This Week's Houston Deal Sheet

Lynd has acquired two multifamily properties in northeast Houston for $84M.

The firm purchased the 372-unit Paramount at Kingwood and the 312-unit Villas of Valley Ranch in Porter. The seller was Sy Li, a private Texas-based real estate investor. 

The two parties went to contract in March 2020, but the coronavirus pandemic threatened the deal. In September, Lynd took over management of the assets, spent $600K on renovations, and worked to boost both rents and occupancy. Lynd said it had been working on the deal for a total of about three years.

Paramount at Kingwood offers one-, two- and three-bedroom units with a clubhouse, pool and fitness center. The Villas at Valley Ranch offers one- and two-bedroom units and has a pool, outdoor fireplace, dog walk and walking trails.

Lynd now owns three apartment communities in metro Houston. In 2020, it acquired the 282-unit Royal Oaks at Westchase, which was later rebranded to Apex at Royal Oaks. The firm third-party manages five additional properties in the market.

SALES

2GR Equity LLC entered a joint venture with Houston-based Tarantino Properties Inc. to purchase League City Towne Center, a 195K SF power center at the southeast quadrant of IH-45 and FM 646 in League City. The 31.5-acre property was 96% leased upon acquisition. JLL brokered the acquisition loan, which was provided by Morgan Stanley Bank. Tarantino Properties will provide property management and leasing services for League City Towne Center.

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Newman Development Corp. purchased a 34K SF industrial warehouse in The Woodlands. The property was still under a 10-year lease to a prior tenant, Chesterton, which had vacated several years ago but continued to pay rent. Newman Development’s Nate Newman negotiated a lease buyout and a new lease for the building. J Beard Real Estate Co.’s Sean Durkin represented Newman Development on the new lease.

Newman Development has an additional 14K SF remaining for lease and will be developing an additional 20K SF building, with delivery anticipated in Q1 2022.

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Pulte Homes of Texas purchased 27.8 acres in Magnolia. The parcel is part of a 105-acre mixed-use development tract being developed by Newman Development Corp. Newman Development’s Nate Newman brokered the transaction.

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A local family partnership purchased a 15-year net-leased investment property at 15221 Spencer Road in northwest Houston. The property is leased to The Learning Experience. Newman Kelly Real Estate Investment Services’ Nate Newman procured the buyer and represented the seller, an undisclosed developer.

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Travis Wayne Brisco purchased 14.53 acres at 29793 Riley Road in Waller. NewQuest Properties’ Nick Ramsey represented the sellers, Harold Roger and Carole Benedict, in the direct transaction.

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A-S 157 FM 1488-Magnolia Circle purchased 2.49 acres of raw land at 33108 Magnolia Circle in Magnolia. NewQuest Properties’ Andrew Alvis represented the buyer, while the seller was Mesa Real Estate Partners.

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An undisclosed buyer purchased 7185 Old Highway 105 West, a 23K SF industrial building in Conroe, as part of a sale/leaseback transaction. NAI Partners’ Cary Latham and Wyatt Huff represented the seller.

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An undisclosed buyer in a 1031 exchange purchased Silverlake Shopping Center, a 24.2K SF retail property at 9811 Broadway St. in Pearland. Marcus & Millichap’s James Bell had the exclusive listing to market the property on behalf of the seller, a private investor.

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A private investor purchased Cypress Center, a 37.3K SF retail property on 2.34 acres at 9103 Cypress Creek Parkway. The property consists of eight buildings. Marcus & Millichap’s Justin Miller had the exclusive listing to market the property on behalf of the seller, a Houston-based investor. Miller also secured the buyer.

LEASES

Vtork Technology USA Inc. leased 10.2K SF at Commerce Park Westchase 3, located at 3670 Westchase Drive. The Houston Property Group’s Sarah Cruse represented the tenant, while Stream Realty Partners’ William Carpenter and Boone Smith represented the landlord, LINK Industrial.

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Dunavant Distribution Group LLC renewed its 212.2K SF lease at Bay Area Business Park – Building VI, located at 9531 Bay Area Blvd. Colliers International’s John Nicholson represented the tenant, while Stream Realty Partners’ Justin Robinson and Woody Hillyer represented the landlord, Principal Real Estate Investors.

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Furinno Furniture leased 60.3K SF at Prologis Rampart IC 100. Richard’s Investments’ Richard Chen represented the tenant, while Stream Realty Partners’ Matteson Hamilton and Jeremy Lumbreras represented the landlord, Prologis.

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Microwave Networks Inc. renewed its lease in 46K SF at Greenbriar Business Park, 4000 Greenbriar Drive. JLL’s Jarret Venghaus represented the tenant, while Stream Realty Partners’ Jeremy Lumbreras and Boone Smith represented the landlord, KKR.

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Custom Goods leased 353.6K SF at Bay Area Business Park – Building V, located at 9431 Bay Area Blvd. Newmark’s Barry Hill and Doug Nicholson represented the tenant. Stream Realty Partners’ Justin Robinson and Woody Hillyer represented the landlord, Principal Real Estate Investors.

