The Deal Sheet
Energy XXI Services expanded by 25% in One City Centre, bringing it to 171k SF in the building. That’s just the latest in an impressive history of growth in the facility. (It's impossible to buy clothes for the facility because it grows so much... and they're buildings so they don't wear clothes.)
Transwestern EVP David Baker, who reps One City Centre, tells us Energy XXI occupied 35k SF when he took on the assignment in 2006. The latest leap in SF is due to its acquisition of EPL Oil & Gas in March. David says One City Centre is 90% leased, largely dominated by two companies who can’t seem to stop expanding (The Universe is always expanding, companies are just trying to keep up)—Energy XXI and Waste Management (which now has 260k SF there). Transwestern has been getting lots of prospects on the remaining space, but David tells us his priority is making sure those dynamic existing clients have room to keep growing.
One City Centre is owned by Beacon Investments (one of 14 office buildings it owns in Houston). Energy XXI was repped by Wilson Wasaff Group’s Jason Wasaff. David’s landlord rep team includes SVP Monte Calvert and VP Kelli Crutchfield.
EXECS
Chad Beck joined Cushman & Wakefield as senior director specializing in office tenant rep. He has almost 20 years of experience, and was previously SVP of JLL’s tenant rep group.
SALES
The Jenkins Org purchased Reading Road Self Storage in Rosenberg. The 258-unit facility includes more than two acres for expansion. Bellomy & Co’s Bill Bellomy, Michael Johnson, and John Owens facilitated.
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A local private partnership purchased South Wayside Village, a 29k SF shopping center at 5819 Gulf Freeway. Marcus & Millichap’s Justin Miller and Derek Hargrove listed the property at $8.5M. The asset was built in ’06 and is benefiting from the dense urban environment, traffic counts, and tremendous growth from the expansion of U of H.
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Tanglewood Property Group purchased 5300 W. Sam Houston Pkwy N, a 101k SF office building in Beltway 8 Corporate Center. It’s 100% leased. Tanglewood prez Henry Hagendorf and CBRE’s Tom Lynch repped the buyer.
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Transwestern’s healthcare advisory services team (led by Jonathan Peranich) brokered the sale of eight dialysis facilities valued over $17M within the past eight months. The buildings are in Florida, Ohio, New York, Texas, West Virignia, and Wisconsin. All are tenanted by either DaVita Dialysis or Fresenius Medical Care.
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Soledo purchased 3903 Stoney Brook, a 17k SF office building. It’s the third property purchased in seven years for DRAW Charter School to expand its campus. (This building will be modified into classrooms that will open for the fall semester.) RE/MAX Memorial Town & Country Commercial’s Sky Pulford repped the buyer and ABC Realty’s Donnie Chang repped seller KPMS.
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An international private investor purchased Cinco Ranch Plaza I, a 21k SF retail property in Katy. Marcus & Millichap’s Derek Hargrove and Justin Miller repped seller The Marcel Group and listed the asset at $5.8M. The buyer used the acquisition as a legacy anchor to future holdings in the Houston metro, and The Marcel Group has plans for $500M of new development over the next 24 months.
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Bourdin Ventures purchased two self-storage facilities totaling 521 units at 11901 SH 249 and 1850 W 43. Both properties were owned by Jim Rutherford Properties. RE/MAX Memorial Town & Country Commercial’s Sky Pulford facilitated.
LEASES
Integrity Measurement & Control leased 12k SF of industrial space at 525 Julie Rivers Dr. Boyd Commercial/CORFAC’s Bo Pettit repped the tenant and NAI Houston’s Jon Michael and Ed Bane repped landlord Reed Road AB Mayfield.
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Harco Insurance Services leased 20k SF at 10777 Northwest Fwy. Colliers’ Charles Fertitta repped the tenant and CBRE’s Kristen Rabel and Rima Soroka repped landlord Central United Life Insurance Co.
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Hyperdynamics Corp renewed 14k SF at 12012 Wickchester Ln. CBRE’s Jon Lee repped the tenant.
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Goodman Distribution leased 37k SF at 7330 Langfield Dr. E Smith Realty’s Brant Landry repped the tenant and CBRE’s Faron Wiley and Billy Gold repped landlord WR Avera Rampart Yorkfield.
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Jotun Paints renewed 26k SF at 1485 E. Sam Houston Pkwy. CBRE’s Faron Wiley repped the landlord and JLM Commercial Advisors’ Lane Guinn repped the tenant.
DEVELOPMENT
Western International purchased 5.2 acres in the Energy Corridor to develop two hotels. Wolff’s Ten Oaks will be the new home of a Courtyard by Marriott and a Hampton Inn & Suites by Hilton. The site is across the street from the Texas Medical Center West Campus. Each property will have 135 rooms and will break ground this summer. Western International already developed two Energy Corridor hotels, the Residence Inn in Park 10 and the Marriott Hotel at I-10 and Park Ten Boulevard. With these new properties, the Energy Corridor will boast 26 hotels.
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Satterfield & Pontikes is building a 32k SF facility for Micro Center. The $6M project will be constructed on a 3.5-acre site near the intersection of South Rice Boulevard and Westpark Drive. The facility, delivering in six months, includes a showroom, offices, and storage/stock room. Powers Brown is handling design.
FINANCING
BMC Capital’s Patrick Short arranged a $550k cash out refi loan for a 16-unit multifamily property. It featured 59% LTV, five-year fixed rate at 4.75%, and 20-year amortization.
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CRC’s Jason Dannatt closed a non-recourse permanent loan for the owners of 5515 Brittmoore, a 123k SF distribution facility occupied by Builder’s First Source. It was arranged through a life insurance company.
THIS AND THAT
NAI Houston was awarded leasing and property management for 917 Franklin St, a six-story 39k SF office building in Houston’s Historic District near Market Square. Doug Pack and Drew Crawford will lead the effort. Doug also repped the buyer in its recent purchase of the facility.
