REDNews January 2015 - North Texas

January 2015

In this issue:

Texas Will Outpace the Nation

If I had a Son or Daughter Entering the Job Market...

Texas 2015 Economic Forecast

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

Does CPI Reflect Your Real Cost of Living?

4320 S. Wester n St., Amarillo, TX

For Sale or Lease

Se e p a g e 3 f o r m o re in f o r m a tio n

Take a video Tour:

http://amarilloedc.com/available-property

63,383 SF 5.5 AC 450 Parking Spaces

Brian Jennings, Amarillo Economic Development Corporation 806.379.6411 | brian@amarilloedc.com More available properties at http://www.amarilloedc.com/real-estate

amarilloedc.com

Tenant Mix

SITE 1

1500-1534 Austin Highway SEC Austin Hwy & Harry Wurzbach Rd San Antonio, TX 78218

HEB Anchored Sunset Square Shopping Center

1670 SF – 8170 SF Available Including Interior & End Cap Spaces: • 3200 SF End Cap/Drive Through Bank w/ ATM • 8,170 SF: will divide • 3,987 SF: end cap -- will divide

SITE 2

1568 Austin Highway SWC Austin Hwy & Eisenhower San Antonio, TX 78218

7800 SF Freestanding Retail Building (Formerly Aron’s Rental): • Can be divided • Includes overhead door s & hydroulic lift • $16/SF

Duke Wm. Stevens | dukestevens@aol.com 1518 Austin Hwy, Ste. 12 -San Antonio, TX 78218 | 210-828-5544

4320 S. Western Street S. Western Street & Paramount Blvd., Amarillo, Texas

FOR SALE OR LEASE 63,383 SF Building on 5.5 Acres 450 Parking Spaces Seating for 475 employees Remodeled in 1997 Formerly occupied by insurance company as a call center

Amarillo CenterPort Business Park Amarillo, Texas

SITES AVAILABLE Directly served by two BNSF Railway mainlines High-capacity underground utilities Mid-continent location with direct access to I-40 (3 miles) and I-27 (8 miles) via State Loop 335 Located in Amarillo’s Foreign Trade Zone #252 Amarillo’s Freeport status exempts inventory from property taxes Land in CenterPort has a market value of more than $40,000 per acre and is conveyable Brian Jennings, Amarillo Economic Development Corporation 806.379.6411 | brian@amarilloedc.com

REDNews

IN THIS ISSUE

C O N T E N T & F E AT U R E S

PROPERTIES FOR SALE/LEASE

1 -3, 5, 7-9, 11, 13, 15, 17, 19-21, 1-3, 5, 7 – 12, 14 – 25, 27 – 29, 23, 25, 41, 43 33, 36- 41, 54 – 56

COMMERCIAL SERVICES

Environmental 30 Legal Services 27, 41 Moving & Relocation 41

WHAT’S HAPPENING IN TEXAS CRE

Calendar of Events 32, 34, 36 Networking Photos 33, 35, 37 Deals & Announcements 38-40

ARTICLES 2015 Texas Economic Forecast If I Had a Son or Daughter Entering the Job Market What’s Ahead for 2015 Houston CRE Does CPI Reflect Your Real Cost of Living?

4 | REDNews.com

10, 12, 14, 16, 18 22 24 28, 29

SIZE:

+/- 2.71 acres of land

FRONTAGE:

+/- 460’ along Loop 610 southbound feeder +/- 245’ along Post Oak Blvd.

CURB CUTS:

5 on Loop 610 feeder 4 on Post Oak Blvd

AREA ATTRIBUTES:

William A. McDade 713.577.1876 Peter Mainguy 713.577.1782

Kristen McDade 713.577.1808

Nolan Mainguy 713.577.1841

• • • • •

32.1 million square feet of office space 4.2 million square feet of retail space 7,100 hotel rooms 100+ restaurants Booming residential market

TRAFFIC COUNTS Post Oak Blvd. at the West Loop – 32,000 (2011) West Loop 610 at Post Oak Blvd. – 217,300 (2012)

REDNews

FOR

100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

PUBLISHER Ginger Wheless ginger@rednews.com

PUBLISHER’S LETTER

EDITOR Marjorie Gohmert info@rednews.com

STAFF WRITER Janis Arnold janisarnold1@gmail.com Matthew Chisari matt@rednews.com

Dear Readers,

H

appy New Year! I hope your holidays were exceptionally good, that you’re not five pounds heavier and if you made any New Year’s resolutions, they are still intact!

The big topic of discussion for everyone seems to be what effect the price of oil will have on CRE in 2015. The overall consensus I’m hearing from you is that Texas is not being overbuilt and although we may not have the sales/leasing frenzy in 2015 that we had in 2014, it is still anticipated to be a “good year” for commercial real estate in 2015.

Texas CEO Magazine held a 2015 Economic Forecast Event in Austin, Dallas, Houston and San Antonio last November. The impressive line-up of speakers covered all aspects of economic indicators ranging from energy, healthcare, real estate, tech, financial, etc and its effects in 2015. The conclusion is that Texas will continue to outpace the nation.

(See pages 10, 12, 14, 16, 18.)

Martin O’Malley’s analysis on why the CPI does NOT reflect your cost of living makes for an informative read on pages 28, 29.

CONTRIBUTING WRITERS Ray Hankamer rhankamer@gmail.com Jim Wilkie jimwilkie@swbell.net

ART DIRECTOR Mya Dale mya@rednews.com

E-MARKETING MANAGER JP Velazquez jp@rednews.com

ACCOUNTING Benton Mahaffey accounting@rednews.com

SALES

Also, be sure to read Ray Hankamer’s article to the Millennials moving into the job market. It’s actually good advice for anyone gainfully employed – not just the new-tothe-workforce.

Bri Martinez bri@rednews.com

Here’s to your very happy and successful 2015!

PRINT & DIGITAL DISTRIBUTION

Best Regards,

commercial real estate brokers, investors &

Ginger Wheless ginger@rednews.com

REDNews is directly mailed each month to developers.

Texas Brokers 7,650

Ginger Wheless

Texas Leasing/Tenant Rep 56,232 Texas Investors 4,979 Texas Developers 4,710 Outside Texas Investors, Brokers, Developers, etc 81,577 Total REDNews Distribution 105,148 REDNews Has Gone Green Using Recycled Paper Thank you, Midway Press To subscribe to REDNews call 713.661.6300 or log on to www.REDNews.com/subscription/ 5909 West Loop South, Suite 135 Bellaire, Texas 77401

6 | REDNews.com

Fort Bend County:

Fastest Growing County in Texas

2.5 Acres - 130 Acres For Sale or Build-to-Suit P u r c h a s e P r i c e : $ 2 . 7 5 /SF ( N o M UD T a x ) PHASE 1 IMPROVEMENTS TO BE COMPLETED BY JUNE 2015 U/C

U/C U/C

10 ACRES UNDER CONTRACT

• Deed restricted business park with outside storage available • No on-site detention required • Easy access to I-69, SH 36, US Alt 90, Spur 10, Grand Parkway, Beltway 8 & FM 2218 • Public/Private development – City of Rosenberg, Rosenberg Development Corp & Fuller Realty Partners • Utilities provided by City of Rosenberg • 18 residential communities & over 30 restaurants and hotels in the area

Bill Smith • 713.854.6942 • wgsmith@fuller-realty.com Steve Darnall • 713.850.8400 • sdarnall@fuller-realty.com

909 Dairy Ashford Rd, Houston, TX 77079 Kris Lilly | Klilly@tarantino.com

Peggy Rougeou| peggy@tarantino.com

ASHFORD PROFESSIONAL

• Two Story Medical Office Building • Renovated in 2008

• 30,999 Rentable Square Feet •S ervices the Memorial & Surrounding Neighborhoods

17030 Nanes Dr, Houston, TX 77090 Eric Ohlson | eohlson@tarantino.com

Peggy Rougeou | peggy@tarantino.com

NANES PROFESSIONAL

• Two Story Medical/Professional Office Building • Up to 4,124 SF Available

• L ocated 2 Miles from the Houston NW Medical Center •1 5 Minutes from IAH & The Woodlands

908 E Southmore Blvd, Pasadena, TX 77502 Eric Ohlson | eohlson@tarantino.com

Peggy Rougeou | peggy@tarantino.com

908 E. SOUTHMORE

• 46,462 SF, Three Story Medical Office Building • 80 Free Surface Parking Spaces

•R ecently Renovated Lobby • Generous TI Allowance

2305-2339 Bingle Road, Houston, TX 77055 Eric Drymalla | edrymalla@tarantino.com

Peggy Rougeou | peggy@tarantino.com

BINGLE VILLAGE SHOPPING CENTER

• 3,263 – 8,976 SF Retail Space Available • Pylon Signage Available

• Extensive Parking • L andlord will Build-to-Suit for Credit Tenant

Personalized Service. Proven Results.

www.tarantino.com

1150 N. Loop 336 W., Conroe, TX 77301

3315 Burke Rd, Pasadena, TX 77504 Eric Ohlson | eohlson@tarantino.com

Grady Field |gfield@tarantino.com

PASADENA PROFESSIONAL

NOVA MEDICAL CENTER

• 5,650 SF Free-Standing Building •1 00% Occupied with Single-Tenant Triple-Net Lease through 2024

• L ease Guaranteed by Memorial Hermann Medical Group • L ocated in a Major Retail Intersection in North Conroe

12770 Cimarron Path, San Antonio, TX 78249 Coni Jenkins| cjenkins@tarantino.com

• Climate Controlled Warehouse

7887 San Felipe, #237 Houston, TX 77063 (713) 974-4292

• First Floor Space Available -- Lobby Exposure

•C onveniently Located Across from Bayshore Medical Center • Generous TI Packages

10500 Gulf Freeway, Houston, TX 77034

Peggy Rougeou | peggy@tarantino.com

EDGEBROOK SHOPPING CENTER

•G enerous Tenant Finish-Out Allowance •N orthwest Location with Easy Access to I-10 & 1604

CORPORATE OFFICE:

• Three Story Office Building

Eric Drymalla | edrymalla@tarantino.com

DE ZAVALA

•3 ,000 – 10,000 SF, Flex Office & Biomedical S pace Available

Peggy Rougeou | peggy@tarantino.com

• Big Box- 26,902 SF Now Available

• Pylon Signage Available

• Located on Hard Corner of Gulf Freeway & Edgebrook

• T raffic Count Exceeds 222,000 Cars Per Day

SAN ANTONIO OFFICE: 12770 Cimarron Path St. 122 San Antonio, TX 78249 (210) 212-6222

AUSTIN OFFICE:

502 East 11th Street, #400 Austin, TX 78701 (512) 302-4500

REDNews

TEXAS WILL OUTPACE THE NATION

2015 ECONOMIC FORECAST

www.texasceomagazine.com TEXAS CEO MAGAZINE

Yücel sees the likelihood of ending 2014 at a 3.5 percent emSenior VP/Director of Research , FRB of Dallas ployment growth rate for Texas while the U.S. rate is forecast to finish up 1.9 percent. Yücel spoke in both Dallas and Austin, and Anil Kumar, Senior Research Economist and Advisor, shared his observations and statistics in both Houston and San Antonio. The forecast events were held at the Federal Reserve Bank of Dallas, the FRB Houston Branch, the FRB San Antonio Branch, and at the AT&T Conference Center in Austin. Collaborators for the 2015 Forecast events were Texas CEO Magazine, Texas Enterprise and the McCombs Alumni Network.

