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This Week's Houston Deal Sheet

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Engie North America Inc. is upgrading its office digs. 

This Week's Houston Deal Sheet
Four Oaks Place at 1330 Post Oak Blvd., Houston

Engie inked a 110K SF office lease and will occupy floors four through nine at 1360 Post Oak Blvd in Four Oaks Place, a five-building, 2.33M SF complex in the Galleria area. The utility provider is relocating its North America headquarters from 1990 Post Oak Blvd. Move-in is expected in December.

BHP returned leased space that was no longer needed to make the square footage available for Engie. This resulted in a complex, three-party transaction with BHP, Engie and the landlord, a joint venture between Nuveen Real Estate and Allianz.

“Engie’s selection of this project is a testament to the quality and overall tenant amenities of the building,” Nuveen Real Estate Senior Director Erik Sobek said. “We’re thrilled to have them as a long-term tenant and appreciate BHP’s cooperation that enabled us to complete this complex transaction.”

Four Oaks Place underwent an extensive $43M capital upgrade in 2016. Improvements included adding a 12K SF, fully staffed fitness center, a full-service cafeteria, a deli, fine dining at Post Oak Grill and a parking garage. 

“This solution was a win for all involved, and we look forward to creating an open, dynamic, and inviting workspace for our employees and visitors,” Engie North America CEO Gwenaëlle Avice-Huet said in a release. “Just like Engie’s global headquarters in Paris, our new office in Houston is being designed to promote innovation, collaboration and connections between people, all while reflecting our company’s purpose to shape a sustainable future.” 

Engie is the largest global independent power producer and a leading energy-efficiency services provider, employing 160,000 people.

JLL’s Louis Rosenthal and Bruce Rutherford represented the tenant. Cushman & Wakefield’s Morgan Relyea and Tim Relyea represented the lessee. Transwestern's Eric Anderson, David Baker and Tyler Garrett represented the landlord.

This Week's Houston Deal Sheet
Cresa Vice President John Furnace

EXECS

John Furnace was hired as vice president at Cresa. He will lead project management for the Houston market. Furnace was previously with Newmark Knight Frank, where he led project management for the Southwest Region of Texas. With over 30 years of corporate and commercial real estate experience, he has managed projects totaling more than 25M SF with a combined value north of $500M. 

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Gary Brown was hired as a senior vice president at NAI Partners in Houston. This launches the creation of a Valuation & Advisory practice, a new line for NAI Partners. Brown will oversee real estate appraisal and advisory services, including appraisal review, property tax consulting, feasibility and market studies, due diligence, capital market research and analysis, and other valuation consulting services. Previously with Altus Group, Brown was responsible for valuation management consulting, portfolio management and property valuation of institutional-grade assets. 

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Kole Girard joined ICO Commercial as an assistant property manager and sales associate. He will be responsible for day-to-day property management operations and the expansion of the asset management portfolio. 

SALES

AMCAL Equities LLC acquired 15 acres on Katy Fort Bend Road in Katy. Lee & Associates' Reed Vestal and Taylor Schmidt represented the seller, KFB Industrial L.P. 

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MTS Interest Ltd. purchased a 23K SF industrial property at 20103 and 20105 Krahn Road, Spring. Lee & Associates' Mike Spears and Robert McGee represented the seller, Applied Machinery Corp. Mohr Partners' Kevin Barr represented the buyer. 

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An undisclosed buyer purchased 2.8 acres on John F. Kennedy Boulevard and Lauder Road in Houston. Retail Solutions' Mohamed Gamal represented the seller, Gamal Enterprises Inc.'s Kareem Gamal. 

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An undisclosed buyer acquired 1.5 acres on Ella Boulevard and Airtex Boulevard in Houston. Retail Solutions' Mohamed Gamal represented the seller, Gamal Enterprises Inc.'s Kareem Gamal. 

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Autohive purchased a 12K SF office/warehouse facility at 9407 Alberene Drive in Southwest Houston. First Houston Properties' Jonathan McDaniel and Patrick McKiernan represented the buyer.

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Merit Hill Capital acquired Safe Keeping Self Storage at 6610 Highway 6 North, Houston. The facility features 709 units, of which 439 are climate-controlled. JLL’s Steve Melon and Brian Somoza represented the seller, Safe Keeping. 

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Nickson Spell Road Industrial Ltd. purchased a 2.9-acre lot at Spell Road and Hufsmith Kohrville Road, Tomball. The developer, Nickson Industrial Warehouses, will build a 30K SF office/warehouse building in the Tomball Business and Technology Park. This is the third spec project for the Tomball Business and Technology Park. This new project is anticipated to create up to 25 new full-time jobs in Tomball once leased. Colliers International's Tom Condon Jr. represented the seller, Tomball Economic Development Corp. ACC Realty LLC represented the buyer. Stewart Title's Jane Matthews coordinated the closing. 

