An undisclosed REIT purchased a 108k SF, two-building MOB complex anchored by Memorial Hermann Rehab Hospital and Ambulatory Surgery Center in Katy.
Marcus & Millichap's Scott Niedergang and Gino Lollio (out of its Chicago office) repped the seller, a partnership of local private investors and physicians practicing in the facilities. They say the deal was spurred by the rehab hospital/surgery center selling its operations to Memorial Hermann. They're seeing these types of deals around the country—physician groups are opting to sell their practices to health systems. That's good news for landlords, which see credit go up on their rent rolls, which in turn raises the property's value. Before going to market, the duo helped the seller lock down a new 10-year lease with the surgery center.
EXECS
Three people joined Cresa’s project management team: Michael Cropper as principal, Kevin Kramer as senior adviser and Laura Kleihege as associate project manager. Michael will lead the firm’s project management efforts. He has 30 years of experience.
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Matt Damborsky joined Skanska as VP of development. He has nearly 10 years of experience, most recently serving as managing director for Hines. There, he worked on the Shell Woodcreek campus expansion and the redevelopment of Shell’s Westhollow Technology Center. He has a bachelor’s in economics from West Point and an MBA from Rice.
SALES
Keener Investments purchased a 62-unit multifamily property off-market. The community is half a mile north of the University of St. Thomas. It will be rebranded as The Block at Montrose and managed by Allied Orion.
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A Texas investment firm specializing in self-storage purchased 6.4 acres at 33319 Bear Branch at 1488 in Magnolia. The tract includes 176 units of mini storage and 4.5 acres of vacant land, which will be developed as mixed-use retail. J Beard’s Diana Gaines repped the seller, and Keller Williams Commercial’s Carl Lindberg repped the buyer.
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A private investor purchased First Choice Emergency Room in Richmond’s Oakbend Medical Center. CBRE’s Ian Schroeder and Maurice Nieman repped the seller, and CB’s Geoffrey Harris arranged a $2.7M 15-year, fixed-rate loan through a regional bank at 4.75%.
LEASES
Texas Roadhouse leased 2.8 acres on East Beltway 8 just south of Spencer Highway in Pasadena for a Bubba’s 33 restaurant. This will be the first Bubba’s 33 in Houston; the family-friendly sports restaurant concept opened in ’13 and has seven locations across the country. Scarborough Real Estate’s Jeff Scarborough repped the tenant, and Colliers’ Marshall Clinkscales repped landlord Latour Partners.
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Freedom Tents and Events leased 17k SF of warehouse space for three years at 2300 Quitman. Hartman Income REIT’s Jennifer Rabon repped the landlord in-house.
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Motion Industries leased 24k SF at 1915 Turning Basin. Boyd Commercial’s Conrad Bernard repped the tenant, and Holt Lunsford’s Kelley Landwermeyer repped landlord Centerpoint Properties Trust.
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Active Supply leased a 12k SF office/warehouse facility at 5124 Steadmont Dr. First Houston Properties’ Patrick McKiernan and Jonathan McDaniel repped landlord Steadmont Warehouse Associates, and Colliers’ Judd Harrison repped the tenant.
FINANCING
LMI Capital closed three refinancings:
• Brandon Brown arranged $4.4M in debt for an Inner Loop East property (pictured here). He obtained a seven-year fixed-rate loan with two years of I/O. It was unique because the property was partially encumbered by a LURA and required in-depth analysis to get the Agency lender comfortable. The borrower will use the excess loan proceeds to fund future development.
• Brandon Brown arranged $5M in debt for a garden-style complex in Humble. He placed a 10-year loan with three years of I/O, 4.58% interest rate and flexible prepayment. The Freddie Mac loan paid off existing debt early and provided significant cash-out proceeds to fund future acquisitions.
• Jamie Mullin arranged $14.5M for the cash-out refi of a garden-style community in southwest Houston. He obtained a 10-year fixed-rate CMBS loan with full term I/O. Notably, it got cash-out proceeds even though it’s owned the property less than 18 months.
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ARA Newmark’s Holly Minter, David Schwarz and Tip Strickland originated an acquisition loan for Sun Holdings Group to purchase The Villas at Sienna Plantation. The loan is 10-year fixed-rate, 70% LTV and full-term I/O. The luxury Class-A apartment community delivered this year.
THIS AND THAT
EE Reed won an excellence in construction award from Associated Builders and Contractors for its work on Sierra Pines Phase 2 for Stream. The building is the first-ever six-story tilt-wall office in Texas. It’s 163k SF of Class-A office and is pursuing LEED Silver.
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Silverpeak Real Estate Partners and Cameron Management awarded Stream leasing of 1001 McKinney. Craig McKenna and Amanda Nebel will handle the assignment. The 375k SF Downtown office building was recently renovated. The Art Deco property is a landmark—it was built in 1947 and formerly known as the City National Bank Building. It’s 85% leased.
