This Week's Houston Deal Sheet
Houston-based private equity firm Three Pillars Capital has acquired a three-property multifamily portfolio in the Texas Medical Center, directly neighboring NRG Stadium, for an estimated $100M.
The portfolio includes Mainridge Apartments, a Class-B multifamily property with 264 units, and Westridge Apartments, another Class-B property with 256 units. Both properties were acquired in October, while the third property, Ridge Point Apartments, was acquired in March. Ridge Point is a Class-B property with 168 units. The deal was an off-market transaction.
All three multifamily properties are in need of interior modernization and improved revenue management, according to Three Pillars Capital’s website. The units were outdated and rents were 15% below the market rate. This allowed the private equity firm to acquire the assets at a significant discount to replacement cost.
Brad Carbo was promoted to lead JLL’s South Central Region Project and Development Services division. He will be responsible for leading teams in several states and markets including Houston, Dallas, Fort Worth, San Antonio and Kansas City. Previously, Carbo served as managing director and Austin PDS team lead. Vice President Sara Lounsberry will take over as the Austin PDS lead.
Nick Cardwell joined McCord as vice president of digital innovation. In the newly created role, Cardwell will bring a data-driven, digital transformation and twinning approach to smart city innovation at the developer’s 4,200-acre master-planned Generation Park. Prior to joining McCord, Cardwell served as vice president of engineering and operations at Austin-based Bractlet, a simulation software created to change the way buildings are designed, operated and maintained.
Bedrock Energy Partners LLC has relocated to a 7.7K SF office space at Two Memorial City Plaza at 820 Gessner in Memorial City. The firm was previously located in Downtown Houston. Fritsche Anderson Realty Partners’ Jay Cliburn and Andrew Brod represented the tenant, while MetroNational’s Brad MacDougall and Warren Alexander represented the landlord in-house.
Sheffield & Sheffield leased 20K SF at Woodforest Shopping Center at 11081 East Freeway. Henry S. Miller Brokerage’s Shawn Ackerman and Jason Du represented both the tenant and the landlord, Woodforest Mini-City Partners LLP.
Texas Laparoscopic Consultants leased 9.1K SF on the ninth floor of Museo Medical Office Building in the Museum District. Currently on the rise at 5115 Fannin St., the project is on track to top out at the beginning of 2021, with completion expected in the fall. The lease coincides with the opening of the building. Porter Powers PLLC’s Nadim Cook and David Smitherman represented the tenant, while CBRE’s Brandy Bellow Spinks and Nelson Udstuen represented the landlord in conjunction with law office Gary E. Grote’s Nathan Grote.
Houston Methodist leased 18.8K SF in Park 288 at 3710 Reed Road, bringing the Class-A industrial business park to 100% occupancy. Colliers International’s Coy Davidson represented the tenant, while Transwestern’s Jude Filippone represented the landlord.
Banorte Securities International leased 10K SF at Galleria Financial Center, an office structure located within the Galleria mall in Uptown Houston. The firm moved its headquarters to Houston from New York in September. Cushman & Wakefield’s Win Haggard, Brad Beasley and Cameron Colvill represented the landlord, affiliated with Azrieli Group and Unilev Management, in the lease transaction.
SmartDraw Software LLC leased 6.5K SF at the Hughes Landing development along Lake Woodlands. The firm is relocating from San Diego to The Woodlands.
CONSTRUCTION AND DEVELOPMENT
A topping-out ceremony was held on Oct. 28 for Montrose Collective, Radom Capital’s mixed-use development in Montrose. The final structural beam was signed by members of the development team, including representatives from Radom Capital, J.P. Morgan Asset Management, Harvey Builders, Michael Hsu Office of Architecture, Office of James Burnett, HOK, DBR and Kimley-Horn. Groundbreaking at the Westheimer Road construction site kicked off earlier this year with completion expected summer 2021.
Montrose Collective will bring approximately 185K SF of new retail, restaurant and office space to the area, as well as the latest location for the Montrose public library. The project has signed multiple, yet-unannounced retailers, and Live Nation has inked a lease to occupy floors four to six. First tenants are expected to open fall 2021. Shop Cos. is handling retail leasing at the project, and office space is being marketed by CBRE.
LMI Capital’s Brandon Brown and Adam Pike placed financing for the acquisition and refinance of land and a multifamily complex. For the first transaction, Pike originated a 73% loan-to-price loan for the acquisition of 15 acres in Chambers County. The bridge debt featured an initial interest-only period allowing the borrower to complete future sales of the land parcels to be used for commercial development.
Brown also closed a $7.5M, 10-year loan for the refinance of a 200-unit asset in northwest Houston. The agency debt featured full-term interest-only, a 2.74% fixed-interest rate and cash-out proceeds to the borrower.
THIS AND THAT
New Hope Housing has opened its eighth single room occupancy housing complex, Dale Carnegie. The community is designed for people on very low incomes and includes 170 fully furnished studio apartments. Located at 7025 Regency Square Blvd., on a 2-acre tract in the Sharpstown area of southwest Houston, the micro-apartment units are between 280 and 360 SF. The property has on-site resident support services that include case management, access to primary and mental health care, legal assistance, health and nutritional counseling, financial education and life-skills training, and, in some instances, rental supports.
GSMA Inc. is the architect, and Camden Builders is the general contractor for the development, with interim construction financing provided by BBVA. The total development cost was a little more than $30M.
International law firm Vinson & Elkins LLP selected Savills to provide project management services for its upcoming headquarters relocation to the Texas Tower in 2022. Savills Corporate Managing Director Ed Bowerman will oversee design and construction and will collaborate with special consultants to offer additional services. Located at 845 Texas Ave., the former Houston Chronicle site, Texas Tower is a 47-story, Class-A office building scheduled to open fall 2021.
Herman & Kittle Properties Inc. has opened its new 264-unit affordable apartment community, The Vireo, at 12212 Tidwell Road. The $38.5M property includes one-, two- and three-bedroom apartments. Construction on these apartment homes began in early 2019 and will be completed in November. The leasing office is open and the on-site staff is taking applications.
Wolff Cos. held a virtual groundbreaking event on Oct. 27 for its latest mixed-use development in Waller, Beacon Hill. The developer has received approval from the Texas Department of Transportation to create significant access improvements to U.S. 290, which will include an off-ramp for a new interchange, a mile-long frontage road, an auxiliary lane from the entrance ramp from FM 362 to the Beacon Hill exit and a U-turn under U.S 290 at James R. Muse Parkway.
Beacon Hill Boulevard is expected to be completed in September. The construction on the interchange is expected to start in spring 2022 and be completed in 2023. The project will be funded through a public-private partnership between Wolff Cos., TXDoT and the Beacon Hill Municipal Utility District, with Wolff Cos. providing the majority of the capital as well as the right of way for the project.