This Week's Houston Deal Sheet

Stream Realty Partners completed Raceway Northwest Distribution Center, a 156K SF development in northwest Houston.

The new facility offers frontage to Fairbanks North Houston Road and immediate access to Sam Houston Tollway, State Highway 249 and U.S. Highway 290. Stream is offering immediate occupancy for leases from 70K SF to the full 156K SF.

Raceway Northwest Distribution Center was constructed to modern distribution development standards, including a front-load configuration with 36-foot clear height, 25 dock-high doors, and 109 vehicle and 22 trailer parking spaces. The development is move-in ready and includes speculative office space, a white-boxed interior warehouse, LED warehouse lights, and a fully fenced and secured truck court.

Kyle Fletcher, a director in the industrial development services division at Stream Houston, assisted in the development management of the project. Justin Robinson, Tyler Wellborn and Craig McKenna also provided development oversight. Jeremy Lumbreras and Boone Smith oversee leasing efforts for the building.

SALES

CLGS MSO acquired an 8.5K building on an acre at 7627 West Grand Parkway S. in Richmond from ALLE8 LMC2. Brad LyBrand, Glenn Dickerson and Ashley Strickland of NewQuest Properties represented the seller. Andrew Sowell of Boyd Commercial represented the buyer.

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A joint venture of NewcrestImage and Hospitality Capital Partners acquired 11 hotels in seven states, totaling 1,551 rooms, in a transaction handled by Al Calhoun and Mark Fair at CBRE in Atlanta. One of the hotels acquired is Courtyard by Marriott Houston Hobby Airport at 9190 Gulf Freeway. 

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Partners Real Estate arranged the sale of 2 acres at 50 Tidwell Road. Partners’ Shaffer Braun, Darren O’Conor and Patrick Keegan represented the seller, Black Flag Tidwell Commercial, in the transaction.

LEASES

Bank of Texas expanded its footprint in Houston's Central Business District by 23K SF for a total of 59K SF in 5 Houston Center. Transwestern represented the landlord, and Jon Lee of CBRE represented Bank of Texas in the transaction. 

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Stream Realty assisted in several leases at IAH Logistics Center at 3340 Greens Road. Stream's William Carpenter and Woody Hillyer represented the landlord, Prologis, in all three leases. Tenants include: TForce Logistics, 24.6K SF; Prestige Expeditors, 20.9K SF; and Lykes Cartage, which expanded its space at the center by 10K SF. 

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Environmental Liquidation leased 124.7 SF at Empire West Business Park at 117 Empire Blvd. Jeremy Lumbreras, Justin Robinson, Matteson Hamilton and William Carpenter with Stream Realty Partners represented the landlord, Stream Realty Partners.

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Salad And Go leased a 0.86-acre retail pad site in Brazos Town Center, at the intersection of U.S. 59 and FM 762 in Rosenberg from NewQuest Properties. Bob Conwell and Austen Baldridge of NewQuest Properties represented the landlord. Jason Baker and Traci Holman of Baker Katz represented the tenant.

Edens announced several new wellness concepts and retail leases at Uptown Park. Those include:

• Natuzzi, an Italian luxury furniture designer and maker. The 6K SF showroom will be the designer's first freestanding store location in Houston.
• JuiceLand, an Austin-based health food space serving cold-pressed juices and superfood smoothies in a 700 SF space.
• Sweetgreen, a mission-driven restaurant serving healthy food at scale. The 3K SF counter-service concept will feature the chain’s signature salads and bowls in addition to seasonal menu offerings.
• Hi, skin, an Arizona-based concept making quality skincare more accessible to everyone. The 2K SF space will be the company's first Texas location.

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Cushman & Wakefield negotiated a 10K SF lease for Activate Games, an indoor, interactive gaming experience, at Katy Fry Center, 20225-20235 Katy Freeway in Houston.

Michael Burgower and Eric Lestin of Cushman & Wakefield represented the tenant in the lease negotiations. Dianne Rummage of SClay Management represented the landlord.

Activate Games fuses technology and physical activity to create live-action gaming experiences.

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Fritsche Anderson Realty Partners represented The Detering Co. in a 100K SF warehouse space lease at 1919 Collingsworth St. in Houston’s North Inner Loop industrial submarket. The Detering Co., a family-owned building materials supplier founded in 1926, will operate a new lumber business from this location. 

Chris Haro of Partners Real Estate represented the landlord, American Warehouses. John Milam of Fritsche Anderson Realty Partners represented the tenant.

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Partners Real Estate arranged a 57K SF lease for 2020 Exhibits at 13615 South Gessner Road in Missouri City. 2020 Exhibits is a full service event marketer of interactive trade show exhibit technologies, event design and production, exhibit rentals as well as warehousing and storage.

Partners’ Chris Caudill represented 2020 Exhibits in the transaction. Lexie Curry with EQT Exeter represented the landlord, EQT Exeter.

CONSTRUCTION & DEVELOPMENT

Gulf Coast Commercial Group is bringing a new retail center to Meridiana’s Highway 6 entrance in Iowa Colony. Construction will begin on the 21K SF Meridiana Marketplace this spring.

The shopping center will have a Next Level Urgent Care and a Smile Professionals dental practice, with more tenants to be announced. 

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High Street Residential, the residential subsidiary of Trammell Crow Co., and joint venture partner Daiwa House Industry Co., broke ground on River Oaks at Westheimer at 2311 Westheimer Road. 

The 12-story community will replace a strip mall that stood near the intersection of Westheimer Road and Kirby Drive, where River Oaks and Upper Kirby intersect. The development will include 3K SF of ground-floor retail space, and the first units are slated to deliver in Q1 2025.

The apartment homes will average about 1.4K SF and range from one to three bedrooms. Amenities will include a work-from-home suite on the mezzanine, solo and coworking spaces, a reading room, a fitness center, a yoga/Pilates room, a resort-style pool deck with hot and cold plunge pools, an upper-floor sky lounge, an indoor pet-grooming room and an outdoor dog run.

Project architect Ziegler Cooper Architects worked with Rottet Studio on interior design. The exterior landscapes were designed by Kudela & Weinheimer Landscape Architects.

Additional project partners include Jordan & Skala Engineers; VSMsq Structural Engineers; Jackson Walker LLP; Kimley-Horn; and Hoar Construction, acting as the general contractor. Sumitomo Mitsui Trust Bank is providing construction financing.

FINANCING

Three Pillars Capital, a vertically integrated private equity firm specializing in Class-B and Class-C multifamily, secured $300M in new capital commitments to support its growing investment platform.

The funding was secured over the past year and represents commitments from a network of family offices in the U.S. and Middle East along with high-net-worth investors from Texas, California and New York.

In deploying the capital, Three Pillars will continue its focus on value-add acquisition of multifamily properties, with a new focus on distressed assets.

THIS & THAT

Houston Housing Authority and the Third Ward - Cuney Homes Choice Neighborhood Initiative worked with James Harden and his philanthropic foundation, Impact13, to revamp a basketball court at Cuney Homes.

The court's new look includes a mural of a basketball player painted by local artist Henry Agim and pays homage to George Floyd. Floyd's love for sports and vibrant personality are reflected in the mural, which features a basketball player wearing a jersey with the number 54 — Floyd's basketball jersey number in high school. 

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The Lexington, a boutique condominium project developed by Pelican Builders, with design by Kirksey Architecture, has opened its sales gallery at 2419 Mimosa Drive. Consisting of 114K SF of residential space across eight levels, The Lexington will offer two levels of above-ground parking with six residential floors, totaling 40 homes, above that. Homes at The Lexington start at $1.7M.