The following are excerpts of Texas CEO MagaThe following are excerpts of Texas CEO Magazine’s full recap of this informative event which took zine’s full recap of this informative event which took place in Dallas, Houston, Austin and San Antonio in place in Dallas, Houston, Austin and San Antonio November 2014. For the full article, please go to in November 2014. For the full article, please go www.texasceomagazine.com to www.texasceomagazine.com

Energy

bor shortage that will slow our growth rate.

With Texas the number one producer of oil & gas in the nation, Yücel reminded everyone, “We don’t only produce oil, we supply the world with oil & gas services with one-quarter of U.S. refining capacity and 60 percent of the petrochemical capacity based in Texas.”

Housing

In addition to oil & gas jobs, Yucel noted there are jobs in professional services, construction and manufacturing within the energy sector paying very high wages – the highest wages among all industries – which is bringing significant amounts of income into the Texas economy. In 2012, Midland was the metro with the highest per capita income growth and highest per capita income at $83,000 – greater than New York or San Francisco.

The price of oil has been tracking downward in the last several months, and while that helps the consumer in gas prices, Yücel cautioned that oil from shale, the kind produced in Texas, is expensive and needs to be at $70 a barrel to be profitable, so if prices fall below $70 it will stifle growth in the industry and likely within Texas.

Yücel sees the world economy in a flux and the greatest risks to Texas are the economies of Europe and Asia, along with a la-

Shortages of skilled workers and vacant lots for building have caused some bottlenecks in the construction sector, especially for single-family homes, noted Anil Kumar. The result is a reduced supply of homes on the market, with current supply levels sitting at 3.6 months statewide, much lower than the real estate market’s ideal 6-month supply.

This reduced supply has caused increased home prices, reducing the availability of affordable housing.

Kumar sees this trend starting to change.

“There is some good news,” Kumar said.

FRB, Senior Research Economist & Advisor “It appears the housing price appreciation has started to soften a bit.”

Anil Kumar

Mine Yucel

With phrases like, “broad based growth,” “robust employment” and “Texas will outpace the nation,” Mine Yücel, Senior Vice President/Director of Research at the Federal Reserve Bank of Dallas (FRB), kicked off the first of four 2015 Economic Forecast panels.

Following the economic crisis, mortgages that are 90-plus days delinquent or in foreclosure reached record highs, but they have been steadily declining and are now nearing pre-recession levels.

Who’s Got the Jobs?

While energy may top all others in sector growth at over nine percent, energy still represents only 2.6 percent of Texas jobs. The highest number of jobs added this year is in the professional and business services sectors with one-third of them in technical and scientific jobs. The next highest sector of growth in jobs was in trade, transportation and utilities, with retail jobs the largest gainer.

The high rate of growth has also led to labor shortages, especially in energy and construction. “We have one Houston contact who reported he was hiring armed guards to keep poachers away from his work sites,” noted Yücel. Specifically, there are shortages in specialized workers such as welders, masons, and plumbers and many employers tell Yücel they can’t find workers who can pass the Federal background checks.

While one construction sector, road and bridge, is not doing well, residential construction contracts are steadily growing and up about 6.4 percent yearover-year. “Our contacts are telling us there’s a shortage of developable lots and higher construction costs and labor shortages are limiting growth, and that’s also extended delivery time,” said Yücel.

Yücel cautioned attendees, “These labor shortages aimed at job growth can’t continue at this pace and it’s going to slow as we go forward.”

10 | REDNews.com

Continued on page 12

REDNews

Offering Properties & Hotel Consulting

Great Opportunity For Owner/User/Tenant 1117 FM 359, R ichmond, Tex as 7 7 4 0 6

PROPERTIES AVAILABLE • 12 Acres/Private Beach Resort Hotel Site - Galveston, TX • Hotel, Condo, Retail Site - Cruise Terminal - Galveston, TX • Freeway Sites - I-20 - Monahans, TX • 30 Acres Commercial/Rail Serviced - Tomball, TX • 12 Acres Residential/Commercial - I-45 - Huntsville, TX • Commercial Site - HWY 281 - Edinburg, TX • Hotels - Statewide • Hotel/Retail/Restaurant/Office Sites - League City, TX

Contact: Ray Hankamer

HANKAMER & ASSOCIATES BROKERS, L.L.C.

Hospitality Consulting Services

40 Years Experience As Services Hospitality Consulting Developer, Owner & Operator

Brokers: Ray Hankamer, Jr. rhankamer@hankamer.com Pablo Szub szub@mail.com Jamie Irvine jirvine@hankamer.com

Sergio Ortiz 40 Years Experience As sortiz@hankamer.com Developer | Owner | Operator

(713) 789-7060 • www.hankamer.com

H &

• Up to 4,600 SF Available for

Lease • Class A two story building located on four lane divided highway • Ample on-site, lighted parking; nicely landscaped • Built in 2007

B

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Cinco Ranch, Fulshear, Katy and Pecan Grove • High end finishes including tile and marble • Great access to Hwy 90,99, downtown Richmond and Ft. Bend County Justice Center Office: 281.762.6880 Cell: 713.269.4908 Seth@FirstWarrantyRealty.com www.FirstWarrantyRealty.com

(713) 789-7060 www.hankamer.com

1211 S. Loop West Houston 77054

Brokers: Ray Hankamer, Jr., Pablo Szub,

AVAILABLE FOR LEASE

Property can accommodate Retail, Traditional Office, or Office Warehouse.

Spaces available from 6,000 – 25,000 sq.ft.

Grade level, truck wells may be added High parking ratio

FREEWAY SIGNAGE

Tanglewood Expands Its Portfolio 14090 Southwest Freeway, Sugar Land, TX

Additional land available for exterior storage or parking Excellent visibly on Loop 610 Over 320,000 vehicles pass this location daily Excellent additional signage Free standing building Owner may consider a sale of the entire 4.3 acres and building

19,000 SF Available MOVE IN READY

2000 Bering Drive, Houston, TX

1211 South Loop West

K DOWNTOWN GALLERIA NRG STADIUM

SHIP CHANNEL

Ground Floor Space Available

MED CENTER

A Full Service Firm Helping Houston Grow Since 1989.

Mark Ray, Broker l 713.828.0320 l obh@pdq.net

HOBBY AIRPORT

6910 Bellaire, Suite 16 Houston TX 77074 l kensingtonpropertygroup.com

SPACE CENTER HOUSTON

For leasing information contact: Dean Wilkens, Tanglewood Property Group 713-621-1300 | dwilkens@tanglewo o dpro p er t y.co m REDNews.com | 11

Continued from page 10

DALLAS

Tom Falk

David Seaton

Engineering & Industrial Construction • In July there was a big jump – including a record high – for construction contract values in Texas. Construction on the new Dow Chemical plant project in Freeport began, part of a $4 billion Gulf Coast expansion project being built for Dow by Fluor Corporation. In addition, Exxon has also announced a new plant in Baytown • While there is a bright future in industrial engineering and construction based on pent-up demand, there are two areas of concern for Seaton: comprehensive immigration reform and availability of resources. Seaton said, “We need the immigrants to CEO of Fluor continue to grow.”

Consumer Package Goods • Focusing on today’s consumer, there are shifts in purchasing based on ethnicity, age, earning power, and most importantly, innovation.

• Forty-nine percent of new births in Texas will be Hispanic and that demographic shift impacts how Kimberly-Clark sells Huggies and through what channels.

Kimberly-Clark Corporation • By 2020, 35 percent of the population of the U.S. will be over age 50. (Kimberly-Clark also sells Depend and Poise products.)

• The middle class is being squeezed because income levels are under pressure, real wage 12 | REDNews.com

2015 ECONOMIC FORECAST growth is minimal, and health care costs are going up.

• Falk’s answer to growth is the need to drive real innovation. If you drive meaningful innovation, you can still convert the consumer.

Retail • Retail represents 70 percent of economic spending in the U.S. and it’s the largest employer category in the country.

• Fuel prices are low, which is having a positive influence on spending and confidence is high, so there’s a sense of well being.

• The next influence to consumer behavior is the AAS factor: Amazon, Apple and Samsung. In 2014, two-thirds of retail sales in the United States were projected to be from those three companies.

• Malls are the site of discretionary spending. If you unload the kids at the mall, they disappear into the stores and their spending is on technology.

• Malls are global marketplaces. Where there used to be 65 companies operating department stores in various cities in the United States, today there are five or six. It’s all about globalization with companies like Zara and Mango.

• If you’re innovative and you recognize the consumer that spends online stays online, and if they spend in the store, they spend in the store,” he said. “If you have a customer who spends on both channels, you have a much more valuable, loyal customer.

• If retailers can adapt to change, JC Penny they can succeed.

• We operate 900 hair salons because it’s very hard to get your haircut online.

