MARCH 2016
YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE
Top Trends in
Texas Retail
Legal Exactions or“Platmail”?
Interview with
Kristen McDade
VanWeAlstyne Are Planning for You Photo Credit: Rodney Williams/Van Alstyne Leader
Toyota Motor North America, J.C. Penney, Dr Pepper Snapple Group, FedEx Office, Frito-Lay, Rent-A-Center, and _____________ . your name here.
The world’s best companies are making Plano their home. Our population is diverse. Our workforce is highly educated. Taxes are low and cost of living is one of the best in the nation. And our quality of life is known nationally as one of the best places for families to live and work. For information and accolades, visit Planotexas.org.
LET CALDWELL LAND THE PERFECT SITE FOR ALL YOUR RETAIL NEEDS
CYPRESS CROSSING
Inline Retail, Ground Lease Pad Sites and Hotel Site at Highway 290 and FM 1960
• Prime mixed-use offering of restaurant, retail, pad sites and office space on a premier corner of Northwest Houston • Easy access from Highway 290 and FM 1960 • Surrounded by retail, restaurants and hospitals • VPD Counts: - 149,000 (Highway 290) - 63,300 (FM 1960)
SWC of KUYKENDAHL AT HUFSMITH For Lease, Ground Lease or Sale - Retail/Office/Medical
• Two parcels available at a proposed Aldi anchored retail/office center • Ease of accessibility and great visibility • .5 miles south of Creekside Park Village (HEB) • Just south of The Woodlands • Great access to the Grand Parkway and I-45 Contact: Blake Virgilio, CCIM, SIOR or Jack Russo
Contact: Sonny Howard or Mary Caldwell, CCIM, SIOR
STONE GATE COMMONS
Retail Space For Lease at Barker Cypress & Queenston
• Convenient access to Highway 290 • Located just 5 minutes north of Lone Star College CyFair • Surrounded by numerous residential communities • Almost 200,000 people live within 5 miles
CORUM STATION I & II
For Lease - Various Retail Spaces Between 1,000 - 24,000 SF
• Corum Station is an established retail center on the northeast corner of Kuykendahl and Louetta • Anchored by Dollar Tree, Sears, Goodwill and Tuesday Morning • Approximately 72,630 VPD at the intersection of Kuykendahl and Louetta • 1,000 - 24,000 SF spaces available
Contact: Blake Virgilio, CCIM, SIOR
Contact: John Ginder or Daniel DeHart
Caldwell Companies has the extensive local experience and unmatched market expertise to serve your retail leasing and brokerage needs. HOUSTON
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THE WOODL ANDS
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CaldwellCos.com
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COLLEGE STATION
713.690.0000
CONTENTS
Market
Sales & Leases 1–3, 5, 7–9, 13, 17, 19, 21, 23, 25, 27, 28
Services
Environmental Services 30 Land Servicing 44 Legal Services 41
Scoop
Events 32, 34, 36 Social 33, 35, 37 Bulletin 38–40
Features
Welcome to Van Alstyne 10–12 CIVIL FAIR PLAY Legal Exactions or “Platmail”? 14–16 Interview with Kristen McDade 18 Top Trends in Retail Texas 20 Houston Apartment Market Overbuilt 22 RAY'S BUZZ Colliers TRENDS 2016 24 O’Connor & Associates – Oil & The Office Market 26
4
March 2016 Photo Credit: Rodney Williams/Van Alstyne Leader
660+ Acres 30 Minutes East of Downtown (Old Hwy 90 @ San Jacinto River)
$4,130,000 W/POSSIBLE OWNER FINANCING
BEAUTIFUL, HUGE RECREATIONAL TRACT • Miles of San Jacinto River frontage • Heavy Timber/Multiple (7+) deep lakes • MUD District Available MASSIVE UPSIDE AS AN RV TRAILER PARK FOR PLANT WORKERS CENTERED NEAR BAYTOWN, PASADENA, MT. BELVIEU
Mitch Zarsky@yahoo.com 713-825-0728
10%
Broker Commission (Owner/Seller is not a realtor)
Possible Owner Financing Available
Letter from the Publisher
YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE
PUBLISHER
Ginger Wheless ginger@REDNews.com
EDITOR
Margie Gohmert info@REDNews.com
STAFF WRITER
Janis Arnold janisarnold1@gmail.com Brandi Smith info@REDNews.com
Dear Readers,
We’re approaching the end of the first quarter and the conversations I’m hearing on a daily basis have gravitated from the price of oil and its effect on Texas commercial real estate to tirades and head shaking about the candidates for the upcoming presidential election. Both have an effect on our economy and our attitudes i.e., consumer confidence.
I’ve been involved in the commercial real estate industry for all of my adult life, have weathered all of the CRE cycles, and have never stopped marveling at the resiliency of the people who survive and thrive in this industry. The common characteristic seems to be the possession of an entrepreneurial mindset: An attitude and approach to thinking that views obstacles as challenges and sets out to overcome them. I guess it goes without saying that we view both the price of oil and the upcoming presidential election as a challenge.
Read in this issue about Kristen McDade’s positive attitude, development opportunities in Van Alsytne, Naveen Jaggi’s upbeat view of the Texas Retail Market and Bruce Rutherford’s speculation about $62/barrel oil!
CONTRIBUTING WRITER
Ray Hankamer rhankamer@gmail.com
ART DIRECTOR
Payton Watkins payton@camalla.com
DATABASE MANAGER
Rahul Samuel emarketing@REDNews.com
DIGITAL/MARKETING DIRECTOR Tony Nelson digital@REDNews.com
ACCOUNTING
Benton Mahaffey accounting@REDNews.com
SALES
Ginger Wheless ginger@REDNews.com
PRINT & DIGITAL DISTRIBUTION
REDNews is directly mailed each month to commercial real estate brokers, investors & developers.
Next month we will be traveling to San Antonio for A&M’s 26th Annual Outlook on the Texas Land Market and then in May we’ll be in Las Vegas for ICSC. Hope your glass continues to be half full and an abundance of entrepreneurial spirit prevails. Happy March! Best Regards,
Texas Brokers: 8,150 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 26,387
TOTAL QUALIFIED REDNews DISTRIBUTION: 50,458 REDNews has gone green using recycled paper. Thank you Midway Press!
Ginger Wheless
To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription. 5909 West Loop South, Suite 135 Bellaire, TX 77401
6
March 2016
For all your commercial real estate needs, we’re here to point you in the right direction. LANDLORD & TENANT REPRESENTATION • SITE ACQUISITION • SALES & LEASING • REAL ESTATE CONSULTING • PROPERTY MANAGEMENT Montgomery Trace Retail Center For Lease
20821 Eva St./HWY 105 West, Montgomery
Portofino Plaza For Lease
7.1 +/- Acres For Sale
19073 I-45, Shenandoah
2615 FM 1488, Conroe
• A Brookshire Brothers grocery anchored center • Located in the heart of Montgomery, TX • Great visibility and accessibility to SH 105 and 149 • Several 2nd generation retail and restaurant space available • Conveniently located to Walden, Bentwater, April Sound, La Torretta, Grand Harbor and many other exclusive lakeside communities • Less than 1.5 miles from the Montgomery High School campus
• Located ½ mile north of Research Forest Drive on Interstate 45, approximately 1 mile from The Woodlands Town Center and 5 miles from the Hardy Toll Road and the ExxonMobil Corporate Campus • St. Luke’s, Texas Children’s, Methodist Houston and Memorial Hermann Hospital campuses are within 1 mile of the shopping center • Maximum visibility on I-45 • Various retail spaces available
Red Oak Medical Center For Sale
Research Forest Lakeside Bldg.4 For Lease
17203 Red Oak, Houston
2445TechnologyForestDr., TheWoodlands
• Property is situated east of College Park Dr. (SH 242), on the south side of FM 1488, just 2-3/4 miles west of Interstate 45 • Located less than a miles is Windvale Shopping Center, tenants include: Randall’s, Region’s Bank, Shogun Japanese Grill, All State, MW Cleaners, Anytime Fitness • Potential uses: retail, office, medical or other commercial land uses • 514 FF on FM 1488
Havenwood Office Park For Lease
25700 I-45, Spring/The Woodlands • 250,000 SF Class A office building, anticipated completion March ‘16 • High-end finishes, designed to be LEED Silver Certified • Located between The Woodlands Town Center an Exxon Mobil Campus • On-site property management
.846 Acres For Sale
SEC of Calvert & FM 2920, Tomball • Property is located on the SEC of Calvert and FM 2920, Tomball • 184.00’ FF on FM 2920 and 200.21’ on Calvert Road • Utilities: City of Tomball • Potential Uses: Fast food, service station, small retail • Approximately 1/2 mile from the main intersection of SH 249 and FM 2920.
Vision Park Office Building For Lease
128 Vision Park, Shenandoah/The Woodlands • Three-story, 75,000 SF building on five acre site • Excellent access – under ½ mile to I-45 • Close proximity to Market Street, The Woodlands Mall and The Woodlands Town Center • High-end finishes through out • Convenient surface parking with high ratio
• 2 Story Medical/Office Building, 14,232 SF, in close proximity to Houston Northwest Medical Center. • 88% Leased, 1,600 SF leasable space on 1st Floor • Beautiful Atrium Style Building, Elevator, Carport • Conveniently located 0.7 miles north of FM 1960, 2 miles to I-45, 15 minutes to the new ExxonMobil Campus, and 19 minutes to The Woodlands Town Center • Parking: 6/1,000 surface
• 12,481 SF of Class A office space; LEED Silver Certified building • Plug and play, furniture and systems available • Term through 2023 • Convenient covered parking with reserved spaces available • Located in the heart of The Woodlands directly on the west side of Lake Woodlands
26010 Oak Ridge For Lease
The Preserve Office Park For Sale or Lease
16753 Donwick Dr. For Lease
9 Acres For Sale
26010 Oak Ridge Dr., The Woodlands
25420 Kuykendahl Rd., Tomball/The Woodlands
16753 Donwick Dr., Conroe
26823 FM 2978, Magnolia
• +/- 11,000 SF, Two-Story Office Building • FEATURES: Welcome Lobby, Elevator, Access Key Entry, Interior/Exterior Monitored Security Cameras • Full-Service Lease Rate • Includes Electric, HVAC, & Janitorial Services • Located one block west of I-45 on highly desirable Oak Ridge Dr. • Easy access to I-45 and minutes from Woodlands Town Cente
• Located in Woodlands Submarket, at the corner of Kuykendahl Rd. and Preserve Way, near Creekside Village • 1,250 SF -12,500 SF contiguous space available • High-end finishes including granite, wood floors, and crown molding • Convenient to Grand Parkway and Woodlands Parkway
• INDUSTRIAL/FLEX BUILDINGS available for lease, 1,400 SF currently available. • Located in a well-established, light industrial park adjacent to The Woodlands. • Within 1 mile of major amenities such as St. Luke’s Hospital, Walmart, Home Depot, Lowes, Lone Star College, Sam Houston University, Woodforest Bank Stadium & Natatorium (10,000+ seats), among many others • Easy access to Interstate 45 and just minutes from the Hardy Toll Road
• Located within 3 miles of the new Baker Hughes Western Hemisphere facility at the corner of FM 2978 and FM 2920 • Five-lane road improvements on FM 2978 in progress • New luxury community by Toll Brothers across the street under construction , with 850 +/- new luxury homes, 2016 Delivery (Montgomery County). • 390 FF on FM 2978, 1090’ North line, 1090’ South line approximately, 380’ West line • Great opportunity for future development; Potential Uses: Commercial Development/ multifamily • Utilities Available
10077 Grogan’s Mill Road, Suite 135 The Woodlands, TX 77380
281.367.2220 jbeardcompany.com This information contained herein has been obtained from reliable sources; however, The J. Beard Company, LLC and The J. Beard Real Estate Company, L.P. makes no guarantees, warranties or representations to the completeness or accuracy of the data. Property submitted is subject to errors, omissions, change of price, prior sale or withdrawal without notice.
