This Week’s Houston Deal Sheet
Host Hotels & Resorts Inc. purchased the shuttered Hotel Alessandra in Downtown Houston for $65M.
The Bethesda, Maryland-based company disclosed the transaction in its second-quarter earnings report. JLL’s John Nugent and Colby Mueck represented the seller, Midway, in the transaction.
The coronavirus pandemic hit Houston’s hotel sector particularly hard, with Downtown Houston bearing the brunt of the impact. Located at 1070 Dallas St., the 20-story, 223-room Hotel Alessandra closed to the public on Jan. 6, according to the luxury hotel’s website.
Hotel Alessandra was developed as a joint venture between Midway and hotel management company Valencia Hotel Group, and it first opened in October 2017. Gensler designed the hotel’s exterior, while Houston-based Rottet Studio designed the interiors.
Host Hotels & Resorts’ other Houston properties include the Houston Airport Marriott at George Bush Intercontinental Airport, Houston Marriott Medical Center/Museum District, JW Marriott Houston by the Galleria and the St. Regis Houston.
SALES
Civitas Capital Group purchased Territory at Greenhouse, a 288-unit, 13-building, garden-style luxury apartment complex in west Houston. The property was developed in 2020. Marcus & Millichap represented the seller, Maple Creek Apartments LLC, and procured Civitas as the buyer. Marcus & Millichap Capital Corp. arranged buyer financing.
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A private investor purchased a 24K SF medical office plaza in League City. The property has a diversified rent roll and is anchored by University of Texas Medical Branch. Newman Kelly Real Estate Investment Services’ Nate Newman represented the buyer in the transaction, while NorthMarq’s Larry Peters assisted the buyer with procuring a loan from a life insurance company.
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A 1031 exchange buyer from Washington state purchased a 10K SF net leased childcare center in Richmond. Newman Kelly Real Estate Investment Services had the exclusive listing of the property on behalf of the seller, a developer. The firm’s Nate Newman also procured the buyer.
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Heart to Heart Investments LLC purchased 1.09 acres along Texas State Highway 59 in Humble. Regional Properties Texas’ Jeries Ganim represented the buyer. NewQuest Properties’ Austin Alvis represented the seller, Archway Burdom Ltd.
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An undisclosed buyer purchased 1.3 acres at 16920 Park Row in west Houston. The property includes a 5.3K SF single-tenant office building. Transwestern’s Evelyn Ward & Paula Musa represented the buyer, while Fritsche Anderson’s Anthony Fritsche and Jason Herbrich represented the seller.
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Quaternary LLC Series P purchased Brazos Plaza, a 71K SF multi-tenant office building at 3303 FM 1960 in northwest Houston. Fritsche Anderson’s Brandon Wuntch and Winston Wegner negotiated the sale on behalf of the buyer and the seller, Brazos Plaza LLC.
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An undisclosed buyer purchased 11 acres on West Bellfort Boulevard, next to the Amazon fulfillment center in Richmond. RESOLUT RE’s Mohamed Gamal represented the seller, Gamal Enterprises.
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An undisclosed buyer purchased 5959 South Sam Houston Parkway E, a 16K SF industrial building in Houston. NAI Partners’ Jake Wilkinson and Chris Caudill represented the seller, 5959 South Sam Houston Parkway E LLC, in the transaction.
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A California-based corporation purchased StorQuest Self Storage, a 70.1K SF self-storage facility in Tomball. The property sits on 5.49 acres and has two single-story buildings totaling 597 climate-controlled units, 254 non-climate units and 71 outdoor parking spaces. Marcus & Millichap’s Dave Knobler and Charles LeClaire had the exclusive listing to market the property on behalf of the seller, a family trust.
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An undisclosed buyer purchased 13.3 acres on Bammel North Houston Road in north Houston. Marcus & Millichap’s Will Florence had the exclusive listing to market the property on behalf of the seller, a partnership.
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An undisclosed buyer purchased a 101K SF, multi-tenant, metal industrial property in northwest Houston. Newman Kelly Real Estate Investment Services’ Jared Pinto and Logan Kelly represented the buyer, a local private investor, while the seller represented themselves.
LEASES
Aspen Technology Inc. renewed a long-term, 79.9K SF lease at 2500 CityWest. Cushman & Wakefield’s Win Haggard Jr. and Vince Strake, led by Patrinely Group’s Dennis Tarro, represented the landlord, Patrinely Group, in the transaction.
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International law firm McGuireWoods leased 30K SF for 11 years at Texas Tower, the new 47-story, 1M SF office tower in Downtown Houston. The law firm is scheduled to relocate to the building in June 2022 and will occupy the 24th floor. Colliers International’s Bob Parsley, Darren Gowell and Taylor Wright represented the tenant. Cushman & Wakefield’s Michael Anderson represented the building owners and developers, Hines and Ivanhoé Cambridge.