Mike Ulman

REDNews

Continued on page 14

REDNews

FALL CREEK C ommer c i a l Res er ve s Avai labl e

D: 29.16 Acres

SEC N. SAM HOUSTON PKWY & BELLOWS FALLS LANE

E: 12.84 Acres

S. SIDE N. SAM HOUSTON PKWY

•FallOver 2,000 feet frontagewhich on the Creek, a 2300 acreofcommunity is the only major master-planned golf course community Beltway within Beltway 8 (Sam Houston Parkway). Home to •The MUD formed & utility infrastructure in Golf Club of Houston (formerly Redstone Golf Club), location of Shell Houston Open. place D E • No detention required Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 Jason Shaw• jshaw@cullenrealtygroup.com • Ready for development • 281.546.9237 D E • Excellent visibility • 10 minutes to IAH • 20 minutes to the Port of Houston & I-10 D: 29.16 Acres SEC N. SAM HOUSTON PKWY & BELLOWS FALLS LANE • 15 minutes or less to I-45 & Hwy 59 • 5 minutes away from Generation E: 12.84 Acres S. SIDE N. SAM HOUSTON PKWY Park, Houston’s largest new commercial development.

Fall Creek, a 2300 acre community which is the only major master-planned golf course community Meredith Cullen • mtcullen@cullenrealtygroup.com within Beltway 8 (Sam Houston Parkway). Home to Jason(formerly Shaw•Redstone jshaw@cullenrealtygroup.com The Golf Club of Houston Golf Club), location of Shell Houston Open.

• 713.444.7979 • 281.546.9237

LEVCOR, INC.

Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 Jason Shaw• jshaw@cullenrealtygroup.com • 281.546.9237

PHARR TOWN CENTER NOW OPEN

NOW LEASING PHASE II Dan Smith 713.268-3716 dsmith@levcor.com

Pharr

www.Levcor.com REDNews.com | 13

Continued from page 12

HOUSTON

14 | REDNews.com

up to 140 percent of their cash flow and are relying on the capital markets to make up the gap. But even if the price of oil goes down to $75-$80 per barrel, many plays can still make a 15 percent return. The real question is: Will the boardrooms and shareholders embrace high spending in a lower price environment?

Armstrong anticipates that the quick decline of existing production will trigger higher prices over the next six to 18 months.

• If we end up with low prices for a while it won’t last long before we have a correction and go right back up. By that time, the world tends to expand demand with lower prices and we’ll reset the bar and go forward.

Imports & Exports • Commerce at the port is the strongest in its history, and the port is seeing large construction projects in export cargo.

• Our manufacturing partners on the Houston Ship Channel have invested approximately $35 billion in manufacturing and export capability in the last three years and there is a significant increase in exports of manufactured petrochemical products to foreign markets.

• Six major plastic resin manufacturing projects have been announced on the Houston Ship Channel, all coming online between late 2016 and late 2017.

• Our petrochemical partners have advised us they expect their exports to double and possibly triple in the next two to three years • Our regional population is growing faster than any other region in the nation and it’s expected to double and even triple in the next 20 to 30 Port of Houston Authority Board of Directors years. Regional population growth drives consumer demand, Janiece Longoria

Andy Greg Armstrong

Oil & Gas • Despite lower oil prices, the Federal Reserve says the energy sector is holding steady.

• Production in the United States and Canada is on the rise. Producers in the U.S. are spending about $100 billion a year at current activity levels, with major investments in Texas – primarily South and West Texas. Texas Chairman & CEO Plains All American Pipeline is responsible for about half the projected growth in U.S. production over the next four years.

• Production in the U.S. and Canada is 3.5 million barrels of crude a day. In the next four years, it’s expected to grow to 3.9 million • The challenge is the quality of the crude. About two-thirds of the 3.9 million barrels a day are going to be medium and light, sweet crude oil and condensate. The majority of the 5.2 million barrels a day we import are heavy and medium sour. There’s a quality imbalance here that we have to handle.

• The petroleum industry is waiting for guidance from the government because the U.S. is prohibited from exporting light crude. If the government would give us a little bit of clarity, we could expend some capital and handle that.

Right now they’ve gone silent and that’s the worst thing because that creates paralysis.

• There’s a time of volatility coming because the quality of crude being produced doesn’t match the quality that most refineries are set up to run but the outcome will be positive. “If you know the storms are coming, you can prepare for them and you know what the outcome is.”

• U.S. companies spending $90-$100 billion a year require capital and “constructive” oil prices. Many smaller producers are spending

2015 ECONOMIC FORECAST

which in turn drives demand for products delivered as containerized cargo.

• We’re already the leading Gulf Coast port handling 66 percent of containerized cargo.

Because of our strategic location and our population reach, we will be the beneficiary of significant additional cargo across our docks with the expansion of the Panama Canal.

• The Port of Houston is investing a billion dollars over the next five years in both dredging and infrastructure.

• Refrigerated cargo is also a potential growth area.

Bobby Robbins, M.D.

REDNews

Texas Medical Center Health Care • One area not directly affected by the oil industry is health care. The Greater Houston Partnership says population growth will add 7,900 doctors and nurses to the employment rolls in 2014. The future is bright for large hospitals.

• I don’t think the future is bright for small hospitals in small towns. As incentives and rewards in health care change, hospitals will be forced to deliver the highest quality product at the lowest price with the best customer service.

• Now, hospitals are being held accountable for such metrics as patient mortality and length of hospital stays. The big institutions like the ones in the TMC with healthy balance sheets that are forward looking and innovative, have gotten the message and are shifting from fee for service to value-based operations.

• Robbins said his biggest challenge is getting all of the institutions that make up the Texas Medical Center to work together on interdisciplinary projects.

Continued on page 16

DEVELOPMENT TRACTS CLOSE TO EXXON MOBIL

Retail/Industrial & Multi-Family Sites

FM 1 1960

Tract 1

• 1,136 FF Kuykendahl Rd • 5.69 Acres NORTH FOREST

Tract 2

• • •

EAGLES AGLES LANDING

I-45

•

529 FF on Kuykendahl Road 9.92 Acres +/- 400’ NW of Ella Blvd.

Great visibility on heavily traveled Kuykendahl Rd. GLEN ABBEY Y Located in dense residential area just west of I-45 Zoning: None Utilities: HC MUD #399 Key Map: 372B

.

Rd hl da en yk Ku

• • • •

Tract 1 Tract 2 EAGLES EAG AG GLES LANDING BLUE ASH lvd.

B Ella A RT XPLAZA P LAZA AT AIRTEX-E AIRTEX-ELLA QUAIL CHASE CHAS WOODS WOOD S OF KUYKENDAHL Grand Parkway (Proposed) da

en

yk

Ku

WOODFALL WOODFALLS WOOD DFALLS COURT CO OURT

hl .

Rd Ella

PRICE REDUCED!

Blv d.

VAND RB LT VANDERBILT

Tract 1: $4.95 PSF; Tract 2: $4.95 PSF

PARK AT KIRKSTALL RKSTALL KSTALL

Brokers Welcome Rachel S. Grant

7887 San Felipe Suite 122,

Houston, TX 77063

(O) 713.789.3133 | (M): 281.686.2993 | RachelGrant@RSHart.com

R. S. Hart

Commercial Brokerage, L.L.P.

REDNews

Continued from page 14

16 | REDNews.com

2015 ECONOMIC FORECAST this year, while single-family permits are up 8 percent. Permits in Austin are starting to slow down, while the market waits to see if new construction can be absorbed. Single-family permits are starting to rise again, mostly in the suburbs and xburbs.

Electricity and Water • T he new Ferguson Power Plant, a combined-cycle natural gas plant, has 30 to 40 percent lower emissions and uses 35 percent less fuel than the plant it replaced.

• L CRA is also heavily invested in coal generation and is working through the EPA’s guidelines to curb emissions.

• L CRA’s reservoir system is at 34 percent, which is a good number considering the extent of the drought. Water consumption has decreased in Austin due to raised awareness and sensitivity around the drought.

• F inding new water supplies is difficult due to increased construction costs, extensive legal frameworks and complicated permitting. Currently ground water is mostly treated as a private resource but regulated locally.

Most districts will only grant five-year ground water permits.

Regulations need to be restructured to make the most of these resources.

John Hoffman

AUSTIN

students to return to their original countries after graduation are one reason for the talent scarcity.

• T he U.S. is the second least competitive tax environment in the industrial world – only France is worse.

•W e have to reshape the industrial economy of the U.S, apply technology to the problem, which takes engineers, and we have to attract the capital and encourage it to remain onshore. If those three things get done, there’s no reason why the U.S. can’t remain the number one economy in the world.

Real Estate • While sales in Texas were down in 2014 versus 2013, it has been a good year for real estate.

Most of the decline is due to a reduction in distressed property sales along with a reduction in available affordable housing. Talbot expects a strong real estate year in 2015.

•G ains in real estate prices in Texas continue to outpace the U.S. National year-over-year price gains are expected to run between four and six percent; comparatively, Texas gains will reach between 6 and 10 percent.

COO of Keller Williams • I nventory is tight.

Dallas and Houston saw price increases up eight and nine percent, respectively, last year. Austin’s real estate is the least affordable in the state.

•M ortgage rates are the most important topic in the real estate industry. Rates may drop below 4 percent again, which would further spur the real estate market.

•S tudent loan debt quadrupled between 2003 and 2014, and first-time home buyers are waiting to pay down student loans before they are able to enter the real estate market. These increased loans can dramatically affect millennials’ ability to purchase homes •M ulti-family permits are up more than 30 percent

Jim Talbot

Alex Davern

Technology • There’s an opportunity on the horizon that revolves around the rapid reshaping of the industrial economy – where access to technology is going to fundamentally change the dynamics for the U.S. and many countries around the world.

• Hydraulic fracturing’s cuttingedge technology has solved an industrial problem.

COO of National Instruments • The industrial Internet of Things with its ability to have time synchronized networks, real time operating systems that leverage mass computing power, and the ability to have encrypted wireless communication in high volume, is going to fundamentally change the way the industrial economy works. The industrial Internet of Things is only now taking shape and will have a macro effect on the economy requiring the appropriate investments.

• The United States is the biggest market in the world for just about everything and has tremendous amounts of natural resources, so manufacturing and production shouldn’t be leaving our shores.

• Daven listed three challenges in being more competitive: the execution of manufacturing and competing with low cost labor from other countries, access to talent, and the taxation environment in the U.S. • Davern predicts more industrial and manufacturing jobs returning to the U.S. as the cost of labor becomes more expensive in the rest of the world and the evolution of technology continues. He said if companies can increase the efficiency of labor and production over a wide variety of products in switching to U.S.-based production, we will fundamentally reshape the U.S. economy.