Personalized Service. Proven Results.
www.tarantino.com ASHFORDPROFESSIONAL PROFESSIONAL ASHFORD
• Two Story Story Medical Medical • Two Office Building Building Office • Renovated in 2008 • Up to 2,392 SF Available • Services the Memorial & Surrounding Neighborhoods
909 Dairy Ashford Rd, 909 Rd, Houston, TX 77079 Houston, 77079
NANES NANES PROFESSIONAL PROFESSIONAL
17030 Nanes Dr, Dr, Houston, 77090 Houston, TX 77090
MEDIC AL MEDICAL • Two Story • Medical/ Two Story Medical/ Professional Office Building • 11,929 NRA Contiguous Space Available on Second Floor • Located 2 Miles from the Houston NW Medical Medical Center • Center 15 Minutes • 15 fromMinutes IAH & The from IAH & The Woodlands Woodlands
NORTHGREEN ATRIUM BUILDING 7660 WOODWAY • • • • • •
7660 1300 N. SamWoodway Houston Parkway Houston, 77063 Houston, TX 77032
5507575 GREENS SANPARKWAY FELIPE
7575 San Felipe 550 Greens Parkway Houston, Houston, TX TX 77063 77067
8
ASHFORD PROFESSIONAL March 2016
• 46,462 SF, SF, Three Three • 46,462 Story Medical Medical Story Office Building Building Office • 80 Free Free Surface Surface • 80 Parking Spaces Spaces Parking • Recently Renovated Lobby • Generous TI Allowance
Up toOwnership 16,014 New NRA Available 1,000-56,000 Five Level, Class B NRA Available Office Building Building Identity Available Renovated in 2014 Beautiful Atrium Property Secured Lobby with Granite by Security Gate & Finishes Card Key Access
• Three • Three Story Story Office Office Building Building • Beautiful • Beautiful Fully Fully Remodeled Remodeled Lobby Lobby & Common & Common Areas Areas • Conveniently • Located Conveniently Across Located Across Bayshore Medical Bayshore Medical Center Center • Generous TI • Packages 100% Occupancy
• Two Story Medical Office Building • Renovated in 2008 • Up to 2,392 SF
908 E 908 E Southmore Southmore Blvd, Blvd, Pasadena, TX TX 77502 77502
PASADENA PROFESSIONAL PROFESSIONAL PASADENA
3315 Burke Burke Rd, Rd, Pasadena, TX TX 77504 77504
FOR SALE • 1,000-40,000 • 1,000-40,000 NRA NRA Available Available • Completely • Completely Remodeled Remodeled in in 2015 2015 • Private Corner Corner • Private Balconies on on Upper Upper Balconies Floors Floors • Located near near FM FM • Located 1960 & & I-45 I-45 in in 1960 Champions Forest Forest Champions
OFFIC E OFFICE • 1,510-2,398 SF Available in • Suburbs Full Building, of the 72,000 NRA Galleria Available for Lease • Common Areas, • Lobby New Ownership & Restrooms in • Remodeled Beautiful Atrium 2015 Lobby, High End • Monument Signage Finishes & Lush Available Landscaping • Numerous Secured Covered Shopping Parking Centers & Restaurants Nearby
908 908E. E. SOUTHMORE SOUTHMORE
NORTHCHASE BUSINESS NORTHCHASE BUSINESSPARK PARK
14505 14505 Torrey Torrey Chase Chase Blvd, Blvd Houston, TX 77014
1505 HIGHWAY HIGHWAY 66 1505
• 1, 1,117-10,551 117- 8,849 SF Available • Lobby & Common Areas Remodeled in 2014 • Covered two Two (2) (2) story Story parking Parking garage Garage • Located • Located near near the the Energy Energy Corridor Corridor
Personalized Service. Proven Results. 1505 Highway Highway 66 www.tarantino.com Houston, TX TX 77077 77077
• 46,462 SF, Three Story Medical Office Building • 80 Free Surface
908 E. SOUTHMORE
WOODFOREST SHOPPING SHOPPING CENTER WOODFOREST CENTER • Up Up to to 11,017 30,979 SF SF • Available Available End Cap Cap Available Available • End NWC I-10 I-10 EE • NWC Frontage @ @ John John Frontage Ralston Ralston
10907-11095 I-10 East 10907-11095 Houston, TX 77029 Houston,
RETAIL RETAIL
RESEARCH PLAZA RESEARCH PLAZA
19189 I-45 North 19189 Shenandoah, TX 77385 Shenandoah,
DE DE ZAVALA ZAVALA
12770Cimarron Cimarron Path, Path 12770 SanAntonio, Antonio, TX 78249 San 78249
1005 INDUSTRIAL
• Up to 6,882 SF • Up to 6,845 Retail Space Retail Space Available Available • Easy • Easy Access Access to to Highway Highway 6 6& & U.S. U.S. Hwy Hwy 59 59 • Traffic • Traffic Count Count Exceeds Exceeds 30,653 30,653 CPD CPD
• 3,965 3,965 SF SF End End Cap Cap • Available Available Freeway Visibility Visibility • Freeway from I-45 I-45 North North from • Ample Ample Parking Parking • Anchored Anchored by by Walgreens, Walgreens, Party Party City, Subway City, Subway
• Hard Corner Corner of of • Hard Hwy 90 90 & & Dairy Dairy Hwy Ashford Ashford • Up to 3,901 2,170 SF Available • Great Co-Tenancy • Traffic Count Exceeds 78,000 CPD
• 3,000 3,000 –- 10,000 • 10,000 SF, Flex Flex Office Office & & SF, Biomedical Space Biomedical Space Available Available Climate Controlled Controlled • Climate Warehouse Warehouse • Generous Generous Tenant Tenet Finish-Out Finish-Out Allowance Allowance • Northwest Northwest Location Location with with Easy Easy Access Access to to I-10 I-10 & & 1604 1604
• Suite 250: 4,225 • SF 16,346-40,029 Warehouse & NRA Available 3,336 SF Office for Lease Space Available • Easy Access to 8. I-45 Beltway 8, & IAH and IAH Semi-Dock High •2 Conveniently Loading Bays Located to Accommodate •1 Up- Ramp Land, Air Drive & Railin Allowing Transportation Access • Air Conditioned Warehouse
INDUSTRIAL INDUSTRIAL • 10,663 SF Available • 3 Phase Power • 18ft Ceiling Height • Easy Access to Beltway 8
1005 Industrial Sugar Land, TX 77478
Houston, TX 77063 (713) 974-4292
3340 FM 3340 FM 1092 1092 Missouri City, Missouri City, TX TX 77459 77459
SUGAR SUGARPOINT POINTSHOPPING SHOPPING CENTER CENTER
9920 Hwy Hwy 90 90 Sugar Land, TX TX 77478 77478
1540215340 VANTAGE PARKWAY E VANTAGE
15402 15340 Vantage Parkway Parkway E, E, Houston, TX 77032 77032 INTERCONTINENTAL BUSINESS PARK
LEGACY PARK BUSINESS CENTER • Stand-alone 15,000 SF Building • (3) 10ft. Roll Up doors- Grade Level Loading • Warehouse Ceiling Height 20ft. • New Roof
CORPORATE OFFICE: WOODFOREST CENTER 7887 SanSHOPPING Felipe, #237
TOWNSHIP TOWNSHIP SQUARE SQUARE
• 3500 SF, Air- Conditioned Space Available • Deed Restricted Business Park Located at the Corner of Fallbrook & Beltway 8 • Tilt Wall Construction with Decorative Interior Walls
15344 Vantage Parkway E N. 10930 W. Sam Houston Parkway Houston, TX 77032 Houston, TX 77064 SAN ANTONIO OFFICE:
AUSTIN OFFICE:
TOWNSHIP 12770 Cimarron Path St. 122 502 East 11th Street, #400SQUARE March 2016 San Antonio, TX 78249 • Up to 6,845 Retail Austin, TX 78701 Space Available (512) 302-4500 • Up to 11,017 SF 212-6222 (210) Available
• Easy Access to
9
Downtown's Dorothy Fielder Park
History & a Future Welcome to Van Alstyne BY BRANDI SMITH
The tale goes that Collin McKinney was given the pen he used to sign the Texas Declaration of Independence. At 70, he was the oldest member of the Convention of 1836 at Washington-on-theBrazos. McKinney’s true pioneer story started long before the convention, but it ends right where ours begins: in Van Alstyne, Texas.
“You have a lot of history here”
The town, which now boasts a population of more than 3,000, had very humble beginnings. It truly began with a community called Mantua, located just a few miles southwest of what is now Van Alstyne. Mantua had been founded in 1854 as a site for a seminary. The school set the tone for the town; gambling, horse racing and liquor sales were all prohibited. Within a couple years, Mantua’s population grew to roughly 300. But when Houston & Central Railroad came calling in 1872, asking for $1,000 to put a railroad through the town, the rail company was denied. Instead, it purchased neighboring 10
March 2016
property located in Van Alstyne, named for Maria Van Alstyne, the widow of the railroad’s treasurer and stockholder, William Van Alstyne.
The rail line helped the fledgling city swell in population, eventually drawing the people, businesses and even the First Christian Church—the oldest in Texas —from Mantua. This is where Collin McKinney, namesake of Texas’ Collin County and McKinney, its county seat, was laid to rest. “You have a lot of history here that is a part of Texas,” said Randy Uselton, president of the Van Alstyne Economic Development Corporation.
Van Alstyne Station and an Interurban Railway passenger car
“We're planning before it's time to build”
Now nearly 150 years in, a lot has changed in what was once a rural community, located 50 miles north of Texas’ secondlargest city.
