Page 1



Houston CRE Market Shows Resilience

Inside: Hurricane Harvey:

Where Do We Go From Here?

CBRE Marketview:

Office and Industrial Trends in Texas


Flood Development Permits & Grandfathered Structures in Houston





4707 EIGEL

Located just east of the NWC at Shepherd and Eigel, 4707 Eigel boasts an ±7,280 SF office building on a ±15,000 SF of land. The property includes ±29 parking spaces to provide ample parking. Two curb cuts on Eigel along ±150’ of frontage and one curb cut on Parker, along the ±100’ of frontage. NO FLOODING

KRISTEN MCDADE Senior Director T: +1 713 469 4509

LAUREN GEARY Marketing Coordinator T: +1 346 444 8968

MATT DAVIS Analyst T: +1 346 444 8961

3939 ESSEX LN. HOUSTON, TX 77027

Just west of Weslayan, nestled between Westheimer and W. Alabama, 3939 Essex is a ±23,801 SF tract of land, including a ±6,888 SF office building. Property has a total of 28 parking spaces and in close proximity to River Oaks, Highland Village, Upper Kirby, Greenway Plaza, West University and Uptown/Galleria. NO FLOODING



records; leasing activity mixed

IN THIS ISSUE Rentable Area

1,439 MSF


4.5 MSF



Under Construction

Net Absorption

Vacancy Rate

8.2 MSF

25.0 MSF

*Texas industrial aggregates the Austin, Dallas/Ft. Worth, El Paso, Houston, McAllen, and San Antonio markets. Arrows indicate change from previous quarter.

Figure 1: Texas Industrial Net Absorption with Vacancy Rate


Primary Market Net Absorption (MSF)

Non-Primary Market Net Absorption (000’s SF)

26 24 22 20 18 16 14 12 10 8 6 4 2 0

1,800 12% 1,600 1,400 10% 1,200 8% 1,000 6% 800 600 4% 400 2% 200 0%0

Houston Source: CBRE Research, Q2 2017.

DFW 2016

McAllen YTD 2017



After a record quarter of construction deliveries by primary markets in Q1 2017, non-primaries followed suit with a combined quarterly record of 2.6 million sq. ft. in Q2 2017. Dallas reported the largest delivered amount followed by Houston and San Antonio with alike volumes. Austin and El Paso also saw substantial deliveries this quarter which influenced fundamentals. Positive move-ins increased year-to-date net absorption for most markets, El Paso already surpassed its 2016 annual net absorption while San Antonio has maintained its leasing velocity at 54%. Aggregate leasing data from top transactions across all Texas markets show that 32% of year-to-date activity was attributed to demand from the distribution and logistics industry. Wholesale, food and beverage, and machinery and appliances together also contributed a strong 41% to positive movements this quarter.

El Paso

Vacancy Rate (%) 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%


San Antonio

Q2 2017 Vacancy (Right Axis)


Figure 2: YTD 2017 Texas Industrial Activity by Top 10 Industries Transportation/Distribution/Logistics-3PL

Transactions (SF)


Food & Beverage MFG & Processing 8,388,459

Machinery, Automation & Appliances MFG Other-Services Warehousing/Storage

2,135,500 3,214,567

Motor Vehicles & Parts MFG 5,396,401

Materials MFG Materials MFG-Plastics Life Sciences-Ag Feedstock & Chemicals

Source: CBRE Research, Q2 2017.






Q2 2017 CBRE Research

Sales & Leases 1-3, 7,9, 11, 13, 15, 17-19, 22, 23, 25

Environmental Services 30, 43 Legal Services 41 Photography 28

© 2017 CBRE, Inc. |


Events 5, 28, 32, 34-37 Social 33, 35, 37 Bulletin 38 – 40

CBRE Houston Shows Resilience 8, 10 Hurricane Harvey: Where Do We Go From Here 12, 14 CBRE Texas Industrial Trends 16 CBRE Texas Office Trends 24 Property Tax Reductions 26 – 28 CIVIL FAIR PLAY Reconstruction after Harvey 29 RAY'S BUZZ Ray talks with Dennis Murphree 20, 21



Letter from the Publisher



Ginger Wheless


Margie Gohmert


Janis Arnold Ray Hankamer Brandi Smith


Omar Izfar

Michael Pavia

Dear Readers,

The physical destruction of Hurricane Harvey will probably take us some years to overcome. However, the compassion, strength and resiliency of metro Houstonians, as well as those outside Texas who flocked here to help, is truly inspirational and such a good reminder for all of us, in all aspects of our lives, to remember that we are much stronger united, than we are divided.

On September 5th, Cara Smith, a writer with The Houston Business Journal wrote an article about a few of the many Houston real estate execs who took part in Harvey water rescues. Cushman Wakefield’s Coe Parker was out rescuing people in his mud boat & CBRE’s Lucian Bukowski was helping launch boats off I610 near Meyerland, to name just a few. You guys are true Texans! We’re so proud of our REDNews’ writer, Brandi Smith, who also happens to be a KHOU 11 news reporter, and who has became a nationally known heroine for her assistance in saving Robert Robertson, a truck driver who was stranded on the N. Sam Houston Tollway frontage road.

I hope that the information provided by Pat O’Connor, Mark Sappington & Omar Izfar in this issue will be of some assistance if you experienced property damage during the hurricane. Next month is our Texas ICSC issue so I look forward to catching up with all you retail professionals in Dallas on November 8 – 10th. Proud & Humbled,

Ginger Wheless


Rahul Samuel


Steven Smith


Benton Mahaffey


Ginger Wheless


REDNews is directly mailed each month to commercial real estate brokers, investors and developers throughout Texas and the US. 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! To subscribe to REDNews call (713) 661-6300 or log on to 5909 West Loop South, Suite 135 Bellaire, TX 77401

TEXAS MEDICAL CENTER SUPER FLEX SPACE AVAILABLE NO FLOODING DURING ALLISON, IKE OR HARVEY Cooperating Tenant Broker will receive a commission bonus and a new Rolex Submariner Oyster Perpetual 904L Stainless Steel Watch for all new leases over 10,000 SF completed before 12/31/17

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Houston CRE Market Shows Resilience in Face of Hurricane Harvey U.S. MARKET FLASH - SEPTEMBER 2017

Hurricanes, tropical storms and floods are familiar occurrences in Houston and the surrounding Texas Gulf region; more than eight severe floods/hurricanes have impacted the Houston MSA since 1998. But when Hurricane Harvey struck the region near Rockport, TX on August 25, the Category 4 storm was the strongest to hit the region since 1961, dumping more than 50 inches of rain in a matter of days and causing extensive property damage due to flooding. In addition to its devastation on Greater Houston, Harvey's impact was national in scope as well. Port Houston-the largest U.S. port in foreign tonnage and home to the nation's largest petrochemical complex-closed for 4 1/2 days after the hurricane and reopened on September 1. Most refineries along the Texas Gulf Coast, which is the nation's largest producer of oil and gasoline, have also restarted operations, while others, such as Valero, have returned to pre-storm fuel-making rates. Nationally, consumers will see an increase in gas prices of about $0.08 - $0.10 for the next several months. Houston is a major distribution hub because of its massive seaport and strategic location along well-established supply networks. Interstates 10, 69 and 45 are among the busiest highways in the U.S. and ultimately connect Los Angeles to Jacksonville, Houston to Port Huron, and Houston to Dallas. Flooding and other unforeseen hazards caused disruptions to not only regional, but also global supply chains since

Source: Robert Kramp, CBRE Director of Research & Analysis Texas and Oklahoma Region 8


late last month. Re-routing inefficiencies, costing approximately $53 million daily, will be short-lived as water and other obstructions are cleared from Houston highways. In Hurricane Harvey's aftermath, CBRE Research has completed an initial assessment of the impact on local and national commercial real estate. Following are highlights of our findings.

Office Market Mainly Unscathed Nearly all of Houston's office buildings escaped the worst flooding. CBRE Research estimates that of the city's 1,200-building, 214 million-sq.-ft. total inventory, fewer than 40 buildings totaling approximately 9 million sq. ft. had some level of damage. Most of the office product impacted by flooding is in four areas to the west and northwest of the CBD--West Houston, Allen Parkway, West Loop/Galleria and FM 1960/ Highway 249. These submarkets comprise 74.6 million sq. ft., or 35% of the total Houston office market, which were 84% occupied at the end of the second quarter. Displaced tenants are already actively searching for suitable, furnished and turn-key temporary space. Many of these tenants expect to return to their original locations as soon as next month. Consequently, many of them will sign very short-term leases rather than longer-term direct ones. There was more than 11.1 million sq. ft. of available sublease space in Houston at midyear, providing numerous options for these tenants. As a result, we expect to see a decline in sublease availability in the third quarter. Meanwhile, some direct

tenants previously marketing sublease space have removed their sublease availabilities from the market for two main reasons: orchestrating an office move in the next several months will be difficult, and office build-outs of their future space will face construction delays caused by a shortage of materials and construction workers.

Industrial Real Estate Occupancy to Rise Labor and resource reallocation--along with shortterm disruptions, including lost productivity and interrupted supply chains--are some of the immediate pressures facing Houston's industrial market. There were isolated instances of damage to institutional, dock-high Class A product, particularly on the West Side and along the I-10 corridor. The clear majority of Houston's industrial product weathered the storm with no major structural damage.

Houston's largest industrial cluster, the inner Northwest and inner North/Northeast, reported few "major damaged" or "destroyed" properties, according to the Federal Emergency Management Agency (FEMA). Moody's Analytics estimates a loss of 6% to 8% of industrial value, or $2.6 billion, based on analysis and comparison to similar occurrences. The damage likely is greater within older properties and those located near Houston's bayous. Continued on page 10 >


TC JESTER & FM 1960 ±27 ACRES LOCATED ON TC JESTER BLVD., ONE BLOCK NORTH OF FM 1960 Utilities through Northwest Harris County MUD 20, with adequate utilities to the site No zoning, and no pipelines, access or other easements bisecting the tract


±9.94 ACRES

FM 1960 & WELCOME LN. ±9.94 ACRES OF LAND, LOCATED DIRECTLY ON FM 1960, THE MOST TRAFFICKED STREET IN NORTHWEST HOUSTON Immediately west of the new Kelsey-Seybold Clinic No zoning, and no pipelines, access or other easements bisecting the tract

KRISTEN MCDADE Senior Director T: +1 713 469 4509

LAUREN GEARY Marketing Coordinator T: +1 346 444 8968

MATT DAVIS Analyst T: +1 346 444 8961

Houston CRE Market Shows Resilience in Face of Hurricane Harvey < Continued from Page 8

Several national building supply companies are presently securing additional space for the extensive $100 billion+ rebuilding effort that will occur over the next year. A spike in requirements ranging from 20,000 to 500,000 sq. ft. is expected to put downward pressure on industrial vacancy rates over the near term, driven by building suppliers, charities and distributors of consumer goods. Many non-flood-related industrial requirements will likely now go unfulfilled. Houston's massive reconstruction and repair project (including an estimated 100,000 homes) likely will fuel a significant increase in industrial occupancy--particularly in light-industrial space, which correlates highly with building and construction material distribution. Wholesale and retail distribution activity should also increase, as consumers replace damaged furniture and other household goods. Affected Texans will also have to replace nearly 660,000 destroyed or severely damaged vehicles. This will help jump-start vehicle sales, which have been slowing in recent months, which should benefit multiple markets along the complex automotive and automotive parts supply chains.

