Page 1

APRIL 2019

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Imminent Eminent Domain What the Future of Texas Central Means

Hoping For Hemp Can Crop Legalization Impact Land?

All Systems Go in the Industrial Market

SHOPS AT CYPRESSWOOD • Located in a dense and established area • Facing Cypresswood with plenty of parking and surrounded by several major apartment complexes • Exceptional access to SH 249 • Competitive rental rates

JUNE 2019

For more information, see page 15

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JUNE 2019


±8.07 ACRES THREE LAND TRACTS Culebra Road San Antonio, Texas 78251 HIGHWAY 6 SOUTH HOUSTON, TEXAS 77079

±8.07 acres of land in San Antonio, Texas, TRACTS 1 & 2 Bexar County ±210’ frontage on Culebra Road (FM 1957) Good access, visibility and traffic counts make the site well suited for uses such as a grocer, retail, fast food, restaurant, medical, hotel, gym, storage and/or auto-collision

TRACT 3 KRISTEN MCDADE Senior Director 713.469.4509 kristen.mcdade@berkadia.com

MATT DAVIS Associate Director 713.974.2407 matt.davis@berkadia.com

LAUREN GEARY Transaction Manager 346.444.8968 lauren.geary@berkadia.com

±11.76 ACRES Brown Road

Tract are 1: within ±7.76 close acres proximity along Brown Rd. Bush Sites to George Park, a PD 7,800 acre forested parkland with 11 miles Zoned - Planned Development District of trails that connects to Terry Hershey Park and (Survey available) its 12.2 miles of trails for an easily accessible amenity to any project Tract 2: ±4 acres north of Brown Rd. Zoned2018 SF-9 - Single Family 9 District ESTIMATED 67,485 DEMOGRAPHICS

POPULATION

3 miles 249/Tomball Easy access within from Tollway (expected completion winter 2019) MATT DAVIS KRISTEN MCDADE

Not

Associate Director Senior Director 713.974.2407 in713.469.4509 floodplain and no wetlands matt.davis@berkadia.com kristen.mcdade@berkadia.com

TRACT 1: ±43,107 SF at the NWC of Highway 6 and Grisby Rd. with ±184’ of Highway 6 frontage and TRACT 2 two curb cuts TRACT 2: ±47,759 SF at the SWC of Highway 6 and Grisby Rd., with ±115’ of Highway 6 frontage TRACT 3: ±3.46 acres located on the west side Highway 6, just south of Memorial Dr., with ±250’ TRACT 1 of Highway 6 frontage and two curb cuts

$

Tomball, Texas 78251

Three land tracts just west of the Energy Corridor, one of Houston’s largest employment zones. Easily accessible from I-10, Memorial Dr., Westheimer Rd., ±11.76 and acres with 767’ of frontage Brown 6, with Westpark Tollway by wayalong of Highway Rd. in Highway Tomball,6TX frontage on all three tracts. Located in Harris countyt and zoned to Katy ISD

$110,213

$

AVG. HOUSEHOLD INCOME

$394,872 AVG. HOUSING VALUE

LAUREN GEARY Transaction Manager 346.444.8968 lauren.geary@berkadia.com

© 2019 ©Berkadia Real Estate LLC and Berkadia Real Estate Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and realand estate businesses are conducted 2019 Berkadia Real Advisors Estate Advisors LLC and Berkadia Real Advisors Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales real brokerage estate brokerage businesses are conducted exclusively by Berkadia Real Estate LLC and Berkadia Real Estate Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage exclusively by Berkadia Real Advisors Estate Advisors LLC and Berkadia Real Advisors Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Inc. conducts business under CA Real Estate Lic. #01931050, Berkadia Commercial Mortgage LLC under Finance LenderLender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under Real Inc. In California, Berkadia Real Advisors Estate Advisors Inc. conducts business under CA Real Broker Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC CA under CA Finance & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. CA under CA Real Estate Broker Lic. #01874116. For state details details for the for above visit: www.berkadia.com/legal/licensing.aspx Estate Broker Lic. #01874116. Forlicensing state licensing the entities, above entities, visit: www.berkadia.com/legal/licensing.aspx

JUNE 2019

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IN THIS ISSUE

14

12

8

Market

Sales & Leases 1-3, 5, 7, 9, 11, 13, 15, 17, 19, 23, 25, 28

Services Environmental 30, 43 Financial 17, 21, 29 Legal 21

Scoop

Events 32, 34, 36, 44 Social 33, 35, 37 Bulletin 38 – 40

Features

All Systems Go in the Industrial Market 8, 10 Art & Heart: San Antonio 12, 28 Imminent Eminent Domain 14, 16 Fed Releases Guidelines on OppZone Program 18, 20 Hoping For Hemp

22, 24

Houston Economy Returned to Basics 16, 27 4

JUNE 2019


JUNE 2019

5


Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER Ginger Wheless  ginger@REDNews.com

EDITOR Margie Gohmert info@REDNews.com

STAFF WRITERS

Dear Readers,

Janis Arnold janisarnold1@gmail.com

As I write this I know that many of you are en route to Las Vegas for ICSC. I hope you have great success, get a lot of deals done and arrive home happily exhausted..

Ray Hankamer rhankamer@gmail.com Michael Pavia info@REDNews.com Brandi Smith info@REDNews.com

Last year at his annual regional forecast, Dr. Bill Gilmer reported that Houston’s economy in 2018 was on solid footing and this year he is predicting continued sustained growth as long as oil prices remain at their current level. (Page 28)

MANAGING DIRECTOR

Good news for prospective Texas hemp growers since the Texas Senate passed a bill on May 15th legalizing hemp production. (Pages 22, 24) More good news is that the Texas industrial market is still on a fast track and Craig Berstein reports that the recent guidelines for the Opportunity Zone program exceeded his expectations. (Pages 5, 18, 20)

CREATIVE DIRECTOR

We have an outstanding line up of speakers for our Texas Development/Redevelopment summit on June 27th so be sure to sign up and take advantage of early registration and four hours of CE credit. https://resummits.com/houstondevredev/ Next month we’ll have a retail recap so please let us know how you fared at ICSC Las Vegas.

Benton Mahaffey accounting@REDNews.com

EMARKETING DIRECTOR Sarah Evans Carter emarketing@REDNews.com

Michelle Hurtado digital@REDNews.com

SALES Ginger Wheless  ginger@REDNews.com

PRINT & DIGITAL DISTRIBUTION REDNews is directly mailed each month to commercial real estate brokers, investors and developers throughout Texas and the US.

I hope you have plans for a fabulous summer vacation!

