This Week's Houston Deal Sheet
An urban developer with a knack for historical preservation has taken on another Houston redevelopment in the Inner Loop. Oxberry Group will transform a 1930s building into Rêve at Montrose, a two-story retail center at 1110 West Gray St.
The property was approved by the Houston Archaeological and Historical Commission to be designated a Houston landmark. It was built for Quality Laundry in 1932, then purchased for the Gibbs Boat Co. in the 1960s. The company sold its last boat in 2012 and the showroom closed in 2014. Oxberry purchased the property in 2017.
It is restoring the exterior to its original Art Deco design. The two-story building with a clock tower dividing the old and new structures will include 17K SF of ground-level retail and 6,500 SF on the second floor. A replica of the Quality Laundry marquee will be added to the original building's entrance facing West Gray Street. The building's shell is expected to be completed in the summer.
“Our first approach when it comes to redeveloping historic, inner-city structures is figuring out how to resurrect the building,” Oxberry Group principal PJ Jamea said.
To figure this out, the team removed a section of the 1968 slipcover, revealing the original fan above the front entry as well as the flanking fluted pilasters and remnants of the original stucco finish.
"When we saw this on the south elevation facing West Gray, we knew we needed to bring this back to life,” he said.
Tipps Architecture will be responsible for the design, while Arch-Con Corp. will serve as the general contractor. Wallis State Bank provided financing.
The first floor is fully leased with the second floor available for medical, professional or service-oriented tenants. Edge Realty's Josh Jacobs and Brooks Shanklin will be responsible for leasing.
EXECS
Blake Williams was promoted to chief operating officer of Healthcare Advisory Services for Transwestern Commercial Services. He will coordinate business development efforts, streamline project execution and ensure consistent service delivery for healthcare clients nationally. Williams joined the company in 2018 as managing director.
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Tommy LeBlanc was promoted to principal at Avison Young. He will assist clients with locating land for development and/or investment and grow the company's Houston land acquisition service-line coverage. Before joining Avison Young in 2014, LeBlanc was a broker with Mason Partners. In his career, he has negotiated more than $500M in transactions.
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Daniel Myers joined ICO Commercial as vice president of investment sales. With more than 25 years of professional sales and marketing experience, he will be responsible for business development specializing in retail site analysis and selection, lease negotiation, and renewal and relocation across the western states.
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Wendell Nault joined ICO Commercial as vice president of investment sales. He previously managed the leasing and merchandising of regional malls around the U.S. for a publicly traded REIT.
SALES
An undisclosed buyer purchased Spencer Mini Storage, a 57K SF storage facility in La Porte. The facility sits on two parcels totaling 9 acres and includes 11 single-story buildings. There are 595 units (about half are climate-controlled units) and 83 parking spaces. The first building was delivered in 1977, while the rest were constructed between 1995 and 1999. Marcus & Millichap’s Dave Knobler and Chico LeClaire represented the seller, a California family trust.
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Belvoir Real Estate Group and The Mission Cos. jointly acquired Broadfield at Park Ten, an 85K SF office property in the Energy Corridor. JLL represented the sellers, Chief Partners and Stream Realty Partners. SLI Group signed an 18K SF office lease to become the new anchor tenant at Broadfield. Belvoir Real Estate Group LLC Matthew Goldsby and Mission Cos. Dennis Nelson represented the landlord. Caldwell Cos. Blake Virgilio and Cresa Partners' David Price represented the tenant.
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An undisclosed buyer acquired 7.7 acres at Port Crossing Commerce Center located at the northwest corner of McCabe Road and Highway 146 in La Porte. Retail Solutions' Marcus Banasik represented the buyer. Colliers International's Gary Marbray and Walter Menuet represented the seller.
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An undisclosed buyer purchased 1.7 acres at Highway 290 and Northwest Freeway in Houston. Retail Solutions' Mohamed Gamal represented the seller. Miramas Group's Phu Nguyen represented the buyer.