Retail Leasing Market Will Tighten Prior to Harvey, Houston's Class A retail market was 97% occupied in the second quarter--a record high. Hurricane damage to retail properties was not widespread; it was mainly limited to neighborhood and strip centers in the hardest hit areas, such as the suburban and mainly single-family residential neighborhood of Kingwood to the northeast, Cypress in the northwest, and to West Houston. As a result, Harvey is not expected to impact national retailers' expansion plans, although a market strained by limited availability will continue to hinder leasing. Displaced retail tenants have already begun searching for temporary space, with little success due to the tight market conditions. Home improvement and related retailers already active in the robust housing market are expediting their location decisions to capture demand for housing repairs due to the historic flooding. Local retail sales will increase, especially for durable goods such as automotive, home improvement, furniture and appliances, as Houstonians begin to rebuild their homes. Retail sales tax receipts will spike mainly in Harris, Montgomery and Fort Bend counties.

Soft Multifamily Market Will Reverse Residential properties were the most affected by flooding. The majority of these were single-family 10


homes in suburban areas to the northeast, west and southwest of downtown Houston, or in just three of the nine counties comprising the 700-square-mile+ Greater Houston market. As many as 100,000 multifamily units (one out of six) were flooded, which means that any spot softness in the market is now gone. A small number of high-density submarkets sustained damage in as much as 30% of existing inventory totaling approximately 22,300 occupied units and creating immediate leasing demand. Apartments currently for rent and that escaped the storm in west, northwest and northeast Houston will see sharp occupancy increases by the start of the third quarter. Concessions and competitive move-in specials characterizing the rental market since 2016 are expected to quickly rescind, and renters with leases expiring in the next six months should not anticipate any type of renewal incentives.

Hotel Occupancy to Rise Hotels throughout the region should see a rise in the number of people seeking accommodation, given the extensive home damage. FEMA is already housing 53,000 people in government-funded hotel rooms. Although initial reports are of relatively few closures among Houston's 868 hotels totaling 85,615 rooms, some properties that remained open suffered flooding and/or reduced services. Looking at hotel data from four comparable disasters (Hurricane Katrina, Superstorm Sandy, Hurricane Ike and Hurricane Andrew), demand rose by 10% to 40% in the surrounding markets in the month after each event. Demand was still up an average of 15% four months after each event because of displaced residents, FEMA staff, emergency personnel and construction workers. Growth rates by market will vary from Hurricane Harvey's impact, with Houston likely to see the largest increases in demand. Nearby cities like Austin, San Antonio and Dallas-Ft. Worth may also see demand from meetings and conventions originally booked for Houston. Assuming that Hurricane Harvey has a similar impact as past major storms, that there is no significant increase in room rates and that there is no major decline in the

number of available hotel rooms, then hotels in the five major Texas markets could generate an additional 3.4 million room nights of demand and roughly $430 million in additional revenue. Given CBRE's current U.S. forecast of a 3.5% increase in RevPAR for Q4 2017, this additional demand would increase the RevPAR growth rate to 4.4% for the quarter and raise the overall RevPAR outlook for the year to 3.1% from our current forecast of 2.8%. Projected increases to supply could be significantly curtailed as hotels in Houston close for repairs and construction supplies becoming scarce, which limits the feasibility of adding new supply. Houston currently has more than 5,000 rooms under construction and many of those projects are now expected to be delayed because of the storm.

Infrastructure Upgrades Likely for Subdivision Land Houston's land market is dominated by retail, industrial and single-family development, as the office and multifamily sectors were over-supplied prior to Harvey. Northwest Houston will remain the desired industrial land choice, and vacant commercial sites in the Port Houston area will be even harder to find. Retailers acquiring land sites could change the footprint for completed retail product as smaller warehouses with retail storefront space replace traditional big-box and junior-box retail spaces. From a single-family residential perspective, land prices will be tested as increases for construction and labor rise. The highest estimates of damage are 196,000 single-family homes. More than 73,000 National Flood Insurance Program (NFIP) claims have already been submitted and $13.2 million in advance payments have been issued. Displaced homeowners likely will lease Class A multifamily units and developers may look for sites to develop sooner than previously anticipated. In addition, new development requirements for flood control and water drainage will likely be imposed on new, large single-family land tracts despite existing drainage requirements for new subdivisions, such as detention ponds, curbs, gutter drains and levees.




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Hurricane Harvey: Where Do We Go From Here? Mark Sappington, P.E., President of Sappington Engineering


Hurricane Harvey resulted in extensive flooding and massive home damage to the Houston region. “We’ve got probably 30,000 to 40,000 homes that have been destroyed,” said Harris County Judge Ed Emmett. Damage estimates surpass $20 billion.

While the region recovers from the damage, the community is asking what can be done to avoid this type of devastation going forward? Here we consider some potential courses of action. But before discussing solutions there are several points to consider.

Harvey was a unique storm. The Houston area received over 50 inches of rain in a few short days. Nowhere in the US has this much rain fallen in such a short period of time. It’s simply never been seen before. According to Mark Sappington, P.E., President of Sappington Engineering, “If you dump 30 to 50 inches of rain anywhere in the United States you would have massive flooding.” So, in a storm of this magnitude, no amount of preparation would have avoided the flooding.

Harvey was a 100-year event with a very low probability of reoccurring. “The 100-year storm event is an event that has a one percent chance of occurring in any given year. The probability was minuscule that we would have a Category 4 hurricane that would hit near Rockport and stall and just continue to dump water for days on Houston” says Sappington.

What can we afford? The cost of putting into place infrastructure that would have kept Harvey from flooding anyone would be astronomical and unaffordable.



Emotion takes precedence over reality. The immediate response is that we should implement solutions that make it where no one ever floods. Because we have no control over mother nature it's an impossibility to remove all risk of flooding.” Going forward, Houston must balance the demand for action with economic considerations. “We need cool heads to prevail. We need to take the emotion out of it and come up with a plan of action that can be done that will protect the public more than before”, says Sappington. Below we consider several actions that can give the residents of the Houston area the highest level protection that is affordable. Let’s take reasonable action and not make the development community the easy scapegoat.

REALISTIC SOLUTIONS Raising finished floor elevations. Says Mark Sappington, “One thing I would be in favor of would be to raise the minimum floor slab elevation immediately in Houston from one foot to one and a half feet to match the county, or higher. Raising finished floor elevations will give more protection to any new development and any new redevelopment that is going on in the city and in the county. That needs to be the goal for the Houston area, to eliminate as much as possible structural flooding.

FEMA buyout of flood plain homes.

An initial emotional response is not necessarily the best response for protecting the future.

One element of a possible long-term solution to Houston's flooding woes is to buy out flooded homes and return the land to the water shed where it can soak up more rain.

Mark Sappington comments, “Flooding is a very emotional issue to anyone who has experienced water in their homes. It ruins their homes and things that are loved by these individuals. This terrible tragedy changes people's lives. When there is a disaster such as this people tend to lose perspective.

This subject has been recently discussed in an article in Forbes (Future Flood Control: Time To Buy And Bulldoze Houston's Most Flooded Homes; Christopher Helman, August 31, 2017). Since 1985 the flood district has been working with FEMA to pay homeowners to give up their flood-prone properties that were Continued on page 14 >





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Jay Young Associate


*On Tuesday, September 12th, the Harris County

Commissioners Court voted to ask FEMA for $17 million to purchase 104 flooded homes. If approved, the county will continue a slow process to buy and demolish a total of 3300 homes.

< Continued from Page 12

“simply built in the wrong place,” i.e. “hopelessly deep in the floodplain.” More than 3,000 properties on 1,100 acres have been acquired in these buyouts, their structures bulldozed and allowed to return to their natural role in soaking up flood waters before they even get to the bayous and reservoirs. “Buying up the deepest corners of the floodplain makes enormous sense. Landowners get enough money to start over somewhere else, while the flood district gains valuable acres of absorption capacity. Around the Addicks and Barker reservoirs, some flooded neighborhoods are inside on the boundaries of the vast reservoirs, which are normally kept as natural expanses of woods, parks and bayous, with walls and gates to hold back floodwaters. If buying more reservoir land through buyouts is cheaper and easier than building another new reservoir, then by all means, use more buyouts.” says Sappington.

* Russell Poppe, executive director of the Harris County Flood Control District was recently interviewed for a story in the Wall Street Journal (In Harvey’s Wake, Houston Rethinks Real Estate Development; Douglas Belkin and Shibani Mahtani, September 12, 2017). Poppe hopes to leverage the FEMA program to buy hundreds, if not thousands, of homes in vulnerable areas. “We would prefer to buy these homes out now before they start making improvements,” Mr. Poppe said. For about $2 billion in relief money a FEMA-backed buyout could ensure that 7,000 homes never flood again.