Texas Brokers: 8,150

Best Regards,

Texas Investors: 4,979

Texas Leasing/Tenant Rep: 6,232 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 26,387

TOTAL QUALIFIED ONLINE REDNews DISTRIBUTION: 50,458

Ginger Wheless

REDNews has gone green using recycled paper. Thank you Midway Press! To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription. 2537 S. Gessner, Ste. 126 Houston, TX 77063

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JUNE 2019


JUNE 2019

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ALL SYSTEMS GO IN THE INDUSTRIAL MARKET BY RAY HANKAMER

INDUSTRIAL: U.S. and Four Texas Cities (and a mention of Mexico and Canada) United State Industrial Market-Takeaway: All monitored US markets have industrial rates in the single digits, and occupancies are expected to remain high ongoing. E-commerce warehousing demand to accommodate sorting, distribution, and logistics is strong and we are seeing higher (even multi-story) warehouses as developers work with tenants to meet their evolving needs. Labor markets are tight and will get tighter, resulting in rising wages. Asked rents are rising and this may offset projected rising interest rates over time. Industrial remains the most attractive segment to lenders and investors alike. Source: Logistics News, Warehousing & Storage

● Shovel-ready entitled sites are at a premium for construction of E-commerce fulfillment facilities ● Last mile delivery in major metropolitan areas is crucial, and specialized logistics facilities within 5 miles of urban centers are hugely important to E-commerce ● Taller and more specialized warehouses are being customized to suit particular needs of users

● Most industrial markets are currently supply-constrained, which should ensure low vacancy rates and higher asking rents going forward-rents are expected to rise over 7% this year ● Consumer and government spending should continue to rise, ensuring demand for instant delivery and the industrial infrastructure to support it

● Trade remains the wild card-should shipments from China be pinched, other countries will partially fill in the gap over time ● Industrial will remain a favored asset class in 2019 ● Industrial returns have outpaced other property types and should continue to do so ● Industrial facilities related to E-commerce are in high demand in Mexico City, which is under-supplied, also Monterrey, with its close proximity to auto and auto parts ● The demands and needs of the world’s largest E-commerce companies are driving manufacturing and in the major Canadian cities of Vancouver, Toronto, and Quebec innovation in industrial, even to the point of redevelopment of old office buildings and empty big box stores which were made obsolete by…E-commerce!

Texas Industrial Markets: Houston, DFW Metroplex, San Antonio & Austin Houston Industrial Market-Takeaway: Fundamentals are solid with vacancy in the 5% range, and investor demand remains strong, including demand by foreign investors. Construction activity is busy, and Houston has double strength coming for a huge port and a rapidly expanding population base which requires service from E-commerce fulfillment.

Source: Port of Houston

8

● Demand for quality and specialized facilities will result vacating and repurposing older facilities built for a different kind of commerce

● Petrochemicals and plastics production will drive demand for production and storage facilities near the port

● Expansion in manufacturing, transportation, and distribution throughout 2019 is expected to drive leasing activity and drive demand for state-of-the-art facilities

● Job growth of 70-85,000 is projected for 2019, and this job growth will be spread over all sectors, including construction and manufacturing

JUNE 2019

Continued on Page 10>


RARE DEVELOPMENT OPPORTUNITIES

LAND FOR SALE

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www.diamondheadcasinoland.com

NORTH DALLAS, TEXAS | ±1800 acres •

The two tracts of land available - ±744 acres and ±1027 acres

Located 10 miles north of Frisco and 5 miles north of the booming US 380 corridor

Growth within the Dallas Metro area has taken a northward migration, with major relocations and developments in Frisco and Plano

Celina is one of the fastest growing cities in North Texas

Celina is well positioned geographically and economically to capture a lot of the growth in North Texas and become a major player in the North Texas Metropolitan Community

Prosper

Celina FUTURE DALLAS NORTH TOLLWAY

FOR SALE

744 ACRES

A

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FOR SALE

1,027 ACRES

SMILEY RD

FM 42

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±50

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ACRES

ACRES APPROVED FOR GAMING

I-10 FRONTAGE AND WATER FRONTAGE

VEHICLES PER YEAR ON I-10

CASINO REVENUE IN MISSISSIPPI

MISSISSIPPI GULF COAST | ±400 acres •

Rare development opportunity with 2 miles of both highway and water frontage.

• Excellent mixed-use planned community development opportunity

Approved gaming site located between the two strongest gaming markets on the Gulf Coast with $1.18B in annual casino revenue.

• The population is projected to grow by nearly 34% within a 5-mile radius by 2023

Excellent mixed-use development opportunity with 2 miles of freeway along the north of the site and Bay of St. Louis waterfront along the south.

Located at Exit 16 with tremendous visibility and access from the freeway.

Excellent exposure and access with 2 miles of highway frontage and approximately 44,000 VPD, or 18 million vehicles per year along Interstate 10.

Located only one hour by car from downtown New Orleans and 36 minutes from Biloxi.

Located within a one hour drive of 5 airports.

23.5 million annual visitors to Mississippi.

13.5 million out-of-state visitors to Mississippi casinos each year.

• Increased exposure and accessibility due to the projected Outer Loop through the property

LEGACY DR

RD

±1027 ACRES | INVESTMENT OPPORTUNITY

±397

• Set in a Municipal Utility District giving developers an advantageous opportunity for subsidized building costs ±744 ACRES | INVESTMENT OPPORTUNITY RD PRESTON FUTURE

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FM 428

• Tremendous development opportunity located along the future North Dallas Toll Road

744 ACRES

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• Located in the top growing counties in Texas: Collin County and Denton County

CY LEGA

FOR SALE

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• The property is located 10 miles north of Frisco and it’s highly visible “North Platinum Corridor”

Frisco

Prosper

JIM RIGGERT Associate Managing Director 469.467.2074 jriggert@ngkf.com

EVA HORTON Managing Director 713.599.5188 ehorton@ngkf.com

EVA HORTON Managing Director 713.599.5188 ehorton@ngkf.com

ALBERT SPIERS Associate 713.599.5116 APRIL 2019 albert.spiers@ngkf.com

9


ALL SYSTEMS GO IN THE INDUSTRIAL MARKET <Continued from Page 8

Dallas / Ft. Worth Industrial Market-Takeway: Vacancies remain low, while supply and demand remain balanced. Demand is coming from population growth so that E-commerce and third party logistics companies must have facilities to handle the resulting distribution of consumer goods. DFW is in the tenth straight quarter of positive absorption

Source: Institutional Real Estate, Inc.

● During the first quarter, 5.1 million SF was added to local inventory, of which just over ● 30.1 million SF of product is currently under construction, of which 18 million SF is speculative half was build-to-suit ● Average building size delivered this quarter was 230,000 SF

● Asking rates remain stable

San Antonio Industrial Market- Takeaway: Construction is at an all-time high and vacancies remain steady at just over 7%, which ensures strong rental rates.

