The Deal Sheet
AIMS Real Estate, a unit of Goldman Sachs, purchased a 222-unit luxury apartment complex on the eastern end of the Washington Corridor, an area that's even hotter than you realized. (So get your compass and head towards the rising sun.)
ARA's David Mitchell (who repped seller M-M Properties with colleagues Matt Rotan, David Oelfke, and David Wylie) tells us buyers across the spectrum love the Washington Corridor. (It's the Channing Tatum of submarkets.) 2411 Washington, which M-M Properties developed in '12, garnered about 35 tours and received more than 20 offers from private groups, REITs, private equity funds, and institutions like Goldman. Davis says it's truly a core, urban infill location—only five minutes from Downtown. Plus, people adore the parks built by the Buffalo Bayou Partnership, and there are limited opportunities to own an asset along Washington. ARA’s Adam Allen placed acquisition financing with a life insurance company, snagging long-term, fixed-rate debt with full-term interest only. 2411 Washington was 92% occupied at TOS.
Bill Wolff joined Cassidy Turley as executive managing director of office tenant rep. He has 25 years of experience in corporate real estate and has been responsible for more than 500 leases totaling 7M SF. He began his career with Gerald D. Hines Interests and most recently was with DTZ.
An undisclosed buyer purchased a 66k SF office building at 12555 Northborough Dr. It was the former Saudi Arabian Airlines corporate facility, and the new owner plans to extensively renovate it as part of the redevelopment plans of the Greenspoint area. ICO Commercial’s Jane Nodskov and Lang Motes repped the seller.
JMG Realty purchased SouthWind, a 312-unit, Class-A multifamily community in Pearland. HFF’s Chris Curry, Todd Marix, Todd Stewart, and Tre Banks repped the seller, a TIC ownership group managed by RealTax’s Joseph and Henry Mandelbaum. The property is at 9720 Broadway Street; it was completed in ’03 and is 95.2% leased.
An undisclosed buyer purchased Parks Plaza at Westheimer Lakes North, a 33k SF retail property in Katy. Marcus & Millichap’s Walt Harrison and James Bell listed the asset at $8M.
Premium Oilfield Technologies leased a 39k SF industrial building in Intrepid Business Park (5727 Brittmoore Rd). NAI Houston’s Chris Caudill and Joel Michael repped landlord TREP Brittmoore South, and Proximity real Estate’s Robin Moore repped the tenant.
Piedmont Plastics leased 20k SF of industrial space at Freeport Business Center. Stream’s Matteson Hamilton and Jeremy Lumbreras repped landlord DRA Advisors and Mohr Partners’ Ben Onderdonk repped the tenant.
Bay Industries renewed 20k SF at Clay Campbell Business Park. Stream’s Justin Robinson and Matteson Hamilton repped landlord LPT, and CBRE’s Gray Gilbert repped the tenant.
Texas Pipe & Supply Co leased a 22k SF industrial warehouse at 6525-B Cunningham Rd. NAI Houston’s Travis Land repped landlord Blum Beltway, and Pipeline Realty’s Scott Rubenstein repped the tenant. A similar 22k SF building remains available for lease in the complex.
360 RPM Inc leased a 15k SF office/warehouse at 12029 Brittmoore Park Dr. Southwest Realty Advisors’ Steven O’Connor, Emilee Shepherd, and Marc Drumwright repped landlord HWM Properties, and Panoptic Realty’s Michael Blount repped the tenant.
Alarmax renewed 15k SF of industrial space at Pine Forest Business Park. JLL’s Devin Rogers repped the tenant and Stream’s Matteson Hamilton and Jeremy Lumbreras repped landlord Agellan Capital.
GLOB Energy Corp leased a 24k SF office/warehouse at 5718 Armour Dr from landlord Poroo Properties. Southwest Realty Advisors’ Steven O’Connor, Emilee Shepherd, and Marc Drumwright repped both groups.
CONSTRUCTION & DEVELOPMENT
Transwestern Development launched construction of Westway Plaza, a five-story office project on the NWC of Sam Houston Tollway and Clay Road. The 312k SF project has already locked in a 150k SF prelease with GE. It will deliver in Q2 ’15. Carleton Riser and Eric Anderson repped the landlord in-house, and CBRE’s Craig Beyer and Warren Alexander repped the tenant. Powers Brown designed Westway Plaza, and EE Reed is GC. The rest of the team: Cardno Haynes Whaley, DBR, Walter P Moore, and SWA.
Nalco Champion is consolidating its local offices and centralizing its HQ in Sugar Land. The City of Sugar Land and the Sugar Land Development Corp approved an incentive package to support the $45M project. The firm is building a new 134k SF facility, and existing buildings will be reconfigured to maximize office space and create additional to expand its R&D. The new structure, delivering in early 2016, will be located partially on the 18.5 acres Nalco Champion purchased from Johnson Development last year. Nalco Champion is also making substantial rail spur improvements to assist the City’s efforts to gain UP Railroad approval for the extension of University Boulevard north of US Highway 90A.
Cadence McShane has broken ground on Phase I of Airtex Commerce Center for co-developers Molto Properties and Generational Commercial Properties. The Class-A, 166k SF spec industrial facility will sit on 19 acres at 431 East Airtex Dr. Powers Brown designed the property, which can be divided down to 40k SF.
LMI Capital’s Brandon Brown secured two loans for Houston multifamily: $8M for the acquisition of a 256-unit community in Baytown (conveniently near Exxon Mobil, Bayer, and Chevron Phillips), which at 2.68% is 80% LTC with an interest-only period. He also closed $6.4M of preferred equity to assume the loan on a 324-unit, Class-B community in Westchase, which'll allow the operator to make value-add interior upgrades and exterior improvements. (Will the makeover be complete before bikini season is over?)
TxDOT approved $25M in funding for a dedicated bus lane along Loop 610 in the Galleria. It’s aimed to speed up travel to the future Westpark Transit Center at 59 and 610 by clearing up congestion through Uptown. Estimated completion is 2017.
Mark One Capital’s Farhan Kabani arranged bank financing of $2.9M for a 20k SF retail property in Katy. The deal closed within 26 days. It was structured with a 10-year term with fixed interest rate of 4.25% and 72% LTV.