• NI will attempt to hire 250 new engineers and computer scientists in 2015 – and they are hard to find. Immigration policies requiring international

•B y the end of this EVP of Water at LCRA year, Hofmann expects the LCRA to break ground on its first new reservoir since the 1950s.

• L CRA is also moving to take its Bastrop power plant off surface and onto ground water to preserve supply.

Continued on page 18

serviNg the ceNtrAl texAs hill cOuNtry ANd surrOuNds

exclusively listed trOphy rANches with prOxiMity tO AustiN, sAN ANtONiO ANd d/Fw

Bowie Mountain Ranch

2,000 wildly rugged and beautiful acres in the sought-after enchanted rock area west of Austin has several miles of live creeks, granite outcrops, mystical vistas and massive hardwood bottoms.

Featuring outstanding all-around hunting, other features include granite outcrops, cliffs, water holes with fish and highway frontage near Austin. $3,950/acre = $7.9M

RiVeR canYon Ranch

447 rugged, unimproved acres in prized Mason county, west of Austin, on the awesome, spring-fed llano river with ochre cliffs, wildlife, monster pecan trees and scenic hills. ranch holds an entire drainage system within its border, offering exquisite privacy and seclusion, including a stunning homesite overlooking the wild river below. $4,750/acre = $2.12M

chiMneY hollow Ranch

3,432 acres Nw of san Antonio features marvelous variety, with 50% valleys/50% hills, excellent combo of hardwoods/brush/open land teeming with wildlife and lush tall grasses and turfs. Miles of paved highway frontage allows easy future exit, some minerals are included with the sale. $2,250/acre = $7.72M

SpRing lake Ranch

297 acres near kerrville, less than 2 hours from Austin or san Antonio, features one of the finest constant level lakes in the area, fed by owned springs averaging 50 gpm flow. typical hill country includes views, hardwoods, wildlife and comfortable lodge on the water’s edge, with bulkheads along the shoreline. $10,500/acre = $3.12M

210.422.4676 ̶ 830.997.8616 dec@landtx.com ̶ www.landtx.com Fredericksburg ̶ MAsON 1031 exchANge speciAlist

REDNews

Continued from page 16

SAN ANTONIO 2 0 1 5 E CO NO MIC F O R E CA S T many companies do not do much hiring during the research phase of R&D. Private Equity • The private equity market is currently seeing its highest IPO activity since 2007.

Committed capital is over $500 billion right now, which is an amazing number.

• Purchase price multiples for

Ken Trebett, JD, Board Chair of BioMed SA

18 | REDNews.com

Rad Weaver

General Joe Robles (Retired)

Financial Services • Low interest rates have pros and cons for those in financial services.

Current low rates don’t cause problems for those businesses offering credit at high rates, but can be detrimental to businesses’ President & CEO of USAA balance sheets if the cost of credit rises or spikes.

• A sharp rise in interest rates would be detrimental to business. Roberts cited Europe’s current economic situation as an example of what could happen in the U.S. due to recent volatility in the markets.

• Those who are at or near retirement want to see interest rates go up to get more out of their savings and fixed instrument investments because without an increase in rates, retirement is going to be more challenging.

• Currently life insurance ownership is at a 50year low in the U.S. • The busiest areas for USAA are in the digital and mobile spaces. “We will do $500 million in transactions on mobile devices this year.”

Robles suggested that the business world adjust to meet the needs of millennials and move to newer ways of doing business or younger customers and employees will choose to go elsewhere.

• On the fraud security front, there is a new technology in the U.S that’s been used extensively in Europe, called chip and PIN that embeds a chip in all credit cards and requires a PIN to use. This chip President Emeritus of the Texas Biomedical Institute provides better security to credit and debit card owners to reduce fraud and theft BioTechnology • Biomedical provides one out of every six jobs in San Antonio with more than 40,000 jobs gained in the sector in the last 10 years.

• The biomedical center accounts for $29 billion in economic activity and is the largest economic center in the city • Trevett expressed concern over federal cutbacks on R&D spending. The National Institute of Health’s purchasing power has gone down 25 percent over the last decade. San Antonio does not have abundant jobs available to new Ph.D.s in the area with research facilities, since

CEO of McCombs Partners companies in the sub-$250 million of enterprise value are at their highest level in more than 10 years.

We have strong debt markets, with debt to EBITDA at 2.5 and sub-debt at 3.7 times, which is the highest in 10 years. There’s also plenty of money for making deals with the cash balances of strategic acquirers at $1.3 billion.

• There are four key areas of focus: automotive, retail, energy, and real estate • The transportation sector makes for solid investing due to consolidation that allows for greater equity from those companies, which hasn’t been available for the last few years.

• The current low cost of capital allows for more innovation and product creation.

REDNews

PR IM E D E VELOPMENT PROPE RTY IN TH E EAGLE FORD SHA L E

Medical Development Acreage Athens, TX +/- Acres 109 $1,600,000

MEDICAL CEntEr

AVAILABLE

AVAILABLE

$0.65 to $1.25/SF

Cuero, TX -- 50 Acres, Will Divide West Property Line is the Cuero City Limit Line 1,500 Feet of Hwy 87 Frontage Utilities Available Next to the Tractor Supply

Matt Mann | La Gloria Land Company, LP | 713.402.8827 www.laglorialandcompany.com | matt@laglorialandcompany.com

AVAILABLE

Large Acreage with Development Potential at Hwy. 19 and Loop 7 in Athens, TX, directly across from East Texas Medical Center. Owner will subdivide.

Three hard corners available.

13 commercial zoned acres lie within the city limits, allowing for retail, medical, office and some light industrial uses. High visibility regional corridor.

REDNews.com | 19 GMason_RedNew_3.9x4.7_1214.indd 1

12/8/14 4:51:28 PM

713.690.0000 Land For Sale | 2.73 Acres

Beltway 8 & Vickery FEATURES • Approximately 390 FT of Beltway 8 frontage • Great access to I-45 & Highway 59 • Unrestricted • •

Price: $6.50 PSF or $772,972 Land For Sale | 52 Acres

Highway 290 in Brenham FEATURES • Approximately 885 FT of frontage on Highway 290 • Approximately 2,000 FT of frontage on Market Street • • Unrestricted • Ideal for Commercial Development

Price: $1.72 PSF or $3,896,006

Keith Edwards, CCIM, SIOR

Clay Roper, CCIM

Daniel Greco

Email: KEdwards@CaldwellCos.com

Email: CRoper@CaldwellCos.com

Email: DGreco@CaldwellCos.com

CaldwellCos.com For Sale or Lease: Building & Land | 277,000 SF on +/20 Acres

9601 Industrial Drive, Navasota, TX 77868

FEATURES • Two leases in place (thru July Tenant on 34,430 SF • 17’ to 24’ Clear Heights

• 480 / 3 Phase / 3,000 AMPS Available Thru 8 Electrical

50 Oversize Roll-up Doors – 75% Electric Operated • Around 50 Total One and Two Ton Crane Systems

• New Roof Installed in 2013

Bill Ginder, CCIM, SIOR Email: BGinder@CaldwellCos.com

From Grand Parkway and Highway 290

Balance of Building Space (242,570 SF) Available: For Lease: $0.25/SF/NNN Total Building For Sale: $5,500,000 (+ $9.85p er SF)

REDNews

BUZZ

IF I HAD A SON OR DAUGHTER JUST ENTERING THE JOB MARKET, REDNews

BY RAY HANKAMER

•M ove to a big city where there are lots of opportunities • Get out and meet as many people as you can in as many fields- knowing what you DON’T want to do is important for discovering what you DO want to do • Follow your instincts with people and hang around those you like and who are willing to teach you.

Personal chemistry is everything in moving forward in life and in business. Move away from anyone who is stifling.

• If you are the smartest person in the room, you are in the wrong room. Seek out those you can learn from-and those who are not afraid for their jobs by teaching you. See how you can return the favor by supporting them and helping them move forward.

• Always be willing to start at or near ‘the bottom’-if you are smart and hard-working you will not stay there long, and in the meantime you will earn the respect of those who will remain at the bottom and who you will be managing one day.

• Read widely in very diverse subjects so you will always be good at conversation with anyone--in a conversation, try to talk only 20% of the time and listen intently 80%--learn how to listen...train yourself...the person you listened to will go away flattered by you and will like you and will go out of his way to help you move forward. Be genuinely interested in other people and what makes them ticklearn how to draw them out in conversation so you can learn, while they are feeling relevant.

• Read books and trade journals and magazines - limit what you read on your computer since there are too many opportunities to be distracted by trivialities... again, read books--not just business books, but build your knowledge about people and what motivates them--you will get this from history, novels, psychology, sociology, philosophy, classic literature, and other subjects...always have a quality book going...you can buy them very cheaply at Half 22 | REDNews.com

T H I S I S W H AT I W O U L D T E L L T H E M

Price bookstore where employees will give you suggestions to fit your reading mood • Throw away your calendar that has holidays, weekends, and birthdays marked on it, especially if you are going into a service business...people expect to have their needs met regardless of what day it is on YOUR personal calendar-it is THEIR calendar they are concerned with.

• Be prepared to do the jobs - and do them well - that lower employees on the ladder do not want to do...it will distinguish you and make you unique, and will put you in demand.

• Society pays according to the difficulty of the problem you solve--heart surgeons and plumbers are both plumbers. One gets paid more than the other because his work is more difficult.

• Develop a collaborative work personality, not a hierarchical one - listen to employees who are actually doing the work, and let them know their opinion matters-they often know more about design, manufacture, and delivery of the product than the boss does.

• T ravel to other cities and other countries whenever you get the chance. Book your vacations well in advance and plan your work around them. If you do it the other way around, you will not take many vacations.

During vacations away from the workplace you will “sharpen your saw” and come back more motivated and effective than before you left. I always come back from vacations with a long list of things I want to do, many of which I would not have thought of if I had stayed in my daily grind.

•D evelop as many acquaintances and contacts in as many fields as you can. Throughout life you will solve problems with people. If you have a talent of putting people together and can ‘create a spark’ with the teams you assemble from your contact list, you will be able to solve complex problems. There is a specialist out there able to solve almost any problem better than you can, and if you know who he/she is, you both win.