● Rising rents in 2019 are forecast ● Vacancy just over 9%

● Robust year projected in industrial segment Source: Apartment Hunter ● Growth focus is on the Northeast, but activity in the South remains strong

Austin Industrial Market- Takeaway: New deliveries continue to hit the market and leasing remains extremely active. Industrial development pushes outward, especially toward San Marcos along I-35.

Source: Amazon

● Population growth continues to drive Austin’s industrial sector

● Asking rents for industrial are at an all-time high

● Industrial vacancies are just over 8%

● Austin because of its central location and population growth is assuming an increasing importance as a logistics hub ● Development pressure is aimed along I-35, as Austin and San Antonio become a linear market of commerce along I-35

● Austin has an available and educated labor pool, and job growth is matching space, creating more consumers and more need for E-commerce fulfillment

10

JUNE 2019


ENERGY PARK WEST BUSINESS PARK NWC of Clay Rd. at Katy Hockley Cutoff Rd. Katy, TX 77493

FOR MORE INFORMATION , CONTACT Mark W. Kidd Sr.

President

713.968.4601

PROPERTY HIGHLIGHTS: • +/- 157 Acres • Industrial Build-To-Suit For Lease • Sites available from +/- 3 Acres to +/- 8 Acres Harris County, outside City Limits • Master Planned Business Park • Deed Restricted

mark@mkiddproperties.com

• Detention Provided • Outside Floodplains • Convenient location to Grand Parkway • Desirable access from Clay Road • 2,555’ of frontage on Clay Road • 2,600’ of frontage on Katy Hockley Cutoff Rd

BEARDEN

Mark W. Kidd Jr. Director

713.828.8480

mark2@mkiddproperties.com

M Kidd Properties

1775 St. James Place Suite 100, Houston, TX 77056 www.mkiddproperties.com

RICHLAND HILLS BUSINESS PARK 515 RICHLAND HILLS DRIVE SAN ANTONIO, TX 78245

INVESTMENTS

NEW CONSTRUCTION SPECIAL NEW CONSTRUCTION SPECIAL: $4.80/SF/YR - Year 1 When Leasing BLDG 2 In Full • +/- 12K, 16K, 20K, or 32K SF Spaces • $6.00/SF/YR NNN • 2 1/2% Annual Increases • Estimated Opex $2.40/SF/YR • High Quality Tilt Wall Buildings • 10’ x 12’ Grade Level Front Load Doors • 1-Dock High Truckwell

• Parking Ratio: 1 PER 1000 SF • Move-In Ready • 24 FT Clear Height • ESFR Sprinklers • High Pile Storage Ready • LED Lighting • 480 V/3 PH Electricity • Owner-Managed • Private, Deed-Restricted Park

Patricia Gassmann • Bearden Investments

223 Hull Lane • Sugar Land, Texas 77498 • 281.568.4185 • patriciag@beardeninvestments.com

Leon Valley 410

Balcones Heights Olmos Park

421 345

Woodlawn Lake Park 515 Richland Hills Drive 151

421

410

San Antonio Museum of Art 35

San Antonio 10 151

90

37

90

JUNE 2019

Lackland AFB 13

371

353

35

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ART & HEART:

San Antonio property offers unique development potential BY BRANDI SMITH

JAYMES SAGISTANO

The property along the river’s edge has another advantage: It’s 9.43 acres are level and clear.

River frontage. Incredible access. Dynamic area. Unlimited opportunity. It’s rare to find those attributes in a single property, but 530 Steves Ave. in San Antonio boasts all of them. “It is a ready-to-go development site that will accommodate any number of uses, depending on what the developer wants to do,” says Steves Rosser, senior vice president at DH Realty Partners, the largest locally owned commercial real estate firm in the city. But, wait. Steves Rosser is representing a property on Steves Ave.? “It’s not my road, no, I don’t own it,” Rosser laughs. “I do have family ties that date well back in San Antonio’s history and that street is named for them. The Steves homestead can be found in the King William neighborhood. It was built by my great-great-grandparents and is now a living history museum.” Less than a mile from the Steves family homestead, Steves Ave. provides the northern boundary of the property DHRP just listed in April. Its western border, 404 feet along the San Antonio River, helps set it apart from anything else in the market. “You could easily walk the river all the way to downtown if you wanted to,” says Rosser. 12

JUNE 2019

In addition to the waterway and Steves Ave., the parcel is bordered to the south by I-10, and Probandt St. to the west. It’s also adjacent to the Probandt St. freeway off ramp, funneling traffic right by the property. “You can get anywhere in the city from here,” says Rosser. “There’s easy access to I-10 and you’re a very short distance to downtown.” The acreage is located right in the heart of Southtown, billed as the city’s epicenter of contemporary art. It’s home to the South Flores Arts District, the Blue Star Arts Complex and the historic King William neighborhood. “It’s a very creative area,” says Jaymes Sagistano, DHRP’s office manager. “It’s filled with local retailers and unique restaurants.” Rosser adds that the area’s atmosphere is a draw for young professionals, who are relocating from other parts of San Antonio. They’re filling up residential units, such as Cevallos Lofts, developed by the late Dan Markson of The NRP Group. With the influx of this young population, many of the properties surrounding 530 Steves Ave. are in play, the primary one being the former Lone Star Brewery.

STEVES ROSSER

Additionally, the city recently passed an $850 million bond, dedicating resources to street improvements all over San Antonio. Probandt St. is included in that, which means it will soon have improved drainage, sidewalks, curb ramps, crosswalks and landscaping. “Those are all amenities that are going to benefit this area and this property,” Rosser points out. All of those factors - its improvements, location, access and river frontage - combine to create an exceedingly unique opportunity in San Antonio: a blank canvas with endless potential. “It’s a very broad palette as far as what anybody wants to do with it. It could be residential; it could be mixed-use, it could be retail,” says Rosser. “You could go any number of directions with it depending on what the ultimate developer’s goal is for the area.” The future of this property is one Rosser is eager to see play out, having grown up in what is now the second largest city in Texas. “I love San Antonio, I’ve always loved San Antonio,” he says. “It’s a great city, it’s growing, it’s changing. We like to say it’s getting better all the time.” Its central location within Texas helped make San Antonio a corporate destination in a state already lauded as business-friendly. So often, Texas is lauded as a business destination because of its central location in Continued on Page 28>


Galveston County Ohhhhhhhh - Zone 5.53 Acres - I45 frontage creates hard corner hotel, restaurant or grocery site • Last property with I-45 frontage in the O-Zone • 8” water & force main to west of Bayou Road • Zoned commercial • Close to Galveston and protected by hurricane levee • Tap into tourism market including Galveston cruise industry, Kemah Boardwalk, NASA, annual Magical Winter Lights festival

active senior gated community desired • Building recently demolished, redevelopment ready • Owned by school district & Texas City ISD seeking deals • Water & sewer available but expect rezone • Established residential neighborhood with beautiful trees