“Dallas is moving this way. We're not going to be able to stop it,” Uselton said. “U.S. 75 is already set up to come all the way to Van Alstyne and be widened. We know it's coming.” Van Alstyne leaders had the foresight to plan for the eventuality that Dallas’ sprawl would stretch that far north.
Frank Baker
Grayson College
“The city has been forward looking for generations and thus we have planned ahead for the growth that is coming our way,” said Bill Benton, whose family established its real estate company, Benton Luttrell, just 17 years after Van Alstyne was established.
Planning for future growth included maintaining what makes the community a destination for residents and businesses. The city aimed to preserve its historic downtown while offering opportunity for development in designated areas. “The city council did a really good job of laying out the city and setting areas that are for industrial or for commercial,” Uselton said. “We're planning before it's time to build.” That forward-thinking approach is what drew city
manager Frank Baker to Van Alstyne in 2012.
“I saw the potential to influence change in a community that’s rich in history and on the edge of the urban sprawl,” he said.
Since he came on board nearly four years ago, Baker said he’s focused on identifying deficiencies in resources and services, including utilities, infrastructure, roads and drainage. The city’s also working to update walking trails and park playground equipment.
Van Alstyne is also in the process of increasing its water system capacity, installing larger water mains on the west side of U.S. 75. It’s working on a similar project for the sewer system and is also updating the Wastewater Treatment Plant. Van Alstyne Downtown
The primary focus, though, is always on managing growth.
“We’re doing that through direct discussions with property owners and developers to discuss their specific ideas,” Baker said. “Those ideas are compared with the community development plans, the city’s design manual and subdivision regulations. If those ideas complement the adopted plans, we work toward making the ideas reality.”
“I sit down and listen”
Van Alstyne’s EDC, founded in 1996, plays a principal role in helping build the future in this historic town, specifically in enticing new businesses to move and convincing existing businesses to stay. The two-pronged approach begins by reaching out to interested parties with an information-packed brochure highlighting the history and Van Alstyne City Hall
Van Alstyne Construction
future of Van Alstyne.
“We're ready for companies to come in and be a part of our community,” Uselton said. “We don’t want them to come in and set up just because we have land. We want them to say, ‘Y'all are easy to work with, so we're going to come there.’” Once a business has settled in Van Alstyne, the next challenge is keeping it. That’s where the EDC’s Business Retention Program comes in. “What I do at my job is I sit down and listen to people: what do they need? How can we help them? Then we bring programs to them in a way that personalizes it for their company that they can use,” said Uselton.
He illustrated his point by sharing a recent conversation with a Van Alstyne-based business that had outgrown its building.
“We worked with them to get them in a position to stay in the area,” Uselton said. “They're going to put up a new building, new offices and a new warehouse.” It’s clear many companies — big and small— have made the choice to stay in Van Alstyne. Texas Star Bank, BentonLuttrell-Brown Insurance & Real Estate, City Drug Company, the Van Alstyne Leader and Van Alstyne March 2016
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Mantua District Plan
“A can-do attitude is contagious"
On Van Alstyne’s horizon both literally and figuratively is a massive project sure to have a substantial impact. Called Mantua, the 3,017-acre development stretches from Van Alstyne into neighboring Anna. “When fully developed, Mantua will be among the largest developments in the DFW region,” said Benton, the developer whose family started its business in Van Alstyne three generations ago. “Its most intriguing attribute is the reality that Mantua will have the most freeway frontage, access and commercial potential of any mixed-use planned community development in North Texas.”
The project, which spans nearly 5 square miles, hasn’t started construction yet. Benton said that will be determined by “the continued march of development north on U.S. 75 and the owner’s timing.”
However, as it develops, Mantua will have an increasingly dramatic and positive influence on Van Alstyne and Anna, Benton predicted. “It will do that by stimulating a stronger mix of land uses, property values and related revenue opportunities,” he said. “Location is key, but the history and culture of our community that has a can-do attitude is contagious.” Hardware Company have all been in operation for more than 100 years. Others, such as GCEC Electric & Telecom and Foxworth Galbraith, may not have been there quite as long, but the jobs they’ve created have had a significant economic impact on the community. “These businesses come to town and they don't want to leave because they have good employees and a good quality of life,” said Uselton.
“It's an asset for the community”
Another fairly new addition to the historic town is Grayson County College - South Campus. Built in 2005, it’s already added a new building to keep up with demand and Grayson’s president said there could be more expansion in the not-too-distant future. “The South campus is definitely on the radar for more buildings and different outreach opportunities,” said Dr. Kim Williams.
The college provides another draw for businesses considering relocating to Van Alstyne: a skilled workforce. Students are able to earn Associate degrees in a variety of fields, including welding, electrical technology and medical laboratory technology. They’re also able to get their vocational nursing certificate. Already serving approximately 500 students each term, Dr. Williams predicts Grayson’s south campus population will grow right along with the city.
“I think we all work well together. I do think it's an asset for the community to have something like this in a town this size,” she said.
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March 2016
The city is also eyeing other opportunities for development, having recently annexed 380 acres for mixed-use.
“We have retail and commercial identified along the thoroughfare corridors. Further into the property, there will be single-family and two-family homes,” Baker said.
Meantime, D.R. Horton and Stonehollow Homes are working on a multi-phase subdivision called Georgetown, while Circle Plat Homes is redeveloping lots in some of the city’s more historic areas. Baker highlighted a variety of other new additions to Van Alstyne’s business community, including O’Reilly Auto Parts, Golden Chick and Palladium USA International. Even more is on its way.
“I believe we're one of the finalists for the distribution center to be put in our area that will service Dallas,” Uselton said. “Hopefully we'll have some finalization on that in the near future.”
“The potential here is great”
Amidst the growth and changing landscape within Van Alstyne, leaders there understand the value of maintaining its quality of life. “People are seeing that Van Alstyne is a beautiful town,” said Uselton. “I can see the stars at night here, but in fifteen minutes I'm into Dallas.” Along with its beauty, history and key location come endless recreational opportunities and a lauded school system. “I think the potential here is great,” said Dr. Williams.
Added Baker: “Van Alstyne, Texas, is one of the best places in this nation to work, live and play.” ●
*6% COMMISSION + RENT ABATEMENT NORTHVIEW CONCOURSE III
7049 – 7075 San Pedro, San Antonio, TX 78216
3,915 SF Available for Retail/Restaurant/Medical/Office FEATURES • • • •
3,915 SF Available for Retail, Restaurant or Medical Just South of Loop 410 & close to North Star Mall Excellent Visibility & Large Pylon Signage High Traffic Counts
DEMOGRAPHICS
3 Mile Radius
5 Mile Radius
10 Mile Radius
3 MILE
5 MILE
10 MILE
Population
114,081
315,088
1,115,508
Median Housing Value
$179,235
$184,207
$184,207
Average Household Income
$58,182
$63,370
$61,307
Median Household Income
$44,142
$47,795
$48,877
Average Age
38
38
36
*Incentive to Brokers: 6% commission for the full term of the Lease, not exceeding 5 years to procuring broker. *Incentive to Tenants: Up to 12 months of rent abatement to qualified tenants. (These offers are good until 6/1/2016 or as long as the spaces are available, and may be withdrawn at any time with no notice.)
- -
CURRENT TENANTS • • • • • • • • •
CONTACT
Kamran Farhadi CJ Park and Associates Direct Line: 310-276-5812 Tel No: 310-276-2777, ext. 102 kamfarhadi@kamparcorp.com
Wingstop Dona Tota, Mexican Cousin Indios Western Boots Jerry’s Artaroma Sherwin Williams Cindy Smoke Shop Orthopedic Offices MCCI Healthcare
EVELYN RUBENSTEIN JCC HOUSTON
28th Annual
JCC CHARITY GOLF TOURNAMENT Monday, April 18, 2016 Check-In: 11:00 AM Shotgun Start: 1:00 PM BlackHorse Golf Club For information or to reserve your spot, contact Michelle Frankfort at 713.551.7230
underwritten by
other significant sponsors: REDNews; Wilson, Cribbs & Goren, P.C.; Colliers International; First AmericanTitle Company National Commercial Services; Fidelity National Title National Commercial Services; Title Houston Holdings; South Texas Surveying Associates; BancorpSouth/GEM Insurance; W.T. Byler Company; Hirsch & Westheimer, P.C.; Phase Engineering; JerryGoldstein/Marcus & Millichap; Duplantis Design Group
March 2016
13
civil fair play
Legal Exactions or “Platmail”?: The Developer Debate Over Proportionality BY BRANDI SMITH
The project seemed like it had “green light” written all over it: a three-phase, 247-lot residential subdivision planned in a small community that struggled to keep up with a recent population boom. On the surface, it appeared to be a win-win for the developer and the town. However, before the town would approve the plat, it required the developer to rebuild an existing two-lane asphalt road with concrete, the modern standard. The cost of such an exaction was steep: roughly $500,000. Though the developer fought the requirement, the improvement was made, but under protest.
The developer filed suit once the project was complete, alleging the town took property without just compensation. The case made its way to the Texas Supreme Court, which upheld lower court rulings that the town had not adequately covered its share of the road costs. This story, which may feel all too familiar for our developer readers, played out in 2004 in Town of Flower Mound vs. Stafford Estates Limited Partnership. The case put renewed emphasis on the idea of rough proportionality, an approach by which all future exactions were required to be measured.
What is an exaction?
Exactions are fairly common in the development community, requiring a developer to mitigate anticipated negative effects of a new project on public infrastructure. “Think of it as a payment by a developer to the government in order to be able to develop 14
March 2016
a project,” said Reid Wilson, managing shareholder at Wilson Cribbs & Goren in Houston, who often represents developers. “The most common exactions come in the form of right-of-way and related public improvements, public easements of various types, including for public services, such as a police or fire station.”
The two-lane concrete road referenced in the Stafford Estates case is a perfect example. Before the project could get started, the town required the developer to agree to an exaction, which the town stated was mandatory to mitigate the traffic impact the residential development would have. “The idea is that an exaction is ‘fair’ if it is to address the impact of the new project on the public, generally and specifically public infrastructure,” Wilson said.
The developer took issue with the amount of money spent to replace the existing road compared to his project’s impact on the road from increased density.
“Constitutionally, when the government takes your property, you are to be compensated for the taking of the property,” said Terry Welch, partner at Richardsonbased Brown & Hofmeister, who represents municipalities and was involved in the Stafford Estates case.
What is rough proportionality?