Addicks Reservoir. Releasing water from the reservoir is a big topic now. There are many people who are still flooding because of the releases from Addicks & Barker reservoirs. There will be a lot of discussion on what happened and when water was released and when water wasn’t released. Should they have released earlier or later or not at all? Sappington said “There was a finite design for Addicks and for Barker reservoirs in the late 1930s and early 1940s. It was always believed that that

volume amount of volume would never ever be reached. The unprecedented rainfall from Harvey made the dams fill up like they've never ever filled up before and to the point where the spillway was starting to be activated.” One subdivision in that area has three detention ponds within a close proximity to a home that had no flooding. Is the answer a requirement of more retention ponds? According to Sappington “The Harris County Flood Control District has very recently changed its policy on detention and the areas that drain to the Addicks Reservoir. They've increased the amount of detention that is required from 0.55 acre-foot per acre to 0.85 acre-foot per acre, which is a substantial increase. The reason being is that an additional 0.3 acre-foot per acre of detention is to be designed in such a way that it can be held back in the detention pond instead of draining immediately to the Addicks reservoir. The City of Houston, Harris County and Harris County Flood Control District are not sitting back on their laurels. The Harris County Flood Control District has been doing a wonderful job in getting new online detention basins that are limiting the amount of flooding. Firstly, in the upper regions of White Oak Bayou they have done so many projects there that are now online and there was not the significant flooding on White Oak Bayou that we had in other areas because they have been busy building infrastructure, buying out homes, turning areas into regional detention basins that lower the flows as they go down the stream. Going forward, they are modeling the existing problems and proposing solutions to lower flooding.”


There are reasonable solutions available that can significantly reduce the risk of future flooding in the Houston region. It has been shown that such actions are effective. Let’s learn from past successes and move forward together, not simply blame increased development for Houston’s problems. Sappington comments that the regulations in place by the municipalities are a lot more stringent than they've ever been but unfortunately, a lot of our infrastructure, a lot of our past development, has been designed, approved, permitted, and developed using former criteria that weren’t nearly as stringent as now. People look at problem areas and the reaction is to deem that the current criteria are totally inadequate, not realizing these areas were developed under older, less stringent criteria. Sappington continues, “It's a very complex matter and it pains me when I hear that the problem was because of all the development and that we turned all the prairie to concrete and we chopped down all the trees. If you look on Google Earth, at the historical pictures of western Harris County, there were no trees in the past except along the bayous.” Fred Caldwell, president and chief executive of Caldwell Companies, a commercial and residential real-estate developer, said in the above mentioned Wall Street Journal article that he believes the development community has done an “incredible job in protecting natural areas.” He disputed the notion that stronger regulations would have mitigated Harvey’s impact. The record amount of rainfall—51.88 inches— would have devastated an area with stricter zoning, building regulations and more green space, he said. There are reasonable actions that can be taken to protect the Houston region from future flooding. Let’s come together as a community and take these reasonable actions and not make the development community the easy scapegoat.

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Texas Industrial, Q2 2017

Texas Industrial Trends, Q2 2017 Consecutive construction Consecutive construction records; leasing activity mixed records; leasing activity mixed Rentable Area

1,439 MSF

4.5 MSF



Under Construction

Net Absorption

Vacancy Rate

8.2 MSF

25.0 MSF

*Texas industrial aggregates the Austin, Dallas/Ft. Worth, El Paso, Houston, McAllen, and San Antonio markets. Arrows indicate change from previous quarter.

Figure 1: Texas Industrial Net Absorption with Vacancy Rate

Primary Market Net Absorption (MSF)

Non-Primary Market Net Absorption (000â&#x20AC;&#x2122;s SF)

26 24 22 20 18 16 14 12 10 8 6 4 2 0

1,800 12% 1,600 1,400 10% 1,200 8% 1,000 6% 800 600 4% 400 2% 200 0%0

Houston Source: CBRE Research, Q2 2017.

DFW 2016


After a record quarter of construction deliveries by primary markets in Q1 2017, non-primaries followed suit with a combined quarterly record of 2.6 million sq. ft. in Q2 2017. Dallas reported the largest delivered amount followed by Houston and San Antonio with alike volumes. Austin and El Paso also saw substantial deliveries this quarter which influenced fundamentals. Positive move-ins increased year-to-date net absorption for most markets, El Paso already surpassed its 2016 annual net absorption while San Antonio has maintained its leasing velocity at 54%. Aggregate leasing data from top transactions across all Texas markets show that 32% of year-to-date activity was attributed to demand from the distribution and logistics industry. Wholesale, food and beverage, and machinery and appliances together also contributed a strong 41% to positive movements this quarter. Q2 2017 CBRE Research

13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

McAllen YTD 2017

Vacancy Rate (%)

El Paso


San Antonio

Q2 2017 Vacancy (Right Axis) Figure 2: YTD 2017 Texas Industrial Activity by Top 10 Industries Transportation/Distribution/Logistics-3PL

Transactions (SF)

Wholesale Food & Beverage MFG & Processing 8,388,459

Machinery, Automation & Appliances MFG Other-Services Warehousing/Storage

2,135,500 3,214,567

Motor Vehicles & Parts MFG 5,396,401

Materials MFG Materials MFG-Plastics Life Sciences-Ag Feedstock & Chemicals

Source: CBRE Research, Q2 2017.

Other Š 2017 CBRE, Inc. |




$ 00



• 107,058 sf three (3) story corporate facility • Office furniture and work stations negotiable


• Controlled access-card key • Security system; cameras on premises • Located on the corner of Hollister & Northwest Road in the deed restricted Northwest Crossing Business Park • Conveniently located off Hwy 290 between Sam Houston 8 & 610 • Excellent access to Hwy 290, Sam Houston 8, I-45, 610

Patrick McKiernan direct: (713)534-1888 UP TO 107,058


Jonathan McDaniel direct: (713)534-1802 CALL TO ARRAN

FIRST HOUSTON Properties, Inc. Patrick McKiernan Direct: (713)534-1888 │ Email:

Offering Properties & Hotel Consulting

The information contained herein is from sources believed to be reliable. However, no warranty or representation is made. All prices are subject to change without n prior lease, sale, or withdrawal from the market without notice.

PROPERTIES AVAILABLE • Freeway Sites - I-20 - Monahans, TX • 30 Acres Commercial/Rail Serviced - Tomball, TX • 12 Acres Residential/Commercial - I-45 - Huntsville, TX • Hotels - Statewide


Hospitality Consulting Services

40 Years Experience As Developer, Owner / Operator and Commercial Broker

Hospitality Consulting Services

Ray Hankamer, Jr 40 Years Experience As Developer | Owner 713.922.8075 | Operator /

713) 789-7060

Direct: (713)534-1802 │ Email: Jmcda

H & B

retail | restaurant | medical | space for lease 2,340 SF available on second floor. Base rent $15.00 PSF & NNN $4.20 PSF

Excellent for retail, office or professional use

2,671 SF end cap on first floor, one lane drive through attach; Base rent $24.00 PSF & NNN $4.20 PSF

2 blocks west of Beltway 8

Kaleidoscope 10612 Westheimer Houston, 77042

WoodlanD Park Shopping Center

800 -7,350 SF available on first floor. 12,992 SF available on second floor with patio. Excellent for medical office. Base rent $15.00-$18.00 PSF & NNN $3.60 PSF

+/- 592â&#x20AC;&#x2122; of frontage on Westheimer

372 surface parking spaces available

11380 Westheimer Houston, 77077

Restaurant Space

A A Realty Realty Co AA Co

Accredited Management Management Organization Accredited Organization

For more information call : Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108

4,800 sf available second generation restaurant space 80â&#x20AC;&#x2122; of frontage at Westheimer rental rate $24.00 psf and NNN $4.80

Traffic counts - 82,880 CPD (Westheimer)

Pylon signage available

Aggressive lease terms

ray’s buzz BY RAY HANKAMER

RAY TALKS WITH DENNIS MURPHREE Dennis Murphree Founder & Managing General Partner

RN: Dennis, you come from a prominent commercial construction family and you served on the Board of your father’s company at a young age. How did this educate you as a young man and get you started in developing real estate? DM: I am a Houston native. I went to work during the summer at age 12 doing construction labor for my dad’s company and it taught me the value of hard work and how buildings actually come together. Ten summers in the hot sun taught me about manual labor and trying to use my brain, rather than my back, to earn money in the future. I got into commercial real estate at age 24 and went on Dad’s company board two years later. That was a real learning experience. All the other directors were at least 30 years older than I was, so all I had to do was shut up, listen and learn. RN: What year and where did you graduate from collection and what did you study? DM: I graduated from SMU in 1969 with a degree in Economics. I got accepted into The Wharton School MBA program because of recommendations from my professors. I did six months active duty in the Air Force and went off to Philadelphia and Wharton without having had a day of accounting, finance, marketing, nothing. But I did well there and was the only person in a class of 650 who became an entrepreneur right out of school. Everyone there thought I was crazy for taking a job that paid no salary but my favorite professor kept encouraging me to give it a try. I came back to Houston May 1971 and went to work for eighteen months at Shindler-Cummins and started my own firm in December 1972. It was just me and a secretary for the next four years. RN: Who were your early partners and what projects did you develop before the Oil Depression of the mid'80s hit? What were the consequences to you of the crash? DM: I did my first office building in 1974 with Jack Trotter as my financial partner. He had backed Gerry Hines for many years until Gerry got too big. Jack Trotter and I were partners for 25 years in all kinds of deals and I considered him a real mentor as well as a partner. We started growing and by 1985 The Murphree Company was the eleventh largest U.S. commercial 20


development company, according to the industry magazine that kept those statistics. We had offices in thirteen cities. It was an amazing time and five of the eleven largest U.S. firms were from Texas. The building we did in those days that many would still recognize is The Huntingdon high rise on Kirby at San Felipe. We were doing 20 – 40 story buildings all over the southern U.S. as well as retail centers, medical buildings, industrial, condos, etc. The only person in the company older was Stanley Marcus. When he retired as chairman of Neiman Marcus in 1983 at age 70, he joined our firm as a partner and we really had a great time traveling all over doing real estate deals. I learned a lot from Stanley. The crash hit us in February 1986 when oil dropped from $31 to $9 in less than a week. I was personally liable on almost half a billion dollars in debt so I spent the next six years paying off every dollar. No one lost money on me but it took everything I had…everything in a monetary sense. I sold the property management company in December 1986 to one of my partners, Dennis Nelson, and shut down the development company the same month. I personally let go all the employees in every office. Since my name was on the door, I felt I owed them that respect. It was one of the toughest, most emotional things I’ve ever had to do. But I’ve remained friends with virtually everyone over the years and still see many of them fairly often today. RN: How long did it take you to pick up the pieces after the 80’s crash and what was your next business direction? Can you tell us how that came about, your doing something very different from developing real estate? DM: In 1975 I started doing what we now call “venture capital” and my initial deals were bank start-ups in Texas and Colorado. Walt Mischer Jr was my next door neighbor in those days and he and I re-started the failed Astros Bank in October 1975 and initially served as co-chairmen. We named it The Commonwealth Bank and moved it to the corner of Loop 610 & Bellaire Blvd. It’s a Frost Bank now. Right after that, I started the Vail National Bank and the Avon National Bank in Colorado and was chairman of both for about a decade before I sold them. I ended up doing about eight banks and then started doing restaurant deals with my childhood friend and high school rock band mate, Lonnie Schiller. We first did Café Annie and put it in my then new

shopping center on Westheimer at Fountainview. A couple of years later we did Café Express. Today Lonnie and Candy Schiller do the restaurants in our hotel projects, so we’ve come full circle. I did my first high tech start up, Analytical Engines, in 1983. So, when the bottom dropped out in 1986, I decided to do VC deals full time since I wouldn’t need to sign for any debt. With the perfectly clear vision of hindsight, I wish I’d toughed it out and stayed in real estate but we ended up financing 109 young entrepreneurs and their companies with our two VC firms, Murphree Venture Partners and The Southern Funds Group. Prudential was our largest investors along with many wealthy families and several pension funds. The skill set for a developer or a VC is the same. You are a symphony conductor trying to keep everyone playing the music correctly. So it was an easy transition from one industry to the other.