GATEWAY TO THE GULF

Hwy 3 & residential potential for the depth • Building recently demolished & redevelopment ready • Water & sewer available but expect rezone • 6” water east off Laurel Street • Walking/biking distance to La Marque Renaissance District downtown revitalization initiative

8.95 Acres - Commercial potential along

active senior gated community desired • Building recently demolished, redevelopment ready • Owned by school district & Texas City ISD seeking deals • Water & sewer available but expect rezone • Established residential neighborhood with beautiful trees

7.72 Acres - Single family, townhouse or

corner hotel, restaurant or grocery site • Last property with I-45 frontage in the O-Zone • 8” water & force main to west of Bayou Road • Zoned commercial • Close to Galveston and protected by hurricane levee • Tap into tourism market including Galveston cruise industry, Kemah Boardwalk, NASA, annual Magical Winter Lights festival

5.53 Acres - I45 frontage creates hard

7.72 Acres - Single family, townhouse or

8.95 Acres - Commercial potential along Hwy 3 & residential potential for the depth • Building recently demolished & redevelopment ready • Water & sewer available but expect rezone • 6” water east off Laurel Street • Walking/biking distance to La Marque Renaissance District downtown revitalization initiative

OPPORTUNITY IS KNOCKING.

Visit LMEDC.com for RTA data or call 409-938-9258 for a tour.

JUNE 2019

GATEWAY TO THE GULF

13


Source: Texas Central

IMMINENT EMINENT DOMAIN WHAT THE FUTURE OF TEXAS CENTRAL MEANS FOR PROPERTY OWNERS ALONG ITS ROUTE BY BRANDI SMITH

Texas Central Partners’ pitch to build a highspeed rail line between Dallas and Houston is a polarizing one. The 240-mile route could be traveled in less than 90 minutes, offering a new option for the nearly 50,000 Texans who commute between the two cities more than once a week. While the first-of-its-kind project has faced considerable opposition, it also has many supporters in the public and Texas Legislature. “They have more than $450 million dollars of funding lined up and they’ve already acquired more than 30 percent of the right-of-way that they need,” says attorney David Showalter of Richmond’s Showalter Law Firm, which represents landowners and stays abreast of projects that have the potential to impact property owners around the state.“They’re well on their way to having everything in place to start their project.” The high-speed group has completed its environmental impact studies and appears to have selected a final route as well. “There’s a huge amount of information and due diligence that Texas Central Partners performed to satisfy the steps needed to move forward,” Showalter says.

DAVID SHOWALTER

14

JUNE 2019

Despite all that, the project seems to have hit a roadblock. A Leon County judge recently ruled that Texas Central isn’t an actual railroad and, as a result, is unable to exercise eminent domain. The process strips landowners of their property, while also providing them with some payment, if they refuse to sell. That contradicts a Harris County judge’s previous ruling that the organization is a railroad.

“I know one argument is that they haven’t laid a single piece of rail, they’re not operating a train, and therefore they’re not a railroad. I think those are pretty weak arguments that are not going to last,” says Showalter. “I just don’t see Texas Central Partners not ultimately being able to get permission to put the railroad in and use eminent domain in the process.” He anticipates state lawmakers could get involved by defining the project as a railroad. As this article goes to print, an amendment added to the Texas Senate’s 2020-21 budget could derail that. It would bar the Texas Department of Transportation from working with Texas Central on right-of-way access until a final decision is made about whether the group has authority to exercise eminent domain. “I think these cases will be resolved in a way that clarifies the scope of these rights. My bet is they’ll be able to move ahead,” Showalter says. If it does, the next step is acquiring the roughly 70 percent of property needed along the rail line’s route. To date, Texas Central has not used eminent domain. “The railroad’s been able to acquire a significant amount of the right-of-way it needs because Texas Central has been pretty generous in negotiating with owners who have counsel,” says Showalter, who represents a number of property owners who would be impacted. In many cases, he explains, the group has entered into option agreements with the property owners. That involves a down payment or fee to acquire the right to buy the land. If Texas Central decides to purchase the property, it will pay the remainder of the agreed sum. Continued on Page 16 >


10211 Cypresswood Dr., Houston, TX 77070

ONLY 5,000 SF OF INLINE SPACE REMAINING! THE SHOPS AT CYPRESSWOOD is one of Beacon Developmentsâ&#x20AC;&#x2122; newest projects. It is located just off Hwy 249 at the intersection of Cypresswood and Mandolin. Other tenants include: Trattoria Italian Restaurant, Pins Donuts, Yummies Sandwiches, and a Dry Cleaner.

249 od

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10211 Cypresswood Dr

713.686.4663 APRIL 2019

www.beacondevelopments.com

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IMMINENT EMINENT DOMAIN

WHAT THE FUTURE OF TEXAS CENTRAL MEANS FOR PROPERTY OWNERS ALONG ITS ROUTE < Continued from Page 14

The organization studied 21 routes and identified six of those for environmental study. That process led to a single, preferred route, dubbed “Build Alternative A” by Texas Central. It travels through Dallas, Ellis, Navarro, Freestone, Limestone, Leon, Madison, Grimes, Waller and Harris Counties.

Though Texas Central says more than half the route will “be adjacent to existing infrastructure,” the train system and facilities will require approximately 100 to 500 feet of right-of-way, which will impact hundreds of property owners along the rail line’s 240-mile route. “Looking at that path, it will mow down a whole row of houses in a Northwest Harris County subdivision,” says Showalter, offering an example of how some of his clients will be impacted. “Some of our clients are homeowners in typical residential subdivisions in Harris County and it’s going to go right through their houses. Their neighbors will have a train cutting through the edge of their subdivision. That now impacts traffic flow and noise, as well as the desirability and aesthetics of the subdivision.” Other clients, such as those who have larger parcels for farming or cattle operations, are concerned about how the rail line’s construction and eventual operation could affect them. Texas Central, because of its project’s publicity and visibility, has generated vigorous debate about eminent domain and its use, but there are many other examples of it being exercised throughout Texas. “Notably numerous pipeline projects are underway, moving oil and gas out of the Permian Basin area across the state to either LNG ports or refineries in the Gulf Coast area,” Showalter says. “Power line companies have projects in the works to move electricity from one part of the state to the other. TxDOT has road-widening projects going on all over the state. Counties and cities are all just on a spree to lay more concrete and take people’s property.” Showalter notes that pipeline companies and utilities often move quickly, especially because 16

JUNE 2019

Source: Texas Central

“A lot of it is going to be elevated, similar to much of the Westpark Tollway in the Houston area. That will allow for access from one side of the property to the other,” Showalter says.

