This Week’s Houston Deals Sheet (June 6, 2021)


Custom Goods has leased 353.6,000 square feet of industrial space at the Bay Area Business Park in southeast Houston.

Courtesy of Stream Realty Partners

The exterior of one of the buildings at the Bay Area Business Park in southeast Houston.

The tenant will occupy the entire building, located at 9421 Bay Area Blvd. The facility is part of a planned 3.3 million square foot, 232 acre development owned by Principal Real Estate Investors in the Southeast / Port of Houston submarket.

Bay Area Business Park is located near the Bayport and Barbour’s Cut container terminals in Port Houston, which is attractive to importers and exporters of containerized goods. According to Stream, vacancies in the Southeast submarket are drastically decreasing, due to a lack of new developments and an increase in rental speed.

“Development of the infill side of this sub-market [south of the Houston Ship Channel] has become increasingly difficult due to the lack of obvious and developable sites and stricter floodplain legislation which has a disproportionate impact on this area given its near sea level rise, ”said Justin Robinson, Managing Director of Stream Realty Partners.

“We believe the infill side of the market will experience substantial rental growth over the next several years for these reasons.”

Barry Hill and Doug Nicholson of Newmark represented Custom Goods in the transaction, while Justin Robinson and Woody Hillyer of Stream Realty Partners represented the owner, the main real estate investors.

PEOPLE

Alliance Residential Co. launched Alliance Industrial Co., a new platform focused on essential warehouse logistics and distribution space development, in May. The company’s domestic operations are led by CEO Cyrus Bahrami, also a senior partner of Alliance’s residential platform.

The company hired Chad Parrish, former director of Molto Properties, as the general manager of Texas. He will oversee development, investment and construction activities in Austin, Dallas, Houston and San Antonio. Other senior members of Industrial Alliance’s management team include Chief Financial Officer Brandon Fleetwood, Vice President of Construction JD Devine and Director of Development David Adame.

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Brandon Campbell joined Patrinely Group LLC as Vice President of Asset Management. Campbell previously served as Vice President – Asset Management Division at Goldman Sachs in Dallas and was responsible for the performance of 3.3 million square feet of office, industrial and commercial properties. Prior to that, he served as Senior Vice President at Capital Commercial Investments in Austin and managed his portfolio of 52 properties. His other fund / portfolio management experience includes Situs, Broe Real Estate Group and Prologis.

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Evan Wagner joined Partners Real Estate Co., the holding company of NAI Partners, Partners Capital and Partners Development, as Head of Development. He will work directly with Vice President Julie Ward to help Partners Development deliver core development investment opportunities and full cycle fee development services from site selection to building completion. Previously, Wagner was Director of Real Estate Development at DC Partners.

SALES

Reserved area

Courtesy of JLL

An aerial view of Park 845 Crossing, a five-building industrial park totaling 757.3,000 square feet in northern Houston.

A subsidiary of Equus Capital Partners has purchased Park 845 Crossing, a five-building industrial park totaling 757.3,000 square feet in northern Houston. Category A properties were built from 2008 to 2014, and the property is 61.5% leased to 11 tenants. JLL represented the seller and procured the buyer, and also worked on behalf of the borrower to secure a three-year variable rate acquisition loan. Rusty Tamlyn, Trent Agnew, Charlie Strauss, Katherine Miller and Jack Moody of JLL represented the seller, a joint venture between IDI Logistics and Heitman. JLL’s John Ream, Michael Johnson and Stuart Hepler got the loan.

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Alco Designs purchased a 65,000 square foot front load distribution facility in Northwest Place Industrial Park II, located at 6552 West Little York Road, northwest of Houston. Alco will occupy the vacant portion of the facility, while Tytan International will continue to lease the remaining 28.5,000 square feet.

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A subsidiary of Equus Capital Partners has purchased The Parkway on Westlake, a 320-unit Class A garden-style apartment community in Humble. The acquisition was made on behalf of Equus Investment Partnership XI LP, a $ 387.8 million fully discretionary equity fund managed by Equus. The property was built in 2018 and offers a mix of one, two and three bedroom units. Madison Apartment Group LP, the multi-family operating arm of Equus, will manage the community.

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An undisclosed buyer purchased Asher Oaks, a 330-unit apartment community at 21000 Gosling Road in the spring. The 18-acre property is now known as the Savannah Oaks. The seller was Caldwell Cos.

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AS 157 FM 1488-Magnolia Circle purchased 2.49 acres at 33108 Magnolia Circle in Magnolia from Magnolia Land LLC. Andrew Alvis of NewQuest Properties represented the buyer.

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Amani Villa Senior Living Property Management purchased 2.8 acres on Huffmeister Road from Cypress. Sandra Aronds of Lee & Associates represented the buyer.

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An undisclosed buyer purchased 33.7 acres at the northeast corner of FM 529 and Katy Hockley Cut-Off Road from Katy. Taylor Schmidt of Lee & Associates represented the vendor.

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An undisclosed buyer purchased a 4.4,000 square foot, 10.46 acre manufacturing building at 6007 and 5927 FM 2218 Road in Richmond. Taylor Schmidt of Lee & Associates represented the vendor, the Plasenica family.

