radco will invest $12.2M (or about $13,300 per unit) into upgrading the portfolio.

Radco is rebranding the properties under its new “City” brand—Country Place is now City Terrace, and Saddle Ridge is now City Crossing. Norm says it'll also have to re-underwrite the existing resident base because lease audits showed a lack of documentation in the properties. PCCP and Oklahoma Fidelity Bank provided debt for the acquisitions. Norm tells us he's targeting the Southeast and Midwest for more value-add acquisitions; Texas, Oklahoma and Colorado especially fit his pro-growth and low-tax state criteria.

  Share: Email Facebook Twitter LinkedIn  
CohnReznick (Field) HOU
Bisnow Hypnotic HALF

McCarthy's Toy Drive

McCarthy Building Cos celebrated the holiday season with a toy drive happy hour instead of a traditional party. The team collected 67 toys for Operation Stocking Stuffer, a drive for local underprivileged children sponsored by the Houston Fire Department, KPRC Local 2, Shell, PODS and the Rockettes. Pictured, Bobby Allard, Jordan Brown, Krystal Hinojosa and Kelly Yanta load up the toys for delivery.


Join Us for Our First Event of 2015!

Houston's industrial real estate is one of the very best in the nation. Will that momentum continue through 2015? Will another submarket rise to compete with the saturated Northwest submarket? Join us for Bisnow's 5th annual Industrial Real Estate Summit, Jan. 29 at the JW Marriott. We've collected a panel of some of Houston's biggest developers to discuss leasing rates, new investment and future pipelines. Don't miss it (plus our legendary networking hours)--register now and we'll see you there!

Tell Us

Dr. William Moulton Marston, the man who created Wonder Woman, also designed an early lie detector. Send your news to Catie Dixon, catie@bisnow.com.