This Week’s Houston Deal Sheet
An affiliate of Walton Street Capital purchased the 805.6K SF Amazon sort center in Katy.
The facility is situated on 54.15 acres at 22525 Clay Road and features concrete tilt-wall construction, 40-foot clear heights, a 190-foot truck court with vehicle and trailer parking, 190 dock-high doors, ESFR fire protection and LED lighting.
Duke Realty Corp. developed the build-to-suit facility on behalf of Amazon, and the building is triple-net leased by the e-commerce giant on a long-term basis. The facility opened in October.
JLL Capital Markets worked on behalf of the seller and arranged acquisition financing for the buyer. JLL’s Colby Mueck, Michael Johnson and Molly Leinsdorf represented the buyer, while JLL’s Trent Agnew, Rusty Tamlyn, Charles Strauss, Tom Weber and Jack Britton represented the seller.
Culver Stedman joined Gulf Coast Commercial Group Inc. as executive vice president. He will be responsible for growing the tenant representation and land sale platforms, along with enhancing the project leasing team. Stedman was most recently a principal at EDGE Realty Partners, where he co-founded the Houston office in 2011 and specialized in tenant representation, project leasing, site acquisitions and land sales. Prior to that, he worked with Page Partners, Boyd Page & Associates and Fuller Commercial Brokerage.
C.I.A. Services Inc. added three employees to its board of directors. Angela Douglas, Deniece Reyes and Brandi Brack have all been promoted to vice presidents and will now serve on the board of directors. Members of the board represent shareholders, establish corporate management policies, and assess the overall direction and strategy of C.I.A. Services, a community association management company.
CenterPoint Properties purchased a 601.3K SF industrial building on 31 acres at 3507 Pasadena Freeway in Pasadena. The Class-A building has a rare combination of rail service by Union Pacific, BNSF and Kansas City Southern via the Port Terminal Railroad Association, abundant rail car capacity, outdoor storage space and strategic port and highway access. JLL’s Rusty Tamlyn, Trent Agnew and Charles Strauss brokered the transaction between CenterPoint and the seller, Link Logistics Real Estate.
An undisclosed buyer purchased 715 and 717 Normandy St. in east Houston. The property is a 25K SF retail center anchored by La Michoacana Meat Market. The buyer represented itself, while Newman Kelly Real Estate Investment Services’ Jared Pinto represented the seller, a Midland-based investment firm.
The Bascom Group LLC acquired Cantera at Towne Lake Apartments, a 350-unit luxury multifamily property in the master-planned community of Towne Lake in Cypress. The property, constructed in 2006, contains a unit mix of 15% one-bedroom, 76% two-bedroom units and 9% three-bedroom units averaging 1,015 SF. CBRE’s Brian Eisendrath, Annie Rice and Samantha Jay sourced the Freddie Mac senior loan debt financing on behalf of the buyer. Bascom’s James D’Argenio and Chang Liu sourced and managed the acquisition, while Newmark’s David Mitchell brokered the deal.
VA Electrical Contractors LLC leased 13.5K SF in an industrial building at 906 Witter St. in Pasadena. Oxford CRES’ Chase McAteer and Taylor Stoute represented the tenant, while Houston Realty Advisors’ Ed Ayres represented the landlord, 906 Witter Property LLC.
CW Global leased 15K SF at 1519 Industrial Drive in Missouri City. NAI Partners’ Jake Wilkinson and Darren O’Conor represented the landlord.
Power Manufacturing LLC leased 105.3K SF of industrial space at 10111 Houston Oaks Drive in northwest Houston. The property is in West Sam Houston Business Park and will serve as the company’s headquarters. Finial Group’s Jason Gibbons and Chase Tucker represented the tenant.
CONSTRUCTION AND DEVELOPMENT
Hines and 2ML Real Estate Interests released the first renderings for the initial building at Levit Green, along with new aerial views of the 53-acre life sciences district. The five-story, 270K SF Phase 1 building will have 100% redundant emergency power, enhanced structural vibration attenuation and augmented mechanical systems, 33-foot structural bay depths and floor plates in excess of 55K SF.
