This Week's Houston Deal Sheet
With renovations wrapping up, 717 Texas locked down two leases.
Law firm Smyser Kaplan & Veselka signed a 28K SF lease for its headquarters. Cushman & Wakefield's Jim Bailey and Trey Strake represented the tenant.
The new deals come after Hines completed renovations at the 33-story, 700K SF building. The upgrades include new furnishings, new wall and elevator finishes, new lighting and security console upgrades. Street-level activation is expected to be completed in April.
"These leases are evidence of the excitement over the repositioning of the asset that will be completed in just a few months,” Hines Senior Vice President John Mooz said.
The office tower has hit some bumps in the road due to the 2014 energy downturn that had citywide effects on the office sector. In late 2016, Morningstar Credit Ratings added the $160M loan for 717 Texas to its November watchlist. The balance of Houston loans on the watchlist grew by 50% at the time to $748.1M.
717 Texas also made a list for the largest office blocks available in Houston in July. Ranked third, the 33-story building was half-filled. The vacancy currently stands at 48%, according to Colvill.
Mike Schulte was promoted to vice president of operations for the Marine/Industrial Business Unit at McCarthy Building Cos.’ Southern region. He will be responsible for oversight of the marine and industrial industries. He will manage all marine, port clients and projects in Texas and across the Gulf Coast. Schulte will also lead the new Channelview office set to open Feb. 20.
NAI Partners Investment Fund purchased the final two projects for its Investment Fund II. The acquisitions are Leghorn Service Center, a 67K SF industrial building in Northwest Houston, and Clear Lake Business Center, a 149K SF flex park in Webster. Both properties are 80% occupied. Fund II, which closed fundraising in March, is fully deployed. NAI Partners is raising for its third fund and aims to raise between $25M and $30M by March.
Belvoir Real Estate Group and Mission Cos. acquired 15810 Park Ten Place, an 86K SF Class-B office property in the Energy Corridor. JLL’s Kevin McConn, Rudy Hubbard and Rick Goings represented the seller, a joint venture between Dallas-based Chief Partners and the Houston office of Stream Realty Partners.
An undisclosed buyer purchased McKay Medical Plaza, a 24K SF office property at 18648 McKay Drive, Humble. The property was listed for $6.9M. Marcus & Millichap's David Luther and Morgan Hansen represented the buyer and the undisclosed seller.
US Tsubaki Power Transmission and LaForce Inc. signed a 26K SF and a 28K SF industrial lease, respectively, at Round Up Distribution Center in Houston. NAI Partners' Ryan Searle, Nick Peterson and John Ferruzzo represented the landlord, Liberty Property Trust.
Sugar Land University Commons added several concepts as a part of its 108K SF Phase 2 expansion. University Commons is at University Boulevard and Interstate 59. Anchored by Sprouts Farmers Market, the new restaurants include:
- Luna Grill, represented by EDGE Realty Partners' Jamie Weaver.
- Schlotzsky's Austin Eatery, represented by Weitzman's James Namken.
- FENG CHA, represented by GT Capital's Logan Zhou.
- U-Maki Sushi Burrito, represented by Colliers' Hal Colbert.
The United States Postal Service renewed its 110K SF lease at 4665 Kendrick Plaza Drive in the World Houston International Business Center. InSite Realty's Rives Nolen represented the landlord, EastGroup Properties. CBRE's Kyle Golding represented the tenant.
WSS, a footwear and apparel retailer, inked a 13K SF lease at Northbrook Shopping Center. The center has over 100K SF of retail, health, lifestyle services and restaurants. WSS has three stores in Houston and five statewide. The new store is scheduled to open in Q1. Brad Kilbride represented the landlord, Weingarten Realty. Henry S. Miller's Shawn Ackerman and Jason Du represented the tenant.
Regions Bank signed a 23K SF lease for a new branch location at the northeast corner of San Felipe Street and Fountainview Drive. CBRE's Russell Janicek represented the bank. Davis Commercial Real Estate's Mark Davis represented the landlord, Dinos Texaco Inc.
The Dog Stop signed a 10K SF industrial lease at 920 FM 1960 in north Houston. Black Label Commercial Group's Beau Harris represented the landlord, CBDR Industrial LLC.
Boxer Property launched the Workstyle Collaborative Suites at 2323 South Voss Road in Houston. The project adds about 6,500 SF of coworking and executives suites to the fifth floor of the property. The on-site amenities include renovated conference facilities, upscale lounge and common areas, huddle room, coffee bar and WiFi throughout.
Buckhead Investment Partners and Elevation Holdings broke ground on Verge at Summer Park, a 291-unit luxury multifamily development in Rosenberg. The $42M project is on a 15-acre tract in Summer Park, a master-planned community. Monthly rents will range from $1,100 for a one-bedroom to $2K for a large three-bedroom, two-bath floor plan. Gonzalez Newell Bender Architects will be the architect, and Rampart Multifamily will be the general contractor. Greystar Real Estate Partners Texas will handle leasing and management. Leasing will begin in late summer.