Rough proportionality is the tool by which entities are legally required to judge an exaction. “Proportionality is the idea that there has to be a reasonable relationship between the exaction and the impact of the new
project,” said Wilson, who jumped into real estate law back in 1979. “The concept is that the developer should account for any burden that is related to their project. In a residential subdivision, the developer is creating a need for roads and utilities, so the developer is obligated to dedicate streets and utility easements.” Referencing again the two-lane concrete road at issue in the Stafford Estates suit, the full construction cost absorbed by the developer was not proportional to its future use by drivers who didn’t live in the subdivision. “The cost you charge that developer for whatever that infrastructure may be roads, sewer, water - it has to be roughly proportional to their impact,” Welch said.
In the case of Stafford Estates, that would mean determining the percentage of its residents who would use the road, compared to all future driver. If the cost to build the road were $500,000 and Stafford Estates residents only accounted for 20 percent of the traffic on it, rough proportionality decrees the developer should only be required to pay $100,000 and the city should offset the remaining expenses.
“You get into those types of questions about ‘How do we apportion those costs?’ because it's not really fair to say the first guy who does anything has to pay for everything, and then from that point forward everybody else kind of hooks on free of charge,” said Welch.
Why the conflict?
Conflict can sometimes arise when the two sides cannot come to agreement on the terms of an exaction.
“Both sides are looking at money and they are going to disagree on that,” Welch said.
What about the government entity?
In the interest of forward progress, developers often give in to the demands of the entity to which it's applying simply to keep the project alive.
Imagine a small town of 1,300 on the fringes of a booming metro area. A developer eyeing the area applies for a permit to build a subdivision and the city agrees to the plan, but only if the developer also builds a $1 million stretch of road. After gauging proportionality, it’s determined the developer should only be responsible for 25 percent of the burden, leaving the city with a $750,000 tab.
“I’d like to think that most local entities are trying to be fair, but it's fair in their minds,” Wilson said. “I can tell you that sometimes there is a mindset that the developer is an ATM that has unlimited resources available to provide benefits to a community.”
“In the land use business, we sometimes will talk about those required dedications as ‘platmail,’ because they come at the platting stage” said Wilson. “We say that in fun, but sometimes the development community feels just like that because the local government says, unless you give us those dedications on the face on the plat, you're not going to get approved.”
“Both sides are looking at money and they are going to disagree on that,” says Welch.
However, since the 2004 Stafford Estates ruling, developers are becoming more aware of their rights as property owners.
“Those cities are being challenged more and more because they are not complying with the legal requirement for an individualized analysis and determination of rough proportionality, as required by Stafford Estates,” Wilson said.
In some cases, though, the city or county to which a developer applies simply doesn’t have the money or resources to cover the public share of an exaction.
“The problem arises: what if the city doesn’t have $750,000 to pay for it? I've had that happen in smaller communities,” Welch said. “I've seen projects die because developers say, ‘Well, my share is $250,000.’ The city says, ‘Great, but we'll let you know when we get $750,000 for our share of the road.’”
Welch, who represents several government entities in the Dallas area, points to a particular project in Kaufman County to illustrate the point. “They have some of the most beautiful lots on a lake that I have ever seen,” he said.
The issue isn’t the lots, but the only road by which a driver can access the development. Built in the 1930s, Welch describes it as old, pocked and so awful “you’re afraid you’re going to break an axle.” He says the developer asked the city to contribute to the road’s improvements, but budget limitations restricted what the city March 2016
15
civil fair play
What can developers do?
“Sometimes there is a mindset that the developer is an ATM that has unlimited resources,” Wilson says. was able to provide. In the end, the project moved forward, but without a modern road for potential residents to travel.
“They had a hard time selling houses, or selling lots for houses, because the road to get you out there is awful,” Welch said.
Exactions vs. eminent domain
Though similar to an exaction, eminent domain is an entirely different issue faced by developers, but typically after a project has been completed. Eminent domain allows a variety of agencies to take property for public use, but only if they pay fair market value. “There are a surprising number of governmental entities and private corporations that have the power of eminent domain,” said David Showalter of Richmond’s Showalter Law Firm. Showalter got started in real estate law in 1977, just after graduating from Baylor Law School. His firm has handled hundreds of eminent domain cases, which, he says, often involve many twists and turns.
“The first thing developers need to do is hire a lawyer who’s familiar with the eminent domain process because then we help strategize an approach to the condemnation,” Showalter said. “The sooner we get involved in the process, the sooner we can be protecting the developer.” 16
“Developers have to understand their rights, then they have to assert their rights,” said Wilson. “They have to make the hard choice of whether they should accept an exaction as-is or whether they should acquiesce under protest, which they may do under the law.” Were a developer to “acquiesce under protest,” the project moves forward with the exaction, as laid out by the permitting entity. It also leaves the door open for a legal fight if the developer chooses to pursue it.
Reid Wilson
“We're starting to see some litigation on these matters. I will say that much of the time, the developer will negotiate and make a decision to move forward and just absorb the cost,” Wilson said. “But the development community it becoming aware of its rights and being more aggressive in asserting them.” In the end, the decision remains in the hands of the developer: to give in, to acquiesce under protest or to abandon the project altogether. Above all else, it’s imperative Texas developers be familiar with the options available to them. After all, the most important tool in a developer’s toolbox is knowledge. ●
Terry Welch
Stafford Estates
March 2016 Paul Bettencourt
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Interview with Kristen McDade
Kristen McDade
When Kristen McDade started her career in real estate back in 1999, she had no idea that she was learning from a legend in the Houston industry. To her, he was just “Dad;” to everyone else, he was Bill McDade, the man who has brokered or co-brokered transactions totaling more than $1 billion.
"‘Be you. Be smart. Be patient. Be honest. Be respectful."
BY BRANDI SMITH
Still, the field was very much a “Good Ol’ Boys Club” 17 years ago when she got her start, which created an obstacle of sorts.
“A woman in real estate was more rare then,” said Kristen. “I would say to women getting into the field: ‘Be you. Be smart. 18
March 2016
One of those tracts that has Kristen fired up right now is a site in La Marque, an area experiencing a residential boom. She’s hoping to connect with a developer who’s able to visualize the potential that lies within those 44 acres. “I can’t wait to see the project completed one day!” she said.
SWC WAUGH DR. and D’AMICO ST.
“This city will keep growing and changing,” Kristen said. “Investing in Houston is smart.” ●
S
.
“I love digging out opportunities,” she said. “It is also very rewarding to work on a tract of land with unlimited potential. Whether it becomes a mixed-use development, a specific use, etc., it’s all up to the imagination of the buyer/developer.”
“I am extremely busy, but in slightly different ways,” Kristen said. “We continue to have high-quality real estate and irreplaceable sites - I handle a few of them myself.”
She offers the site at 22 Waugh as a prime example. The buyer closed on the property last year, creatively using the existing building, and now Kristen is handling several listings in HOUSTON, TX the area, specifically the very desirable corner of Waugh Drive and D’Amico Street.
HD R
“I quickly developed a rapport with the brokerage community and the buyers and sellers we worked with,” Kristen said.
As Kristen did just that, she found she enjoyed stepping up and taking on new challenges, especially when it came to brokering land deals.
Despite slumping oil prices and the bite they take out of Houston, Kristen says there’s a lot to be positive about in the market right now.
UG
Work it did. Over the years, the senior McDade helped his daughter learn how he put deals together and develop a business instinct of her own. She moved from handling marketing and listings to land research and client relations.
Be patient. Be honest. Be respectful. You will quickly earn the respect of the brokerage community and the clients you work with.’”
WA
“I went to work with my dad at McDade Smith Gould Johnston out of necessity,” said Kristen, vice president of brokerage services at CBRE Houston. “I spent most of my life saying I would never do it, thinking that it would never work.”
D’AMICO ST.
CBRE SWC Waugh Dr. and D'Amico St.
Greenberg & Company Commercial Real Estate Brokerage Firm
Great locations - professional offices for lease or SALE 3323 Richmond Houston, TX 77098
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Lease/Sale Price: Call For Details 5901 Beverly Hill Houston, TX 77057
6301 Richmond Houston, TX 77057
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Land Size: 49,300 SF 1st & 2nd Floor Available - 12,000 SF per floor Great Location in the Galleria Area
Lease/Sale Price: Call For Details
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Sale Price: Call For Details 5959 Richmond Avenue, Suite 440 Houston, TX 77057 - Phone: 713-778-0900 - WWW.GREENBERGCOMPANY.COM
±46 ACRES $3.95 PSF LA MARQUE, TEXAS
v ±46 acres of land located on the south side of FM 1764, just west of I-45 in La Marque, Texas (Galveston County) v Site is adjacent to Gulf Greyhound Race Park and across the street from the recently built Wal-Mart/Sam’s Club anchored shopping center. New retail is cropping up along FM 1764 to serve the residential growth currently growing on all sides of the subject tract, which include: s Catalon (by M Group) 230 units of mulit-family which broke ground in January 2016, next door to the Buccees, one exit north along I-45 s Adventure Point, a ±30 acre theme park, has broken ground next door to the Tanger Outlet Mall s Painted Meadows subdivision is building out its last lots just west of site on FM 1764 s Lennar has model homes up and building out lots just south of the tract in new subdivision “Dulany Cove” (approximately 2,000 homes expected) s Lago Mar is currently building its first homes in Phase One of its residential development of over 7,000 lots (3,500 acres) Kristen McDade 713.577.1808 kristen.mcdade@cbre.com
March 2016
19
Top Trends in Texas Retail It’s no surprise that tanking oil prices have taken their toll on the Texas economy, most notably in Houston. However, it’s not all black clouds and bad news in the Lone Star State, according to Naveen Jaggi, president of retail brokerage at JLL.
Naveen Jaggi
BY BRANDI SMITH
Despite the hiccups of the past year, the Texas economy is still a major player - not just in the United States, but worldwide.
“The Texas economy GDP is equivalent to the Scandinavian countries, so it’s a sizable economy in every way,” Jaggi said.
Market breakdown
According to JLL’s research, the four major Texas markets are either rising or peaking on its retail property clock (see illustration).
“We've been on a steady climb to the point where rental rates in Dallas, Austin and Houston now are at or above pre-Recession levels,” Jaggi pointed out. “That means you have a full, healthy economy.”
The next step on the clock is plateauing and falling, which Jaggi expects to see in Houston before Dallas. “I think Dallas still has some more room to grow from a rental rates standpoint,” he said. San Antonio, on the other hand, is on its way up. “The military has a big part to do with it,” said Jaggi.
Three key trends
As those cities continue their progress, he says there are three key issues that will impact Texas retail positively. 20
March 2016
Energy prices: “As the oil industry contracted during 2015, the pain was mostly felt out in the field. The high-skill jobs haven't seen a net loss of jobs. Houston is also definitely diversified. It’s less reliant on energy than it was 20 years ago or even the last time we had this kind of a pull back back in 1999 and 2000.
Health & education: “In my opinion, the future in Houston also relies on diversification in two sectors. The Medical Center in Houston and its exponential growth in the suburbs is phenomenal. Then combine that with education. We certainly are seeing all the main universities -
University of Houston being the first one - investing heavily in infrastructure and growth with their annexes.”