P REDNews

EDGEWATER COMMERCIAL RESERVES PAD SITES AVAILABLE RANGING FROM ± 1 ACRE & UP

The available tracts of land are located at the gateway to Edgewater, a +/- 538 acre mixed-used redevelopment project by Johnson Development and Cherokee Investment Partners which is home to more than 350 single family & luxury multi-family homes. The available tracts of land are located along Nasa Rd 1 and the newly constructed NASA Parkway Bypass in Webster, TX. NO DETENTION REQUIRED Up to ± 4.65 Acres PA1 COMMERCIAL LAND FOR SALE

The available tracts of land are located at the gateway to Edgewater, a ±538

acre mixed-use redevelopment project by Johnson Development and Cherokee

Investment Partners which will soon be home to more than 2,600 residents.

The available tracts of land are located along Nasa Rd 1 and the newly UP TO ±47.78 ACRES/OWNERS WILL SUBDIVIDE constructed NASA Parkway Bypass in Webster, TX.

N A S A P A R K W AY & WA T E R S T R E E T

FOR MORE INFO. PLEASE CONTACT: Simmi Jaggi First Vice President 713.577.1616 simmi.jaggi@cbre.com

PA2

Up to ± 6.56 Acres

PA3

Up to ± 15 Acres

PA4 SITES PAD SITES

Up to ± 21 Acres $5.00 PSF-$17.00 - $15.00 $7.00 PSF PSFPSF

Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 Population Jason Shaw• jshaw@cullenrealtygroup.com • 281.546.9237

Elizabeth Clampitt Senior Associate 713.577.1871 elizabeth.clampitt@cbre.com

(2014 Est.) 4,271 75,921 196,380

1 Mile Radius: 3 Mile Radius: 5 Mile Radius:

Average HHI:

(2014 Est.) 72,132 77,663 97,396

1 Mile Radius: 3 Mile Radius: 5 Mile Radius:

Greenberg & Company Commercial Real Estate Brokerage Firm

Traffic Counts:

(W NASA RD 1 & HWY 3) Cars per Day:

37,000

12602 Westheimer

Edgewater Master Planned Community | Webster | Texas Westheimer @ Dairy Ashford

E MA I L B L A S T PAC K AG E S

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 Edgewater is the Bay Area’s newest mixed-use, master-planned community located along NASA Standard email blast packages (regularly priced at $245 per email blast): Pkwy and the newly constructed NASA Pkwy Bypass in Webster, Texas.

4 Blast Package - $880 6 Blast Package - $1,188 10 Blast Package - $1,500

Building Size: 12,571 SF

 Edgewater is a 530 acre mixed-use redevelopment project that includes Land Size: 37,450 SFapproximately 70 acres

Significant Retail Establishments in the area

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NET-NET-NET  This waterfront community will feature private canals with All a leases newly developed marina and 35 Ample Parking

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INVESTMENT OPPORTUNITIES

For Addition Information, Please Contact:

12550 Southwest Freeway

Building Size: 6,550 SF

Land Size: 1.2 Acres

Heavily Traveled Area

Jennifer Johnson 713-960-9977 jennifer@johnsondev.com

ATASCOCITA www.johnsondevelopment.com

100% Leased

4 Blast Package – $1,080 6 Blast Package – $1,488 10 Blast Package – $1,900 20 Blast Package – $3,300 40 Blast Package – $5,800 (Facebook, Twitter, LinkedIn, Website, Newsletter)

For more information contact: JP@rednews.com or Bri@rednews.com

2405 S. Gessner

Building Size: 10,277 SF

Major Thoroughfare

Land Size: 34,534 SF

100% Leased

Contact Broker: David Greenberg - David@greenbergcompany.com Phone: 713-778-0900 Fax: 713-782-7445 5959 Richmond Ave., Houston TX 77057

REDNews.com | 23

REDNews

WHAT’S AHEAD FOR 2015 IN HOUSTON COMMERCIAL MARKETS? REDNews

BY RAY HANKAMER Panelists: Will Holder, President, Trendmaker Homes; Allen Crosswell, NewQuest Crosswell; Jonathan Brinsden, Midway; Welcome Wilson, Jr, Welcome Group Will Holder: • We are moving full steam ahead with new homes to meet demand • Even if job growth in Houston falls by 50%, that is still a strong number for us • There is only a 3.5 month used-home inventory, which offers a small selection by historical standards • We have the most spec homes under construction in 4 years and our inventory of completed spec homes is low • Since 2008, creation of new lots has lagged home starts, so we still have a bottleneck with lots, which takes about 18 months to develop • Builders are committing to lots years in advance, to have something to build on • Builder costs are rising due to shortages of concrete, licensed plumbers, framers and trim carpenters, architects and engineers and surveyors, site work contractors, and factory components such as windows and cabinets • Higher new home prices are resulting in some market resistance, causing people to stay put and remodel in some cases • Renting becomes more attractive as new homes become more expensive 24 | REDNews.com

BOYARMILLER BREAKFAST FORUM • L ots of new builders from other states are setting up shop in Houston Allen Crosswell: • Grocery-anchored shopping centers follow residential rooftops and there is a lot of growth in this niche of the retail sector, which provides good developer returns • E-commerce continues to grow but it is not really impacting brick-and-mortar stores, and some brick-and-mortar retailers began with e-commerce • Since 2011 Houston has added 450,000 residents, and this requires lots of new retail • There is a finite amount of available retail space in Houston now, and finally rents in this sector are rising, with demand by national tenants pushing rents up 35% in some cases • Improvement in rental rates in retail has lagged behind what multi-family and office developers have been able to achieve, but things are improving now

•C ap rates for investment sales in retail range from 6.5 for credit deals to 8.5 to 9 for older product • There is no pushback yet from tenants on rents • NewQuest Crosswell has $300 million in the development pipeline

Continued on page 26

REDNews

1. If you DO NOT have changes please sign, date and return.

FOR SALE OR LEASE - 2,200 to 26,000 SF AVAILABLE 2. If you HAVE CHANGES, indicate changes on proof and return within 24 hours.

3. Proofs not returned within 24 hours will be considered approved to run AS IS. 4. Ads or inserts cancelled after the 10th of the month will be billed 100%.

6400 Southwest Freeway, Houston TX (exit US 59/Hillcroft) July 2012

Send your

e to Deals Donws .com

jonathan@redne

Lila Construction HP CP Ginger Wheless LilaCo_RN_HP_0712_01.indd BC 06.12.12

2 Using the information in this ad, property information will be sent to LoopNet to be added/updated in their listing service (at no cost to you). To opt-out, contact us at jonathan@rednews.com

• 2,200 - 26,000 SF Available

Metro Transit Area

• Easy access to / from US 59 / Westpark (adjacent to Metro Transit Park and Ride) • Playground area and parking spaces (100 to 120) • Recommended facility usage: Education, Medical Office, Engineering

y Fw t s we th u So

SITE

Elizabeth | LilaUSConstruction | lstevens@lilaco.com FORStevens LEASE (near 59 / Hillcroft) || 713.741.9900 6400 Southwest Freeway, Houston, TX 23,000 SF Immediate Move-in Available | 3,500 SF and 2,200 SF Also Available • Easy access to / from US 59 / Westpark, Adjacent to Metro Transit Park & Ride • Prior southwest school location with more than 120 Parking spaces & playground area • Possible uses: Education, Medical, Engineering, Manufacturing, Retail

Great Investment Opportunity in the Major Growth Area SPRING TOMBALL 133 Acres for | 2306 - 2428 Texas Parkway, Missouri City TX FOR LEASE 21327 Cedar Lane MilesSF / 21,000 SF Retail Spaces133 Available 2,500 SF17/.51,250 AC Farm Full-time or PSF are from $0.55 for the smaller spaces and Weekend Rancher! • Price $0.30 for large space.1 Mile Grand Parkway - HW

I-45

Y 99 Close to everything yet a Elizabeth countryStevens setting | Lila Construction | 713.741.9900 | lstevens@lilaco.com $6,650,000

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M 90

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REDNews

Jonathan Brinsden: • Office leasing will feel the effects of falling oil prices first • Some investors are already pulling back to wait for good buying opportunities • Some oil companies are already starting to re-negotiate their deals with the service companies, putting pressure on their margins • The spec office space that is being built will probably not enjoy any more large bloc leases, but instead will have to lease up with smaller tenants, so it will take longer to absorb the space • Hiring in west Houston will slow while hiring of blue collar workers in east Houston will pick up, since industries there do better with low costs of their feedstocks: oil and gas • Houston is creating more WOW! factor as a nice place to live, with infrastructure improvements such as Buffalo Bayou Park • The need for connectivity and mobility is becoming more crucial in the band of densification stretching from the Energy Corridor to Westchase to Uptown to the CBD • National and international investor eyes will be on Houston now with falling oil prices to see how this new “ third coast core market” fares • Houston is in the “rising and peaking” phase of the real estate cycle, and we are about to see if we really do 26 | REDNews.com

Continued from page 24

have a diverse economy •W e have not had a lot of speculative development this cycle-most developments have been preleased • We are at a point of equilibrium now so “let’s not get ahead of our skis” • As for mixed-use developments, there is a very delicate balance between “Stay, Play, Work, Live, Shop”-all the elements need to complement one another • We are starting construction of the 5 star Hotel Alessandra early in 2015 in the CBD in Green Street (former Pavillion) Welcome Wilson, Jr.: • Houston has been getting a lot of “Best…” awards in many categories

• T here has been a construction boom in industrial build-to-suit, but supply-demand is still tightly in balance • There is less than 5% vacancy in the industrial sector • 2.9 million SF of industrial space was absorbed this year • There is such a high demand for crane-served space that none is currently available • Investment sales in industrial are capping out at around 7 • Oil prices have always moved like a yo-yo and we will have to wait while they adjust again, since there are geopolitical forces at work as well as regular supply and demand issues • Houston is a good logistics hub for movement of product, and it is getting better, especially with the larger Panama Canal opening in 2016 • Lots of rail is being laid in Cedar Park / Baytown to handle this area’s transshipment needs • Industrial still looks good for 2015, although land costs have doubled in the last three years

BRAD PORTER 713.533.1499 BRAD@PORTERPOWERS.COM

ATTORNEYS THAT SPEAK YOUR LANGUAGE

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•Acquisition and dispositions of all types of real estate (improved and unimproved) •Development (land and improved properties) •Portfolio purchases and distressed asset aquisistions •Creation of easements and restrictive covenants •Partnership/Cororate formation for asset protection •Financing of transactions/loan negotiations/workouts •Leasing (retail, office, industrial) •Due diligence on real estate matters •Litigation involving real estate and business matters - Partnership disputes - Construction issues - Lien and other payment issues - Contract, fraud, and other disputes

REDNews

DOES CPI REFLECT

YOUR REAL COST OF LIVING? Colliers International - Houston

BY MARTIN O’MALLEY

Martin O’Malley

Martin O’Malley is a Senior Vice President with the Houston office of Colliers International.

