The Deal Sheet
Summit Universal is launching development of Montgomery Summit Business Park, a 96-acre master-planned project minutes from Lake Conroe. Unlike other potential projects nearby, it's not waiting for tenants before it breaks ground. (If we all waited around for tenants, we'd never have built anything.)
Snapped at the site this morning: The Nelson Co's Wade Nelson, who's co-brokering with Avison Young's Kent Willis (not pictured); and Summit Universal's Mike Ogorchock with his partners and sons Kris Ogorchock and Michael Ogorchock. Mike tells us it's on the fast track—his firm closed on the last piece of property in June and expects to start pouring slabs in late October. (Look for first deliveries just after the New Year.) The first piece of the development, which sits north of downtown Montgomery on FM 1097, is 18 office, warehouse, and flex buildings totaling 200k SF. Overall, Phase 1 will include about 600k SF of retail, office, and flex space. Uncle Bob’s Self Storage has already locked into the park: Its 87k SF facility will open next spring.
Here’s the site plan for Phase 1. Kent tells us the team has two priorities: Getting this on the ground quickly—Montgomery keeps getting calls from companies but has almost nothing on the ground to support them—and being flexible. He and Wade are marketing the project for lease (ranging from 1,500 SF to 40k SF), sale, or BTS opportunities. If they tear through the 96 acres quickly, that's no problem; Mike says he could easily add 150 adjacent acres to the park as needed.
Summit Universal is just one developer taking note of the increased demand around Montgomery. Howard Hughes' master-planned community north of Conroe and Tiger Woods’ Bluejack National (above, just envision a bit more green) are under construction, and a retail center anchored by big-box grocery is breaking ground soon at the corner of 105W and Lone Star Parkway. There are also infrastructure improvements underway surrounding Montgomery Summit Business Park, including the expansion of Texas 249.
Nick Limperos joined Caldwell Brokerage Co as VP in its industrial division. He has more than 25 years of industry experience, and has done stints with Henry S. Miller and Grubb & Ellis.
Jennifer May joined the City of Sugar Land as director of economic development. Jennifer has been serving in the position as interim since April. She will also serve as staff liaison to the Sugar Land Development Corp and Sugar Land 4B Corp. She has been with the City for eight years.
Bury promoted three employees: Jim Norris to senior engineering tech, Anna Morgan to project analyst, and Michael Jenkins to survey tech.
Omninet Capital purchased Southwest Corporate Center, a 526k SF office complex in the southwest/Beltway 8 submarket. HFF’s Rusty Tamlyn, Wesley Hightower, and Rhonda Toming (who's since moved to Fischer Cos) repped seller TX 9700 Bissonnet LLC. The deal closed all-cash in less than 20 days. Southwest Corporate Center was transformed from the former Westwood Mall and renovated in 2000. It’s 62% leased.
An undisclosed buyer purchased Victoria Garden, a 232-unit multifamily property in Rosenberg. Marcus & Millichap’s Juan Cuevas listed the property at $6.6M.
An undisclosed Houston-based buyer purchased Johnny Carino’s ground lease on 61k SF of land in Missouri City’s Riverstone master-planned community. Marcus & Millichap’s James Bell listed the tract at $1.8M, and his colleague Kirk Trammell assisted the seller. Marcus & Millichap’s Justin Miller and Derek Hargrove repped the buyer.
CenterPoint Properties purchased four buildings totaling 1.2M SF at Cedar Crossing Industrial Park in Baytown. CBRE’s Billy Gold and Tom Lynch repped the buyer, and CBRE’s Josh McArtor repped the seller. The property is fully occupied by Exel Logistics. Cedar Crossing is the world’s fifth-largest industrial park and sits across from the Barbours Cut and Bayport container terminals. CenterPoint Properties also acquired a 213k SF port-proximate facility at 3240 South Loop E. The rail-served property sits on 8.9 acres and is fully leased to Gulf Winds International. CBRE’s Bill Rudolf repped the buyer. CenterPoint has purchased 2.7M SF in Houston this year.
Carter Validus Mission Critical REIT II acquired its first property: Cy-Fair Surgery Center, a 14k SF property on the campus of Cypress Fairbank Hospital. The asset is 100% net leased.
Capital Square Acquisitions purchased a 21k SF acute care rehab center in a sale-leaseback. JLL Capital Markets’ Rudy Hubbard, Kevin McConn, and Rick Goings repped seller Mentis Houston RE. Mentis has leased the property through 2029 and hopes the sale will fuel the continued growth of its Mentis Neuro Rehabilitation, which has already doubled in the previous two years. The building was constructed in ’08 near the Med Center and underwent extensive expansion in 2012. Now it’s adding eight patient rooms and expanding the gym.
An undisclosed buyer purchased a 22k SF warehouse on 3.3 acres at 10531 Fisher Rd. Cypressbrook’s Jim Cooper repped seller JKM Fisher Properties, and NAI Houston’s Chris Caudill repped the buyer.
An undisclosed buyer purchased The Center, a three-building office campus totaling 377k SF on the 8000 block of the Southwest Freeway. Tarantino Properties’ Anthony Tarantino and Peggy Rougeou repped the seller, and Logan Brown Investment RE’s Logan Brown repped the buyer. Tarantino also brokered the sale of Brownstone Office Condominiums, a five-building property totaling 20k SF. Larry Vickers repped the seller.
NDLI leased 46k SF at Sam Houston Business Park, bringing Levey’s project to 70% occupancy. CBRE’s Joseph Smith repped the landlord and his colleague Glynn Mireles repped the tenant. Levey is now designing Building 4.
G&H Diversified Manufacturing leased a 25k SF office/warehouse at 10930 Brittmoore Park Dr. Southwest Realty Advisors’ Steven O’Connor, Emilee Shepherd, and Marc Drumwright repped landlord MM Investments, and JLL’s David Buescher repped the tenant.
CONSTRUCTION & DEVELOPMENT
Home2 Suites by Hilton entered the Houston market, opening a 92-key facility in Katy. The hotel is owned by Shree Tirupati Balaji and managed by Integral Hospitality Solutions. It’s the mid-tier, all-suite brand’s 39th hotel.
Whitestone REIT launched the repositioning of two retail properties in Sugar Land: 95k SF Sugar Park Plaza, and 90k SF Providence Plaza. The two centers will undergo $1.4M in redevelopment, and Whitestone expects it’ll payback in less than 24 months.
Gulf Winds International developed and expanded two facilities totaling 543k SF. JLL’s Jeff Venghaus and Ryan Fuselier repped Gulf Winds in two deals—a new 10-year lease in a 243k SF BTS in Seabrook, and a 300k SF lease expansion at 359 Old Underwood Rd in La Porte (pictured). The BTS cross-dock facility will deliver at the end of this year, bringing Gulf Winds to 460k SF adjacent to the Bayport Terminal.
Transwestern’s Jan Sparks and Michael Snodgrass arranged construction financing for the Astoria, a high-rise condo tower that broke ground in the Galleria last year. The 29-story property will include 75 units when it delivers in December 2016. The borrower was DC Partners’ Randall Davis. Page handled design and GT Leach Constructors is GC. Jan says it was challenging to find a construction lender willing and able to take on a ground-up, for-sale condo development of this size on a non-recourse basis. Individual investors provided equity funding for the Astoria through the Houston EB5 Regional Center.
THIS AND THAT
Centerline Capital Group has been renamed Hunt Mortgage Group, after being acquired by the firm late last year.