Business-friendly environment: “There are two things that drive an interest in investing in any market: taxes, low or high, and cost of housing, low or high. Texas has no state income tax and Texas has quality affordable housing. Those two features alone will continue to drive people to come here.”
A positive outlook
Because of those three factors, Jaggi says JLL’s research points
to a very positive retail outlook in Texas and he expects the state to maintain its rank as the No. 1 market for retail development, ahead of competitors, such as New York, California and Florida.
“The state of Texas is a diversified economy and it's not oil dependent from a macro standpoint,” he said. “We're a health economy.” ●
*6% COMMISSION + RENT ABATEMENT CROWN MEADOW SHOPPING CENTER
FEATURES • Corner Location in booming NW San Antonio • High traffic area & easy access • Pylon Signage Available
7614 & 7616 Culebra Road, San Antonio, TX
4,173 SF Available for Retail/Restaurant/Medical/Office
DEMOGRAPHICS
AREA LEGEND
POPULATION
ASIAN CUISINE BAPTIST HEALT
ASIAN CUISINE
MEXICAN GRILL
VACANT 4173 SF
GONZABA
BAPTIST HEALT
KWIK WASH
SUPERCUTS
FAST EDDIE'S
DAILY DONUTS
LINK METRO CPS
DENTAL GROUP FAST EDDIE'S GMG HEALTH GONZABA
ITALIAN GRILL
GONZABA MEDICAL CLINIC HAIR BY ALICE ITALIAN GRILL KWIK WASH LINK METRO CPS
GONZABA MEDICAL CLINIC
MEXICAN GRILL SUPERCUTS VACANT 4173 SF
N LOCATION
HAIR BY ALICE
GMG HEALTH
TCP Realty Services
DAILY DONUTS
1 Mile Radius
3 Mile Radius
5 Mile Radius
1 MILE
3 MILE
5 MILE
2020 Projection
15,145
118,658
359,253
2015 Estimate
13,940
109,224
334,671
2010 Census
12,730
99,120
309,913
2000 Census
9,902
72,330
250,060
Growth 2015-2020
8.64%
8.64%
7.35%
Growth 2010-2015
9.50%
10.19%
7.99%
Growth 2000-2010
28.56%
37.04%
23.94%
2015 Est. Average Household Income
$59,145
$62,645
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1800 South Main Street, McAllen, TX
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• • • •
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• 1,000 – 25,000 SF • South of Expressway 83 & 9 miles North of Mexican Border • Major Tenants: Cinemark Theaters, Dollar General, Kirklands, Tuesday Morning
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713-243-6850
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1,200 – 5,700 SF Strong Traffic Count Property consists of 83,876 SF total Major Tenants Include: Dollar General, DD’s, Inwood Pawn & Simply Fashions
rkremling@tcprealty.com
March 2016
21
Camden McGowen Station
Houston Apartment Market Overbuilt, Industry Experts Say HOUSTON (Houston Chronicle) – The downturn in the energy sector is resulting in a downturn in the local multifamily market, some industry experts say.
In its 2016 forecast, Apartment Data Services called the Houston market "overbuilt," saying there is "too much supply for demand."
Ric Campo, CEO of residential developer Camden, agreed, telling the Houston Chronicle that "it won't be as bad as people think. But now, it's going to be a tenant's market."
He said losses in energy jobs here will be partially offset by gains in health care, education, hospitality and government. Even so, he said it will be a slow year for Houston, and that the city "has too many apartments coming online" given that slower growth.
Ric Campo
22
Bruce McClenny with Apartment Data Services said the market is skewed toward Class A units. He said the higher end stock is overbuilt, and he expects area occupancy to fall to 89 percent this year after a lengthy period of steady increase. High-end apartments traditionally account for about 17 percent of the local market, McClenny said. Now, it's closer to 24 percent. These newly built units average $1,400 a month. The overall rental price in the Houston region is $996. â—?
Bruce McClenny
March 2016
Rental Space Available
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ray’s buzz
Trends 2016 Colliers International/Houston
Pat Duffy
Speakers: Pat Duffy, President/Houston; Brandon Blossman, Managing Director/Research-Tudor, Pickering, Holt & Co. BY RAY HANKAMER rhankamer@gmail.com
• Daily supply of crude oil only
exceeds demand by about one per cent, and demand worldwide is growing at approximately one per cent per year-so the balance is not far off; however, only one per cent imbalance was enough to send prices plummeting from $100 to $30!
• Worldwide supply has been
stable for last few years and is slightly declining due to aging infrastructure and political situations in producer countries other than the US
• Supply growth has been
almost exclusively in the US, where “the spigot can be turned on and off quickly” in response to market forces
• Shale production takes huge
capital outlays during drilling and ongoing throughout the life of the well, creating lots of work for oilfield supply companies
• Capital outlays have come
mostly from private equity and lender services, less from banks-so “the banks are not in trouble” overall
• Shale oil production got
started 2009-2012 and really
24
March 2016
built momentum, zooming up in 2013-2015 causing present oversupply
• With all the boom in shale oil,
the US still imports about 40% of its needs, so relations with countries like Saudi Arabia are still vital to us-our exports of oil are tiny in the overall equation and it is a question of exporting certain grades to certain offshore refineries
• Rig count at all-time low
of 600, going to 500-this is from peak of 2,200 rigs-this represents huge hit to service companies in the Oil Patch
• The “fix” to the supply/demand
imbalance is already well underway, and by the end of this year prices around $60 per barrel are predicted, going to $70 in 2017…but, “this could be wrong”
• Asian economies are
continuing to grow and transportation and demand for fuel is growing too
• Iran production will not be a big factor, but it has been a scare factor to the market
• “Falling demand for petroleum products” in Asian countries
means only that demand there will grow at 15% per year and not 18%, so not a consequential negative
• Hotel Market: starting to see
each year from the previous year, unlike conventional wells, so new drilling must continue for overall production to stay even
• Retail Market: still strong
• Shale oil wells deplete 30-40%
• Demand worldwide for
Liquified Natural Gas continues to grow and exports will increase
• Pipelines cost half as much
as rail to ship petroleum products and with lots of pipelines under construction, most basins in US will be “overpiped” by 2016
• Some pipelines are being
built to export natural gas to Mexico, but Pemex is experiencing managerial and financial weakness on its end, delaying progress
• Office Market: vacancies rising in sub-markets where O&G layoffs are happening, and lots of sub-lease space is coming on market, putting downward pressure on rates
weakness as supply of rooms catches up, just as demand from O&G business travel slacks off and playing catch-up; some regional malls being renovated/reconcepted
• Industrial Market: still strong with vacancies up only from 4 to 5%
• Multi Family: WAY overbuilt,
and net absorption at zero with almost 30,000 units still under construction-ouch!
• Single Family: still only about 3.5 months inventory in resale market; demand for new homes and lots remains good
• Construction prices still high and contractors still have backlogs
• Positive job growth in Houston predicted this year in the 21,000 range-as high salaried O&G jobs shrink, lower pay hospitality and leisure and government and medical and education job openings will grow ●
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2
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Cinco Ranch Office
Superb Prestigious Corner Location SEC Mason Rd & Fry Rd., Cinco Ranch Lease Offering Data
Space Available:
15,000 +/- SF (can be subdivided-call for terms) Space Condition: 2nd Generation Term: 5+ years (negotiable) Base Rental Rate Space: $24.00 PSF NNN NNN Charge (2015 Est): $11.00 PSF/Year (Landlord paying electric!) Parking Ratio: 4 per 1,000 SF • • • •
Property Data/Attributes
5005 S. Mason Road, Katy, TX 77450 Newly Constructed 2010 Two Story Building Easy access to Grand Parkway and West Park Tollway Area Demographics
2013 Total Pop.*
FOR LEASE
2013 Avg. HH Income*
1-mile
3-mile
5-mile
11.857
105.681
202.320
$199,351
$132,960
$124,086
*Demographic Data Source: ESRI 2015 Forecast
Contact: Roxanne Edmond March 2016 281.391.9252 Roxanne@wolverinepm.net
25
ray’s buzz
O’Connor & Associates January: Oil & The Office Market
Speaker: Bruce Rutherford, International Director JLL TAKEAWAY: Houston office market will suffer extreme weakness in those submarkets depending on the Energy Sector: The Energy Corridor, Greenspoint, Westchase, & The Woodlands. Less pain in the CBD, but still some, and some in the Galleria. Oil prices should be in the $60-62 range by end of 2016, but will have to stabilize for a period of many months before any new hiring by oil companies. Mergers & acquisitions and bankruptcies will continue to throw sub-lease space into an already glutted market in these submarkets. BY RAY HANKAMER
• Oil traders, not refineries or endusers, establish the price of a barrel of oil • Supply is falling off dramatically as it becomes un-economic to produce, but demand, while slowing a little, continues to grow worldwide • China’s middle class is burgeoning and vehicle ownership will create ongoing rising demand into the foreseeable future • US has become the world’s swing producer, replacing OPEC in years past; US is very nimble in responding to market forces and can turn the spigot on or off more efficiently than many other producer countries • Some countries whose production costs are high will cease producing altogether, while American engineers are resourceful and will continue lowering the cost of bringing a barrel to market • Offshore is more expensive and development there take a very long time; it will be the last to resume exploration after prices stabilize • For tenants, now is the time to move up to quality and to lock in long-term deals at lower rates • For landlords, lead the market down by being pro-active to get / keep the best tenants; don’t 26
‘follow the market down’ • Energy Corridor office has 17% vacancy including sub-lease and it may be 35% by end of the year • Houston is where the core employees of the worldwide oil
and gas industry are working and they are far less likely to be laid off than blue collar or other employees in far-flung branch locations
• “2018” should be a super year for Houston-ongoing from there will be ups and downs but nothing so dramatic as we have experienced recently ●
This is how oil prices are better, sooner Global crude production
Source: U.S. Energy Information Administration, Tudor Pickering, JLL Research
March 2016 4
FOR LEASE RETAIL SPACE ray’s buzz
• Shopping center size 75,620 SF - Built in 1985 • Retail space available (1st floor) - 1,600 SF - 4,000 SF - $13.00/SF + NNN • Aggressive lease terms • Pylon signage available • Traffic counts - 82,880 CPD (Westheimer) • +/- 592’ of frontage on Westheimer • 372 surface parking spaces available
Woodland Park Shopping Center 11380 Westheimer, Houston 77077
1 • 2 blocks west of Beltway 8 • 2,952 SF - 2nd floor • Excellent for retail, office or professional use
Kaleidoscope 10612-10692 Westheimer, Houston, 77042
Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108
A A Realty Co
Accredited Management Organization
eleung8888@aol.com www.aarealtytx.com
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Beltway 8 West
For more information
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Westheimer Rd
ay Westpark Tollw
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FORMER SUPER K‐MART
172,273 SF BUILDING & +/‐ 25 ACRES
FOR SALE AND/OR LEASE
4440 TWIN CITY HWY Groves, TX 77619 Price: 3,500,000/ Lease: $.75/SF/Mo Lease Space Divisible 5 Entrances Pad Site - Smaller Tract Available Seller Financing Available/Open to possible Joint Venture
Strategically located at the intersection of Highway 73 and Highway 347 (Twin City Hwy)
Billboard
Property has high retail activity: McDonalds, Sherwin-Williams, Walgreens, Super Wal-Mart, Ford Car Dearlership, Chase bank, etc. Great Location for Retail, Academic Facility, Indoor Market, Medical, Warehouse, Dearlerships, etc. DANNY NGUYEN INTERNATIONAL DN COMMERCIAL REAL ESTATE BROKERAGE – DEVELOPMENT – INVESTMENT ACQUISITION – DISPOSITION – LEASING 9999 Bellaire Blvd, Ste 909 — Houston, TX 77036 713-270-5400 — DannyNguyen@DNCommercial.net
DNCommercial.net
RealShare HOUSTON MARCH 29
WESTIN GALLERIA
FEATURED SPEAKERS:
LOUIS CUSHMAN Cushman & Wakefield
MICHAEL DOPLER AEW Capital Management
DEREK HARGROVE Marcus & Millichap
MARK MURRAH Murrah & Killough, PLLC
STEVE PUMPER Transwestern
PAUL S. RAHIMIAN Parkview Financial
MATTHEW ROTAN ARA Newmark
CURTIS D. SPENCER IMS Worldwide
KEVIN WESTRA Northwestern Mutual Real Estate
WELCOME WILSON GSL Welcome Group
PRESIDENTIAL SPONSOR:
EXECUTIVE SPONSORS:
Sponsors as of 2/8/16
PROMOTIONAL SPONSORS:
REGISTER
www.realshareconferences.com
Sponsorship: Michael Toney • 212.457.7827 • mtoney@alm.com General Info: Melissa Baer • 212.457.9740 • mbaer@alm.com Registration: Kaiser Kennedy • 212.457.9618 • kkennedy@alm.com
March 2016
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Environmental Due Diligence Can Get Sticky. Let Us, Your TEXAS Environmental Consulting Firm, Help You Navigate Through Your Environmental Risks.