RN: Tell us about your ongoing mini-career as a professor and what this has meant/means to you? DM: I was asked in 1972 to give a guest lecture on real estate to seniors at the University of St Thomas. About two weeks later, the professor asked me to give another lecture on a different topic. There was a man sitting on the back row the second time and when I finished, he introduced himself as the Dean. He asked me if I would consider teaching a course on “Investment Management” and, after thinking about it, I decided it might be a great way to learn how to think on my feet. When a student doesn’t understand something I’ve just said, I have to figure out what is causing this lack of comprehension and then answer in a simple

way that can easily be digested. How I might answer an experienced business person would be completely different than someone hearing all this for the first time. I found that I loved teaching .I liked helping and interacting with young people and I taught for six years until 1979 when real estate and the banks started commanding most of my time. In 1989 I was asked to give a lecture to the MBA student body at Rice University regarding my career and ended up teaching a second year MBA course entitled “Creative Entrepreneurship” in the Fall of 1991 and began teaching a course entitled “Venture Capital” in 1997. I have been at Rice ever since so this is my 27th year. Due to time constraints I now only teach the Venture Capital class and I’ll keep teaching it until I drop. Not a day in my life goes by that I don’t hear from an ex-student. I love it and it keeps me young, I hope! I think each of us has a purpose in life. Clearly mine has been to teach (33 years; coach (19 years, soccer and baseball); finance (109 companies); mentor and help young people. Everyone knows my saying at the office:“I have time for everyone.” So I don’t mind helping whenever possible. I’ll never say: “I’m too busy to talk to you.”

“...No matter how you think your life is going to turn out, it isn’t.” RN: You are now back in the business of developing real estate with a handsome office building on the site of the former Elan night club in St. James Place and there are reports of some large luxury hotel developments coming soon out of your shop. Can you tell us about them and how you decided to return to your original calling? DM: I always thought real estate was a fun industry and had wanted to do it again for several years. I decided to wind down our VC activities and get back into real estate four years ago and did so with one of my former partners, Dennis Nelson, whom I mentioned earlier. We did a joint venture of 1885 St. James Place, now completed and leasing very well. That first building I did with Jack Trotter was 1775 St. James Place so I have literally come full circle on that as well. The two buildings are practically next door to each other. I recently won the project in Fredericksburg, Texas to build a new convention center, a large full- service hotel and a retail village. We assembled 20 acres right on Main

1885 St. James Place

Street & it’s the biggest project in county history. I am also working with a MBE developer, Paul Alexander Company, and helping them with two major hoteloriented projects: one in Houston; the second in the Caribbean. Both are well over $100 million developments. So I’m having fun. Honestly, it’s like riding a bike…I felt at home immediately back in this industry again. RN: In Texas we revere the rodeo cowboy who, when bucked off a horse or bull, dusts himself off and climbs back on for another go. Your business career personifies this tradition. Can you give any advice to young men and women who are just now entering commercial real estate with regard to unexpected pitfalls which may await them down the road? DM: Amazingly enough, our company logo is a cowboy on a bucking bronco. To me, being an entrepreneur is like riding that bucking bronco and exactly why I chose the logo. I did a TED talk about “The Importance of Persistence” and it’s all about taking life as it comes to you, doing your best to cope with any given situation and live to fight another day. I also quote Winston Churchill’s famous eight word commencement address: “Never give up. Never, never, never give up.” I tell young people that it means to not give up on yourself. No matter how bad or good things are for you at any given moment, they are likely to change and you have to take the good and the bad with equanimity and keep putting one foot in front of the other. I tell all young people: “No matter how you think your life is going to turn out, it isn’t. Some things will be better than you ever dreamed possible and some things will be far worse than you ever imagined. Just take it as it comes and don’t give up on yourself.” That’s how I’ve tried to live. OCTOBER 2017


Great Development Site

Calfee Ranch +/- 450 Acres

Great commercial development - investment opportunity with quick and easy access to SH 249 and FM 2920 and located just outside the Tomball City Limits. This 4.04 acres has +/351' frontage on Medical Complex Dr. and +/- 505' frontage on Calvert Road with a new Marriott Hotel at the corner of Medical Complex Dr. and FM 249. planned new extension for Calvert Road leading to a new Harris County Regional facility and other commercial development projects.

Calfee Ranch- 450 acres adjoining Sam Houston National Forest fronting FM 149 near Lake Conroe just North of Montgomery.



Development Properties

Great Development Site CROCKETT, TX

Great commercial building site across from Loop 304 across from Walmart with traffic light in Crockett, Tx. Sonic is on southwest side of the property. Subway, Pizza hut, HEB, O'Reilly Auto Parts and Taco Bell are within a mile of the property.

Rare Investment/Development Property BASTROP COUNTY

Diamond G- The Diamond G is a rare investment or development opportunity in Bastrop County. Located on FM 969 inside the City of Bastropâ&#x20AC;&#x2122;s ETJ and less than a half a mile North of Hwy 21/71. (With proposed Hwy 21-Hwy 95 connector going through it.) Great trees and topography.

Chantilly Country - Wedding & Event Venue LAKE CONROE

Chantilly Country- Located on the east side of Lake Conroe, Chantilly County is a 15.86 acre wedding and event venue that boasts a elegant 5400 square foot reception hall complete with bride and groom dressing rooms and a dance floor overlooking water side view.

Call for additional details and pricing

Panoramic Views on 3,900 Acres

2.0 Acre Development Site FM 1488, MONTGOMERY COUNTY

Great commercial building site in Montgomery County. This 2-acre tract is located East of FM 149 at the corner of FM 1488 and Community drive 1 mile east of Magnolia High School. Future HEB coming soon on the corner of FM 1488 and Spur 149. Also located less than a half of a mile from the highly acclaimed development Mostyn Manor Reserve. Utilities available.

Larry Jacobs Jacobs Properties 936-597-3307


Ideal Truck Stop Location US 59/I69 Feeder & FM 424

El Halcon Ranch lies in the heart of the northern hill country, a scenic two and a half hour drive from Ft Worth or Austin. One of the largest tracts of land in the area, the ranch covers 3,900 acres....and offers panoramic views that span over 20 miles of beautiful Texas hill country.

Great property for development in Shepherd, Tx on Southbound US 59/ Interstate 69 feeder with additional frontage on FM 424. Ideal location for truck stop and/or retail.


MARKETVIEW Texas Office Trends, Q2 2017 Austin Office, Q2 2017

Dallas Office, Q2 2017

Houston Office, Q2 2017

San Antonio Office, Q2 2017


ICSC Booth #1619





Research Forest Dr. & Egypt Lane

3091 College Park Drive, The Woodlands

1508 Research Forest Drive, The Woodlands

1500 Research Forest Drive, The Woodlands

• 60,000 SF Retail & Professional Office

• Adjacent to St. Luke’s, Texas Children’s Hospital & TW College Park HS • Up to 8,742 SF available - Ideal Uses include Medical, Fitness, Entertainment • Located at the regional intersection of SH 242 & I-45 across from Lone Star College • Other Retailers include Walmart, Lowes, Kohl’s & Costco

• Ideal for Professional & Medical Uses

• 1,500 SF In-Line & 1,944 SF End-Cap Restaurant Space Available

• Frontage on heavily trafficked lighted intersection

• 60’ Bay Depth, with Glass Storefronts





2615 FM 1488, Conroe

25450 Kuykendahl Road, Tomball

25192 I-45 & Rayford Road, Spring

Grand Pkwy @ Discovery Creek Blvd, Spring

• Just West of I-45, near SH 242

• 11,000 SF Medical/Retail/Professional Office space

• Highly Trafficked Signalized Intersection

• Near The Woodlands Creekside Village.

• Next to Major Retailers and Banks

• 20,000 +/- SF Retail Shopping Center -New Construction • Frontage on Grand Parkway 99 & Discovery Creek Blvd. • Adjacent to HEB Grocery Development & across from Walmart • Near Exxon/Mobil Campus


• Restaurant & Retail Pad Sites Available • Adjacent to Super Target Anchored Power Center • NEC of heavily trafficked Research Forest Dr. & Egypt Ln.

PAD SITES - For Sale/For Lease



• In Proximity of Grocery Anchored Shopping Center & New Retail Development • Potential uses: Retail, Office, Medical

RETAIL SPACE - For Sublease - Reduced Rate

• 2,430 SF at $19.25 NNN • ½ mile from I-45 & Memorial Hermann Hospital


• 840 SF – 3,688 RSF available


• ½ mile from I-45 & Memorial Hermann Hospital • Covered Walk Along Full Length of Center


• Public Utilities Available; Off-site Detention

• 7,986 SF 2nd Gen ER space available, divisible by 1,600 SF





DEVELOPMENT SITE - 46 Acres For Sale

6875 FM 1488, Magnolia

25201 Kuykendahl Road, Tomball

I-45 & NEC Longstreet

I-45 near FM 646

• Great visibility on FM1488 near FM 2978 intersection

• 7,950 SF of end cap space available in early 2018

• 2,274’ Frontage on I-45

• Build to Suit

• 1 mile North of New Development by Howard Hughes, Woodland Hills

• 223’ Frontage along I-45 Service Road

2nd gen RETAIL SPACE - For Lease

• Near Super Target Power Center, Kroger Center & new HEB • 1,885 SF & 2,400 SF available • Northwest edge of the Woodlands and Woodforest, a 5,500-home master planned development are minutes away


• Glass-Front Spaces

• Ample Parking & Monument sign available

• Located between FM 2920 & Woodlands Parkway • 1.5 Miles South of The Woodlands Creekside Village


• Utilities: City of Willis |


RETAIL PAD SITE - 2 Acres For Sale/For Lease

• Victory Lakes Commercial Reserve, directly across the Gulf Freeway (I-45) from Cabela’s. • Detention located Off-site • Excellent Accessibility

10077 Grogan’s Mill Road, Suite 135 The Woodlands, TX 77380

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.

