This Week's Houston Deal Sheet
A new 150K SF spec office building is headed to Katy.
Freeway Properties is constructing Phase 2 of the Katy Ranch Offices at 24279 Katy Freeway. The groundbreaking is set for mid-July, and the project is expected to deliver in the summer of 2020.
The new six-story tilt-wall structure will target tenants such as corporations (local and national in all industries), medical with little to no invasive procedures and a bank for the ground level. Powers Brown Architectures will serve as the architect and LaGrone Services Ltd. as the general contractor.
Completed in 2015, the first 151K SF, Class-A office building is 100% occupied by tenants including U.S. Silica, Waste Management, Liberty Mutual, Flagstar Bank, Loan Depot and Price-Gregory International, Ace Energy Solutions and Escalate Workspace.
The office campus will be connected by a skybridge on Level 3 of the garage on the new building. Level 3 of the new building will serve as the main lobby complete with conference rooms, training rooms and a catering area. The five-story garage will be expanded from 460 parking spaces to 1,071 parking spaces to accommodate additional employees.
The office development highlights the expansion of Katy. More than 1,000 apartment units are under construction, per the release.
Freeway Properties also owns and operate Katy Ranch Crossing, a 500K SF retail center adjacent to Katy Ranch Offices. Major tenants include Main Event, Freddy’s, PGA Tour Superstore, Northern Tool, Duluth Trading, Floor 7 Décor, iRace Entertainment, Planet Fitness, Navy Federal and Taco Cabana. There is still space available to lease.
Freeway Properties also owned a 315-unit apartment, Crossing at Katy Ranch Apartments, in the area, but sold it to an undisclosed REIT.
Scott Orr was promoted to senior vice president at Gilbane Building Co. With more than 25 years of experience, Orr will be responsible for operational, sales and administrative functions across Texas. Orr succeeds Dan Gilbane, a member of the fifth generation of the Gilbane family, who will assume leadership of companywide strategic initiatives. He joined the company in 2011 in Cleveland, leading construction projects for corporate, healthcare, hospitality, higher education and federal clients.
A private investor purchased Normandy Shopping Center, a 44K SF retail strip center at 12620 Woodforest Blvd., Houston. The center is 98.1% leased and shadow anchored by a Kroger store. HFF’s Ryan West, John Indelli and Johnny Kight represented the seller, Williamsburg Enterprises Ltd.
Ball & Farrar Properties LLP purchased a 6K SF two-story flex building on 0.27 acres at 1117 Herkimer St., Houston. NewQuest Properties' Neal Thomson and Chris Dray represented the seller, Yun Global LLC. Oxford Partners' John Zivley represented the buyer.
Stockdale Capital Partners acquired 20 Greenway Plaza, a 433K SF, Class-A creative office building in Houston. The 10-story project was most recently renovated in 2014 and is 95% leased to a diverse tenant roster, including Merrill Lynch, Sunnova Energy Corp., Realec Technologies, Mitsubishi and Koch. HFF placed the seven-year, fixed-rate acquisition loan with Cigna Realty Investors. HFF's Dan Miller, Trent Agnew and Wally Reid represented the seller, Principal Real Estate Investors.
Bestec Houston LLC purchased a 10K SF industrial property at 3113 Farrell Road, Houston. Lee & Associates' Mike Spears and Chase Cribbs represented the seller, TexWarehouse Inc. Principal Realty Group's Marc Lawson represented the buyer.
LEMA Properties L.P. purchased an 8K SF lot at 1105 Berthea St. in the Museum District for potential townhome development. Keller Williams' Peggie Konhert represented the buyer. Davis Commercial's Ryan Neyland represented the seller, Joanne B Olson Estate.
An undisclosed buyer acquired Mason & Franz at 2015 North Mason Road, Katy. EDGE's Burdette Huffman and Josh Jacobs represented the seller, Vaquero Mason Franz Partners L.P. Huntington Properties' Sam Affanhe represented the buyer.
National Storage Affiliates purchased a nine-property portfolio totaling 684K SF of self-storage facilities. The properties, in Dripping Springs, Wimberly, Seguin, Conroe, Houston, Deer Park, La Porte, Pasadena and Manvel, were purchased for an undisclosed price. JLL’s Steve Mellon and Brian Somoza represented the seller, Locktite Storage.
Friendswood Development Co. acquired a 200-acre tract at FM 2218 and Koeblen Road in Rosenberg. McAlister Real Estate’s James Kadlick, Harrison Kane, Chris Hutcheson and Matt Herring represented a family trust.
Hilltop Residential secured financing for Waterside at Mason, a 246-unit, Class-A community at 1901 Waterside Village Drive in Richmond. The five-year, fixed-rate loan with interest-only payments was done through a life company correspondent lender. Completed in 2017, the property offers access to the Grand Parkway and the Westpark Tollway. HFF's Cortney Cole and Jett Lucia represented the borrower.
MIAT College of Technology signed a 56K SF industrial lease at 533 Northpark Central Drive, Houston. NAI Partners’ Chris Kugle and John Ferruzzo represented the tenant. Cushman & Wakefield's Jason Dillie represented the landlord, Prologis.
NAI Partners Houston signed a 20K SF lease at 1360 Post Oak Blvd., Houston. The real estate firm will take a full floor at the Four Oaks Place office complex in the Galleria, expanding by 6K SF from its current home at 1900 West Loop South.
Dollar Tree signed a 10K SF lease at Klein Square at 16812 Stuebner Airline Road, Spring. Williamsburg Enterprises' Perry Zieben represented the tenant.
Polo Ralph Lauren Factory Store will open a 14K SF location at Houston Premium Outlets in November. The store will have styles for men, women and children as well as luxury lifestyle goods including accessories.
Distribution International Inc. renewed a 171K SF industrial lease at 9000 Railwood Drive. The company is expanding by 80K SF with a new lease on an adjacent property at 9040 Railwood Drive and leasing a 25K SF in KBR Tower at 601 Jefferson St. in Downtown Houston. JLL’s Louie Crapitto, Ryan Fuselier, Craig Jones and David Buescher represented the tenant.
Janitor’s Warehouse Inc. renewed a 17K SF industrial space at 6546 Petropark Drive in Houston. Lee & Associates' Clint Hankla represented the tenant. JLL's Jarret Venghaus represented the landlord, J & H Realty Inc.
LMI Capital's Brandon Brown arranged the cash-out refinance of a 20-unit asset in the Baytown submarket. The permanent debt featured a 4.74% fixed interest rate and two years interest-only during the seven-year term.
LMI Capital's Kurt Dennis originated a five-year acquisition loan for a 30-unit asset in Northwest Houston. The first mortgage featured a 4.74% fixed rate.
LMI Capital's Jamie Safier closed four capital markets deals:
- She arranged the cash-out refinance of a 20-unit property in the Baytown submarket. The debt featured a fixed interest rate and three years of interest-only.
- Safier originated a $13.7M acquisition loan for a 240-unit asset in southeast Houston. The first mortgage featured a 4.27% fixed interest rate and five years of interest-only, allowing the borrower to complete planned property renovation.
- She closed a $7M acquisition loan for a 105-unit property in east Houston. The first mortgage equated to 77% loan-to-purchase and included a 4.63% fixed rate and three years of interest-only.
- Safier closed a 78% loan-to-purchase acquisition loan for a 50-unit asset in Northwest Houston. The first mortgage featured a 4.15% fixed interest rate and two years of interest-only to accommodate the borrower’s renovation plans.