Melanie Edmundson, P.G., Principal 832 485 2247 Melanie@PhaseEngineering.com
Full range of nationwide professional environmental services including: Phase I and Phase II ESAs • USTs • Asbestos • Mold • Lead • NEPA Reports Vapor Assessments • Wetlands • Property Condition Assessments
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The following pages contain a calendar of Texas CRE events, networking photos and deals/announcements. For more of the above, log on to REDNews.com. We update CRE news and events daily!
Photo Credit: CITYCENTRE - HOUSTON
events
BOMA AUSTIN bomaaustin.org CCIM ccimtexas.com CREW AUSTIN crewaustin.com CREW SAN ANTONIO crew-sanantonio.org CTCAR ctcaronline.com
CENTRAL SOUTH TEXAS
IREM AUSTIN iremaustin.org IREM SAN ANTONIO iremsanantonio.org RECA reca.org ULI AUSTIN austin.uli.org
March 2016 Calendar MONDAY
TUESDAY BOMA San Antonio Community Service Meeting 12pm
WEDNESDAY 1
IREM Austin Board Meeting 12pm
THURSDAY 2
CCIM Central South The Real Estate Summit 8:00am-12:00pm
CREW Austin CREW & CCIM Joint Real Estate Summit with Dr. Ray Perryman
FRIDAY 3
ULI Austin Young Leaders Career in Real Estate 5:00-6:00pm
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ULI Austin Product Council/Housing & Community Development 7:30am-9:00am BOMA San Antonio Program Committee Meeting12pm
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CREW San Antonio March Luncheon 11:30-1:00pm
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IREM Austin Monthly Luncheon 11:30am-1:00pm
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9
RECA City of Austin Policy Meeting 12:00-1:00pm
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RECA Mayoral town Hall Breakfast 7:30am-9:00am
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BOMA San Antonio Board Meeting 12pm
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CBA Austin Luncheon 11:30-1:00pm ULI Austin Young Leaders committee Meeting 7:30am-9:00am
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CTCAR Property Information Exchange "Crowdfunding Your Real Estate Projects" 7:30-9:00am
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CCIM Central South Networking Luncheon & Presentation Speaker Eldon Rude 360 Real Estate Analytics 11:30-1:00pm
ULI Austin Monthly Breakfast Series 7:30am-9:00am
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San Antonio ULI Hard Hat Tour: Mays Family Center a The Witte Museum 5:00-7:00pm
ULI Austin Management Committee Meeting 11:30-1:00pm
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BOMA Austin Monthly Membership Luncheon 11:30-1:00pm
CTCAR Networking Luncheon & Presentation "TBD" 11:30am-1:00pm
IREM Austin Past President's Luncheon 11:30am-1:00pm
Eldon Rude
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March 2016
RECA Memebership Committee Meeting 12:00pm-1:00pm
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BOMA Austin Shoot Out Committee Meeting 11:30-1:00pm
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ULI Austin 2016 Young Leader Leadership Exchange 31st-1st
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The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.
March 2016
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CENTRAL SOUTHEAST TEXAS TEXAS SOUTH CREW SAN ANTONIO
October 2015
JOINT LUNCHEON WITH CREW, CCIM AND CORENET AND MARK DOTZOUR AS THE SPEAKER From Top: Kate Silvas, City of Converse Economic Development Corporation, February CREW Sponsor. Luncheon attendees. Keynote Speaker Mark Dotzour at the February Luncheon hosted by CREW, CCIM, and CoreNet. Luncheon attendees networking.
CTCAR
JANUARY LUNCHEON From Top: Bob Barnes of IBC Bank, Jeremy Womack of HFF Austin and JP Newman of Thrive Funding. Jeremy Womack & Bob Barnes.
RECA
JANUARY HAPPY HOUR From Top: RECA members enjoying a night out at Speakeasy! Scott Deskins & Elaine Houston. Smiling faces at RECA's January Happy Hour. Ward Tisdale (Center) & Britni Peters (Right) accompanied by another RECA member.
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events
BOMA DALLAS bomadallas.org BOMA FORT WORTH bomafortworth.org CREW DALLAS crew-dallas.org IREM DALLAS irem-dallas.org
NORTH TEXAS
NAIOP northtexasnaiop.com NT CCIM chapters.ccim.com/northtexas NTCAR ntcar.org REC OF GFW recouncilgfw.com
March 2016 Calendar MONDAY
TUESDAY BOMA Ft. Worth March Luncheon 11:00-1:30pm
WEDNESDAY 1
THURSDAY 2
CREW Dallas Annual Networking Wine Tasting
FRIDAY 3
BOMI Course Enviromental Health & Safety Issues 5:00-7:00pm
CREW Ft. Worth Office Space redefined 11:30-1:00pm
BOMA Course Foundations of Real Estate Management 9:00am-4:00pm
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IREM Dallas Executive Council Meeting
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BOMA Dallas March Luncheon Sponsored by ABM 11:00-1:00pm
BOMA Ft. Worth Committee Meeting: Membership 12pm
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IREM Dallas March Luncheon 11:30am-1:00pm
NT CCIM March Luncheon 11:30am-1:00pm
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BOMA Dallas Engineer Lunch & Learn 11:30-1:00pm
REC of GFW March Get Together
BOMA Ft. Worth CSC Meeting 11:30am
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CREW Dallas REW ConnectNetworking Happy Hour 5:00-7:00pm
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BOMA Ft. Worth Board Meeting 12pm
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NTCAR 2nd Quarter Membership Meeting 7:00am-9:00am
NTCAR CE: Commercial Lease Analysis,Comparison & Lease vs. Own + Legal Update I & II 8:00am-5:00pm
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BOMA Ft. Worth Bowling Tournament 2016 5:30pm
REC of GFW A Fireside Chat with Teri Montesi
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NAIOP Breakfast- Broker of the Year Award
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REC of GFW 5th of REC of GFW Annual Meeting
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March 2016
The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.
March 2016
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NORTH TEXAS REAL ESTATE COUNCIL OF GREATER FORT WORTH 2016 TARRANT COUNTY COMMERCIAL REAL ESTATE FORECAST
October 2015
From Top: Councilmember Ann Zadeh - City of Fort Worth | Bill Meadows HUB International Insurance Services. Michael Flynn - Southland Property Tax Consultants, Inc. | Scott Price - Fort Construction | Bill Burton Hillwood Development Company | Fremon Baker - Trademark Property Company. Brian Dennison - Fort Worth Housing Authority | Jeffery Postell - Post L Group | Councilmember Gyna Bivens - City of Fort Worth | James Austin Jr. Austin Company. Ted Brooks - Integra Realty Resources, DFW | Lauri Conway Johnson Integra Realty Resources, DFW
CREW DALLAS
BOMA DALLAS
From Top: Teresa Ereon Giltner, Kellie Davidson, Diane Hornquist, Michael Pritchard, Vicky Gunning.
From Top: Andy Taylor, Parmenter, President's Award.
KICKOFF JANUARY MEETING
Teresa Ereon Giltner, Michael Pritchard, Vicky Gunning. Liz Trocchio, Diana Bearden.
TOBY AND LONE STAR AWARDS
Hines, Chase Tower, Celebrating Over 1 million square feet. Tracey Pals, Crescent, Outstanding Member of the Year. BOMA Dallas Members enjoying the ceremony.
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events
ACRP acrp.org BACREN bacren.com BOMA HOUSTON web.houstonboma.org CCIM HOUSTON ccimhouston.org CORENET houston.corenetglobal.org C.R.E.A.M. creamtx.com CREN crengulfcoast.com
SOUTHEAST TEXAS
March 2016 Calendar MONDAY
TUESDAY
WEDNESDAY 1
CCIM Houston CI 103 Course 8:30am-5:00pm
THURSDAY 2
CCIM Houston CI 103 Course 8:30am-5:00pm CREW Houston March Luncheon 11:30-1:00pm
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C.R.E.A.M Luncheon Speaker Gil staley The Woodlands Update 11:00-1:00pm IREM Houston Public Policy Committee Meeting 11:30am
Greater Houston Partnership State of the Airports 11:30-1:30pm
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March 2016
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FBSCR March Breakfast 8:00-9:00am
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CoreNet March Monthly Meeting Breakfast 7:30am-9:00am
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CoreNet MCR Seminar : Real Estate Transactions: Impact on Corporate Financial Statements 22nd-23rd
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Realshare Houston Networking and lively discussions with corporate executives and economists for a deep dive into the Houston CRE market.