Property Tax Reductions Through SB1 & Hurricane Harvey Loss Documentation

The Texas Senate endorsed Senate Bill 1, a bill allowing for property tax rate elections if county property tax revenues exceeded 4% of what was taken in the year before. The House & The Senate met in a special session on July 26th to vote on the rollback.



REDNews spoke with Senator Paul Bettencourt about the reason for the failure to pass Senate Bill 1, the tax relief bill, that would decrease the rollback rate from 8% to 4%, which was passed by the Texas Senate during the Texas Legislative Special Session. “To make a long story short, Senate Bill 1 passed out of the Senate and we showed up, got to work, but the other side quit early. Because they wouldn’t even name conference committee members in the Texas House and because the rollback trigger was set so high, it was only going to help four counties, which wouldn’t have been enough measurable property tax relief for everyone.”

Senator (R) Paul Bettencourt: District 7

Senator Bettencourt is hopeful that another legislative session will be called in the near future. However,” …With the natural disaster that occurred, it will most likely be delayed until the business of recovering from Hurricane Harvey is over. Assuming that I’m back, I will be there to present the bill again and I think it will pass out of the Senate as I don’t think anybody will want to go back to their district and tell their constituents they are really against property tax relief”.

We also asked Senator Bettencourt, who is also CEO of Bettencourt Tax Advisors, According to Senator Bettencourt, if and Pat O’Connor, President the bill had passed with a 6% rollback of O’Connor & Associates, versus the 4% that was proposed, only how they advise property four Texas counties on the I35 corridor owners regarding protesting would have benefitted. He indicated their property tax values if that the Speaker of the House, Joe they incurred damage from Straus, was unwilling to appoint a Hurricane Harvey. They both conference committee so the bill was indicated the importance of defeated. “If a conference committee documentation with pictures, had been appointed, we could have Pat O'Connor, insurance claims and FEMA negotiated at possibly a 5% rollback President, O'Connor claims as well as the importance rate which would have benefited more & Associates of notifying your appraisal citizens. The public wanted property district of your loss now, with tax relief, but if only a few people are going a follow up the beginning of 2018. Their rough to get it, as opposed to at least some or estimation of anticipated value reduction from the many, you just can’t set up that type of dynamic appraisal district ranged between 15% - 50%. with an electorate.” Continued on page 28 >

To receive a copy of O'Connor & Associates Harvey Tax Reduction Program & Casualty Loss Severity Factor, call 713-290-9700



Property Tax Reductions Through SB1 & Hurricane Harvey Loss Documentation < Continued from Page 27

O’Connor indicated that there are two issues to consider: One is “understand when you can take a deduction and, if your property flooded, you’re probably eligible for a 15% to 30% reduction in the value of your property, not considering any physical damage." O’Connor & Associates has a list of numerous types of risks that should be considered when a property is purchased and when going through the construction process for a property that flooded. You just compare the value of the property before, versus the value of the property after. You have to think of it from the sense of what’s the value of the property almost as though you are standing in the property dripping wet, trying to sell it. There are all sorts of risk that are unknown.”

In the case where the property owner has completed repairs to his property after damages, O’Connor advises to check the appraisal district’s personal property record when the 2018 valuations are available. “In many case, they put this ridiculous remodel factor on a property, which might add 50% to the value of the improvements.” The second issue, according to Pat, is the federal tax deduction which can be taken either for the current year, 2017, or can be used for 2016 which will decrease your tax liability. It is reported under Form 4684, Casualties and Thefts, with the IRS. O’Connor has compiled a “Harvey Tax Reduction Program” (sample shown on previous page) which is available to anyone at no charge by contacting O’Connor & Associates at 713-290-9700.

His company is also compiling a report on the difference in property values that flooded and then sold. “I think we’re going to have a report with about 250 – 500 properties, documenting a meaningful difference.” The reduction of property taxes in any form is helpful to the property owner so we’re hoping that Senator Bettencourt is successful in his efforts to gain tax payer relief and, to all of you who experienced loss from Hurricane Harvey, we’re hoping the above information will be beneficial in helping you obtain the maximum property tax relief from your Hurricane Harvey losses.

Serving Austin, Dallas, San Antonio & Houston

WE SHOOT TO SELL WITH QUALITY PHOTOGRAPHY PRIMARY SERVICES: Corporate Headshots Commercial Real Estate Photography Aerial Photography & Video Promotional Videos

CALL TODAY - 713.449.2468 AUSTIN GENERATOR SERVICE A New Generation of Power

SHERYL D. THOMAS 2425 West Loop S, #200 Houston, TX 77027 713.449.2468

civil fair play

Reconstruction after Harvey Flood Development Permits & Grandfathered Structures in Houston BY OMAR IZFAR, ATTORNEY

In the aftermath of Hurricane Harvey, I’ve been receiving questions about how to reconstruct damaged structures, both those in flood zones and not, especially those that don’t meet current codes.

In the aftermath of Hurricane Harvey, I’ve been receiving questions about how to reconstruct damaged structures, both those in flood zones and not, especially those that don’t meet current codes. Some development regulations and policies that affect reconstruction are pretty simple and straightforward, while others are complicated, vague, and sometimes not even written down anywhere. While Houston may not have a formal zoning code that covers the entire city, it does have quite a few development regulations, all of which would normally be found in a zoning code. Noncompliance can result in denial of building permits, stop-work orders, even revocation of certificates of occupancy. Fortunately, there is a path forward for most projects. It’s important for property owners to know what to expect and what their options are in different situations.

Can I rebuild my old, grandfathered building the same way? Many commercial structures in Houston were built before current regulations, and as a result are considered by the City of Houston’s permit and planning offices to be grandfathered against those current regulations they don’t meet. Understandably, property owners are reluctant to make any changes that would require their structures to be brought up to code, especially when it comes to complying with building setback lines and parking requirements. In the case of building setback lines, losing grandfathered status can result in actually having to tear down the part of the building that encroaches into the building setback area. In the case of parking rules, grandfathered structures can often be used only for their current use or other less intensive uses. Changing the footprint or the use of the building can result in the city forcing the property owner to provide many more parking spaces. In many parts of town, that is extremely difficult, to impossible. Generally speaking, after a casualty such as a flood or a hurricane, Houston’s development ordinances allow you to reconstruct your grandfathered building and not provide additional parking spaces as long as the damage to the improvement does not exceed 75% of

the value of the improvement itself, minus the cost of the foundation and the land. You will also be required to maintain the same footprint, dimensions, and use of the improvement. If the damage exceeds 75% of the value of the improvement, then your reconstruction is considered to be like a new construction for purposes of complying with current rules and regulations. For old grandfathered buildings, that often means the building has to be taken in from any portions that encroach into the building setback area as well as providing sufficient parking to support the current use.

Do I need a flood development permit for construction in a floodplain? Do I need to raise my foundation? If you're in the floodway or the 100-year floodplain, there's a different rule that applies to floodplain development regulations. For buildings that are not in compliance with the current rules for development in the floodplain, the damage to your improvement cannot exceed 50% of the value of the improvement minus the foundation and the land, or what the city calls a substantial improvement. If your damage exceeds that amount you’ll have to comply with current development regulations that apply to improvements made in the floodplain which include raising the elevation of the lowest floor a foot or more in many cases depending on your flood zone designation.

What if my valuation is inaccurate? If a flood development permit or other building permit is denied due to your damage exceeding the allowable amount, it may help to conduct an independent appraisal of your improvement. Don't rely entirely on the Appraisal District's valuation of your improvement. A private, independent appraisal can often produce a much more accurate valuation. Similarly, a damage estimate made by insurance or FEMA that is too high can be fine-tuned by a private contractor’s estimate. Obtaining most permits can be pretty straightforward. For those more complicated situations, it helps to seek professional assistance. OCTOBER 2017


Stop Spinning Your Wheels!

Let Us, Your TEXAS Environmental Consulting Firm, Help You Navigate Through Your Environmental Risks.

Melanie Edmundson, P.G., Principal 832 485 2247

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

SCOOP The following pages contain a calendar of Texas CRE events, networking photos, and deals/announcements. For more updates, log on to



October MONDAY








* CREW Austin Communications Committee [8:00am - 9:00am]

* CREW Austin - Special

* CREW Austin - Membership Committee

* CTCAR - Happy Hour @ Red

* RECA - City Of Austin Policy & CodeNEXT Committee Meeting [12:00pm - 1:00pm]

* IREM San Antonio - Board

Committee Meeting [11:30am]

* RECA - Christmas In October

Committee Meeting [12:00pm - 1:00pm]

CREW Austin - 14th Annual Golf Adventure [10:00am - 8:00pm]


CREW San Antonio Luncheon [11:30am - 1:00pm]



CTCAR - CE Course [9:00am - 11:00am]

Porch Quarry [5:00pm - 7:00pm] Meeting [11:30am - 1:00pm

* ULI San Antonio - YL Steering Committee Meeting [11:45am - 1:00pm]


BOMA Austin - Family Movie Night [6:00pm - 9:00pm] CTCAR - Property Information Exchange [7:30am - 9:00am]

ULI Austin - 8th Annual Butler Game Day [2:00pm - 7:00pm]


 OMA San Antonio B Foundations Of Real Estate Management [8:30am 4:00pm]


B  OMA San Antonio - Sporting Clay Tournament [8:00am 5:00pm] * CREW Austin - CREW Careers 11th Annual

ULI San Antonio - Infill Development Workshop [1:00pm - 6:00pm] IREM San Antonio - Ethics Class [11:30am - 1:00pm]

* RECA - Regional Issues Committee {12:00pm 1:00pm]


*C  REW Austin - Luncheon [11:30am - 1:00pm]


 ECSA - 26th Council Open R Golf Tournament [11:00am 6:00pm]


CTCAR Communications Committee [4:00pm 6:00pm]

