This Week's Houston Deal Sheet
Two energy-based tenants at 600 Travis in Downtown Houston have renewed their leases for a combined 67.6K SF of office space.
Indigo Natural Resources LLC renewed 45.1K SF, while Momentum Midstream renewed 22.6K SF. The two tenants occupy space on floors 55 to 57 of the 75-story office building.
Hines, the developer, is planning significant renovations to the first floor of the building. The plaza area will be turned into an urban garden with more green space and connections between the outdoors and the building. The reimagined lobby will feature a new glass pyramid entry as a nod to the tower’s original architect, I.M. Pei, who designed the Louvre Pyramid.
The building, which is also managed by Hines, was originally developed for Texas Commerce Bancshares and is the tallest building in Texas.
Cushman & Wakefield’s Michael Anderson, Diana Bridger, Margaret Elkins and Brad Beasley represented ownership, Hines and Cerberus Capital Management, while Newmark Knight Frank’s Mark Russell represented each tenant in their respective transactions.
MLB Capital Partners launched a full-service commercial real estate brokerage firm, MLB Commercial Real Estate. After eight years at Avison Young, Todd Mason, Jeff Lindenberger and their team parted ways to start the new venture. Mason and Lindenberger have a combined 55 years of experience and have closed on more than $3B in transactions. Their team members include Richard Mason, Taylor Wilson, Faith Pate, Andrea Gardner and Melissa Helm.
Austin Brauel joined R.G. Miller Engineers as a project manager in the Site Development department, where he will focus on multifamily and industrial projects.
Adkisson Group purchased a 158.7K SF manufacturing campus at 6500 Brittmoore Road in Northwest Houston. The campus consists of eight manufacturing buildings on more than 13 acres, with overhead crane lift capacities of up to 100 tons and hook heights ranging up to 58 feet. Several buildings on the property offer 100% HVAC, heavy power and lab space. Lee & Associates’ Robert McGee, Thomas Leger and Chase Cribbs represented the buyer. The team will also be marketing the property for lease.
An undisclosed buyer purchased a 20.5K SF warehouse on 2.13 acres at 19710 Aldine Westfield Road. Capital Real Estate Commercial’s Hart Schleicher represented the buyer, while Belvoir Real Estate Group’s George Froming represented the seller, Dr. Niranjan Giri.
LEDG Capital purchased Scott Plaza, a 150-unit apartment community at 9703 Scott St. in the Sunnyside neighborhood of south Houston. The property is in a designated opportunity zone, as well as a qualified census tract. It maintains a 20-year project-based Section 8 Housing Assistance Payment contract covering 70% of its units. The buyer intends to make additional improvements to the property and surrounding area. Berkadia’s Scott Bray, Ryan Epstein and Jennifer Ray marketed the property on behalf of the seller, Scott Plaza Associates Ltd.
A private investor purchased Huffmeister Boat & RV Storage, a 44.4K SF self-storage facility in Cypress. The asset has around 20K SF of recently constructed covered parking. Marcus & Millichap’s Dave Knobler and Casey Kral secured and represented the buyer and the seller, also a private investor.
An undisclosed buyer purchased 2.1 acres of investment land at 801-603 Emile St. in East Downtown Houston. The property is intended for residential development. Belvoir Real Estate Group represented the undisclosed seller.
Two retail tenants signed leases at The Marcel Commons Center at 25727 Westheimer Parkway in Katy. Club Pablo leased 7.4K SF of retail space for a restaurant, while Tawakkul leased 2.1K SF for a Halal meat market and grocery store. Tawakkul was represented by Realm Real Estate’s Ashiqul Talukder. McCastle Realty Commercial’s Vincent Worley represented the landlord in both transactions.
CONSTRUCTION AND DEVELOPMENT
The NHP Foundation received a $1.5M annual allocation of 9% credits from the Texas Department of Housing and Community Affairs to construct 149 units of permanent affordable housing in Houston’s Midtown neighborhood. Additionally, the city of Houston Department of Housing and Community Development has allocated $15M through its Harvey Multifamily Program. The project is also being considered for funding by the Harris County Community Services Department. Magnificat Houses Inc. is providing the land and is NHPF's partner in the development.
The property, located at 3300 Caroline St., will contain 149 rental units, recreational amenities and space for the supportive services. In addition, 20% of 3300 Caroline's units will be set aside for formerly homeless people who have gone through transitional housing programs such as Magnificat's and are willing to become the equivalent of college resident advisers.
Freeway Properties’ Katy Ranch Offices Phase 2 has been completed on schedule at 24285 Katy Freeway, one year after breaking ground. The 150.9K SF Class-A office building is 30% leased within just weeks of completing construction. Avison Young’s Sam Hansen and Doug Pack are the agency leasing team representing both Katy Ranch Office buildings at 24275 and 24285 Katy Freeway.
Brookfield Properties has completed renovations of Total Plaza, the 35-story, 821.7K SF Class-A office tower at 1201 Louisiana St. in Downtown Houston. Ziegler Cooper Architects led the redesign, which focused on upgrades to the street and second-floor lobby levels, as well as the tunnel level. Anchor tenant Total renewed and expanded its lease at Total Plaza in February 2019. The property is also home to Petroleum Club of Houston, a private social and business club on the 35th floor. Led by Tellepsen, construction on Total Plaza commenced in summer 2019.