CREW HOUSTON crewhouston.org FBSCR fbscr.com GREATER HOUSTON PARTNERSHIP houston.org O'CONNOR & ASSOCIATES poconnor.com IREM HOUSTON iremhouston.org
FRIDAY 3
CCIM Houston CI 103 Course 8:30am-5:00pm
Greater Houston Partnership International Trade Council 11:30-1:00pm
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IREM Houston Fashion Show Committee Meeting 11:30am
CCIM Houston March Luncheon 11:30-1:00pm
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CCIM Houston CI 103 Course 8:30am-5:00pm
CREN Luncheon @ The Hess Club 11:00-1:00pm IREM Houston Breakfast: Meet the Mayor 8:00am-9:30am
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BOMA Houston Business Exchange 3:00pm-6:00pm
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Greater Houston Partnership Member Engagement Meeting 9:00am-11:00am
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O'Connor & Associate Retail Forecast Luncheon 11:30am-1:00pm
BACREN Monthly Luncheon Speaker Janet SchaferHouston Airport System 11:00-1:30pm
ACRP Breakfast Meeting
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CREN Marketing Session at KW Commercial Texas Gulf 7:15-9:00am
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CoreNet MCR Seminar : Real Estate Transactions: Impact on Corporate Financial Statements 22nd-23rd
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IREM Houston Fashion Show Committee Meeting 11:30am
CREN Happy Hour at Paul's Kitchen 4:30-6:30pm
In-House Counsel CLE This CLE will provide you with insight and practical advice on how to manage the workload of your corporate legal department.
BOMA Houston BOMA SW Regional Conference 8:00am-5pm IREM Houston Executive Council Board Meeting 4:00pm
The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.
SOUTHEAST TEXAS COLLIERS INTERNATIONAL TRENDS 2016
March 2016
social
From Top: Pat Duffy. John Hammond, Jamie Oberreither, Jullian Fredericks.
Louis Macey, Barbara Cutsinger, Louis A. Macey. Rob Johnson.
HOUSTON APARTMENT ASSOCIATION (HAA)
2016 STATE OF THE INDUSTRY BREAKFAST From Top: Bruce McClenny, Terry Henry.
October 2015
Marshall Clinkscales, Tom Condon.
Photography: Mark Hiebert, HiebertPhotography.com
RIVERWAY TITLE
FEBRUARY ANNUAL FORECAST BREAKFAST From Top: Greg Talbert, Colleen Dean. John Hammond, Dr. Mark Dotzour, Reid Wilson. Matthew Ueckert, Steven Diedrich, Jordon Emmott.
CORENET
2016 ANNUAL FORECAST From Top: Dan Bellow, Bill Gilmer, Welcome Wilson. Dawn Landry, David Perryman, Dan Bellow, Ilene Duwaji, Dean Strombom. Hai Sharp, Regina Trippie. Michael Kopecky, John Clark. Wayne Svadlenak, David Cook, Bill Romane.
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CENTRAL TEXAS
Austin/San Antonio Areas
AUSTIN BUSINESS PARK SALE
A joint venture of Intercontinental Real Estate Corp of Boston & Eurus Capital Partners of Austin purchased the 257,000 sq. ft. Parmer Business Park at 5300 Riata Park Court from an affiliate of RREEF.
HOTEL/CONDO DEVELOPMENT
The Kor Group, a California developer, purchased a half-acre parcel on part of the former downtown site of the Green Water Treatment Plant from Trammel Crow who recently acquired the land from the city for $4.3 million. The property will be developed with Austin Proper Hotel & Residences.
OFFICE SALE
PRUDENTIAL REAL ESTATE INVESTORS, affiliated with Prudential Financial Inc purchased 301 Congress Avenue, a 428,419 sq. ft. building, from an entity managed by COMMONWEALTH PARTNERS. ABJ Michael McDonald of EASTDIL SECURED, an international brokerage company, reportedly handled the transaction.
(Clockwise from top left) Mark Miller, Derek Lewis & Andy Smith have joined Lincoln Property Company in Austin. Scott Boynton, MRE, has joined Peloton Commercial Real Estate in San Antonio.
Laurie Strawn has joined CBRE as Senior Real Estate Manager.
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March 2016
OFFICE LEASE
Shopgate, a mobile app developer, leasead 8,464 sq. ft. at 804 Congress Avenue. Jason Steinberg & Matt Levin of ECR represented the landlord and Justin Bayne with SkylesBayne Company represented the tenant.
OFFICE LEASE
Locally-based tech company Bazaarvoice has leased 137,615 sq. ft. in the Quarry Oaks Business Park. Riverside Resources is developing the project and CBRE worked with the tenant to design the space.
OFFICE SALE
TS Distributors Inc. leased 20,822 sq. ft. at Prologis Metric 6, 9715 Burnet Road. Otto Swingler with Live OakGottesman represented the landlord and Dom Espinosa with HPI Real Estate Services & Investments represented the tenant.
Los Angeles-based Entrada Partners purchased Arbor Square, a 50,836 sq. ft. multi-tenant office park from California-based AMC Investments. The project is located at 12885 Research Blvd, adjacent to Lakeline Mall. Walter Saad, Cathy Nabours & Logan Reichle with CBRE represented the seller.
MIXED-USE DEVELOPMENT
OFFICE SALE
OFFICE DEVELOPMENT
RETAIL LEASE
INDUSTRIAL LEASE
AUSTIN
landlord and Jon Wheless & Joe Simmons of Aquila Commercial LLC represented the tenant.
Members of the Cox family, associated with Cox Enterprises Inc, owner of the Austin American-Statesman, have purchased the 18.9 acres of land on South Congress Avenue and announced they were soliciting mixed-use redevelopment proposals for the property. Kucera Company has filed building permit applications for approximately 100,000 sq. ft. of Class A office space at 8611 N. MoPac Blvd. The property is currently occupied by the 12,000 sq. ft. Shoal Crossing Event Center.
OFFICE LEASE
Navitus Health Solutions leased 25,937 sq. ft. within Research Park Plaza. Stayton Wright & Tim Rikkers of Cresa represented the tenant and Rachel Coulter & Kevin Kimbrough of JLL represented the landlord, Cousins Properties.
OFFICE LEASE
Financial Corp of America leased 36,440 sq. ft. at Tech Center ii, 12515 Research Blvd. Brad Philp, Connor Atchley & Edvin Beasley of Stream Realty represented the
Los Angeles-based Entrada Partners purchased Arbor Square, a 50,836-sq. ft., multi-tenant office project from California-based AMC Investments. Arbor Square is located at 12885 Research Blvd. in the Northwest Austin submarket. Westlake Dermatology leased 3280 sq. ft. at 3800 N. Lamar Blvd. Highland Resource, Inc. is the landlord.
RETAIL SALE
Global Retail Investors LLC, an affiliate of First Washington Realty, Inc., purchased the 189,340 sq. ft. West Woods Shopping Center located at Bee Caves Road & Walsh Tarlton Lane. HFF brokered the sale on behalf of the seller, Velocis.
EDINBURG STUDENT HOUSING DEVELOPMENT
A $27.7 million off-campus housing community will break ground at the corner of Chapin Street & Sugar Road in close
proximity to the University of Texas Rio Grande Valley. The project will be developed by Domus Development
SAN ANTONIO INDUSTRIAL SALE
Marback Business Center, a 33,175 sq. ft. industrial property located at 9207 Marbach Road was sold to a private investor by Marcus & Millichap on behalf of a limited liability. Joshua Murphy & Jon Danklefs with Marcus & Millichap were the listing brokers.
MULTI-FAMILY SALE
Vancouver-based Pure MultiFamily REIT LP is purchasing two multi-family communities known as the TPPC for an aggregate purchase price of $117.5 million or approximately $155,000 per unit. The projects include The Towers at TPC a 416-unit project, located at 4092 TPC Parkway and The Mansions, a 344-unit project, located at 22800 Bulverde Road.
PAD SITE SALE
Jiffy Lube has purchased a 40,406-square-foot pad site in REOC San Antonio's Singing Hills, a 230-acre master-planned development at the Highway 281 and SH-46 intersection. REOC's Todd Gold and Kim Gatley represented their firm, and Nick Altomare with The Retail Connection represented the tenant in the transaction.
SAN MARCOS STUDENT HOUSING SALE
Oak Brook, IL-based Inland Real Estate Group purchased Uptown Square, a 316-unit student housing complex at 1354 Thorpe Lane from Casey Development. Scott Lamontagne & Michael Gonzalez of JLL represented the seller.
SEGUIN GROCERY STORE DEVELOPMENT
Construction is completed on the 100,000 sq. ft. HEB grocery store at 1368 East Court Street, next to the supermarket chain’s 70,000 sq. ft. location. The old building is being demolished and converted to a parking lot. KPS King Properties owns the site.
ALLEN
FARMERS BRANCH
MANSFIELD
INDUSTRIAL LEASE
OFFICE SALE
TREATMENT CENTER CONSTRUCTION
Purus Labs & Formulife Inc, a manufacturer of nutritional supplements, has leased 45,000 sq. ft. of space in Allen Station II, along North Central Expressway near the Village at Allen. This lease more than doubles the tenant’s North Texas operations. Brett Lewis & George Tanghongs of Lee & Associates represented the tenant.
DALLAS MULTI-FAMILY DEVELOPMENT
Connecticut-based developer, Richman Group, is building the 291-unit Parc at White Rock at Northwest Hwy. and Lawther Dr. and will start opening late this year. The project is located next to a DART commuter rail station.
OFFICE LEASE
Connecticut-based financial firm, Revere Capital LLC has relocated its headquarters to the 21st floor of 2000 McKinney Avenue. The company has plans to bring real estate investment to the apartment, office, retail & specialty properties in the region.
OFFICE SALE
Dallas-based Firebird Restaurant Group LLs purchased Advancial Tower, a 17- story high-rise office tower at 1845 Woodall Rodgers Freeway.
SENIOR LIVING COMMUNITY DEVELOPMENT US Freedom Capital & OnPointe Health Development are constructing a 77,132 sq. ft. senior living community at 8160 Meadow Road in Midtown Park. The project, called Adora Midtown Park, is being funded by foreign investors from Saudi Arabia, Canada, Brazil & India that are seeking US residency through the US investor residency program.
EL PASO INDUSTRIAL LEASE
Tianhai Electric Northwest, an automotive electronic components manufacturer leased 21,809 sq. ft. in 7157 Merchant Avenue. Green Bay, Wisconsin-based RES Food Products International leased 20,000 sq. ft.. Arturo De la Mora, in CBRE’s El Paso office represented the landlord.
Occidental Tower Corp, an affiliate of Houston-based Occidental Petroleum Corp, sold Occidental Tower to an affiliate of Dallasbased Encore Enterprises & New York Life for approximately $95 million. The 540,514 sq. ft. building is located at 5005 LBJ Freeway.