CBA - Real Estate Challenge [11:00am - 6:00pm] TABB Austin - Chapter Meeting [11:30am - 1:00pm]

IREM Austin - TRENDS [3:00pm - 6:00pm]

IREM San Antonio - Luncheon [11:30am - 1:00pm] R  ECA: 2017 RECA Golf Tournament [11:00am 6:00pm]

ULI Austin - Breakfast Series [7:30am 9:00am]

ULI - Fall Meeting: Tour Day [8:30am - 6:30pm]


CCIM Central Texas Luncheon [11:30am 1:00pm]


ULI - Fall Meeting: Leadership Day [8:30am - 6:30pm]


 OMA San B Antonio - Foundations Of Real Estate Management [8:30am - 4:00pm]

ULI San Antonio - ULI / SA Tour [5:30pm - 7:30pm] *C  REW Austin - Community Outreach Committee [11:30am]


CTCAR - CE Course [2:30pm - 4:30pm] IREM Austin - CPM Class [8:30am - 5:00pm]

RECA - Luncheon [11:15am 1:00pm]


BOMA Austin - 2017 Shoot-Out [1:00pm]

TABB San Antonio - Chapter Meeting [11:30am - 1:00pm] ULI - Fall Meeting: Product Council & Trends Day [8:30am - 6:30pm]


ULI - Fall Meeting: Real Estate Deal Day [8:30am - 6:30pm]


TABB Austin - Boot Camp: Intro to Business Brokerage


RECA Christmas In October [8:00am 12:00pm]

TABB Austin - Boot Camp: Intro to Business Brokerage




October 2017


*Members Only

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

CREW SAN ANTONIO - Annual CREWtini Event


L to R: Martha Hardy, Dena Welch, Christy Rhone, Dawn Vernon, Brandey Wimberley Orsag, Cheryl Pyle, Yesenia M. Dominguez, Kelly Rabanal, Smita Bhakta, Laura Gilland, Jennifer Bailey

L to R: Anna Alaniz, Jennifer Rosemark, Gayle Bourdeau, Brandey Wimberley Orsag

August Luncheon


Community Service Committee delivering school supplies to CASA

L to R: Amie Reynolds, CertaPro Painters- BOMA SA Membership Committee Member, Kandace Mann, Western Specialty Group, Linda Rael, Plant Interscapes, Kenneth Wolf, CBG Commercial Real Estate and Gloria Contreras, BOMA SA President.



CI 101:

Financial Analysis for Commercial Investment Real Estate LOCATION:

This course will teach you how to:

ng 35 Years i t a br Cele EST





CREW San Antonio is a proud Community Partner Organization of the San Antonio Tricentennial, aimed to enrich San Antonio’s 300th anniversary experience through activities that reflect the city and county’s unique history and diversity.

CREW is an organization that promotes women who are professionals in the commercial real estate industry. Our purpose is to provide additional opportunities and advancement for our members through education, networking, recognition and leadership.

CONTACT CREW SAN ANTONIO: Kelly Rabanal, Advertising Director 210.455.2478 | PO BOX 160013, San Antonio, TX 78280

> Make informed investment decisions using the CCIM Cash Flow Model; > Measure the impact of federal taxation and financial leverage on the cash flow from the acquisition, ownership, and disposition phases of real estate investment; and > Use real estate analysis tools to quantify investment return.

Norris Conference Center 2525 W Anderson Ln #365 Austin, TX 78757 DATES: Nov. 6-9, 2017 TIME: 8:30 a.m. - 5:30 p.m. INSTRUCTORS: Todd Kuhlmann, CCIM Lydia Bennett, CCIM TUITION: Member: $1,145 Non-member: $1,650 REGISTER BY PHONE: (800) 621-7027, option 2 REGISTER ONLINE:



October MONDAY IREM Dallas - MPSA CPM Capstone Course Dallas [8:30am]


* CREW Fort Worth - Mentoring Event [5:30pm - 7:00pm]

B  OMA Fort Worth Luncheon [11:30am - 1:00pm]




* BOMA Fort Worth - Allied Council

BOMA Dallas - Medical Office Building Compliance Seminar [8:00am - 1:00pm]

* BOMA Fort Worth - Mastering

BOMA Dallas - Gala Happy Hour [5:30pm - 7:30pm]

* BOMA Fort Worth - SAC

CREW Fort Worth - Luncheon [11:30am - 1:00pm]

Meeting [1:30pm - 2:30pm]

Social Media [1:45pm - 3:45pm] Meeting [3:00pm - 4:00pm]

* CREW Fort Worth - Communications / PR Committee Meeting [10:00am - 10:30am]


B  OMA Fort Worth Lunch & Learn [11:00am - 1:00pm]

BOMA Dallas - Annual Focus Group Session [11:00am - 1:00pm]


N  AIOP North Texas - Annual Golf Tournament [11:00am] * NTCAR - 3rd Quarter Membership Meeting [7:30am - 9:00am] TREC - Giving Gala [6:00pm]

U  LI North Texas - Impact Award Gala [6:00pm - 9:30pm]




*B  OMA Dallas - Allied Counicl Business Exchange


*B  OMA Fort Worth - GAC Meeting [1:30pm - 2:30pm]

* CREW Fort Worth Programs Committee Meeting [11:45am]

* CREW Fort Worth - Membership Committee Meeting [12:00pm]


* BOMA Fort Worth Education Committee Meeting [10:00am 11:00am]


ULI North Texas - New Member Welcome [8:00am - 9:15am]

IREM Dallas - Global Summit [8:00am]

CORENET North Texas Golf Tournament [8:00am Tee Time]


BOMA Dalllas Luncheon [11:00am 1:00pm]


CREW Dallas - Luncheon [11:30am - 1:00pm]


NTCAR - Retail Development Showcase [4:30pm - 6:30pm] NAIOP North Texas Luncheon [11:15am - 1:00pm]


BOMA Dallas - Seminar: Energy Efficiency [11:00am - 1:00pm]


IREM Dallas - The Star Happy Hour [4:30pm]

SCR GFW - Breakfast [7:30am - 9:30am]


REC of GFW - The Economic Impact of Medical [7:30am - 9:30am]

B  OMA Fort Worth - Sporting Clays Tournament [8:00am 12:00pm]


NTCAR - Office Tour: Central Expressway [11:00am]


* BOMA Fort Worth - CSC Meeting [3:00pm - 4:00pm] IREM Fort Worth - Top Golf Event [4:00pm - 7:00pm]


BOMA Dallas Networking Event: Night At The Races, Lone Star Park [5:30pm - 10:30pm]

*B  OMA Dallas - BOMI Course [9:00am 4:00pm]


TABB Dallas/Fort Worth - Chapter Meeting [11:30am 1:00pm] CCIM North Texas - 23rd Annual Sporting Clays [10:00am - 6:00pm]



October 2017

* BOMA Fort Worth - Board Meeting [12:00pm - 1:30pm]


* Members Only

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





BOMA Dallas Sporting Clay Tournament 1st Place Winner– Master Construction

BOMA Dallas Sporting Clay Tournament Top Shooter (Female) – Amber Begnal


Commercial Real Estate & Developers Expo


Steven Smith, REDNews Magazine FW Summer Sizzler

WLI BBB & N. Tuzun

Don't miss THE BEST commercial real estate event in Tarrant County! November 02, 2017 | 5:00 PM At the NEW Firestone & Robertson's Whiskey Ranch!


Find out more at !



October MONDAY


CCIM Houston - Gulf Coast Scholarship Golf Tournament [11:30am}





Houston - Breakfast [7:30am 9:00am]



CREN Luncheon [11:00am 1:00pm]

N  AIOP Houston - 23rd Annual Fall Event [7:00am 10:00pm]


BOMA Houston - Golf Classic HAA - 38th Annual Bill Dinerstein Memorial Golf Tournament [ 8:00am]


O'Connor & Associates - Apartment Forecast Luncheon [11:30am - 1:00pm]




October 2017


C.R.E.A.M - Luncheon [11:00am - 1:00pm] Land Advisors Organization - 3rd Annual Houston Land & Housing Forecast and Reception [3:00pm - 5:00pm]



FBSCR - Breakfast [8:00am - 9:00am] ULI Houston - Leadership Luncheon [11:30am - 1:30pm]


C.R.E.A.M - 3rd Annual Takeaway Tourette's Golf Tournament [12:00pm]



CORENET Houston Breakfast [7:30am - 9:00am]


BOMA Houston After The Disaster: Rebuilding Houston Seminar [8:00am - 10:00am] CREW Network - 2017 CREW Network Convention & Marketplace [8:00am 2:00pm]

* Members Only

CCIM Houston Luncheon [11:30am 1:00pm] ULI Houston - Young Leaders Tour [5:30pm 7:30pm]

BACREN - Luncheon [10:30am - 1:00pm]



BOMA Houston Engineer All Stars Maintenance Olympics [9:00am]







ACRP - Breakfast [7:00am - 8:30am] IREM Houston - Fashion Fundraiser [5:30pm - 8:00pm] TABB Houston - Chapter Luncheon [11:30am - 1:30pm] CREW Network - 2017 CREW Network Convention & Marketplace [8:00am 2:00pm]


GREATER HOUSTON PARTNERSHIP - Business Development: October Meeting [8:30am - 10:00am] ULI Houston - 7th Annual Sporting Clay Classic [11:00am - 5:00pm] CREW Network - 2017 CREW Network Convention & Marketplace [8:00am - 2:00pm]

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

ACRP - 2017 McIntyre's Happy Hour, August


L to R: Blake McClendon, Matt Hoffman & Kevin Mayo

Members enjoying happy hour

L to R: Jeremy Rocha, Mario Garcia & Angela Lord

L to R: Brenda Edwards & Chris Campbell

2017 IREM President Chase Crawford, CPM installed 9 new Certified Property Managers at the event. This group of professionals work for 7 different local property management companies such as Granite Properties, Stream Realty Partners and Unilev Management.


AUSTIN, TX MEDICAL OFFICE CONSTRUCTION Perardi Development will build Medical Towers at Bee Cave II, a 42,000-square-foot medical office property located at the corner of RM 620 and State Highway 71. Scheduled to break ground later this month, the project follows the completion and pre-leasing of the 23,000-square-foot Medical Towers at Bee Cave. This second phase of the project could be completed as early as mid-December 2018. MULTI-FAMILY CONSTRUCTION Argyle Residential, an affiliate of Austin-based Cypress Real Estate Advisors have started construction on the 322-unit multifamily project called The Guthrie which is located near Gonzales & Tillery Streets in a formerly rural area east of Downtown Austin. The first units are expected to be ready in about a year with the project expected to be completed in early 2019.