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Jackrabbit Road Industrial LLC has purchased a 33.6,000 square foot, 26 acre industrial building at 9118 and 9330 Jackrabbit Road in northwest Houston. Trey Erwin III of Lee & Associates represented the purchaser.

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Industrial Realty Group LLC purchased 23.8 acres along the Houston Ship Channel. The site includes the unloading of deep water vessels / barges with approximately 862 feet of frontage on the Houston Ship Channel, several rail tracks and the loading of heavy trucks. Part of the site has been leased to MTF Holdings, and the remaining area is available for other business or industrial opportunities.

LEASES

Reserved area

Courtesy of Transwestern

Park Towers, a Class A office building located at 1233 West Loop South in the Uptown Houston submarket.

Colliers International has renewed and extended its lease to 37K SF at Park Towers, a Class A office building located at 1233 West Loop South in the Uptown submarket. The business has been in the building since 2013. Jay Kyle of Colliers International represented the tenant, while Doug Little, David Baker, Kelli Gault and Jack Scharnberg of Transwestern represented the owner, Regent Properties.

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Buffalo Industries has renewed and extended its lease to 60K SF at 6311 Brookhill Drive in southeast Houston. Joel Michael of NAI Partners represented the tenant in the transaction, while Ed Bane of Bridge Commercial Real Estate represented the owner.

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Crunch Fitness has leased 32.2,000 square feet in the First Colony Commons Mall, located at 15385 Southwest Freeway in Sugar Land. Neal Thomson of NewQuest Properties represented the tenant, while Kristen Barker and Katherine Wildman of Wulfe & Co. represented the owner.

CONSTRUCTION AND LAYOUT

Reserved area

Courtesy of McNair Interests

A render of Remy On The Trails, a 24-acre residential development in West Houston.

McNair Interests intends to unveil the land at its 24-acre residential development, Remy On The Trails, in July. Located on the west side of Beltway 88 near downtown Midway, the development will include a multi-family community of 330 units totaling 400,000 square feet. The grand opening is expected to be the first of two phases of the development, which will be built alongside a private 3-acre lake and will include three- and four-story buildings. Additional features include event spaces and a separate building for flexible office spaces that includes private offices, open seating, and conference rooms.

Remy On The Trails is expected to begin renting in the third quarter of 2022. Project partners include architecture from The Preston Partnership, interior design from Mayfield and Ragni Studio, and landscape design from Kimley-Horn. Arch-Con is the general contractor for the project. Financial partners include Bluerock Residential Growth REIT Inc. and Veritex Community Bank.

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Capital Development Partners inaugurated Phase 1 of the Cedar Port Logistics Center, an 800.4,000 square foot industrial dual-service rail facility with immediate access to Port Houston. Phase 1 will be 100% occupied by Plastic Express Inc., with occupancy expected by December. Cedar Port Logistics Center is 12 miles from Port Houston in the Cedar Port Industrial Park.

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The Houston Housing and Community Development Department and a subsidiary of Atlantic Pacific Communities have announced the opening of Heritage Senior Residences, a new seniors’ residence that will replace homes lost during Hurricane Harvey. Mixed Income Housing Development received $ 14.35 million in Community Development Grants – Disaster Recovery Fund.

The Heritage senior residences are expected to be completed by the end of 2022. The mixed-income residential development will include 30% at market rate and 70% affordable apartments. Market rental prices will range from $ 1,304 (one bedroom) to $ 1,624 (two bedrooms), while affordable rental prices will range from $ 445 to $ 1,189 for one bedroom units and $ 534 at $ 1,426 for two-bedroom units.

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Wolff Cos. awarded a $ 2.9M contract for the construction of Beacon Hill Boulevard, as well as related underground utilities at Beacon Hill, to Beyer Construction. Beyer has already completed the paving infrastructure in the planned community. The street construction project will total approximately $ 13M invested in Beacon Hill infrastructure to date. Construction is expected to begin in about four weeks, with completion scheduled for late September.

THIS AND THAT

Reserved area

Courtesy of NewQuest Properties

Aerial view of 50 Briar Hollow, a 3.17-acre multi-tenant office complex in Houston’s Uptown submarket.

BDFI LLC will accept bitcoin as legal tender to purchase 50 Briar Hollow, a 3.17-acre, two-building, multi-tenant office complex in Uptown Houston. The property is heralded as the first to accept bitcoin in the Greater Houston area.

Developed in 1978 and 1979 and last renovated in 2013, the five- and seven-story buildings total 62.6K SF and 137.1K SF respectively. One building is completely vacant, while the other is only 30% occupied, following commercial setbacks linked to the tenant pandemic, according to BDFI. BDFI retained the services of Glenn Dickerson, Brad LyBrand and Charles McGahren of NewQuest Properties to sell the asset.

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CBRE has been awarded the exclusive lease and management award for Four Oaks Place, a five-building office complex totaling 2.3 million square feet of Class A office space in Houston’s Uptown Galleria submarket. Russell Hodges, Bubba Harkins, Kristen Rabel and Jenny Mueller of CBRE will represent the property on behalf of the property, a joint venture between Nuveen Real Estate and Allianz.

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