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A Houston based limited liability company acquired A-Mini Storage, a 252-unit self-storage facility at 3202 Preston Ave., Pasadena. Marcus & Millichap's Dave Knobler represented the seller, a private investor.

One Shell Plaza

LEASES

Ontellus signed a 32K SF lease at One Shell Plaza at 910 Louisiana St., Houston. The data retrieval and claims intelligence provider is moving and expanding its national headquarters from 1010 Lamar St. Ontellus is subleasing the space from Shell Oil Co. The company, which has achieved 20% revenue growth in the past year and significantly grown its workforce, will occupy space on floors 45 and 46. The move is planned for late 2019. JLL’s Ronnie Deyo, Beau Bellow and Adam McCauley represented the tenant.  

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David’s Bridal leased 11K SF of retail space at the Pinecroft Center at 1600 Lake Woodlands Drive, The Woodlands. CBRE's Amanda Goss Aaron and Rachel Farris represented the tenant. Wulfe & Co.'s Bunny McLeod and Katherine Wildman represented the landlord.

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Builders FirstSource signed a 172K SF lease at 16245 Port NW Drive, Houston. Lee & Associates' Reid Bassinger and Trey Fricke represented the tenant. Transwestern's Brian Gammill represented the landlord. 

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Arroyo Energy Investors inked a 9,426 SF office lease at CityPlace 1 at Springwoods Village. This marks the first lease agreement at CityPlace 1, the first multi-tenant, 150K SF office building in the master-planned development CityPlace. Arroyo is moving its office from The Woodlands. Colliers International's Jason Tangen represented the tenant. JLL's Chrissy Wilson and Russell Hodges and Patrinely’s Dennis Tarro represented the landlord, a joint venture among Patrinely Group, USAA Real Estate and CDC Houston.

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Puffer-Sweiven signed a 44K SF industrial lease at 4000 Greenbriar Drive, Houston. NAI Partners’ Ryan Searle, Nick Peterson and John Ferruzzo represented the tenant. 

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Powertrack International expanded into a 22K SF warehouse lease at 9230 Baythorne in northwest Houston. First Houston Properties' Patrick McKiernan represented the tenant. CBRE Carlton Anderson represented the landlord.

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JC Sports inked a 9,500 SF build-to-suit lease at the Robinson Road Business Park in The Woodlands. NAI Partners’ Nick Terry represented the landlord.

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Golden Pass LNG signed a 38K SF office lease for its corporate headquarters at 811 Louisiana, Houston. Cushman & Wakefield represented Golden Pass LNG. Colvill Office Properties represented the building’s ownership, Busycon Properties LLC. 

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Henry Avocado Corp. signed a 42K SF industrial lease at 4300 Windfern Road, Houston. NAI Partners’ Darren O’Conor and John Ferruzzo represented the tenant. 

FINANCING

LMI Capital closed four financing deals totaling $24M in Greater Houston and the South Texas area.

  • Jamie Safier closed a $4.7M acquisition loan for a 105-unit asset in Victoria County. The first mortgage equated to 70% loan-to-payment and featured a 4.48% fixed interest rate and six years of interest only.
  • Kurt Dennis closed a 73% loan-to-purchase acquisition loan for a 40-unit asset in the Galveston submarket. The first mortgage featured a fixed interest rate, three years of interest only and a step-down prepayment structure.
  • Brandon Brown closed a $15M loan for the refinance of a 255-unit asset in the Baytown submarket. The debt featured a 4.18% fixed interest rate, a three-year interest-only period and significant cash-out proceeds.
  • Kurt Dennis closed a five-year acquisition loan for a 50K SF office building in northwest Houston. The first mortgage represented 93% loan-to-payment and featured an 18-month interest-only period.
This Week's Houston Deal Sheet
A rendering of Avenue Center, a mixed-use community resource center in Houston

DEVELOPMENT

Avenue, a local nonprofit dedicated to developing affordable homes and strengthening communities, is collaborating with Legacy Community Health to bring a community health clinic to the Near Northside in 2020. The 6,200 SF facility will open next year in Avenue Center, a new mixed-use community resources center at 3517 Irvington Blvd. Avenue Center will feature approximately 30,500 SF of community programming space. Legacy Community Health is a not-for-profit center that provides comprehensive care to over 150,000 patients at more than 30 clinics in Southeast Texas.

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McLeod Sears has completed the redevelopment of a 10K SF retail center at 14529 Memorial Drive. The $700K renovation added office space and improved the building's interior and exterior, parking lot and monument signage. McLeod Sears moved its family office and its foundation, Grant Me The Wisdom, to the building. Memorial Children's Dentistry, a new medical practice for Dr. Hanna Park, will open in September.

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