PORT ARANSAS, TX MASTER-PLANNED COMMUNITY DEVELOPMENT Port Aransas-based developer Sea Oats Group has started construction on the $1.3 billion expansion of the beachfront master-planned community Cinnamon Shores located along State Highway 36 on Mustang Island. The first batch of 40 homes, a 19-room boutique hotel, some retail, restaurants and the rooftop bar are expected to be ready by summer 2019.

Weston Martinez has joined Patel Gaines law firm as Vice President of Business Development.

Russell Young has joined JLL, Inc where he will lead the tenant rep team.

OFFICE LEASE Opcity Inc, a startup company has leased 50,000 sf at Bergstrom Tech Center 312, which is located at 6800 Burleson Road from Capital Commercial Investments. Luke Wheeler & Greg Johnson with Transwestern represented the developer & Tim Donohue & Russell Young with CBRE Group Inc represented the tenant. The company expects to move to its new headquarters by the end of the year. OFFICE SALE Intercontinental Real Estate, a Boston-based company purchased 5th+Colorada, a newly built, 18-story office tower located at 201 W, Fifth St., for $663 per sf totaling nearly $119 million. The seller was a joint venture of Goldman Sachs & Lincoln Property Co., Michael McDonald of Eastdil Secured handled the deal. RETAIL SALE An undisclosed buyer purchased The Grove at Lakeline, a 16,253 sf retail property located at the northwest corner of State Highway 183 & Ranch Road 620 from 183-620 LP. Brandon Beeson & Garrett Wood of EDGE, Realty Capital Markets represented the seller. RETAIL SALE KCW Commercial LLC purchased a 9,000 sf retail center located at 14509 FM Road 969 from Texas Entity Geobas Inc. Daniel Wang with Agent Realty represented the buyer. No purchase price was disclosed. VACANT LAND SALE Ohio based commercial real estate company Equity Inc. purchased



2.8 acres located at 101 Medical Parkway, one of two remaining development tracts at Lakeway Regional Medical Center. Matt Levin & Patrick Ley with ECR represented the seller.

COLLEGE STATION, TX HOTEL SALE Marcus & Millichap has arranged the sale of Comfort Suites Texas Avenue College Station, a threestory, 54-room hotel located at 2313 Texas Ave. South. Steve Swenholt, Allan Miller & Chris Gomes of Marcus & Millichap represented the seller & procured the buyer, both of which are private investors.

GEORGETOWN, TX MULTI-FAMILY SALE A Miami-based investment company purchased Vantage at Georgetown, a 288-unit apartment complex located at 2000 FM 1460. The seller was Vantage at Georgetown LLC, an entity formed by San Antoniobased Housing Development. Will Bathrope & Jordan Featherston with Institutional Property Advisors, a division of Marcus & Millichap represented the seller. VACANT LAND SALE Ewald Tractor purchased nearly 6 acres at the southeast corner on Northeast Inner Loop & North Austin Avenue from Georgetown Griffin Family LP. Tim Harris with Georgetown Properties represented the seller and Mark Milstead with REOC Austin represented the buyer.

PFLUGERVILLE, TX HOTEL DEVELOPMENT NewQuest Properties has sold two adjacent land tracts located at 500 Limestone Commercial Drive in its Stone Hill Town Center development to two different hospitality franchisees. Josh Friedlander & Rebecca Le of NewQuest represented the seller. Construction is slated to begin in early 2018. VACANT LAND SALE Central Southwest Development LLC purchased 9.5 acres located at 2725 FM 685 from Dennis & Gary Sills. Josh Hubka with REOC Austin represented the sellers & Robert Oâ&#x20AC;&#x2122;Farrell of JLL represented the developer, who plans a retail development for the site.

ROUND ROCK, TX INDUSTRIAL DEVELOPMENT EastGroup Properties is set to begin construction on two industrial buildings located at 900 East Old

Settlers Boulevard, east of North Mayes Street &west of Sunrise Road. The overall project is estimated to be split into two phases and will contain 76,819 sf & 82,827 sf. Construction is expected to be completed at the end of 2018. OFFICE SALE Empire Square Group, a New York investor, purchased La Frontera Plaza, a 97,311 sf office building located at 2700 La Frontera Blvd. from a development partnership of RedLeaf Properties LLC & Live-Oak Gottesman. Stan Johnson Co., handled the deal.

SAN ANTONIO, TX HOTEL SALE Siegel Group, a Las Vegas-based investment & hospitality firm, purchased the former Budget Lodge Extended Stay Hotel in San Antonio for $3.3 million. Built in 1963 and situated on 6.6 acres along Interstate 35, the two-story property totals approximately 80,000 square feet. Siegel Group plans to repurpose some of the existing space to include a restaurant and lounge, as well as a conference & banquet area. MIXED-USE DEVELOPMENT Austin-based development firm Teeple Partners will develop Kallison Square, an $83 million mixeduse project that will be located at the southwest corner of Flores & Dolorosa streets. The project will include 45,000 square feet of retail space & office space, as well as 305 multifamily units. Construction is scheduled to begin during the spring of 2018 and conclude in mid-2020. MULTI-FAMILY DEVELOPMENT Austin-based developer Oden Hughes purchased 57 acres located at the northwest corner of Loop 1604 & Bulverde Rd and plans to build around 1,000 luxury apartments. Oden broke ground early September 2017 on the first phase of the apartment, with 338 units. The developer also plans to sell 16 acres along 1604 for commercial development which includes two hotels, two retail buildings & an assisted living facility. The first phase is expected to be ready fall or winter 2018. INDUSTRIAL SALE An undisclosed buyer purchased a 109,165 sf warehouse / distribution facility located at 12626 Silicon from First Industrial Realty Trust, Inc. Jason Schnittger, Michael T. Kent & Kevin Cosgrove with Stream Realty Partners â&#x20AC;&#x201C; Central Texas represented the seller & Dan Gostylo & Seth Prescott of providence Real Estate Services represented the buyer.


OFFICE LEASE Manpowergroup US Inc., a workforce solutions firm, leased 14,562 sf of office space at the Millenium Tower located at 15455 Dallas Parkway from Gaedeke Group. Craig Wilson & Dean Collins with Cushman & Wakefield represented the tenant.


OFFICE /WAREHOUSE SALE 2309 Superior Drive LLC has purchased 11,679 sf of office/ warehouse space which is located on 1.5 acres at 2309 Superior Drive in the Pantego area from 2309 Properties LLC. Wayne Burgdorf with Coldwell Banker represented the seller & the buyer.


RETAIL CONSTRUCTION WinCo Foods has started construction on an 82,077 sf anchor store within Trinity Valley Shopping Center located at the corner of State Highway 190 & Josey Lane & is expected to open during the first quarter of 2018. Weitzman is overseeing construction of the property.


INDUSTRIAL LEASE Irving-based Event Technology Services LLC has leased 30,495 sf of industrial space located at 1122 Bethel Road from Bethel Industrial LLC. Steve Trese & Wilson Brown with CBRE represented the landlord & Ryan Boozer with Stream Realty represented the tenant.


INDUSTRIAL DEVELOPMENT A partnership between Bostonbased Cabot Properties Inc & Stream Realty Partners has broken ground on International Logistics Center, a 646,796 sf industrial asset located near the Dallas-Fort Worth International Airport. The property consists of three buildings: a 118,634-square-foot rear-load building, a 203,476-squarefoot front-load building & a 324, 686-square-foot cross-dock building. International Logistics Center also offers access to State Highways 360 and 183. A timetable for completion has not yet been established INDUSTRIAL DEVELOPMENT Courtland Development, in partnership with Trez Capital Texas is developing two industrial buildings within the Mountain Creek Business Park which is located near Mountain Creek Parkway & Interstate 20. Mountain Creek 7 & Mountain Creek 8 will bring a 54,600 sf building & a 100,360 sf building expansion to the business park. Completion on the two buildings is slated for spring 2018. INDUSTRIAL SALE Mujeres Banderas III, a partnership between Commercial Real Estate Women Dallas & San Francisco, has sold a 16,000 sf warehouse property located on Duncanville Road in south

Dallas. The property was the last asset owned by the Mujeres Banderas partnerships. The buyer & sales price were not disclosed. MULTI-FAMILY DEVELOPMENT Construction began on a new 124-unit apartment community located at McKinney Ave. in the Knox St. district. The seven-story building replaces an aging condominium near Monticello Ave just east of Highland Park. The new development will include a fitness center, dog park, & a rooftop “sky lounge” when it opens in 2019. MULTI-FAMILY SALE California-based NVTX! Apartments, LLC have purchased The Mountain Valley Apartments, a 312-unit multifamily community located at 5875 Mountain Valley Lane from Mountain Valley 2002 LP. The property which is situated on 17.3 acres offers amenities such as playground, clothing care center & a basketball court and was 93 percent occupied at the time of sale. Same Pettigrew of NAA represented the buyer. OFFICE DEVELOPMENT Northwood Investors has started construction on a 340,000 sf office tower located at The Shops at Park Lane which is a 550,000 sf mixeduse development in Dallas. Gensler designed the 11-story, Class A building, which has yet to be branded. Cushman & Wakefield will handle leasing of the property. A timetable for construction has not yet been established.


RETAIL DEVELOPMENT Oklahoma-based HeyDay Entertainment will open a roughly 50,000 sf location within the 200,000 sf Shops at Gateway Village which will offer bowling, laser tag, a mini-golf, a ropes course & a full-service bar and grill. The property is expected to open in fall 2018.


OFFICE DEVELOPMENT Tarrant County has purchased a 40,075 sf tract of land located at 401 E. Weatherford S, with plans to build a multi-level parking garage with ground-floor office space. The site encompasses nearly one acre & is situated adjacent to Sundance Square. Eddie Liebman & Matthew Rosenfeld with Weitzman represented the seller & Todd Burnette with JLL represented the county.


MULTI-FAMILY DEVELOPMENT Construction has started on a new$100 million luxury condominium development called The Corvalla located in the Stonebriar neighborhood. The development which sits near the “$5 Billion Mile”, will have condos 1,700 sf to 3,000 sf & priced from the $700,000s to the $1.2 million range. Amenities will have outdoor courtyards with fire pits, bocce ball courts & a resort-style pool with cabanas. The project is slated to open late fall 2018.


