This Week's Houston Deal Sheet
Another industrial lot turned mixed-use environment is on the way in Houston.
Since build-out of the Heights Mercantile, several mixed-use projects were inspired to re-create the retail frenzy.
Two Houston-based development companies — Radom Capital and Triten Real Estate Partners — will redevelop the 12-acre lot near North Shepherd and Sixth Street.
The project will equally split the office and retail offerings and include a 2,000-foot urban boardwalk and several acres of park space. The development is expected to deliver in Q1 2020.
Michael Hsu Office of Architecture and SWA Group will be responsible for the design. Boston-based Long Wharf Capital LLC will provide financing. Method Architecture is also involved.
Driftwood Hospitality Management purchased the 480-room Hilton Houston North and 390-room Marriott Houston North, according to Commercial Property Executive. The new owner plans extensive renovations at both assets, including all rooms and public spaces at the Hilton and a complete revamp at the Marriott. The two hotels are within a mile of each other, 14 miles north of Downtown Houston and 10 miles southwest of the George Bush Intercontinental Airport.
CenterPoint Properties, represented by Holt Lunsford's Kelly Landwermeyer in all but one lease, secured six industrial leases totaling 443K SF in Houston. The tenants include:
- Global Stainless Supply renewed a 211K SF lease at 8900 Railwood Drive. JLL's Ryan Fuselier and Jeff Venghaus represented the tenant.
- Palmer Distribution inked a 168K SF lease at 9033 Spikewood Drive. Stream Realty's Matteson Hamilton represented the landlord. Avison Young's Bob Berry represented the tenant.
- Harbison Walker signed a 22K SF lease at 4845 Homestead Road. CBRE's Carlton Anderson represented the tenant.
- Darling Bolt renewed a 19K SF lease at 1915 Turning Basin. Avison Young's Bob Berry and Grant Hortenstine represented the tenant.
- Matthews International signed a 12K SF lease at 2025 Turning Basin. JLL's Jay Heald and Travis Secor represented the tenant.
- Socket Solutions signed a 10K SF lease at 4849 Homestead Road. Work Space Real Estate's James Robertson represented the tenant.
CPP Investment Board secured a $147.3M floating-rate loan for the refinancing of San Felipe Plaza, according to Commercial Property Executive. The 46-story, Class-A office tower is at 5847 San Felipe St. in Houston. Natixis originated the loan, which will be used to pay off the existing loan, cover financing and closing costs and fund future leasing costs at the property. The existing loan matures in December and was worth $110M, according to Yardi Matrix data. The 980K SF building was renovated in 2015 and features amenities such as a fitness center, multiple dining options, a conference center and a nine-story parking garage. HFF's Susan Hill arranged the loan.
Central Southwest Texas Development LLC is constructing a 1,311-unit, Class-A self-storage facility at 10411 Westheimer Road, Houston. JLL's Griffin Guthneck and CW Sheehan secured a floating rate construction loan on behalf of the developer.
McCarthy Building Cos. has completed an expansion at Jan and Dan Duncan Neurological Research Institute at Texas Children's Hospital. The new lab space occupies the ninth floor and totals 23K SF. New features include general lab areas, write-up areas, tissue culture rooms, a surgery room, rig rooms, a cold room, offices, a conference room and break areas.
Loft18, an indoor golf venue, is coming to the Shops at Sawyer Yards at 2313 Sawyer St., according to Swamplot. This is the company's first location outside of its flagship location in Metairie, Louisiana. The venue will offer five golf simulators and offer 95 different courses to play, along with bar and kitchen service.
Gables Residential broke ground on a 14-story apartment building located near Westcreek Lane between Westheimer and San Felipe, according to the Houston Chronicle. The 295-unit project will feature apartments averaging 1,539 SF, concierge services, a rooftop swimming pool, an outdoor kitchen, a fitness room, bicycle storage and a clubroom for resident gatherings. The community will target professionals and empty nesters and is a few miles north of the high-end shopping center River Oaks District. Ziegler Cooper will design the new building.
Kitchen Cabinet Distributors is building a distribution center in Houston, according to the Houston Business Journal. This marks the company's first move outside of its headquarters in Raleigh, North Carolina. The building is expected to deliver in January and be in the Pinto Business Park, a 971-acre industrial park in the Greenspoint submarket.
THIS AND THAT
The University of Texas System is seeking a national commercial real estate brokerage firm to assist in the sale or ground lease of about 305 acres of vacant land in south central Houston. The land is the largest piece of undeveloped property for sale near central Houston. A request for proposals for a brokerage firm with extensive experience with the sale or ground lease of land is on the UT System website. The deadline for proposal submissions is 2:30 p.m. CT Nov. 30.