As a real estate broker, he has specialized in Investment sales for over two decades.

His focus reflects a long standing interest in both finance and investments. A proclivity for analyzing numbers is not confined to understanding his clients’ financial results, but also to comprehending the macroeconomic background and its effects on commercial real estate. The frequent use of CPI in commercial real estate leases has made it a topic of particular interest to Mr. O’Malley. Reading in the popular financial press of changes made to CPI has caused him to delve into it in depth.

He holds an undergraduate degree in finance from the Wharton School at the University of Pennsylvania and graduate degrees in law and business from the University of Michigan Law School and Rice University respectively.

The Bureau of Labor Statistics (BLS) recently published its Consumer Price Index (CPI) for October 2014 showing inflation for the last 12 months was 1.7 percent. But you’ve likely noticed that number is a fraction of the price increases you face every day, whether shopping at the grocery store, paying for medical care, or purchasing any of the myriad other things necessary to sustain you and your family. How can that be?

Over the last three decades the federal government has drastically altered how CPI is calculated, both by Congressional action and bureaucratic initiative. The Reagan Administration made 28 | REDNews.com

the first significant change. Seeking to lessen the effects of rapidly rising single family home prices, it substituted a theoretical BLS calculation of the rental value of owner-occupied homes for a component based on the actual sale prices.

Their rationale was that consumers do not buy new homes very often. Subsequently the Clinton Administration wreaked havoc on the numbers.

Among its contributions to creative accounting were the substitution effect, hedonic pricing, and geometric weighting, which are described below along with other deviations from common sense and simple arithmetic:

•S ubstitution of lower priced and lower quality products in the basket of goods when prices of goods rise—for example, substituting hamburger for steak •G eometric weighting, that is, automatically reducing the weighting of goods increasing in price and increasing the weighting of those that decrease in price •M ore frequent reweighting of the basket, making changes every two years rather than every ten.

•H edonic pricing adjustments, that is, lowering the price of goods to reflect the greater

REDNews

The last thing the world’s largest debtor, the United States government, wants is higher interest rates. That probably means that a more realistic CPI will need to be preceded by a return to fiscal sanity in Washington—and really, what are the chances of that? enjoyment the consumer receives from changed or improved features (as arbitrarily determined by the BLS) •A ggressive use of seasonal adjustment factors— for example, if gasoline prices usually go up in the summer, they are reduced so that they do not distort (in other words increase) the index •U se of a calculated rental value to reflect housing costs for home owners The effect of all these changes is to drastically understate the rate of inflation. Why might that be?

•S ocial Security payments are indexed to CPI. Rather than actually address the costs and burdens of a program that represents a huge outflow of tax dollars, it is quietly debased.

• I ncome tax brackets are raised every year to reflect increases in CPI. Instead of actually passing a tax increase every year to raise more revenue, taxpayers are forced into higher brackets as their nominal income increases exceed the CPI adjustments.

• Many federal employees have wage increases tied to CPI. Each year they are forced to work for lower real wages as their salaries fail to keep pace with inflation.

The government has a huge financial interest—increasing its revenue and lowering its expenses—to lie about inflation, but the chicanery runs deeper than this. Think about the current state of the economy: The BLS and other government agencies report macroeconomic statistics in currency, figuring in retail sales, industrial production, durable goods orders, and many other factors. Those numbers are all adjusted to reflect real growth by subtracting the rate of inflation. Real retail sales for October 2014 reflected an increase of 2.45 percent when adjusted for the 1.7 percent annual inflation rate.

But what if the rate of inflation is 5.2 or 9.4 percent? In both cases real retail sales contracted, in the latter case dramatically.

So, what is the real rate of inflation?

There’s a statistical service that calculates CPI in the fashion utilized both prior to the Reagan Administration change and prior to the Clinton Administration changes: Shadow Government Statistics (www. shadowstats.com). Its calculation for October 2014, utilizing the pre-Reagan methodology, is a 9.4 percent annual inflation rate. The post-Reagan, pre-Clinton calculation is a 5.2 percent annual rate.

So which inflation rate do we believe: 1.7 percent, 5.2 percent. or 9.4 percent?

Since the lowest rate is the product of a system designed to underreport inflation, it certainly can’t be correct. The other rates are the product of professional statisticians attempting to actually measure inflation

and as such are far more credible.

The officially reported CPI is a fraction of the real rate of inflation, yet it permeates our economy.

Many private and nonfederal government employees have their cost of living increases tied to the official rate. Thus they are experiencing a serious decline in their real incomes, which becomes more acute with each passing year.

Pensioners and Social Security recipients are in more dire straits, since they cannot alleviate the problem by changing to a higher paying job or negotiating a higher salary. It is likely that most middle-income Americans are suffering through a period of protracted decline in their standard of living.

This is occurring against a backdrop of an economy being promoted by both Washington and Wall Street as prosperous and expanding. Those claims don’t pass scrutiny if the numbers supporting them are adjusted for an inflation rate that is in fact a multiple of the officially reported rate.

Can the methodology be corrected?

The problem could be resolved by Congressional action: Simply pass a law requiring a return to the pre-1980 methodology. But that’s unlikely to happen.

The United States government has run large fiscal deficits for many years. Much of the debt to cover these deficits has been acquired by the central bank, the Federal Reserve Corporation, and the purchases are paid for by creating new money.

It’s this increasing money supply that has been the cause of persistent inflation.

Of course, there’s one other benefit we haven’t yet mentioned the government receives by reporting minimal inflation numbers, and that’s a dampening of pressure to increase interest rates.

The last thing the world’s largest debtor, the United States government, wants is higher interest rates.

That probably means that a more realistic CPI will need to be preceded by a return to fiscal sanity in Washington—and really, what are the chances of that?

REDNews.com | 29

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C A N C A L E N D A R

A N N O U N C E

W H AT ’ S HAPPENING i n C R E Te x a s

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!

N E T W O R K

CENTRAL/SOUTH TEXAS

2 0 1 5 Januar y Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

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30

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New New Year’s Year’s Day! Day!

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7 CTCAR Property Information Exchange 7:30am-9:00am

11

12

13 IREM San Antonio Monthly Luncheon 11:30am-1:00pm

IREM Austin Monthly Luncheon 11:30am-1:00pm

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14

RECA January Ideas Forum 11:15am-1:00pm

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CTCAR Networking Luncheon “ACC Update” by Dr. Rhodes 11:30am-1:00pm

CREW Austin Networking Luncheon 11:30am-1:00pm

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27 CCIM Central Texas Networking Luncheon & Presentation 11:30am-1:00pm

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ULI Austin January Breakfast 7:30am-9:00am

FOR MORE INFORMATION VISIT REDNEWS.COM

NETWORKING CREW San Antonio Holiday Luncheon 1. Dena Courson Welch and Dawn Vernon, IMPACT Award Winners 2. Ray Teske, 2014 Maverick Award Winner 3. Shelley Morkovsky, 2014 Eva Rosow Winner

Irem Austin Christmas Luncheon

1. IREM Austin 2014 Team 2. President Kim Morgan and President-Elect Amy Dandridge

RECA Ideas Forum 1. Mayor Lee Leffingwell 2. Council Member Bill Spelman 3. Mayor Lee Leffingwell and Council Member Bill Spelman discussing and reflecting on their time in office before they leave in January.

FOR MORE EVENT PHOTOS VISIT http://www.REDNews.com/category/networking-photos/ IF YOU WOULD LIKE TO SUBMIT YOUR PHOTOS TO BE FEATURED IN THIS SECTION CONTACT: BRISEHYDA MARTINEZ | BRI@REDNEWS.COM | 713.661.6300

NORTH TEXAS

2 0 1 5 Januar y Sunday

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New New Year’s Year’s Day! Day!

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7 CREW Fort Worth Luncheon - Glade Parks Mixed-Use Development 11:30am-1:00pm

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NTCAR, CCIM, SIOR 2015 Broker Forecast 7:30am-9:00am

NTCAR Stemmons Service Award Ceremony 6:00pm-9:00pm

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BOMA Fort Worth Winter Extravaganza 5:30pm-9:00pm

NT CCIM/CREW Joint Luncheon 11:30am-1:00pm

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27

22

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BOMA Fort Worth Board of Directors Meeting

By Invitation Only 12:00pm-1:00pm

FOR MORE INFORMATION VISIT REDNEWS.COM 2014 Sponsorship Packages now available!

Is your company looking for exposure and recognition in the commercial real estate industry?

SPONSORSHIP OPPORTUNITIES START AT $750.

Visit the CREW-Dallas.org website

commercial real estate women

NETWORKING CCIM North Texas - Family Gateway

SCR December Breakfast

1. Big Thank You to all the individuals who volunteered for the 3rd Annual North Texas Service Project at Family Gateway.

2. Children decorating their Christmas Trees and Chris Mims, CCIM. 3. Fun times with Joe Comparin, CCIM and some of the children at Family Gateway.

1. SCR guests pose for a picture after listening to Dr. Mark Dotzour’s presentation 2. SCR guests ready to enjoy the organization’s last Breakfast Event of the year 3. SCR guests after the December Breakfast at Colonial Country Club

ULI North Texas 2014 Holiday Party

1. Allissa Payne & Sherri Collison 2. Ashlynn Wells & Steve Mundt 3. Linda McMahon & Todd Platt

FOR MORE EVENT PHOTOS VISIT http://www.REDNews.com/category/networking-photos/ IF YOU WOULD LIKE TO SUBMIT YOUR PHOTOS TO BE FEATURED IN THIS SECTION CONTACT: BRISEHYDA MARTINEZ | BRI@REDNEWS.COM | 713.661.6300

SOUTHEAST TEXAS

2 0 1 5 Januar y Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

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New New Year’s Year’s Day! Day!