they are less accountable to the public, and the projects typically impact property owners in a less visible manner. He advocates that those who live along the Texas Central route, as well as anyone else in the path of a project that could employ eminent domain, should consider the following questions: - What is the value of my property that’s being taken from me? - What is the impact on the value of the remainder of my property? - What is the impact on my ability to use the rest of my property? - Will I incur expenses to deal with this project in order to maximally use my property? “It is a very complicated process. There are a lot of issues related to valuation of property, which are unique to the condemnation process. Unless you understand the legal side of it, such as what you can and can’t recover, and how you articulate the damages that you’re suffering, it is very likely that you’re going to overlook some big components of what you would otherwise be entitled to,” says Showalter. “It’s a highly nuanced area of the law and it’s a highly specialized area.” The verbiage in the Landowner’s Bill of Rights and other material provided to impacted property owners can be confusing, he says, adding that it’s often tilted to get people to sign off on deals that

are not in their best interest. “It’s rare that I’ve seen a condemning authority of any kind come in with a full market value offer that pays for all of the damages a landowner is entitled to recover,” Showalter says. Deadlines are also an incredibly important part of the process. Missing even one can be a fatal conclusion to a case, resulting in a value that is far less than a property owner should receive. “You just have to have all your ducks in a row. You have to know the process of the Special Commissioner’s hearings,” says Showalter, who has handled hundreds of eminent domain cases since graduating from Baylor Law School in 1977. He calls the process daunting even for sophisticated people who are educated in real estate. For ordinary landowners, it can be intimidating, aggravating and emotionally distracting. An attorney who specializes in eminent domain will be able to navigate the deadlines and other issues that arise. “Because we know the dynamics of the hearing, we can put together an evidence presentation package. We clearly lay out our landowner’s case in our valuation analysis,” Showalter says. “We offer property owners the ability to turn the case over to us and let us work to help them have the best outcome possible.” To contact Showalter Law Firm, call 281-341-5577 or visit ShowalterLaw.com.


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17


FED RELEASES GUIDANCE ON

OPPORTUNITY ZONE PROGRAM

BY BRANDI SMITH

“ ”

The regulations exceeded my expectations...

CRAIG BERNSTEIN

18

JUNE 2019

For the second time since its creation, the Opportunity Zone program received new guidance from the Treasury Department.

We are pleased to issue guidance that provides greater flexibility for communities and investors as we continue to encourage investment and development in Opportunity Zones,” said Treasury Secretary Steven Mnuchin in a statement. “This incentive will foster economic revitalization, create jobs and spur economic growth that will move these communities forward and create a brighter future.” The program, a result of §§ 1400Z of the 2017 Tax Cuts and Jobs Act, received its first round of clarification in October 2018, followed by the new set of guidelines issued in April. “The regulations exceeded my expectations,” says Craig Bernstein, principal and chief investment officer at OPZ Bernstein, a Washington, D.C.-based real estate private equity fund that specializes in Qualified Opportunity Zone funds (QOF). “The Treasury continues to take a liberal stance in interpreting the law that was passed in December 2017. They have clearly taken the necessary steps to ensure the longterm success of the program.” The legislation allows investors to defer, reduce and, in some cases, eliminate any long-term capital gains taxes by investing in specified low-income areas designated as qualified Opportunity Zones. State governors submitted their recommendations for Opportunity Zone tracts, areas in need due to chronic unemployment, lower population density and economic disruptions, such as natural disasters.

The result is more than 8,700 qualified tracts scattered around the country, including hundreds in Texas. “Industry insiders in both real estate and the investment space still believe this is a oncein-a-lifetime opportunity,” Bernstein says. “The program will allow us to deliver to our investors compelling, risk-adjusted returns in a tax-efficient manner, but we will also be able to positively impact thousands of lives across America. The guidance document issued by the Treasury is a whopping 169 pages, so REDNews turned to Bernstein, who participated in our Texas Real Estate Opportunity Zones Summit in March, to get his biggest takeaways.

OPEN FOR BUSINESS(ES) While the Opportunity Zone was initially a focal point for investors and developers, there’s new encouragement for companies to take advantage of the offer. “There’s a tremendous amount of flexibility now to allow operating businesses to relocate within a zone,” he says, explaining the three so-called ‘safe harbors’ outlined by the Fed when it comes to the “50 percent Test.”

“...new encouragement for companies to take advantage...” If employees or contractors spend at least 50 percent of their time physically working within the zone, the business qualifies. That one is pretty simple to understand. For example, if you run a company out of a space in the Galleria area of Houston and relocated your operations to an Opportunity Zone in downtown Houston, your business would qualify.

Continued on Page 20 >


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19


FED RELEASES GUIDANCE ON OPPORTUNITY ZONE PROGRAM <Continued from Page 18

Bernstein offers a hypothetical example of a software company that sells an iPhone app. If it were valued at $1,000,000, then relocated to an Opportunity Zone and continued to operate within the guise of the program over the next 10 years, there would be $0 in long-term federal capital gains tax, no matter how much it appreciated. Depending on which state you reside and operate in, there could also be no state tax. The new guidance will also waive taxes on capital gains if at least 50 percent of the money paid to employees or contractors is for work within the zone. The third safe harbor involves revenue and where that is generated. A bakery based in an Opportunity Zone, for instance, would have no trouble arguing that 50 percent of the money it brings in is derived from within the zone.

“...waive taxes on capital gains...” “It’s crazy,” laughs Bernstein. “I think we’re going to see a tremendous amount of businesses, both new and old, that will be looking to relocate into designated Opportunity Zones given the potential benefits that are afforded to investors under the program.”

THE CLOCK(S) ARE TICKING There are multiple time limits linked to Opportunity Zones. Essentially, Bernstein says, there are really four clocks on your transaction, one of which received considerable flexibility in the new guidance.

“A majority of ultra high net worth investors are rolling over capital gains that have been realized from partnerships. If that is the case, instead of setting your six-month clock as of the date the gain was realized, you can opt to have your clock start as of Dec. 31,” says Bernstein. “Depending on when the gain was harvested, you could effectively have up to 18 months to get the money into the initial qualified Opportunity Zone fund, then a second clock would start for the fund manager to deploy the capital into a qualified Opportunity Zone property.

ORIGINAL USE “... I could buy it, flip on the lights and lease it up tomorrow...” The Fed also reworked its definition of ‘Original Use,’ now offering three options for investors eyeing Opportunity Zone fund investments. The first covers substantial improvements, which involves buying an existing tract and separating the property. Bernstein offers the example of an office building for which an investor paid $100 per square foot. If the land itself is only worth $30 per square foot, the investor is tasked with adding another $70 per square foot in improvements in capital expenditure or tenant improvements. While that may work in some scenarios, the necessity of making those kind of financial improvements to qualify as an Opportunity Zone investment business may not be worth it for specific product types.

