This Week’s Houston Deal Sheet
NewQuest Properties purchased 86.14 acres in Missouri City for the continued expansion of Fort Bend Town Center while also selling two separate tracts of land to Sueba USA Corp. for the development of a multifamily project.
The newly acquired land is intended for the development of Fort Bend Town Center’s 200K SF third phase, which will begin infrastructure work in the second quarter of 2022. Earlier this month, NewQuest broke ground on the 42-acre, 300K SF second phase of the center, expected to come online in the third quarter of 2023.
NewQuest also sold two land tracts — 11.43 acres and 11.75 acres, respectively — to Sueba USA Corp. for the development of a four-building, 589-unit multifamily community at the same intersection. The residential mix will primarily be one- and two-bedroom units. NewQuest will deliver the ready-to-build land to Sueba in the first quarter of 2023.
Sueba Land 123 LP purchased the 11.43 acres, while Sueba Development 211 LP purchased the 11.75 acres. NewQuest’s Andrew Alvis represented the firm in both deals. Alvis also represented NewQuest in the purchase of the 86.14 acres, while CBRE’s Darin Gosda and Todd Casper represented the seller, the estate of John C. Werner.
Kingsa Industries purchased a 16K SF industrial building at 407 Rankin Circle North in north Houston. NAI Partners’ Travis Land and A.J. Williams represented the seller, Adkisson Group Inc.
An undisclosed buyer purchased 1.3 acres at the intersection of Texas State Highway 36 and Band Road in Rosenberg. RESOLUT RE’s Mohamed Gamal represented the seller.
Southland Fence & Supply leased 10.1K SF at 13645 Reeveston Road in north Houston. Finial Group’s Doc Perrier represented the tenant in the transaction.
CONSTRUCTION AND DEVELOPMENT
Empower Pharmacy opened its new $55M, 86K SF compounding pharmacy facility at 7601 North Sam Houston Parkway West, in northwest Houston. The facility uses automation and is equipped with a state-of-the-art clean room, water purification equipment, clean steam and clean compressed air. It also has a warehouse capable of storing at least nine months of raw pharmaceutical ingredients to minimize supply chain disruptions. The facility began operations earlier this month.
The company will open a second facility mirroring the new facility, that one with a 503B license allowing it to manufacture and deliver compounding medicines directly to hospitals, physician's offices and other healthcare institutions.
KM Realty Investment Trust will renovate the Township Square development at the northeast corner of FM 1092 and Township Lane in Missouri City near Texas State Highway 6. Houston-based Identity Architects has been chosen to update the 1980s-era shopping plaza. Renovation plans include making improvements to the façade of the project, adding awnings and canopies, developing new signage, new landscaping and improving pedestrian connectivity between buildings.
Renovations will begin this fall and tenant businesses will remain open during the redevelopment. KM Realty is handling both property management and leasing internally.
The Howard Hughes Corp. held the grand opening of Creekside Park The Grove, the second multifamily development in the Village of Creekside Park. The development is a 360-unit luxury multifamily community with six buildings, offering one-, two- and three-bedroom units. Ground-level apartments include private fenced yards.
Amenities include a clubhouse with a fitness center, a swimming pool, a dog park, a game area and a grilling area. The development has also incorporated coworking spaces both inside the residential buildings and within the outdoor amenity areas, including a solar-powered coworking area.
The second phase of GID Development Group’s Regent Square has begun pre-leasing of The Sterling, a 590-unit multifamily community, with move-ins to follow in December. The pre-leasing initiative began in tandem with the consumer unveiling of Regent Square’s marketing center, located directly across from Phase 2 at 1203 Dunlavy St.
Leasing of Phase 2’s 55K SF of retail offerings is also continuing. The retail space will include three free-standing restaurants with roof decks, green spaces, a signature water feature and a pedestrian promenade. Confirmed tenants include London-based entertainment concept Flight Club and Houston culinary group Underbelly Hospitality.
Granite and NorthPoint Development have entered into a new build-to-suit lease with an unnamed e-commerce retailer at the NorthPoint 90 industrial park, for an initial term of 10.9 years. The 690K SF distribution building is being constructed as the second phase of the multi-phase development. About 700K SF is already under construction for Phase 1 of the development. The build-to-suit project is estimated to be completed in the third quarter of 2022.
Square Mile Capital Management LLC originated a loan secured by Standard in the Heights, a 301-unit multifamily building in the Houston Heights. The financing, which replaces the project construction loan, was made to Ojala Partners. Sponsorship began construction in 2018 and delivered the property in November 2020. JLL’s Cameron Cureton and Steve Heldenfels brokered the transaction.
Buckingham Advisors secured $31M in senior construction financing for a multi-site community of 102 build-to-rent, single-family homes. The properties are situated in five separate subdivisions across the submarkets of Spring Branch, Midtown and Uptown Houston. Total capitalization for the overall transaction amounted to $47M, and Buckingham Advisors advised the borrower on the full capital stack. The properties are being developed by Atma Homes and Allied Orion, with financing provided through CoreVest.
Ramsfield Hospitality Finance and funds managed by CarVal Investors teamed up to provide a $72.5M mortgage loan secured by the 335-room Margaritaville Lake Resort located in Lake Conroe. RHF and CarVal had previously provided a mezzanine loan to finance the borrower’s acquisition and significant renovation of the asset in 2019.
NorthMarq’s Matt Franke secured acquisition financing for a 64.1K SF Class-B office property located at 2440 Texas Parkway in Missouri City. The property is 91% occupied. The nonrecourse transaction was structured with a 10-year term on a 25-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with Innovative Capital Advisors. Wells Fargo represents the property’s major tenant.
THIS AND THAT
Agellan Commercial REIT selected NAI Partners as the exclusive property manager for its 12-building, 1.5M SF Houston commercial portfolio. The assignment also includes industrial project leasing responsibilities for more than 680K SF within the portfolio. NAI Partners’ Chris Bosler and Jennifer Gourlay will spearhead the property management of the portfolio, while NAI Partners’ Travis Land, Andy Parrish and Lesley Rice will be responsible for the project leasing/marketing component for the portfolio.
Nitya Capital and Karya Property Management CEO Swapnil Agarwal announced that a new rent policy will be implemented for all Afghanistan refugees seeking housing services. As of Aug. 27, Agarwal’s nonprofit organization Karya Kares will house up to 1,000 families of Afghanistan refugees at all Karya properties across the country for free, for the next six months.