OFFICE LEASE The Clay Paul Group, an insurance brokerage firm has leased 4,677 sf of office space located at 1320 Greenway from Arden Group. Tyler Maner with Stream Realty represented the tenant & Jeff Wood with Peloton represented the landlord.




MUTI-FAMILY SALE Cleveland-based private equity firm Citymark Capital & Dallas-based operator CAF Capital Partners purchased the Villas of Vista Ridge, a 323-unit multifamily community located at 351 State Highway 121 Bypass near a variety of entertainment & retail centers. Amenities include a pool and a fitness center. The name of the seller was not disclosed.


MIXED-USE DEVELOPMENT KDC & the McKinney Economic Development Corp. (MEDC) will develop Southgate McKinney, a mixed-use project that will be located at the interchange of U.S. Highway 75 and the Sam Rayburn Tollway. The size of the property has yet to be determined, but site proposals include plans for freestanding office space, retail & restaurant space, multifamily residences and two acres of common space with a stage for performances.


MIXED-USE DEVELOPMENT Developers are planning a large development project called The Legacy at Springs Creek. The mixeduse development will be located on a 38 acre tract that is at the south entrance to Legacy Business Park. Early plans include 3 office towers of 8-10 floors, a boutique hotel, & more than 50,000 sf of retail space. Construction is set to start during first quarter 2018.


INDUSTRIAL SALE Prattco Creekway Industrial has purchased a 83,140 sf office/ warehouse property located at 1501 Plano Road from Addison-based investment firm Silver Tree Partners. Lizzy Blake with Colliers represented the seller & procured the buyer as well. The property was 60 percent leased at the time of the sale.

DALLAS, TX INDUSTRIAL DEVELOPMENT Dermody Properties has completed Phase I of Logisticenter at Dallas, a two-building industrial park situated on 61.7 acres at the intersection of Bonnie View Road & Logistics Drive in South Dallas. Phase I delivered a 626,439 sf distribution center featuring 36-foot clear heights, 111 loading docks, 262 car parking stalls & 136 trailer stalls. The center is also expandable to 1.1 million square feet. MYCON General Contractors handled construction of the project.

Maschera Usrey has joined Cresa Dallas LLC as Senior Vice President.

Andrew Jones has joined Lincoln Property Company as Senior Vice President - Property Management.


HOTEL SALE A partnership between Civitas Capital Group & Atlantic Hotels Group has purchased the 93-room TownePlace Suites located within Legends Crossing, a 150-acre, mixed-use development near the downtown area and Baylor University. Amenities include a pool, fitness center & a business center.

Brandon Coutu has joined JLL’s Industrial team as Senior Vice President.





MEDICAL SALE The Woodlands-based Pisula Development Co. has acquired Brightpointe at Rivershire, a 62,000 sf healthcare facility situated on three acres at 601 S. Conroe Medical Drive. Completed in 2016 & financed by Woodforest National Bank, the facility offers 150 beds for patients requiring medical and physical rehabilitation after being hospitalized. RETAIL LEASE Sherwin Williams has signed a 4,700 sf lease at The Shops at 336, a shopping center located along S. Loop 336 near Interstate 45. Stephen Phaigaru & Sandy Aron of Hunington Properties Inc. (HPI) represented the landlord in the lease negotiations.


HOUSTON, TX HEADQUARTERS DEVELOPMENT Houston-based AIV will move into a 320,000 sf headquarters building at NW Lake Drive near Telge Road & U.S. 290. The office, to be built and designed by Houston-based KDW will consolidate three area locations including fabrication facility for Gulf Coast Modification. AIV is a global wholesale distributor of valves & actuators used across various industries.

Reed Wynne was hired by The Signorelli Company as vice-president of multifamily development

HOTEL SALE Condor Hospitality Trust Inc., a Maryland-based lodging REIT, acquired the Fairfield Inn & Suites El Paso Airport, a Marriottbranded hotel located at 6611 Edgemere Blvd. Condor Hospitality purchased the asset from the undisclosed seller for $19 million. Amenities include a pool, fitness center & a business center. Condor Hospitality has retained Aimbridge Hospitality to manage the hotel.


VACANT LAND SALE HankCase, LLC , a group of Houston investors, sold a 25,000 sf undeveloped site on 25th Street between Market & Mechanic Streets in historic downtown Galveston Island, two blocks from the Cruise Ship Terminal. The buyer was Beau Yarbrough Interests & the rumored use is residential development. Ray Hankamer of Hankamer & Associates represented the seller & Shane McDermott of Better Homes & Gardens Gary GreeneGalveston represented the buyer.


Steve Biegel, Mark Russell, Jay Bonano, formerly with Savillls Studley, have joined the Houston office of Newmark Knight Frank. Photo Courtesy Houston Business Journal Gary Lehmberg has joined Boxer Property as a senior regional broker.



INDUSTRIAL LEASE German logistics company, DHL signed a three-year lease for a 128,924 sf distribution facility located at 16607 Central Green Blvd. in the North Houston District from Industrial Developments International Co. Coe Parker with Cushman & Wakefield represented the tenant & Beau Kaleel, Michael Foreman & Cape Bell represented the landlord. INDUSTRIAL LEASE Atlanta-based The Home Depot Inc leased 300,000 sf of space at 7301 Security Way off SH 290 & Beltway 8 to address increased demand for building supplies following Hurricane Harvey.

INDUSTRIAL SALE Downhole Technology, a provider of hydraulic fracturing plugs purchased two office/warehouse properties totaling 119,675 sf located on 16.7 acres at 12450 and 12452 Cutten Road. Jeff Beard of The J. Beard Co. represented the buyer & Cape Bell & Allison Hall of Cushman & Wakefield represented the seller, Northwest Real Estate Holdings LLC. INDUSTRIAL SALE AGM Tools Houston has purchased the 13,000 sf industrial building located at 5074 Steadmont in Houston’s Northwest Corridor. Will Austin with Oxford Partner represented the buyer & Joe Evans & Janae Evens with Evans Properties represented the unknown seller, a family partnership. OFFICE / INDUSTRIAL SALE HCM Development LLC purchased an 8,000 sf office/warehouse property located at 8715 Fallbrook Drive. Built in 2006, the property features 20-foot clear heights and 1.13 parking spaces per 1,000 sf. Trey Martin of NAI represented the buyer & Steve Adkisson of Adkisson Group represented the seller, 8715 Fallbrook LLC. OFFICE LEASE Foundry Club leased 13,644 sf at the historical re-development called Main & Co., a mixed-use development located at 110114 Main Street in Houston’s downtown historic district from Dan Zimmerman Interests, Inc. Ryan Hoopes & Tom Sutherland with Colliers represented Foundry Club. OFFICE SALE Lincoln Property Co. has purchased Greenspoint Place, a 36-acre, 2.1 million sf office campus located at 16945 Northchase Drive. Developed by Hines, the property consists of six office buildings with three connecting retail centers. Warren Hitchcock & Bill Haley of NorthMarq Capital’s Houston office arranged an undisclosed amount of acquisition financing for the buyer. OFFICE SALE Dallas-based investor Spirit Realty has purchased a 137,000 sf office building located at 16001 Park Ten. The building just west of Houston’s Energy Corridor is 100% vacant and will immediately undergo a multimillion-dollar renovation including pre-leasing speculative suites. Ryan Bishop of Stream Realty represented the buyer. RETAIL LAND SALE Riverside Assets Management has purchased 11.7 acres of retail land located at the intersection of FM 529 & Fry Road from Eastbourne Fry & 529 II. Jeff Lokey with NewQuest represented

the buyer & Bill Byrd with Colliers represented the seller.


INDUSTRIAL LEASE MKO Global leased 14,500 sf at 8559 East North Belt from GSL Partners Sub Eight. Thomas Leger with Lee & Associates represented the tenant & Ryan Wasaff with Welcome Group represented the landlord in the transaction.


A private investor has purchased a 8,000 sf retail property located at 5255 Twin City Highway. The property is triple-net-leased to home furnishings retailer, Aaron’s. Riley Sharman of Colliers represented the seller, The Benjamin Revocable Trust, based in Nevada.


MULTI-FAMILY DEVELOPMENT Greystar has completed Overture Sugar Land, a 55-and-older multifamily rental community located in Sugar Land. The property offers a mix of one- and two-bedroom units ranging in size from 676 to 1,215 sf. Amenities of the four-story facility include a coffee bar and bistro, fitness center with yoga studio, a gaming room and a resort-style pool. INDUSTRIAL / OFFICE LEASE INOVA Geophysical, a Houstonbased seismic equipment & systems provider leased 37,715 sf at 13000 Executive Drive. The property offers 42,000 sf of office space & 12,000 sf of warehouse space, as well as 15-ton crane capability & 24-foot clear heights. David Buescher & Jeff Venghaus of JLL represented the tenant & Ryan Wasaff of The Welcome Group represented the landlord. The space will serve as INOVA Geophysical’s new headquarters. RETAIL SALE An undisclosed buyer has purchased the Greenway Shopping Center, a 7,750 sf retail property located at 13400-13414 Greenway Drive. The property was 100 percent leased at the time of sale. Josh Jacobs, Burdette Huffman & Kevin Holland of EDGE, Realty Capital Markets brokered the sale.


OFFICE LEASE Cooper Hart Leggerio & Whitehead PLLC has renewed its lease and will continue to occupy 15,836 sf at 2202 Timberloch Place. Rob Banzhaf and Ryan Dierker of Newcor represented the tenant & Lisa Hughes of The J. Beard Real Estate Co. represented the landlord, Timberloch Inc.

ADVERTISER INDEX A. A. Realty Company 18 Al Ross Group 44 Berkadia 1 - 3, 9 BOMA Austin 28 Caldwell Companies 19 CCIM Central Texas 33 CREW Network 5 CREW San Antonio 33 First Houston Properties, Inc. 17 Showalter Law 41 Garver Real Estate 15 Greenberg & Co. 15 Hankamer Commercial Brokers 17

classifieds & index Jacobs Properties 22, 23 Land Advisors 37 National Environmental Services, LLC 43 Phase Engineering 30 Plus Corp Photography 28 Stream Realty Partners 15, 17 Tarantino 11 The J. Beard Real Estate Company 25 The Real Estate Council - Greater Ft. Worth 35 The Signorelli Company 13 ULI North Texas 35 WA Development 7 Waller County EDC 17

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REDNews October 2017