The first timer starts when you harvest your capital gain. Until the Fed’s directive, you had until the earlier of December 31 or 180 days to reinvest it in an Opportunity Zone business to qualify for the tax savings.

“Sometimes the deal doesn’t work,” Bernstein says.

For investors who harvested later in the year, that posed a problem, sometimes leaving Opportunity Zone fund managers only days to meet the first “timing test” to ensure that substantially all of the fund’s assets were invested in qualified Opportunity Zone property, says Bernstein

“That means someone built a brand new building, but it’s never been depreciated before,” says Bernstein. “They haven’t gotten their certificate of occupancy and they haven’t started depreciating the building yet. I can buy it today and I would not be required to do any more improvements. I could start leasing it up next week.”

“The Treasury revised the legislation to allow investors and fund managers a 180-day grace period to deploy new cash that is introduced into an Opportunity Zone fund,” he explains. “In other words, in no event will the fund manager have less than six months to satisfy the initial ‘timing test.’” That timeline is extended further if the investor’s gain comes from a partnership. 20

JUNE 2019

An alternative is provided in the program’s second option: Original Use.

The final option is simple. If the building has been vacant for at least five years, the property on which it sits would qualify. “I could buy it, flip on the lights and lease it up tomorrow without doing any improvements to it,” Bernstein says, adding about the definition update that it provides “much greater flexibility.”

ODDS & ENDS “...ability to refinance and provide our investors with a cash distribution ...” That flexibility can also be found in several other pieces of guidance offered by the Fed. “We now have the ability to refinance and provide our investors with a cash distribution to pay their tax liability in December 2026,” says Bernstein, clarifying that the investor must wait at least two years before a tax-free distribution can take place. There had also been questions about whether it was permissible to recycle capital from an Opportunity Zone fund. The Fed now says it is. “Let’s say we bought a building that was vacant for five years and ended up leasing to Exxon,” Bernstein highlights with an example. “We bought it for $100 and now it’s worth $150. We could sell it, but we’d have to pay taxes on that $50 gain. We could then redeploy the $150 (minus the taxes due on the $50 gain) into a new Opportunity Zone investment so long as the capital was redeployed within a year. An added bonus is that you would get credit toward the ten-year investment requirement for any time that you held your initial investment.” “This now provides us with a tremendous amount of flexibility,” he adds. If there’s any negative takeaway from the Fed’s guidance it’s that an anti-abuse provision will require investors to pay taxes on promote interest. Overall, however, Bernstein feels confident in Opportunity Zones as a vehicle for investors and an asset for struggling communities.

“...this now provides us with tremendous amount of flexibility ...” “There is still a tremendous amount of opportunity moving forward. When we look back in ten years, I think we will end up saying, ‘Wow. That really was one of the most powerful pieces of legislation of our generation,’” he says.


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HOPING FOR HEMP: Could crop’s legalization impact land & industrial prices?

ARTICLE UPDATE: On May 15, the Texas Senate passed a bill legalizing the farming of industrial hemp. That comes after the House’s passage of a similar bill. State lawmakers will now negotiate the differences between the proposals before a final version is sent to Governor Greg Abbott. A debate is brewing in the Texas Senate over whether the state should legalize hemp. The crop is already an option for farmers in more than 40 other states, which manufacture it for a variety of uses, including rope, textiles, paper, insulation and biofuel.

BY BRANDI SMITH

“Back in the colonial days, hemp was a major crop in this country,” says Gene Hall, spokesman for the Texas Farm Bureau. “There are just a whole bunch of uses for the crop and there’s no good reason to deny Texas farmers the opportunity to grow it.” SID MILLER

GENE HALL

When HB 1325 came before the Texas House of Representatives, the Farm Bureau testified in its favor. It passed and is now being considered by the Texas Senate. “I don’t want to hold out the hope that it’s a silver bullet, but it is legally grown in more than 40 other states. It has done very well elsewhere, both in terms of production and the market price,” Hall says. “It’s another option and that’s a good thing to allow farmers to respond to market forces.”

The plant’s drought-tolerant nature is also of value in the sometimes water-challenged Lone Star State. “Everywhere you planted grain sorghum, which is also fairly drought tolerant, hemp is going to do well there too. There’s no reason to expect that it would not,” says Hall.

As the crop has become a focus, its advocates are quick to point out the differences between hemp and its cousin, marijuana.

Because of its potential, Miller tells REDNews that farmers call his office daily, asking about the would-be crop.

He also highlights discrepancies in Texas law that would be remedied if industrial hemp were legalized. “I know one farmer on the Gulf Coast of Texas who would grow hemp if given the opportunity. His wife JUNE 2019

The Texas Department of Agriculture threw its support behind hemp being grown in Texas during the Farm Bill debate led by Texas Agriculture Commissioner Sid Miller. “We view it as an advantageous crop, another option for farmers who could use some other options right now,” he says. “Most of the other commodities are depressed because of the trade situation and other factors, and it would be nice to have a crop that is drought tolerant. Hemp has many uses and will grow anywhere you grow other row crops in Texas.”

“[Hemp] has been viewed as some kind of gateway to the legalization of marijuana. We do not support that,” Hall says, pointing out that industrial hemp cannot be used as a recreational drug. “You cannot smoke enough of it to get high.”

22

is actually in the business of selling the CBD oils and things of that nature. She can sell it, but he can’t grow it,” says Hall.

“What I like about it besides all the different products that can be made from it is it’s an excellent rotational crop. If you’re harvesting for hemp oil or CBD oil, really all you need is either the seed or the buds. There’s a lot of organic material produced in those stalks and stems that could be returned to the soil to enhance the soil’s fertility and organic matter,” he says. “It’d be an excellent rotational crop with our traditional crops of cotton, corn, wheat and grain.” Continued on Page 24>


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HOPING FOR HEMP:

Could crop’s legalization impact land & industrial prices? <Continued from Page 22