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Raymond James & Associates Inc renewed its lease for 60.2K SF, spanning three full floors, at San Felipe Plaza. Cushman & Wakefield’s Todd Brandon, David Guion, Joe Rambin and Grant Goodwiller represented the tenant while Parkway Property Investments’ Rima Soroka and Eric Siegrist represented the landlord, Parkway.
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Bowen, Miclette & Britt leased 35.9K SF at 2800 North Loop West in Uptown Houston. NAI Partners’ Jon Silberman represented the tenant in the transaction, which represents a move of the company’s corporate headquarters from 1111 North Loop West.
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Puttshack leased 26K SF at The Shops at Houston Center in Downtown Houston. The location will open in late 2022. Emerging Concepts’ Mat Focht and Robert Johnson represented the tenant in the transaction. The landlord is Brookfield Properties.
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Jiffy Lube leased 24.5K SF at Berry Farms Marketplace, located at 24527 Gosling Road in Spring. Arena Realty’s Jamie Weaver and Sara Allen represented the tenant while RESOLUT RE’s Taki Dallis and Joaquin Orozco represented the landlord.
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EnCap Investments leased 36.5K SF at Moody National’s Village Towers II, located at 9655 Katy Freeway. Fritsche Anderson’s David Anderson and JLL’s Matt Trozzo represented the tenant in the transaction.
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Pura Vida Bioplastics Inc. leased a 23.6K SF free-standing industrial building at 7214 Harms Road in northwest Houston. Finial Group’s John Buckley represented the landlord in the transaction.
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ATCO Energy leased a 7-acre land parcel at 3004C Aldine Bender Road in north Houston. NAI Partners’ Jake Wilkinson represented the tenant in the transaction.
CONSTRUCTION AND DEVELOPMENT
Venterra purchased a 12.78-acre parcel of land in Cypress, northwest Houston, for the construction of its first ground-up multifamily development project. After construction, the site will host a Class-A, 336-unit garden-style multifamily community.
The project will feature an 8.6K SF clubhouse that will form the heart of the community. Amenities will include a resort-style pool, an outdoor lounge, a fitness center, a yoga/spin room, package lockers, a business center, "WeWork" style workspaces, property-wide WiFi, a dog park and covered parking.
FINANCING
NorthMarq’s Warren Hitchcock arranged the $32M refinance of Gessner Apartments. The 500-unit, Class-C, garden-style multifamily property is located in southwest Houston. The transaction was structured with a seven-year term, with two years of interest followed by a 25-year amortization schedule. NorthMarq arranged the large cash-out fixed-rate loan at a 3.75% interest rate for the borrower through its correspondent debt relationship.
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Olive Tree Holdings has secured funding to acquire and begin the improvement of The Life at Sterling Woods, formerly known as the Villas on Winkler complex, into a 234-unit senior/affordable multifamily apartment community. American South Real Estate Fund II is Olive Tree Holdings’ financial partner, with a $4.8M investment in the project.
THIS AND THAT
Newly formed, Houston-based Sekai Hospitality will launch its two initial concepts this fall: boutique nightclub Wyld Chld, on the Washington Corridor, and East Downtown club Sekai Day and Night, the largest indoor/outdoor space of its kind in the city.
The former benjy’s/The Classic at 5922 Washington Av. will become Wyld Chld. Brooklyn, New York, designer Marc Dizon is designing the 7.5K SF interior space, split between and main floor and stage, plus a 1.3K SF patio and 1K SF rooftop terrace.
At 1505 Saint Emanuel St., a former warehouse is being rebuilt and reimagined for the new home of Sekai Day and Night. Studio Five is overseeing the design of the 26K SF space. Elements will include a 36-foot main bar, 27 VIP tables and stadium-style seating, as well as a 1K SF resort pool with 16 cabanas, 17 VIP couches and 10 daybeds.
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Lee & Associates announced its second round of acquisition of new office leasing assignments this year. The Lee & Associates – Houston Landlord Services team consists of Jill Nesloney, Robert LaCoure, Chris Lewis and Bryce Adams. The new assignments include Ashford 5, a 195.1K SF office building at 14701 St. Mary’s Lane; Ashford 6, a 186.3K SF office building at 1155 Dairy Ashford; and Ashford 7, a 188.6K SF office building at 900 Threadneedle.
The Ashford properties are part of a three-building campus off Interstate 10 in the Energy Corridor. The Landlord Services team plans on energizing the office spaces by bringing in more light and fresh looks.
