This Week's Houston Deal Sheet
Baylor College of Medicine has signed a lease to be the anchor tenant at the Dynamic One building at TMC Helix Park, Texas Medical Center and Beacon Capital Partners announced.
Dynamic One, developed by Beacon in collaboration with Zoë Life Science, topped off in December and is scheduled for a Q4 2023 opening.
Baylor College of Medicine will lease 114K SF of lab and office space in the 355K SF building.
Dynamic One is the first of four TMC Helix Park industry buildings. The first three buildings of Helix Park are expected to be activated this year.
Baylor represents 53% of Texas Medical Center’s research, TMC President and CEO William McKeon said at a Bisnow event Thursday.
SALES
Transwestern announced the following sales:
— An undisclosed buyer acquired 115.6K SF of office/warehouse space on 6.88 acres at 9600 West Gulf Bank in the Highway 290/Tomball Parkway submarket from Veyron. Newmark’s Doug Nicholson and Transwestern’s John Ferruzzo, Nick Peterson and Matt Morrison represented the buyer.
— India Bazaar Hillcroft LLC purchased 1.57 acres at 3800 Hillcroft St. in the Richmond submarket. Transwestern’s A. David Schwarz III and Carlos Bujosa represented the undisclosed seller in the transaction.
— Swift Hillcroft Pro LLC purchased a 15K SF retail building on 1.15 acres at 3700 Hillcroft St. in the Richmond submarket. Transwestern’s A. David Schwarz III and Carlos P. Bujosa represented the undisclosed seller in the transaction.
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Kobalt Investment Co. acquired Creekside Park Village Green in The Woodlands. Creekside Park Village Green features a walkable setting with shopping, dining and entertainment options.
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Iglesia Filadelfia De Apostoles Y Profetas acquired a 37.5K SF building on 7.34 acres at 6000 Heatherbrook Drive in Houston from the Texas Annual Conference of the United Methodist Church Inc. Jeff Lokey and Glenn Dickerson of NewQuest Properties represented the seller. Chris Bergmann of JLL represented the buyer.
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Biodec LLC has acquired The Market at Alder Trails, a 17.6K SF retail center on 3.65 acres at 11403 Barker Cypress Road in Cypress, from Happyone Investments LLC. Dakota Workman and Kelley Workman of NewQuest Properties represented the seller. Abe MacNeil of St. Croix Capital represented the buyer.
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CDC Houston, a subsidiary of New York-based Coventry Development Corp., acquired two hotels and two office buildings in City Place, which Coventry developed. CDC bought a majority stake in the Residence Inn by Marriott Houston Springwoods Village and Courtyard by Marriott Houston Springwoods Village hotels. It bought a 100% stake in City Place 1 and City Place 2 office buildings.
The Residence Inn opened in 2015. The four-story hotel has 128 suites. Courtyard by Marriott was completed in 2016, is also four stories, and has 125 guest rooms.
Five-story City Place 1, at 1700 City Place Drive, is 149.5K SF and was completed in 2019. City Place 2, at neighboring 1701 City Place Drive, was completed in 2018. It has 10 stories and 326.8K SF. It includes 23.7K SF of ground-floor retail, with Island Grill as a tenant.
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Partners Real Estate arranged the sale of Gemini Plaza, a 159K SF office property at 1150 Gemini St., adjacent to NASA Johnson Space Center. Partners’ Cary Latham, Wyatt Huff and Dan Boyles represented the seller, Universal Weather & Aviation LLC, in the sale-leaseback transaction. Noah Kruger of Savills represented the purchaser, JMK5 Holdings.
Triten Real Estate Partners bought three off-market industrial service facilities in Houston. Each site was privately owned. Two of the three are in North Houston, at 3004 Aldine Bender Road and 3434 Greens Road. The third is in Northeast Houston, at 15005 Crosby Freeway.
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Doc Perrier and William Alcorn with Finial Group secured a sale and subsequent lease of a 12K SF industrial building at 6 Fellows Road. The property features 1.5K SF of office space and 2.7 acres of yard space fronting Beltway 8 and Almeda Road. Finial Group represented the seller and landlord, and Mason Alsbrooks and Josh Carl of Lee & Associates represented the tenant.
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J. Beard Real Estate completed the sale of 22 acres in The Woodlands, at 1939-1941 Sawdust Road, to an affiliate of Marquette Properties. The property will be utilized for a future high-density residential development.
Jeff Beard and Brittany Jameson of J. Beard Real Estate represented the seller, Morris Monroe. JP Hayes with Urban Co. Real Estate represented the buyer.
LEASES
Stream Realty Partners announced the following leases:
— Mel Industries leased 18K SF at Business Center at Blalock at 4600 Blalock Road. Heath Donica with Stream Realty Partners and Mike Collins with Collins Realty represented the landlord, Reid Buildings Houston LLC.
— Modular Framing Systems leased 14K SF at 4525 Brittmoore Road. Tyler Maner and William Carpenter with Stream Realty Partners represented the landlord, OSI 4525 Brittmoore Road LLC.