That’s not to say hemp comes without challenges. There will be a variety of obstacles for farmers to overcome if it is legalized, the first being the price. “It can be a very expensive crop. The seed is going to be highly controlled and highly regulated,” says Miller. “I will do the bare minimum that the federal government requires, but there’s going to be plenty that they require.” A farmer’s field will also be subject to considerable tests to ensure the plant’s THC levels are below federal guidelines. “My people have to go out and inspect the crop,” Miller explains “If it has too much THC in it, we’ll have to destroy it.” If, and when, the Texas Legislature does legalize hemp, farmers will not be able to start planting the crop the next day. Miller expects the earliest it could be planted would be next spring. “We have to decriminalize it. I have to write the rules and guidelines. I have to follow the federal guidelines, which we won’t have until this fall. Then I’ll start writing the rules,” Miller says. An eighth generation farmer and rancher, Miller emphasizes that he wants to be able to give Texas farmers every option possible and he recognizes that if Texas doesn’t capitalize on this opportunity, the impact extends to other industries as well. “The manufacturing and processing facilities will locate in states other than Texas if there’s no crop here to farm,” he argues. “We’re looking to attract the manufacturers, the processors and all the ancillary services that come with this crop. We want those to be located here in Texas too.” That’s an element of Hall’s support for hemp legalization as well. “It’s been my experience that where a crop is grown, people will move in to capitalize on the opportunity to process. That would be a logical progression and certainly, it has a potential for fueling new jobs and new economic growth in some parts of the state,” he says, adding that he’s had some phone calls from companies interested in the industrial opportunities that legalizing hemp provides. Miller, though, tempers his expectations, laughing that “if you give farmers a profitable crop, they’ll plant the world level with it until there’s so much of it you can’t give it away.” That’s why he says he cautions farmers who are eager to plant as soon as it’s legal. “I tell them, ‘Make absolutely sure you have an ironclad contract to sell it,’” says Miller. “I wouldn’t grow any of it on speculation, it’s too expensive to grow. So farmers can be their own worst enemies because they can overproduce.” Despite any concerns, a brand-new industry in a state the size of Texas is an idea that is generating a lot of positive buzz within the real estate community. “There’s a lot of excitement about it, but nobody really 24

JUNE 2019

knows what the bottom line number is going to be,” says Dr. Charles Gilliland, a research economist working with Texas A&M University’s Real Estate Center. “There’s a great promise that as a new industry it will take hold and could possibly become a competitor for some of our fiber producers, like cotton for example, but at this point there seem to be a lot of questions about how this is going to work out.” He says there are many factors that point to hemp becoming a thriving industry, but adds that it’s too early in the game to make any definitive statement about its impact on property prices. As it stands now, Gilliland says the Texas land market is doing fairly well in most places. He points out that most of the demand is for recreational use, not crop production or livestock. “It’s a broad umbrella that covers a lot of different potential motivations for everything from just having some place to get away from the cities to bird watching, to actually having active wildlife and hunting operation,” he explains. “Wildlife plays a big role in demand for Texas land. We don’t have very public land available, so you have to gain access on private land.” Gilliland specifically points to northeast Texas, the DallasFort Worth area and the Gulf Coast as locations where there has been a burst of activity. He attributes that, in

part, to Hurricane Harvey. “People who have spent a while digging out and repairing things now get excited about going out and buying new things,” he says. “While the level of activity for the preceding year was somewhat depressed, it’s making up for it this year. Prices are strong.” The Rio Grande Valley is a region Gilliland bills as having shown some weakness in the past year, but not because the market is actually going soft. “There were very few irrigated crop sales because the owners wanted to hang onto them. So now people can’t find those kind of properties to buy down in that part of the state,” he says. He is watching those details closely, while keeping an eye on the legislative discussions over hemp legalization. “I think on hemp production, stay tuned. There’s a lot of speculation about what’s going to happen with it at this point, a lot of guessing going on,” Gilliland says. “It will take a little while for some people to put some numbers to that.” While state leaders work out those details, those in the farming, processing and manufacturing industries are patiently waiting to see for sure what impact hemp could have for them.


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Houston’s Economy Returned To Basics In 2018; How Solid Are The Fundamentals Now? Robert W. Gilmer, PhD, Bauer College Of Business | May 2, 2019 Institute For Regional Forecastinging

BY MICHAEL PAVIA

The Bauer College’s Institute for Regional Forecasting has been known for years for its bi-annual presentation focusing on the regional macro economy and local real estate market, two highly interrelated topics. Below is a summary from the May 2nd presentation: Robert W Gilmer, PhD

What worked for Houston: Oil & the US Economy. The oil downturn is over and Houston has returned to moderate growth of 3.7%. Harvey’s floods had a limited and short-lived effect on the Houston cconomy Houston added 60-70,000 jobs in 2018. Local oil jobs are returning, but at a pace that match $60/b oil prices – not $100, so no immediate pressure on oil jobs if price holds through 2019. Service sectors now account for half of Houston jobs. Houston’s unemployment rate fell steadily in 2018 and now matches the U.S. While the number of added jobs might be viewed by some as disappointing, it should be viewed in the context of three years of weak or no growth. This level of growth represents a return to Houston’s long-term average of 2.0 percent annual job growth.

Oil prices were largely responsible for this result. OPEC returned to oil markets in late 2016 with the goal of raising 2017 oil prices. While oil prices and the local economy surged in response, so did American oil production, resulting in oil prices falling back to $45 per barrel by mid-2017. Another similar cycle occurred in 2018 ending in another fall in oil prices and a slower Houston economy. In 2019, OPEC may be looking for a third approach: keeping prices in a low to moderate range with a goal of slowing the growth of U.S. fracking.

Houston avoided recession in 2015-17, thanks to a solid U.S. economic expansion. But risks, including Fed policy and higher interest rates, an on-going trade war, slower global growth, and a toxic political environment could affect continued expansion. Since a national or global recession 2018 saw Houston repeatedly surge forward, only to fall could lower oil prices, recession could imply a double back into slower growth. setback to local economic conditions.

26

JUNE 2019


REAL ESTATE

SINGLE-FAMILY HOUSING

APARTMENTS

In 2018, the US and Houston single-family market experienced a long slide, but has since stabilized.

● Apartments share the economy’s moderate growth path. Class A occupancy at 87.5%

● Mortgage rates fell by 80 basis points November to April resulting in an increase in refinancing.

● Building material and labor costs continue to rise.

Houston in 2018 ● Home prices rose 4.4% in 2018 but weakened in the latter part of the year ● New home sales are strong at the entry-level and prices just above

● Class A rents remain flat

● Construction pipeline of 18-20,000 units keeps vacancy rates stable in 2019-20

OFFICE ● There are 44.8 million vacant square feet on the market, a 19.5% vacancy rate.

● It will take 8 years to eliminate half of total vacancy

● Home affordability helped by rising local income, but gains offset by rising interest rates

RETAIL

● Inflation pushed existing home prices off the lowest price rung into the middle

● Weak retail sales for brick and mortar

● Remote sales are now 10.8% of state retail

● Stable inventories

● Half the lot inventory is 55’ frontages or smaller. Under 60’ is in short supply ● 2019 Performance is dependent on mortgage rates

Region-by-Region ●

Ship Channel Cities: Baytown, Channelview, Pasadena. Sales and home prices turn flat after the construction boom. Inventory still tight at less than 3%

● South Houston: South Belt, Clear Lake, League City. Sales flat, price slows. Inventory low but slowly loosens up ● Close-In and Upscale: Rice Military, Heights, Galleria. Sales stagger in recent months. Inventory stable near 6 months ● South Of I-10 West: Memorial and Energy Corridor. Prices hold up, sales flat to down. Inventory at 6 months and flat. ● Other Distant Suburbs: Pearland, Sugar Land, Kingwood, Katy. Sales flat and price increases slow as new home building is robust.

