This Week's Houston Deal Sheet
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CapRidge Partners acquired a three-property office portfolio in Houston's Galleria area. Totaling more than 540K SF of office space, the properties are 1616 Voss, 7500 San Felipe and 6363 Woodway.
The office buildings will undergo $15M in extensive renovations, including upgrading building systems and common areas and adding tenant-centric amenities.
“We are excited to expand CapRidge Partners’ presence in the dynamic Houston market," CapRidge Partners Director Dan Terpening said. "The portfolio provides a great opportunity to add value by utilizing our disciplined investment experience and operational excellence.”
HFF secured the four-year, floating-rate acquisition/bridge financing through New York Life Real Estate Investors on behalf of New York Life Insurance Co.
HFF's Dan Miller, Martin Hogan and Johnny Kight represented the seller, Unilev Capital Corp. HFF's Jim Curtin and Andy Scott represented the buyer. Stream Realty Partners' Craig McKenna and Matthew Asvestas will lease the office portfolio.
NAPCOM LLC purchased a 5K SF lot along Katy Freeway and Cornish Street in the Heights. It plans to build a medical office building for its own use. Keller Williams Memorial's Stephanie Willis represented the buyer. Davis Commercial's Ryan Neyland represented the seller, T L Moore.
SCI Texas Funeral Services purchased 2.1 acres at the intersection of Shadowcreek Parkway and Kingsley Road in Pearland. NewQuest Properties' Brad LyBrand and Brad Elmore represented the seller, A-S 143 SC Ranch L.P. Cushman & Wakefield's Scott Miller represented the buyer.
Texas Yards LLC acquired a 50K SF heavy manufacturing facility on 7.4 acres at 8310 McHard Road, Houston. The property features a single 50-ton overhead bridge crane. NAI Partners’ Clay Pritchett and Zane Carman represented both the buyer and the seller, McHard Road Partnership.
MarketSpace Capital acquired the Westwood Village Shopping Center at the southeast corner of Bissonnet Street and Southwest Freeway in Houston. The property totals 43K SF on 2.6 acres and is 84% occupied. It was constructed in 1975 with partial renovations in 2012. Flagship Capital Partners will provide financing for the acquisition and redevelopment. Renovations are expected to begin immediately by repairing the roof and parking lot, upgrading lighting, signage and the sidewalk, and repainting the exterior of the property. Huntington Properties' Sam Affanhe represented the buyer.
Madison Marquette has secured over 95K SF of office lease transactions at Bank of America Center at 700 Louisiana, Downtown Houston. Madison Marquette’s John Spafford and Madeline Gregory represented the landlord, M-M Properties, in the following deals completed in Q4 2018:
- Kilpatrick Townsend & Stockton LLP, an international law firm, signed an 18K SF office lease. CBRE’s Doug Elliott and Ron McWherter represented the tenant.
- Weil, Gotshal & Manges LLP, an international law firm, renewed a 21K SF office lease. JLL’s John Burke represented the tenant.
- Schiffer Hicks & Johnson PLLC, a Houston-based litigation firm, renewed its 6,248 SF office lease and expanded into an additional 4,627 SF. CBRE’s Jon Lee represented the tenant.
- Carlson Capital L.P., an asset management firm, renewed an 8,744 SF office lease. Cushman & Wakefield’s Angus Hughes represented the tenant.
- BMO Capital Markets Corp., a North American financial services provider, renewed a 30K SF lease and expanded into an additional 7,065 SF. JLL’s David Bale and Eugene Terry represented the tenant.
Woof Gang Bakery & Grooming signed a lease at Creekside Park Village Green in the Creekside Park Village Center at 26400 Kuykendahl Road, The Woodlands. The tenant is a specialty retailer of pet food, pet supplies and professional pet grooming with more than 110 locations nationally. S&P Interests' Joshua Sebesta represented the tenant. The Howard Hughes Corp.'s Rip Reynolds represented the landlord in-house.
Advanced Home Health Services Inc., Apen Inc., Maxwell Providers Inc. and Gablink Inc. signed a lease for office space at 2950 South Gessner, Houston. Also, Lumiere Spa LLC extended its office lease at the building. Finial Group's John Buckley, William McCarthy and Jack Parsons represented the landlord. Finial Group manages and leases 2950 South Gessner.
White & Case LLP signed a 57K SF office lease at 609 Main at Texas in Downtown Houston. The global law firm will occupy the 29th and 30th floors on an 11-year lease. The lease brings occupancy to 84%. Colvill Office Properties' Michael Anderson and Damon Thames represented the landlord, Hines. JLL’s David Bale represented the tenant.
Australia-based Caydon named its high-rise multifamily project at 2850 Fannin St. as Drewery Place. The $200M tower will be the first high-rise tower in Midtown and is part of the first phase of Laneways, a 2.5M SF mixed-use development. Newly announced tenants include Black Swan Yoga and Earthcraft Juicery at Drewery Place. Caydon partnered with the Houston Art Alliance and selected 29 local artists to showcase their artwork in Drewery Place with hallway spaces, a garage mural and hanging atrium pieces. Caydon also partnered with Amazon to bring high-tech perks to its first U.S. project. Pre-leasing begins in May and Drewery Place will open to residents in July.
Energy Rental Solutions broke ground on its 40K SF facility in Pearland earlier this month. Situated on a 12-acre site in the Rice Drier Commerce Park, the facility will include office and warehouse space for about 55 employees. The site is part of the 18-acre Rice Drier Commerce Park, a development in an area identified as Business Park North in the State Highway 35 Redevelopment Strategy.
THIS AND THAT
Beth Wolff Realtors celebrated 40 years in the real estate industry. Founder and Chairman Beth Wolff and President and CEO Ed Wolff hosted a party to highlight the company's milestone at the home office on St. James in Houston.
Rogers-O’Brien Construction earned a National Excellence in Construction Eagle Award from Associated Builders and Contractors in the Renovation Category. The recognition is for the work on the WeWork 708 Main in Houston. The interior renovation project is an 86K SF, nine-floor modernization of the historic Great Jones Building, which opened in 1908.
Metropolis Investment Holdings Inc., owner of Pennzoil Place, and Transwestern Commercial Services partnered with Gensler to create a custom installation for the Pennzoil Place atrium at 711 Louisiana St., Houston. The abstract installation is called Holographic Sky.