FORT WORTH INDUSTRIAL LEASE
Texas-based metal fabrication company, Anchor Fabrication LTD has leased 224,800 sq. ft. at 4600 Blue Mound Road which is owned by the city of Fort Worth. Transwestern negotiated the lease.
INDUSTRIAL CONSTRUCTION
Hillwood Properties has begun 2016 with the construction of more than 1.75 million sq. ft. of speculative industrial space which includes two industrial building in Alliance Westport at BNsq. ft. Intermodal Facility at FM 156 & Intermodal Parkway & a third in Alliance Center North located at I35W & Eagle Parkway.
MULTI-FAMILY SALE
Block Funds & Block Multifamily Group acquired the 240-unit Trinity Bell Gardens project located at 9500 Trinity Blvd.
GARLAND INDUSTRIAL CONSTRUCTION
Huntington Industrial Partners & Artemis Capital Partners are constructing Northgate Distribution Center, a 270,000 sq. ft. development in two stand-along buildings with approximately 135,000 sq. ft. each on Regency Crest Drive.
IRVING MUSIC FACTORY CONSTRUCTION
Skanksa USA has signed a $95 million contract with the ARK Group to develop the Irving Music Factory, an 8000-seat indoor/ outdoor concert venue that will be located next to the Irving Convention Center.
Texas Health Resources plans to construct a $37 million, 80-bed treatment center for drug & alcohol addiction to be located at 240 North Miller Road. The facility is slated to open in May 2017.
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NORTH TEXAS
Dallas/Fort Worth Areas
PLANO DATA CENTER DEVELOPMENT
Stream Data Centers purchased 16 acres for the development of a 210,000 sq. ft. database center within Legacy Business Park.
RESIDENTIAL DEVELOPMENT
Dallas-based Republic Property Group purchased 12 acres within Legacy West for the construction of a 127 custom home residential development to be known as the Villas at Legacy West.
RICHARDSON REGIONAL HUB
Bloomington, Illinois-based State Farm Insurance plans to sell its new 2 million sq. ft. regional hub in a sale-leaseback transaction that could total $700 - $800 million.
SOUTHLAKE INDUSTRIAL LEASE
Technology travel giant Sabre Corp. has expanded its headquarters at Solana Business Park signing two real estate deals totaling 196,048 sq. ft.. They extended a lease on space subleased from CoreLogic and signed a ten-year lease with Equity Office Properties. JLL represented the tenant and Cushman & Wakefield represented Equity Office.
THE COLONY RETAIL SALE
NDC Holdings sold a 7400 sq. ft. single-tenant net-leased property located 5151 SH 121. John Zikos, Jonathan Cooper, Christopher Gibbons & Don Miller of Venture Commercial Real Estate represented the seller and Leonard Mazzone of New York-based Hamilton Mundy Real Estate Advisors represented the buyer, an out-of-state investor.
GRAPEVINE PARTS DISTRIBUTION CONSTRUCTION
MERCEDES-BENZ, USA plans to build a regional Parts Distribution Center (PDC) and a Learning & Performance Center (LDC) along Lakeside Parkway at Enterprise Road owned by the City of Grapevine. The PDC will occupy 254,000 sf and the LDC will occupy 59,000 sq. ft.
Nan Li has joined NOVUS Realty Advisors as senior vice president of global investments & Zach Fry has joined the company as vice president of investments/land.
Sharon Friedberg has joined Fischer Company as senior vice president.
Phil Pearson has joined Trademark Property Company as vice president of leasing.
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SOUTHEAST TEXAS Houston Area
BAY CITY PIPELINE CONSTRUCTION
Luxembourg-based Tenaris S.A., a distributor & manufacturer of steel pipe geared toward the oil & gas industry, is investing $1.8 billion in a new pipe mill in Bay City. The project is expected to be complete in 2017.
HOUSTON INDUSTRIAL LEASE
Texas Installs, an appliance distribution & installer company, leased 12,792 sf of office/ distribution space at 18209 Chisholm Trail. Chris Caudill & Wade Cater of NAI Partners represented the tenant and Jon Michael off Bridge Commercial Real Estate represented the landlord, Colfin Cobalt.
STAFFORD
INDUSTRIAL SALE
MIXED-USE DEVELOPMENT
Dallas-based STREETLEVEL INVESTMENTS & joint-venture partner PROVIDENT REALTY ADVISORS, Inc purchased 192 acres which was formerly the Texas Instruments campus. Plans for the property include 350,000 sf of destination retail & dining concepts; 2400 residential units, Class A office space, 2 hotels, a health club, entertainment & green space in a walkable urban center.
Electro-Technical Services Inc sold a 25,000 sf crane-service manufacturing building at 8541 East North Belt to Mesa Properties LLC. Chris Caudill with NAI Partners represented the seller and Corey King of Commercial Realty Advisors represented the buyer.
VACANT LAND SALE
Miller Road Realty purchased 80.43 acres on Beaumont Highway from Williams Brothers Construction Company. Trey Erwin of Colliers International represented the buyer and Frank Blackwood of Capital Real Estate Commercial represented the seller.
OFFICE LEASE
Bureau Veritas, a France-based company that provides testing, inspection & certification services leased 43,600 sf at 16800 Greenspoint Park. Michelle Wogan & Evelyn Ward of Transwestern represented the landlord and Beau Bellow, Ronnie Deyo & Todd Schaefer of JLL represented the tenant.
OFFICE LEASE
ChaiOne, a Houston-based enterprise software & mobile app developer leased 11,500 sf at 1800 West Loop South. The company is doubling its space and relocating from 4900 Woodway.
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OFFICE LEASE
Parallax, an energy services company, leased 15,019 sf in Total Plaza tower at 1201 Louisiana. Margaret Sigur, Clint Bawcom & Jon Dutton of Brookfield Office Properties, Inc represented the landlord.
OFFICE SALE
TriGate Capital purchased Northbelt Office Center II, located at 785 Greens Parkway from C-III Asset Management, a special servicer that took control of the property via foreclosure in April 2014.
RETAIL CONSTRUCTION
Houston-based Weingarten Realty Investors purchased 1935 West Gray which houses a Pier 1 Imports store. The property is adjacent to Weingarten’s River Oaks Shopping Center and will become part of the center.
RETAIL LEASE
Fitness Connection leased 44,189 sf which had formerly been occupied by 24-Hour Fitness at Fairfield Retail corridor northwest of Hwy 290 & Sam Houston Parkway. Dianne Pyatt of Brixmor Property Group represented the landlord.
RETAIL SALE
The Richland Company purchased a 30,000 sf at 5630 N. Eldridge Parkway from 5630 Elridge Parkway Investors Ltd. & Bassam Barazi. The sellers were represented by Cushman & Wakefield. The buyer was represented by its president & CEO, Edna Meyer-Nelson.
VACANT LAND SALE
The University of Texas System purchased 100.27 acres as part of its plan to expand on more than 300 acres north of Willowbend Drive & west of Buffalo Speedway. The remaining 200 acres are expected to be purchased in early 2017.
KATY RESTAURANT/RETAIL DEVELOPMENT
Hunington Properties Inc purchased 3.3 acres in the Wolff Companies Ten Oaks master planned development located at the northwest corner of Barker Cypress Road & Park Row. The property will be developed with
a free-standing quick service restaurant & an additional 20,000 sf of general retail space.
PASADENA INDUSTRIAL LEASE
Plastic Express leased 394,489 sf in Port 225, located at 3013 Hwy 225. Jeff Huberman, Michael Spears & Robert McGee of Lee & Associates represented the tenant and Brian Gammill & Darryl Noon of Transwestern represented the landlord, Clarion Partners.
ROSENBERG OFFICE/WAREHOUSE CONSTRUCTION
Bearden Investment purchased 7.2 acres for the construction of over 100,000 sf in Rosenberg Business Park, located at FM 2218, less than a half mile from I69. Fuller Realty Partners is the project developer.
MANUFACTURING CONSTRUCTION
Croft Production Systems purchased 5.5 acres in Rosenberg Business Park for the construction of a facility that specializes in the manufacturing of natural gas processing.
SUGAR LAND MULTI-FAMILY CONSTRUCTION
Alliance Residential Company is building a 351-unit project located off South University Blvd in Riverstone, a master planned community. The project will be located just north of Schlumberger’s new headquarters.
WALLER COUNTY VACANT LAND SALE
Kemah-based American International Industrial Inc is purchasing 521 acre which has more than a mile of frontage on US290 and is located near Daikin North America LLC’s $417 million manufacturing plant.
classifieds & index
ADVERTISER INDEX A.A. Realty Company 27 Caldwell Companies 3 CBRE 1- SE Texas, 19 C J Park 13, 21 DN Commercial 28 Greenberg Company 19 Guardian Equity 23 Hankamer & Associates 25 Homeland Properties 23 Levcor, Inc 17 Marcus & Millichap 17 Phase Engineering 30 Plano EDC 2 Real Estate Center 43
Real Estate Council Ft. Worth 22 RealShare Houston 29 RECon 42 Showalter Law 41 Tarantino Properties, Inc. 8, 9 TCP 21 Texas First Real Estate 25 The J. Beard Company 7 Van Alstyne 1-North Texas Waller County EDC 19 Windrose Land Services 44 Wolverine Management 25 Zarsky Industries 5
In Next Month's Issue... The April Civil Fair Play column will focus on the EB-5 Program, a governmental program that offers a strong incentive for foreign investment in the US.
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May 22 – 25, 2016 I Las Vegas, NV
Las Vegas Convention Center & Westgate Hotel We know you attend RECon to network with over 36,000 attendees, participate in education sessions to enhance your professional development, and meet with over 1,000 exhibitors to make deals. We also know you’re wondering who this year’s keynote speakers are.
SUNDAY OPENING SESSION KEYNOTE
Earvin “Magic” Johnson
Magic Johnson Enterprises
MONDAY
Parag Khanna
Tony Hsieh
Factotum, Hybrid Reality
Zappos
TUESDAY Gary Friedman
Restoration Hardware
Bobbi Brown
Bobbi Brown Cosmetics
Register by March 31 to save $150 and receive your badge by mail. Visit www.icscrecon.org for more information.
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March 2016
#RECon16
o l t o u k O FOR
Texas Land Markets
The 26th Annual Outlook for Texas Land Markets provides information on a variety of legal, economic, social and natural resource issues influencing current land market dynamics. April 28–29, 2016 Omni Hotel at the Colonnade San Antonio, Texas
CROCKETT n a t i o n a l
b a n k
Register Online www.recenter.tamu.edu/register March 2016
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CITYCENTRE - HOUSTON,TX
CITYCENTRE - HOUSTON,TX
WINDROSE LAND SERVICES
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GIS