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CCIM Houston/Gulf Coast Chapter Luncheon 11:30am-1:00pm

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FBSCR Breakfast Meeting Speaker Dr. Ted Jones 8:00am-9:00am

IREM Houston January Luncheon 11:30am-1:00pm

CREW Houston January Luncheon 11:30am-1:00pm

GHP 2015 Annual Meeting 10:30am-1:30pm

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22 CREN Houston Breakfast Meeting Time: TBD

Your real estate de

GHP Member Orientation Meeting 3:00pm-4:30pm

25

26

27

28

29

Count on a CPM® professio 30

CPM®

GHP Member Networking Social 5:30pm-7:30pm

To find a CPM® in your area, visit www.irem-dallas.org

FOR MORE INFORMATION VISIT Networking

Educat ion

Technology

CCIM Course Scholarships

31

For o turn

A CP z De z Ple REDNEWS.COM z sta Pro

NETWORKING BOMA Houston Holiday Luncheon

1. Class of 2014 Houston BOMA Leadership Lyceum 2. Matt Butler, Georgia Pacific, Nikki Donnella, Georgia Pacific and Donna Rosenstein, Jan Pak 3. BOMA Members Morris Chen, Transwestern; Tara Naramore, Tanswestern; Lauren Crenshaw, PM Realty Group

CREN Christmas 2014

CREW Houston Holiday Luncheon

1. Cynthia Xue, Independent Broker/ Investor, Jeanette Kew, WestwoodCPM Real Estate and Waylon Themer, City Bank Texas, Veneto Sponsor 2. Cindy and Glen Lee, Texas Funding-Sicilia Sponsor and Imad Abdullah, Landmark Architects 3. Lolly Avant, FidelityRoma Sponsor, Doug Burt, Tarantino, Mary Donna Moceri, Fidelity and Lucas Fertitta, Tarantino 1. CREW Houston has awarded scholarships to three MBA students for Spring 2015: Sarah Beth Davis, Martha Smith, and Michelle Kobelan 2. Laurie Baker hosts her final luncheon as the 2014 Commercial Real Estate Women (CREW) Houston President

Urban Land Institute Spring Meeting Kickoff Party 1. Billy Burge, Gerald Hines, & Larry Johnson 2. Patrick Phillips, Ann Taylor, & Roger Galatas 3. Abbey Roberson & Jason Tramonte

FOR MORE EVENT PHOTOS VISIT http://www.REDNews.com/category/networking-photos/

Central/South Texas

Ernest L. Brown, IV, CCIM, a managing director in the San Antonio office of Kennedy Wilson’s Brokerage Group, has been re-elected to the national board of directors of the CCIM Institute.

Austin/San Antonia Areas

Pat Jones

ANNOUNCEMENTS

Robby Eaves

Ernest L. Brown

REDNews

Retail Solutions, a Texas-based retail real estate company, recently hired Robby Eaves as vice president in its Austin office.

BGC Partners Inc. is acquiring Apartment Realty Advisors (ARA) for about $110 million. ARA will be part of the Newmark Grubb Knight Frank commercial brokerage network owned by GCG. Pat Jones (pictured) leads the ARA Austin office

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San Antonio (SALE) Pacifica Companies, a San Diego-based investment firm, has acquired the 194 room Holiday Inn on State Highway 151. HREC Investment Advisors. which has offices in Denver, Dallas and San Diego, represented the seller.

Austin (SALE) DBG Austin Hotel LLC, an investment company in Plano, purchased the 63 room Days Inn located at 3105 N. I35 . Also included in the sale was the property housing Star Seeds Restaurant. Jay Weir of Hotel Brokers of Austin represented both the seller, Kim & Bailey LLC of Portland Oregon, and the buyer.

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San Antonio (SALE) RMG Land Company II, LLC (George Juarez) sold the 40,384 SF Caliber Collision Center located at 4906 – 4927 Blanco Road & 215 Weizman to Cross Development CC Blanco Rd., LLC. The seller was represented

by Brian D. Harris, CCIM, of REOC San Antonio and the buyer was represented by Jim Leatherwood with Silver Oak Commercial.

An unidentified investor purchased Bastrop (SALE) a 15,400 SF industrial building at 159 Settlement Drive.

Saul Arizpe of Retail Solutions represented the seller and Ron Meyeres of Capital Leasing Management & Sales represented the buyer.

The McShane Companies has

Schertz (DEVELOPMENT)

acquired a 12 acres site near the intersection of Doerr Lane and Lockout Rd for the development of a 213,864 SF industrial park.

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will move into a new 54,000 SF HQ in northeast Austin with the help from a $10 million grant from the St. David’s Foundation. The new headquarter was formerly home of the Texas Real Estate Commission and was purchased last fall.

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Corpus Christ (SALE) Marcus & Millichap sold the Cliff Maus

Village Apartments, 110-unit apartment property located at 1458 West Point Road and Zar Haro, investment specialists with Marcus & Millichap sold the property on behalf of the

38 | REDNews.com

seller, a partnership, to a private investor.

Round Rock (SALW) Griffis Residential, a Denver

based multifamily investment & management company, purchased The Orchard Apartments (512 units) in Round Rock’s La Frontera commercial park for $55.5 million or approximately $109,000 per unit. The project is located at the intersection of IH35, SH45 and the MoPac Expy. Griffis intends to invest $4 million into the community.

Austin (SALE) Tree Apartments, located at 3715 S.

First Street, sold to an undisclosed Pat er, reportedly a private family. at ARA Austin represented the seller, ton, SC based Greystar and The

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a jv of CharlesCalyle Group.

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San Antonio (SALE) The Bank of America Plaza building in downtown San Antonio sold to Clarion Partners & Griffin Partners from Talcott Realty Investors of Hartford, Conn. Todd Mills & Hunter Mills with CBRE represented

the Seller.

Austin: (SALE) New York-based ATCO Properties & Management purchased 1300 Guadalupe St., a 45,000

SF office building. The building had previously been the corporate offices of Burt-Watts Industries.

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EZCorp, an American pawn shop operator & payday loan company, has leased approximately 145,000 SF at the new Rollingwood Center near downtown.

The project is located at 2500 Bee Caves. Endeavor Real Estate Group is developing the project. Spencer Hayes, Ryan Kasten and Mark Greiner of Cushman & Wakefield Oxford Commercial represented the tenant.

Austin

(LEASE)

Austin (SALE) MWM Fund VII Ltd, headed by investor Jay Kaplan, purchased Crossroads Center, a 98,918 SF

retail center at 9070 Research Blvd near Brunet Road & Research Blvd from ATCO Properties & Management, a New York based company.

For more deals go to: www.REDNews.com/category/deals-and-announcements/

ANNOUNCEMENTS North Texas

David Stack

Michael Rareshide

REDNews

Michael Rareshide, formerly of Partners National, will serve as executive vice president at E Smith Realty and will focus on national corporate accounts.

Dallas/Ft. Worth Areas

David Stack, formerly of JLL, will serve as senior vice president of project and development services and will be responsible for generating project management and development business for E Smith Realty.

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Irving (SALE) A joint venture of Hines and AEW Capital Management purchased Parc 114, the master-planned

business park in Irving. The acquisition included six buildings with 404,777 SF on 18.5 acres of land which can accommodate 191,262 SF of additional industrial space.

Dallas (SALE) CBRE Capital Market sold Cedar Springs Business Park, a newly constructed office/industrial park located near the corner of Mockingbird Land & Cedar Springs Road.

Dallas- based Berlin Interests, represented by Eric Berlin, purchased the 33,248 SF property from Dallas-based Carlisle Interests.

Jennifer Pierson, Beth Pierson and Cameron Deptula with CBRE represented the seller.

is located at 2350 Crist Road.

CBRE’s Jack Fracker, Josh McArtor, Jonathan Bryan and Heather McClain

represented the seller, Dalfen America Corp.

Branch (LEASE) Advanced Spice leased 55,100 SF and Valdez Corp leased 37,900 SF at Three Valwood Park, 13901 Sentac Drive. Three Valwood Park is being developed by Duke Realty. Tracy Fults of Fults Commercial Real Estate represented Advanced Spice and Valdez. Randy Wood represented Duke Realty inhouse.

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Dallas (SALE) Alliance Residential Company purchased Coppell (LEASE) KW Cos leased 68,827 SF at 600 South Royal Lane in the Freeport North Industrial Park. The Stream Realty Partners team of Blake Kendrick and Jeremy Kelly represented KW Cos. Randy Wood of Duke Realty Corp.

represented the owner in-house.

Ft. Worth (SALE) Industrial Property Trust has purchased the 310,000 SF distribution facility leased to Pier 1 Imports. The building is located at 14900 Trinity Blvd on 14.3 acres. The seller, IDI Gazeley was represented by Randy Baird, Jud Clements and Robby Rieke of HFF. (SALE) Hawaii-based real estate company James Campbell Company, purchased a 2.2 million SF portfolio from Weeks Robinson Properties. The portfolio includes Forum Crossing at 2101 & 3221 E. Arkansas Lane in Arlington, 4800 & 4900 Langdon Road in S. Dallas’ Logistics Park and Bldgs 2 & 4 in the Railhead Industrial Park in Fort Worth. Representatives with Eastdil Secured brokered the sale for Weeks Robinson while Colony Realty Partners represented James Campbell Company.

Arlington/Dallas/Ft..Worth

Dallas (DEVELOPMENT) Avera, a commercial real estate development, construction and investment firm based in Houston is developing a 345,150 SF distribution center at the NWC State Highway 61 (George Bush Tollway) and January Lane. “The development of Park 161 Distribution Center is a reflection of our continued expansion into the Dallas-Ft. Worth market,” H.T. “Trey” Odom III, founder and CEO of Avera, told GlobeSt.com.

Garland (SALE) Dallas-based real estate fund Atlas CP has

purchased the Firewheel Commerce Center which is adjacent to its largest tenant, Atlas Copco Drilling. The development

7.51 acres at 8356 S. Good Latimer Expressway from Madison Realty Investors for the development of a 340-unit apartment development. Lew Wood and Andrew Doster of Henry S. Miller represented the buyer. Bill White of Madison Realty Investors and Jim DePetris represented the seller.

M U L T I - F A M I L Y Dallas (SALE) Olympus Property purchased The Mosaic, a 440-unit multi-family high rise at N. Akard St & Pacific Avenue. The Mosiac has two towers with 447,504 SF. Olympus Property is planning a multi-million dollar removation for the project.