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Whitewater Car Wash purchased a 1-acre retail site in Spring. JLL's Mark Raines, Matt Parsons, Simmi Jaggi and Elizabeth Clampitt represented the seller, Spring Plaza. Caldwell Cos.’ Hunter Grimes represented the buyer.
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Lamar Upper Yale LLC purchased 2.5 acres in Independence Heights on Marathon Street. The buyer is planning a townhome development on the property. McAlister Real Estate's James Kadlick, Harrison Kane, Matt Herring and Chris Hutcheson represented the seller. Champions Real Estate Group's Wojciech Brozek represented the buyer.
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Turnstone Capital Management Group acquired Redstone Vista Apartments, a 274-unit complex in Houston. The company's niche is distressed and value-add assets, which has helped it grow to nearly 1,100 units throughout Southern California and Texas.
LEASES
Rayford Harmony, a 39K SF lifestyle center at 3555 Rayford Road in Spring, is now 100% occupied. Capital Real Properties signed leases with Big City Wings and JAX Burgers Fries & Shakes. GJW Commercial Real Estate's George Jones represented Big City Wings. Capital Retail Properties' Jacob Weersing represented JAX. Capital Retail Properties' Anderson Smith and Connor Lynch represented the landlord.
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Liberty Lift Solutions LLC signed an 11K SF office lease at 16420 Park Ten Place Drive in Houston. NAI Partners’ Griff Bandy represented the tenant.
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Regions Bank signed a 23K SF lease for a new branch at the northeast corner of San Felipe Street and Fountainview Drive in Houston. CBRE's Russell Janicek represented the bank. Davis Commercial Real Estate's Mark Davis represented the landlord, Dinos Texaco Inc.
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Martha Turner Sotheby's International Realty signed a 33K SF office lease at Amegy Tower at 1717 West Loop South. The company is relocating its central Houston office building a half mile from its current office at 50 Briar Hollow Lane in the Post Oak area.
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American Production Valve inked a 12K SF industrial lease at the Stafford Centre Business Park in Stafford. NAI Partners’ Zane Carman and Clay Pritchett represented the tenant.
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Bill.com, a digital business payment company, signed a 25K SF office lease at CityWestPlace at 2103 CityWest Blvd. in Houston.
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Texas Installs LLC signed a 20K SF lease for an industrial design/build building at 4633 Kennedy Commerce Drive in Houston. NAI Partners’ Chris Caudill represented the tenant. Clay Development's Copeland Rhea is handling the construction of the facility.
FINANCING
Citi and MUFG will lead global capital raising efforts for Texas Central, a high-speed train line between Houston and North Texas. Citi and MUFG will serve as financial advisers and help secure the financing across debt and equity to fund the project.
DEVELOPMENT
MedCore Partners and The National Realty Group will soon break ground on a 190-unit senior living facility on a 7-acre site on the northeast corner of West Lake Houston Parkway and Will Clayton Parkway. Fountainwood at Lake Houston offers 98 independent living, 68 assisted living and 24 memory care apartments. Fountainwood will open in summer 2020.
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HFF and Megacenter Willowbrook LLC completed Phase 1 of the Megacenter Willowbrook, a 236K SF mixed-use project comprising industrial flex, self-storage, retail and office space in northwest Houston.
THIS AND THAT
NAIOP Houston recognized some of the city's top commercial real estate professionals for 2018:
- Broker of the Year, Industrial: JLL's Ryan Fuselier.
- Broker of the Year, Office: CBRE's Rich Pancioli.
- Rising Star Award, JLL's Geoff Perrott and Eugene Terry.
- Industrial Deal of the Year: Best Buy's cross-dock fulfillment and distribution center at Beltway Crossing in Missouri City, negotiated by Avison Young's Todd Mason, Jeff Lindenberger, Andrea Gardner, Taylor Wilson and Richard Mason.
- Office Deal of the Year: a 568K SF build-to-suit office lease for Hewlett Packard Enterprise at CityPlace Springwood Village, brokered by JLL's Ronnie Deyo and Beau Bellow.
