The Deal Sheet
Trammell Crow and Clarion Partners broke ground on Fallbrook Pines Business Park. With 709k SF in the first phase, it’s the largest industrial development under construction in the Houston region. (You don't necessarily need a helicopter to get from one side to the other, but it can't hurt.)
Phase 1 includes four tilt-wall office/warehouse buildings (two side-load, one cross-dock and one front-load) with fenced truck courts and will deliver in Q1 ‘15. The park sits on 127 acres near the intersection of Beltway 8 and Highway 249 on Fallbrook Drive. Trammell Crow principal Jeremy Garner says he hopes to snag tenants for the spec property with the northwest location, multiple access points to Beltway 8, Fallbrook Drive visibility, unique architecture, new roads and attractive landscaping with mature trees. 66 acres remain available, and Jeremy says they'll do build-to-suits there, or will consider more spec development once Phase 1 is mostly leased.
It's tough to find developable land in the heart of Northwest Houston. Trammell Crow had to assemble four adjacent land tracts from four different sellers (sometimes off-market deals) to get this site. Only one tract provided direct access to Fallbrook Drive, so it had to be acquired before moving on to the rest. Jeremy says the challenge of getting those all done in a limited period of time was compounded by a lack of access to utilities and roads for three of the tracts. They've since been annexed into a utility district, and Trammell Crow is building new roads and utilities simultaneous to the first phase of buildings. Powers Brown is handling designing, Rosenberger is GC, and CBRE’s Faron Wiley and Joseph Smith will handle leasing.
Naveen Jaggi joined JLL as president of JLL Americas Retail Brokerage. He has 13 years of experience and was previously senior managing director of retail services at CBRE. He will oversee more than 100 brokers spanning 25 major markets and will serve 500 retail owner/occupier clients. JLL’s retail leasing and tenant rep practice has been growing for the last two years.
Boyd Commercial’s Andy Sowell was named president of the Houston/Gulf Coast chapter of SIOR. He has been a member since ’06 and has served on the board of directors for the chapter since 2010.
Harbor Group International acquired a 12-property, 3,100-unit multifamily portfolio in Houston and Dallas. It’s the largest acquisition in HGI’s history, and it will invest $10M into upgrading the properties. CBRE’s Dirk Goris repped the seller. The Houston properties are Milano (330 units, pictured) and Cypress Lake (216 units).
The British International School of Houston (BISH) acquired 33 acres on the southwest corner of Westgreen Boulevard and Franz Road in West Houston for a new campus. The location is a mile north of I-10 and 2.3 miles east of the Grand Parkway. BISH will build a 274k SF and 2,000-seat campus to serve Pre-K through 12th grade, which will open in September 2016. BISH’s current campus seats 1,000 and will close when the new facilities open. Cushman & Wakefield’s Andrew Spence and Cape Bell repped the buyer. John Deboben repped seller KUT Partners.
Mascorp renewed 43k SF at 4310 Campbell Rd. NAI Houston’s John Ferruzzo and Chris Kugle repped the tenant and Insite’s Steve Hazel repped landlord Cabot IV Texas.
Baker Katz’s Jason Baker negotiated five Chipotle leases in Texas, including three in the Houston metro. The locations range from 2k to 3k SF. In Houston, it took down a space in Memorial City Mall, one at Highway 290 at Spring Cypress and one at I-45 North at Louetta in Spring.
Tanglewood Property Group purchased 2000 Bering, a 192k SF office building in the Tanglewood area just west of the Galleria. It’s 97% leased. This is Tanglewood’s second office acquisition in 2014; it also purchased 5300 West Sam Houston Pkwy N. Henry Hagendorf and Cliff Rudolph repped the buyer in-house. The firm now owns 1.4M SF in Houston, primarily in the Uptown/Galleria submarket.
Tema Development broke ground on Hermann Park Residences, a $75M, seven-story luxury apartment building. This is the first of three projects Tema has planned in the Museum District—Phase 2 will be a 42-story high-rise, and Phase 3 is a mid-rise. All three will be built over the next four to six years. Hermann Park Residences will feature 224 units, which will all overlook Hermann Park (many will get balconies) or the courtyard. The property will deliver in late 2016. Morganti Texas is the construction manager, Corgan Associates is architect of record, and Greystar will manage the property.
NewQuest Properties’ Allen Crosswell and Tasi Roth, along with Midway’s Brad Freels, repped JitSun/EMAS in a $53M JV project at City Centre. CityCentre Five will be a 15-story office building comprised of 200k SF of Class-A office with restaurant and retail on the ground floor.
Q10 KDH’s Ryan Watson secured a fixed-rate loan for Oaks on Bissonnet Apartments, a 356-unit property. It’s stabilized, but the owners recognized the potential for growth with an interior/exterior rehab plan. Ryan secured financing through a Houston-based bank with additional proceeds to facilitate the project.
THIS AND THAT
Buckhead Houston Industrial Portfolio selected Holt Lunsford Commercial to lease and manage the recently acquired 554k SF portfolio consisting of 9500-9540 Clay Road, 5910 West by Northwest Blvd, 11502 South Main and 8811/8801 Wallisville Rd. John Kruse will lead leasing, and Kirt Rimpela will handle property management.