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Dallas (SALE) MetLife Real Estate Investors KBS Capital

Advisors purchased 3811 Turtle Creek, a 296,000 SF office building at Turtle Creek Blvd & Blackburn Street in Uptown Dallas.. Randy Baird, Jud Clements, Robby Rieke and Sean Ryan of HFF handled the transaction.

Matthews Paradise, a partnership between developers Jack Matthews and Mitch Paradise will build a 275,000 SF office building near the NWC of Dallas North Tollway & US 380.

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Amarillo (SALE) Michael Buckner & Richard A. Mireles with Marcus & Millichap handled the sale of the Mayco

Center, a 29,400 SF retail property, located in Amarillo, Texas.

For more deals go to: www.REDNews.com/category/deals-and-announcements/

REDNews.com | 39

Keith Lloyd

ANNOUNCEMENTS

Andrew W. Sowell

REDNews

Southeast Texas

Keith Lloyd has joined Marcus & Millichap as a senior associate and a director of the company’s National Office & Industrial Properties Group in Houston.

Houston Area

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Houston (SALE) Cushman & Wakefield (C&W) sold Cedar Crossing Industrial Park, the 10,897 acre industrial park, to Trans-Global Solutions, Inc. who is the majority owner of the buyer, TGS Cedar Port Partners, L.P. TGS has been the rail service provider for Cedar Crossing since its inception. The C&W team of Kelley Park, John Littman, Coe Parker and Tim Thomas handled the marketing and sale of the site.

Houston (SALE) Liberty Property Trust sold its 6.3 million SF

Houston industrial portfolio for $29.7 million to Boston-based

TA Associates Realty. Properties include: 9500 -0450 Clay

Road, 11502 S. Main, 5910 West by NW Blvd, 8801 & 8811 Wallisville Road.

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Katy (SALE) Rockspring Capital has acquired a 157 acre

site off Katy Hockley Road, just north of FM 529 in the Katy area. The tract, which is suitable for a residential development is next to the Newland Communities new Elyson masterplanned community.

Houston (SALE) Rockspring Capital also acquired a 4-acre

redevelopment site on the east side of Yale Street and North Loop 610. It is currently leased to Neff Rental but could be a candidate for redevelopment for possibly mid-rise or mixed-use retail.

(Sale) NAI Houston represented Steadfast Development Company LLC in the purchase of 5.0886 acres of industrial land at Willow Place N & Willow Place W from Revo II, LP. The buyer will construct new spec industrial buildings on the property. Travis Land, SIOR and John Ferruzzo, SIOR of NAI Houston represented the buyer and Keith Grothaus of Caldwell Companies represented the seller.

Andrew W. Sowell, SIOR, Principal with Boyd Commercial/CORFAC International, has been inducted as the new President of the Houston/Gulf Coast Chapter of The Society of Industrial and Office Realtors (SIOR).

Cliff Rudolph of the Tanglewood Property Group

Dallas-based commercial real estate development & investment firm KDC and Dallas based Sarofim Realty Advisors, a wholly owned subsidiary of Houston based Fayez Sarofim & Company are developing a 68,950 SF office building at 681 Greens Parkway for Lennar Homes of Texsa Land and Construction LTD. Jerry Frey, Ron McWherter and Darren Gowell with CBRE represented Lennar and JP Hutcheson with Cassidy Turley represented KDC and Sarofim Realty Advisors.

Houston (DEVELOPMENT)

Houston (SALE) Fuller Realty Partners has purchased the Exxon Mobil building located at 13401 North Freeway.

The company also acquired adjacent land from a separate owner that will allow for additional parking for future tenants. JLL’s Rudy Hubbard, Kevin McConn and Rick Goings were involved in the transaction.

Houston (SALE)

LaSalle Investment Management

reportedly agreed to buy 1000 Main, formerly known as Reliant Plaza, for $450 million which is a record breaker price for a Houston trophy tower. The seller is Dallas based, Invesco Real Estate and an unidentified Australian entity. The sale was handled by CBRE.

Houston

Rosemont Realty, a Santa Fe, New Mexico based CRE investment company, purchased Kirkwood Tower, a 286,000 SF office building from Denver based Amstar and Dallas based Frontier Equity.

Rosemont now owns 16 building representing nearly 2.5 million square feet in the Houston area.

Houston (SALE) British International School of Houston (BISH) purchased 33 acres at the SWC of Westgreen Blvd and Franz Road for a 274,000 SF & 2000 seat campus for Pre-K – 12th grade and is scheduled to open in September 2016.

Andrew Spence and Cape Bell from Cushman & Wakefield represented the buyer and the seller, KUT Partners, LTD was represented by John Deboben.

Katy (LEASE) Ersa Grae Corp signed StollerUSA and East West Bank to 40,632 SF and 20,316 SF, respectively, at its Gateway at Spring Valley Building at 9090 Katy Freeway in Katy, Texas. StollerUSA will occupy the top two floors and EastWest Bank will occupy space on the second floor.

Parker Duffie and Jason Presley of CBRE represented Ersa Grae Corp, the landlord and development company in the transaction.

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Norfolk, Virginia based company bought the 216 unit Cypress Lake and 330 unit Milano Apartments in Houston. In total, the company has purchased 12 properties totaling 2100 apartments in Dallas and Houston.

CBRE’s Dirk Goris represented the portfolio’s seller in the acquisition.

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40 | REDNews.com

DEALS

represented the buyer.

Houston (SALE)

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Houston (SALE) Raintree Commercial sold its 7,100 SF re-

tail, multi-tenant building located at 1249 North Loop West to an undisclosed international investor. Todd Moore, Jim Gibson and Donny Joseph of Stan Johnson Company represented the developer/owner, Raintree Commercial.

Houston (DEVELOPMENT) Regency Centers, a Floridabased shopping center owner is developing a 385,000 SF retail center at the SEC of Grand Parkway & Holzwarth Road in Springwood Village. CDC Houston Inc is developing the 1800 acre master-planned community.

For more deals go to: www.REDNews.com/category/deals-and-announcements/

AD SIZE: CLASS PROPERTY TYPE:

REDNews

SALES REP: DATE OF PROOF: 2/14/14

CLASSIFIEDS

Send your

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ADVERTISER INDEX A. A. Realty Company

43

Fuller Realty Partners, L.L.C.

7

ACRP

36

Greenberg & Co.

23

Amarillo EDC

1- Noth Texas, 3

Greg Mason Landman

19

BACREN

36

Hankamer Commercial Brokers, LLC

11

Blake Hillegeist Real Estate

25

IREM Houston

36

Caldwell Companies

20, 21

Kensington Property Group

11

CBRE

1- SE Texas, 5

La Gloria Land Co.

19

CCIM Central Texas

32

Levcor, Inc.

13

CCIM Houston

36, 44

Lila Construction

25

CCIM North Texas

34

MOVE Resources

41

C.R.E.A.M.

36

Newmark Grubb Knight Frank

19

CREN

36

Phase Engineering, Inc.

30

CREW Dallas

34

Porter Powers

27

Showalter Law

41

CREW San Antonio

32

R. S. Hart Commercial Brokerage, L.L.P.

15

CTCAR

32

Tanglewood Property Mgmt. Co.

11

Cullen Realty Group

13, 23

TAO

41

Culver/LANDTX Inc.

17

Tarantino Properties, Inc.

8, 9

First Warranty Realty

11

The Stevens Group

1- CS Texas, 2 REDNews.com | 41

REDNews

2015 Editorial Calendar 100,000+ Print / Digital Distribution + Over 200 Newsstands Throughout Texas * REDNews will have additional magazines at these events

Month

January

Ad Deadline

Market Focus

*Bonus Distribution

Vacant Land / Texas Development Opportunities Thu, Dec 11, 2014 CCIM Forecast

February

Mon, Jan 12, 2015 Competition *

March

Retail /Vacant Land / Texas Development Opportunities

Wed, Feb 11, 2015

April

Vacant Land/Industrial

Wed, Mar 11, 2015 Markets

May

Retail /Vacant Land / Texas Development Opportunities

Texas Land Conference *

June

Fri, Apr 10, 2015

ICSC Las Vegas *

Mon, May 11, 2015 Retail/Vacant Land / Texas Development Opportunities

July

Thu, Jun 11, 2015

August

Office/Office Medical/North Texas CRE

Fri, Jul 10, 2015

September

Residential Development/Multi-family

Mon, Aug 10, 2015

October

NTCAR Expo *

Thu, Sep 10, 2015

South Texas MCE *

ICSC Texas *

November

Retail /Vacant Land / Texas Development Opportunities

Tue, Nov 10, 2015

December

Hospitality/Multi-family/Town Centre

Thu, Dec 10, 2015

for updates visit: 42 | REDNews.com

for more info: ginger@rednews.com | Houston: 713.661.6300 | Outside Houston: 800.836.2191

FOR LEASE

OFFICE/RETAIL SPACE 1. Woodland Park Shopping Center 11380 Westheimer, Houston 77077

h

• 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

M

2. Kaleidoscope

10612-10692 Westheimer, Houston, TX

• 2 blocks west of Beltway 8 • 2,952 SF - 2nd floor • Excellent for retail, office or professional use

3. Park West Plaza

8989 Westheimer, Houston 77063

• 20,000+ SF Available • Up to 6,000+ SF Contiguous Space • Aggressive lease terms - $13.00/SF Gross • Generous surface parking at no charge for open, non-reserved spaces • Card-key controlled access • Pylon signange available • On-site management • Parking ratio - 3.4/1000

Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108

A A Realty Co

eleung8888@aol.com

www.aarealtytx.com A A Realty Co

Accredited Management Organization

Accredited Management Organization

1

2

Beltway 8 West

For more information

3 Westheimer Rd

y

a Westpark Tollw

POSTMASTER: PLEASE EXPEDITE TIME SENSITIVE MATERIAL 5909 West Loop South, Suite 135, Bellaire, Tx 77401 Return Service Requested Address Service Requested If this person is no longer with your company, please notify subscriptions@rednews.com or call 713-661-6300

COMMERCIAL REAL ESTATE

FORECAST COMPETITION Keynote Speaker:

Mark Dotzour, PhD. Texas A&M Real Estate Center

February 13, 2015

8:00 AM – 12:00 Noon Westchase Marriott 2900 Briarpark Drive, Houston, TX 77042 Register: www.ccimhouston.org Event Sponsors:

PRSRT STD U.S. POSTAGE PAID Permit No. 2436 DALLAS, TX