Situated on the first of several lakes, Phase 1 will have a boardwalk, and tenants will have access to a 5.8K SF fitness center and outdoor garden, a 7K SF conference center, 3.5K SF of café and restaurant space, and ample on-site parking. The ground-floor plan is also programmed to accommodate more than 25K SF of lab incubator space.
Levit Green is slated to break ground on Phase 1 in Q2 2021 with occupancy beginning in Q4 2022.
NewQuest Properties is nearing completion on a speculative retail project, the Shops at Rock Creek in Cypress. The 21.4K SF project is 32% pre-leased and will deliver at the end of the month. The newest tenants to join the lineup are Wingstop and Domino’s Pizza, each one pre-leasing 1.4K SF for side-by-side storefronts. Wingstop, Domino’s and service- and medical-based co-tenants are expected to open in early summer. Construction has just started for Mudslingers Drive-Thru Coffee, which has ground-leased one of the two pad sites in the development.
Bryant + Stacy Group and partners have begun design and construction of a 60K SF medical office building in Tomball. It is the first of several planned buildings in the 13-acre development near Tomball Regional Medical Center and other health care facilities. The three-story building will include multiple diagnostic functions on the first floor, with family practice physicians and related specialists on the second and third floors.
The project is expected to break ground on April 1, and it should be ready for occupancy in early Q1 2022. Arch-Con Construction is the general contractor, Browne McGregor Architects is designing the new building and Bank of Texas is providing construction financing.
The Howard Hughes Corp. announced that it will have a new elementary school in Prairieland Village, the third of four planned villages within its Bridgeland master-planned community. Waller Independent School District will build an elementary school on an 18-acre site near the intersection of Bridgeland Creek Parkway and Prairieland Crossing on the west side of the Grand Parkway. This is the school district’s first campus to be built within Bridgeland. An opening date has not been announced.
The Howard Hughes Corp. broke ground this week on Starling at Bridgeland, a 350K SF multifamily project within its Bridgeland master-planned community. The project sits on 15.2 acres at the intersection of Bridgeland Creek Parkway and Bridgeland High School Drive in Parkland Village. Short-term leases will be made available to accommodate those who are building homes within Bridgeland; long-term leases will also be available. Construction of Starling is expected to be completed by summer 2022.
PCCP LLC has provided an $86.3M senior loan for the acquisition and renovation of Domain and Lofts at CityCentre, a Class-A multifamily project with 620 units located at 811 Town and Country Blvd. The assets are in CityCentre, a 37-acre, 3M SF mixed-use development. The borrower is Madera Residential, and the seller is JP Morgan.
Domain and Lofts at CityCentre consist of three four-story residential buildings featuring Class-A unit finishes and amenities, including 10-foot ceilings, full-sized washer dryers, granite countertops and stainless steel appliances.
Marcus & Millichap Capital Corp. has arranged a $14M loan to refinance a 215-unit multifamily property and a $7.4M loan to refinance a 125-unit multifamily property, both located in Harris County. The loans featured a 3.16% fixed interest rate and nine years of interest only. The loans were negotiated on behalf of the borrower by Marcus & Millichap’s Brandon Brown.
Ariel Property Advisors’ Eli Weisblum led the team that arranged $14M in financing on the $20M acquisition of a 100% occupied 140K SF R&D office in Clear Lake. The firm secured a five-year term loan with a 4.25% interest rate and a 30-year amortization.
THIS AND THAT
Allied Orion Group has been chosen to manage Los Prados Apartments, a 264-unit affordable apartment community in north Houston. Located at 125 Dyna Drive, the property is owned by GenWealth Capital Group. The community features one- and two-bedroom floor plans and includes a pool, playground, clubhouse with media room, laundry facilities, an after-school program, and copy and fax services.