— Fluid Sealing Products leased 43.9K SF at Greenbriar Southwest at 4000 Greenbriar Drive. Jeremy Lumbreras and Boone Smith with Stream Realty Partners represented the landlord, TX 4000 Greenbriar Drive (DE) LLC.
Memorial Hermann Health System leased an 8.9K SF freestanding building on the last available pad site fronting Spring Green Boulevard in NewQuest Properties’ Shops at Katy Reserve. NewQuest’s Lara Lee LaMendola and Kevin Sims represented the landlord. JLL’s Matt Parsons represented the lessee.
CONSTRUCTION AND DEVELOPMENT
Jetstream RV Resort opened an upscale RV community near the Texas Medical Center. Jetstream RV Resort at The Med Center, developed by Houston’s CityStreet Residential, is open and accepting long- and short-term rental reservations.
It includes 165 RV spaces over 15 acres, a heated swimming pool, a gym, internet access at each RV pad, a laundry facility, a dog wash and a 4.3K SF clubhouse with an outdoor kitchen.
At 2919 West Orem Drive, the resort has convenient access to the medical center and NRG Stadium.
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The Howard Hughes Corp. has begun sales in Creekland Village, the fourth and final residential village within Bridgeland. The homebuilders include Beazer Homes, Century Communities, Chesmar Homes, Coventry Homes, Gehan Homes, Lennar, Perry Homes and Westin Homes.
Homes start at $290K. Model homes are expected to be completed in late spring.
Creekland’s 2,300 acres will accommodate about 3,000 single-family homes with lot widths of between 28 and 50 feet. It will also offer about 40 acres of future commercial opportunities.
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The Chifley, Tapestry Collection by Hilton in Uptown Houston is now open after a remodel. The boutique hotel’s 284 suites have been renovated, as have its public spaces, which now include 8K SF of flexible event space. The restaurant in the hotel, Rouse, will open this month.
Driftwood Hospitality Management manages the property. The hotel derives its name from the “schiffli” weaving process that uses hundreds of needles to stitch patterns into lace — a metaphor for the diversity of Houston, a news release said.
Midway announced construction has begun on for-sale office space within the 150-acre East River mixed-use development. Construction is expected to be completed in June.
The Studios at East River will consist of three 10K SF independent office structures, with more buildings planned in future expansion phases. Landscape architecture firm OJB has prepurchased the first of the three buildings to relocate its Houston practice from Pennzoil Place to East River. OJB is also leading the site and landscape design of the East River project.
The two-story office buildings are fully customizable, with minimal interior build-out, geared toward businesses looking to own their own space. Each building will include four restrooms, a kitchen, an elevator, and four to five dedicated parking spaces, with additional contract parking available.
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The Dinerstein Cos. launched Inspire Homes, a new brand that will specialize in developing single-family build-to-rent communities. One of the communities will be at 10050 Highway 6 in Missouri City. It will include 186 single-family homes with front yards, fenced backyards and two-car garages.
The floor plans will range from 1.1K SF to 1.4K SF, offering two to three bedrooms. The development will be fully fenced and gated, and include a fitness center, a pool, an outdoor kitchen area, a dog park, and on-site leasing and maintenance. The project is scheduled to be completed mid-fall 2024.
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CarSquad, a sister brand of Off Lease Only, a preowned car dealership group in Florida, opened a location at the intersection of Interstate 10 and Highway 90 in Katy. The dealership’s building occupies 21K SF. CarSquad offers customers the opportunity to buy, sell or trade pre-owned vehicles online or on the lot.
FINANCING
The Howard Hughes Corp. closed $1.3B in financings to start a year many predict will be a challenging time to secure loans or refinance.
The company specializes in master-planned communities, well-known in the Houston area for developing The Woodlands, where it is headquartered, and Bridgeland in Cypress. It has developments in six states, including Hawaii.
The closings increase Howard Hughes’ liquidity to $800M and include various refinancings, new loans and construction funding, according to a news release. Refinancing allowed the company to fully retire its Senior Secured Corporate Credit Facility, which had an outstanding balance of $242.2M.
Howard Hughes’ financings include a nonrecourse, five-year $200M term loan secured by certain retail collateral in Hawaii’s Ward Village and led by Bank of America, and a limited-recourse, three-year $75M term loan secured by 1070 Corporate Center and One Mall North in Columbia, Maryland, and led by J.P. Morgan.
The new structure reduces debt maturities over the next two years to less than $155M and extends the company’s weighted average debt maturity to 7.5 years, the release states.
The company also closed on a $264K construction loan for the development of Ulana, a residential tower in the Ward Village development in Honolulu that is 97% pre-sold. In Bridgeland, it closed on a $54M construction loan for Wingspan, a build-to-rent residential development.
In The Woodlands, the company refinanced the Creekside Park The Grove multifamily complex with a $57M 10-year loan, replacing the previous $40M construction loan on the property.
A new $200M upsize loan for the Bridgeland Credit Facility increases that facility to $475M, some of which can be drawn on in the future based on previous and future reimbursable funds spent on development, the release states.
