Houston Firm Grows Office Portfolio With Mattress Firm HQ Acquisition: The Houston Deal Sheet
Houston-based private equity firm DML Capital bought the Reserve at Westchase, a 195K SF office building, from Transwestern Investment Group.
Reserve at Westchase, at 3250 Briarpark Drive in the Westchase submarket of Houston, is 76% leased. Houston-based Mattress Firm relocated its headquarters to a 56K SF space in the building in 2023.
Originally built in 1999, the four-story building has undergone renovations over the past five years. The property includes a first-floor tenant lounge and conference center and a parking garage with 804 spaces.
The JLL Capital Markets Investment Sales and Advisory team led by Kevin McConn represented the seller. JLL’s Debt Advisory team, including Michael Johnson and Michael King, worked on behalf of DML to secure insurance company financing for the acquisition, though the financing amount was not disclosed.
DML Capital also acquired the 209K SF 4625 San Felipe office tower in November. That followed the firm buying a Sugar Land office complex in March 2024, its first office acquisition.
PEOPLE
Partners Capital, the investment platform of Partners Real Estate, hired Alex Board as senior vice president of finance. He will oversee the finance and accounting functions for Partners Capital.
Board previously served as chief financial officer and principal accounting officer at Silver Star Properties REIT, where he managed financial reporting and treasury operations.
SALES
Seojin Global acquired a newly constructed, 157K SF spec distribution facility at 500 N. Sam Houston Parkway. John Ferruzzo of KBC Advisors and Jude Filippone of Transwestern represented Brennan Investment Group in the sale. Grant Hortenstine and Thomas Berry of CBRE represented the buyer.
***
Partners Real Estate arranged the sale of Spring Park Village, a 43K SF retail property at 19380 Interstate 45 N. in Spring. Partners' Marc Peeler and Cobo Fajardo represented the buyer.
CONSTRUCTION & DEVELOPMENT
Sueba USA began construction on Missouri City 1, a 346-unit, Class-A multifamily development within Phase 3 of Fort Bend Town Center. The permanent name for the development will be announced prior to its opening. Construction is expected to be completed by fall 2026.
The development at 4150 Archer Way in Missouri City will have units ranging from 496 SF to 2,088 SF. Architectural design services for Missouri City 1 are provided by Sueba Consulting Inc., and general contracting services are being delivered by SCS 211 Series, both Sueba USA affiliates. Sueba USA eventually plans to develop a second apartment community adjacent to Missouri City 1.
***
Stream Realty Partners broke ground on Kirby District, a two-building industrial development near Sam Houston Tollway and Highway 288 in South Houston. Building 1, at 14621 Kirby Drive, will offer 117K SF of rear-load industrial space. Building 2, at 11555 N. Spectrum Blvd., will span 267K SF in a cross-dock configuration.
Stream is developing the project through its investment management platform, with Stream’s industrial development services team overseeing execution. The project team includes Justin Robinson, Craig McKenna, Tyler Wellborn and Kristina Gibson. Garret Geaccone and Meg Zschappel will handle leasing. Additional team members from Stream’s Investment Management group include Adam Jackson, Mustafa Ali, Scott Thetford and Tricia Larsen.
E.E. Reed Construction is serving as the general contractor. Ware Malcomb is the project architect, and Halff is the civil engineer. Kirby District is expected to deliver in the first quarter of 2026.
***
Newman CRE broke ground on Phase 2 of Flex Creekside, a mixed-use development just west of The Woodlands. Phase 1 is 100% occupied and consists of a retail center and three flex buildings. Phase 2 will add three additional buildings totaling 33K SF.
The building will cater to users of under 12K SF, “including dynamic, quasi-retail tenants like indoor soccer, pickleball, gyms, man caves, and creative office,” Newman CRE CEO Nate Newman said in a news release.
FINANCING
Dallas-based Hall Structured Finance closed on a first lien construction loan of $36.2M to develop Humble Ranch, a 160-unit, cottage-style, build-to-rent community in Atascocita, 5 miles from Humble. The borrower is Lēva Living, a Houston-based residential development firm. The community will offer a mix of one-bedroom duplexes and three-bedroom detached homes.