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Wisenbaker Building Services leased 67.2K SF at World Houston Business Park – Building 44, located at 4120 Consulate Plaza Drive. Stream Realty Partners’ Grant Wisenbaker and Ryan Boozer represented the tenant, while Insite Commercial Real Estate’s Logan Greer and Dayne Wunderlich represented the landlord, EastGroup Properties.

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Dock Dock Go LLC leased 40.4K SF at Griggs 2, located at 5992 Griggs Road. Moody Rambin’s Sam Rayburn represented the tenant, while Stream Realty Partners’ William Carpenter and Boone Smith represented the landlord, ATCAP Partners.

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Closets by Design leased 10.5K SF at Corporate IV, located at 12603 Executive Drive. Colliers International’s Jim Pratt represented the tenant, while Stream Realty Partners’ Boone Smith and Garret Geaccone represented the landlord, KKR.

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Consolidated Mills renewed its 49.3K SF lease at Northwest Point Distribution Center, located at 7120 Brittmoore Road. Colliers International’s Barrett Gibson represented the tenant. Stream Realty Partners’ Boone Smith and Garret Geaccone represented the landlord, DRA Advisors.

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Titanium Engineers renewed its 12K SF lease at Sugar Land Southwest Business Center – Building 1, located at 12300 Dairy Ashford Road. Colliers International’s Kolbe Curtice represented the tenant. Stream Realty Partners’ Garret Geaccone and William Carpenter represented the landlord, DRA Advisors.

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TBK CPA PLLC leased 12K SF of office space at 5718 Westheimer Road. The firm is relocating its office from 2603 Augusta. Thompson Commercial Real Estate’s Phillip Thompson represented the tenant, while CBRE’s Marilyn Guion, Parker Duffie and Joel Douthit represented the landlord, 5718 Westheimer Road Investors LP.

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Floor & Décor Design Studio leased 10.K SF of retail space at The Plaza on Richmond, a shopping center at 5177 Richmond Ave. in Uptown Houston. Collum Commercial’s Joan Collum represented the tenant, while CBRE’s Jazz Hamilton and Rusty Lilley represented the landlord.

CONSTRUCTION AND DEVELOPMENT

Brookfield Properties has completed renovations to Heritage Plaza, the landmark office tower at 1111 Bagby St. in Downtown Houston. The redesign was led by Houston-based Kirksey Architecture and includes a new exterior glass curtain wall at the corner of Dallas and Brazos Streets, a reimagined plaza featuring new landscaping and seating, a reprogrammed lobby with new finishes, a revamped sky lobby with an exterior patio on the 13th floor, new tenant amenities including a boardroom-style conferencing space and upgrades to the ground-level conferencing center, and an upgraded fitness workout room.

Brookfield entered into a joint venture partnership with AEW Capital Management L.P. on Heritage Plaza in February 2014. AEW is the majority owner in Heritage Plaza, while Brookfield Properties has continued to oversee the leasing, property management and recent redevelopment of the tower. The 53-story building is comprised of 1.1M SF of Class-A office space and 29K SF of retail space. Construction began in October 2019 with O’Donnell/Snider Construction serving as the general contractor.

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Oldham Goodwin Group LLC opened The Huntington at Lago Mar, a new affordable apartment community for seniors aged 55+, located at 13330 Holland Road in Texas City. 

Construction on The Huntington started in November 2019. The Huntington offers 148 independent senior living residences, and community features include a yoga studio, fitness center, community room, theater, a swimming pool and an outdoor grill area.

FINANCING

NorthMarq’s John Burke secured the refinance of Houston Design Center, a 281.4K SF Class-A creative office/showroom property at 7026 Old Katy Road. NorthMarq arranged the fixed-rate, nonrecourse loan for the borrower, MLB Capital Partners, through its relationship with a regional bank. MLB Capital Partners purchased the property in 2014.

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NorthMarq’s Warren Hitchcock arranged acquisition financing for Westchase Royal Oaks Office, a 250K SF Class-A office property in Westchase. The transaction was structured as a five-year term, with two years of interest-only, followed by a 25-year amortization schedule. NorthMarq arranged the bridge-to-permanent loan for the borrower through its relationship with a national correspondent lender.

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Marcus & Millichap Capital Corp. arranged a 75% loan-to-value loan to refinance a 50-unit townhome complex in Houston. The nonrecourse loan features an interest rate of 3.56%. The financing allows the borrower to repatriate equity, and it was negotiated on behalf of the borrower by Marcus & Millichap’s Jamie Safier.

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Marcus & Millichap Capital Corp. arranged acquisition financing totaling $20.1M for a 290-unit apartment complex in Houston. The loan features a floating rate of 2.01% and a three-year interest-only period. Proceeds included funds to renovate the property and execute the borrower’s plan to increase the asset’s value and market standing over the next two to three years. The financing was negotiated on behalf of the borrower by Marcus & Millichap’s Brandon Brown.

THIS AND THAT

Stream Realty Partners has been tapped by 3 SC Center LLC, an affiliate of WEDGE Group LLC, to lease 3 Sugar Creek, a 152.7K SF Class-A office building at 3 Sugar Creek Center Blvd. in Sugar Land. The building is 5% leased. Stream Realty Partners’ Craig McKenna and Mathew Volz will oversee the leasing and marketing efforts at the property.