This Week's Houston Deal Sheet
A Miami-based lender has entered Texas with its first loan in the state, a multifamily project in Houston.
Q10 KDH's Matt Franke and Emily Zarcaro closed a $1.3M acquisition and improvement loan secured by a 15-unit apartment community at the corner of Westmoreland and Flora streets in Montrose. The loan to CBMJ Investments and Development closed in less than 30 days and funded 65% of the purchase price and the entire improvement budget to upgrade each unit with new hardwood flooring and redesigned kitchens featuring stainless steel appliances. BridgeInvest hopes to blossom in Houston and other parts of Texas; managing partner Alex Horn says it’s already ID’d opportunities to work with Q10 KDH and CBMJ in the near future.
EXECS
Jack Burgher and Yuri Bouharevich joined Streetwise. Jack was previously with Venture Commercial and will specialize in restaurant and retail tenant rep. Yuri specializes in retail tenant rep and land acquisitions/dispositions. He was a statewide top producer at the Weitzman Group and is a former pro hockey player (he roots for the Montreal Canadiens). Streetwise, led by Ed Page, is the local reincarnation of UCR.
SALES
An undisclosed buyer purchased The Carlisle, a 125-unit apartment property. Marcus & Millichap’s Clint Roberts listed the property at $5.9M. It was previously unsuccessfully marketed by another firm, but Clint repackaged and relisted for a higher price and received multiple offers.
LEASES
Poynter Commercial Properties’ Kevin Poynter leased 64k SF at Energy Tower across six leases. The 325k SF office building is at 11700 Katy Fwy and is owned by an affiliate of Franklin Street Properties. The biggest new deals:
• SK Lubricants Americas/SK Energy Americas/SK E&P Co/SK GC Americas leased 24k SF. NAI Partners’ Jason Whittington repped the tenant.
• Northstar Healthcare Acquisitions leased 17k SF, repped by Champions Real Estate’s Kyle Ettinger.
• Q/Max America expanded by 8,795 SF. DTZ’s Tom McKenzie repped the tenant.
Kevin says the activity has continued despite weak energy markets partially because the building is undergoing a substantial renovation, which is wrapping up soon. The 5k SF health club facility has been completely remodeled, common areas were updated, and ownership added outdoor dining, a conference center, a putting green and a zen garden. Energy Tower has leased 192k SF over the past 12 months, bringing it to 60% occupancy. 133k SF remains available.
DEVELOPMENT
Skanska and subcontractor Baker Concrete Construction completed the mat foundation pour for the future Capitol Tower development Downtown. The two-day operation laid a 35k SF footprint and used 9,300 cubic yards of concrete and 2.4M pounds of rebar. Capitol Tower is one of only three buildings in the US to receive LEED Platinum v4 pre-certification. That sustainability was at play during the mat pour—60% of the cement needed was replaced with fly ash, a recycled product that will prevent 1 million pounds of CO2 emissions. Skanska will also complete the seven-story garage on the southern portion of the property and continue construction on the north side up to street level, but will not go vertical on its 35-story, 750k SF office tower until it locks in an anchor tenant.
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Cornerstone RPC Storage Development, a JV between Rosewood Property Co and Cornerstone Development, has begun Phase 1 of its $75M self-storage development plan. That’s comprised of four Texas projects managed by and branded Extra Space Storage, including an 832-unit center at 1200 Park Row Dr in Houston that’ll break ground in a few weeks. It’s also building a 656-unit property in Dallas and two projects in San Antonio that’ll total 1,500 units. Cornerstone RPC is targeting infill locations to build high-quality, multi-story and drive-up self-storage facilities.
THIS AND THAT
Boxer Property took over management and leasing of 6000 Dale Carnegie, a 15k SF office building. It was previously the Theological Seminary, but the previous tenant expanded to a larger property, so Boxer is backfilling the property. Boxer’s Stephen Kradjian oversaw the transaction.
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CBRE was named exclusive leasing agent for Wildwood Corporate Centre I, a newly completed 128k SF Class-A office building in The Woodlands. Steve Rocher, Debbie Wilson and Jason Presley will lease for developer Archway Properties; they’ve got 43k SF (two full floors) available. The trio is also leasing Wildwood Corporate Centre II, a 205k SF property under construction, which will be available for occupancy in June 2016. Wildwood Corporate Centre I was recently celebrated with an AIA 2015 Houston Design Award, which recognizes exceptional architecture.
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ICO Commercial took over leasing for OakBend Professional building, an 89k SF MOB in Richmond.
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Tarantino Properties was awarded leasing and management of 550 Greens Pkwy, a 72k SF Class-B office building.
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NAI Partners was awarded leasing and management of 5850 San Felipe, a 101k SF office building that’s 97% occupied. The landlord is 5850 Sierra Holdings LLC and Victory Realty Solutions; NAI will team up with Victory Realty Solutions’ Pamela Castleman.