• Growth of retail square footage moves in line with population and suburban growth

● Retail rents continue to rise as vacancies fall

INDUSTRIAL

● Local industrial activity has diversified

● E-commerce is booming

● The Port of Houston experienced increased inbound container activity, 20.3% more than 2016. ● Both East and West are adding space at the same rate in 2018 and 2019 Oil prices remaining at their current level and a sustained growing US economy will keep Houston growth around the national average in 2019. Bill Gilmer is Director of the Institute for Regional Forecasting (IRF) at the University of Houston’s Bauer College of Business. The Institute monitors the Houston and Gulf Coast business cycle, analyzing how oil markets, the national economy, and global expansion influence the regional economy.

JUNE 2019

27


ART & HEART: San Antonio property offers unique development potential <Continued from Page 12

in the U.S.; it’s easy to get anywhere from the Lone Star State. Similarly, San Antonio is the kind of central hub of Texas. “We’re at the intersection of I-35 and I-10, so this is a major crossroads for traffic and commerce in the United States,” says Rosser. “We’re also a gateway from Mexico and our proximity to the border is a great benefit to us.”

because our industries are so diverse, we’re always steady.” “It’s just been amazing, the growth that we’ve seen in San Antonio,” Rosser echoes. “We all hear the stories about people moving to Texas. It’s just an exciting time to live here.” He says it’s also an exciting time to work for a company like DHRP, which has deep roots in the community just as he does. Founded in 1965, it’s a shareholder-based company boasting more than 20 local brokers. Rosser is a shareholder himself.

San Antonio isn’t just a draw for companies either. Residents are flocking here to take advantage of the quality of life. “We are so well situated,” Rosser says. “We have the Texas Hill Country to the north and close proximity to the Texas coast.” "Not to mention", Sagistano adds," a booming economy." “This city hasn’t been as affected by recessions,” she says. “We’re not immune, but

“I’ve been very fortunate and blessed to be where I am and to be able to see and do the things I do,” Rosser says. “I love doing it every day.” For more information about 530 Steves Ave., email info@dhrp.com or call 210-222-2424.

FOR SALE 12 ACRES ON I-45 HUNTSVILLE, TX HUNTSVILLE

Y ERT

OP E PR

N

O TY Z UNI T R PO

City of Huntsville

OP

HOUSTON

• Beautiful wooded tract • Asking $2.15 per SF • Near Sam Houston State University • Ideal site for apartments, condos, retail • Seller financing available • Near mall, hotels, restaurants • Surrounded by lovely residential area • Near State Prison System HQ • One hour north of downtown Houston

Ray Hankamer, Jr 713.922.8075 rhankamer@gmail.com

28

JUNE 2019

www.hankamer.com

Broker does not warrant the accuracy of the financial numbers and other information provided by the seller. Buyer should conduct his own due diligence and rely on his own experts to confirm information supplied to Broker and Buyer to Seller.


CityCentre

RIGHT WHERE WE BELONG. From meeting your borrowing demands to tailoring cash management solutions for convenience, every solution is delivered with a world-class experienceâ&#x20AC;&#x201D;right here in the heart of Houston.

JUNE 2019 Š2019 City Bank. All rights reserved.

Equal Housing Lender

29


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

JUNE 2019

31


CENTRAL SOUTH TEXAS

JUNE

2019 3 Monday 4 Tuesday 5 Wednesday 6 Thursday

REDNews Newsletter [4:00pm] STCAR - 2019 Commercial Summit [8:00am - 3:00pm] BOMA Austin - Emerging Professionals Meat & Mingle Dutch Lunch [11:30am - 12:30pm] BOMA Austin - BOMI Course: Ethics is Good Business Short Course [8:00am - 5:00pm] ULI San Antonio - Sunrise Social: Learn More About ULI [8:30am - 9:30am] ULI Austin - Young Leaders Mentorship Forum Info Session [5:30pm - 7:30pm]

9 Sunday 10 Monday

IREM San Antonio - Budgeting, Cash Flow & Reporting for Investment Real Estate (FIN402) [8:00am - 5:00pm] REDNews Newsletter [4:00pm]

12 Wednesday

IREM San Antonio - Marketing & Leasing Strategies for Multifamily Properties (MKL405) [8:00am - 5:00pm]

CTCAR - Property Information Exchange: Cedar Park Development [7:30am - 9:00am]

IREM Austin - Bowling Tournament [12:00pm - 4:00pm] REDNews Newsletter [4:00pm] REC Austin - Luncheon [11:00am - 1:00pm] CREW Austin - Luncheon: Opportunity Zones [11:30am 1:00pm]

19 Wednesday ULI Austin - UrbanPlan Volunteer Training [8:00am - 5:00pm] CBA Austin - Luncheon [11:30am - 1:00pm]

20 Thursday

BOMA Austin - Luncheon “Legislative Update” [11:30am 1:30pm] TABB Austin - Luncheon [11:30am - 1:00pm] REC Austin - Christmas in October Committee Meeting: Site Visit [12:00pm - 1:00pm]

24 Monday

REDNews Newsletter [4:00pm]

26 Wednesday ULI Austin - Breakfast: Labor Shortage & Job Growth [7:30am - 9:00am]

BOMA Austin - Similar But Not The Same MOB Seminar [8:00am - 12:00pm]

REDNews July Issue Deadline [5:00pm]

13 Thursday

18 Tuesday

CTCAR - TREPAC Olive Fest [12:00pm - 5:00pm]

STCAR - Board Meeting *Invitation Only [11:00am - 12:00pm]

11 Tuesday

14 Friday 17 Monday

TABB San Antonio - Luncheon [11:30am - 1:00pm] CREW Austin - Members Only Dine Around [12:00pm - 1:30pm]

27 Thursday

REDNews Development/Redevelopment Seminar [8:00am 12:00pm] IREM San Antonio - Board Meeting *Invitation Only [11:00am - 12:30pm]

ULI Austin - Coffee Chat (June/North) [8:00am - 9:00am] REC Austin - REAL YP: Living Your Best (YP) Life [5:30pm 7:00pm] 32

JUNE 2019

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.


BOMA AUSTIN: bomaaustin.org/ BOMA SAN ANTONIO: bomasanantonio.org CBA: cbaaustin.org/ CCIM CENTRAL TEXAS: ccimtexas.com CREW AUSTIN: crewaustin.org

CREW SAN ANTONIO: crew-sanantonio.org CTCAR: ctcaronline.com IREM AUSTIN: iremaustin.org IREM SAN ANTONIO: iremsanantonio.org

whatâ&#x20AC;&#x2122;s going on

RECA reca.org RECSA: recsanantonio.com/ RETAIL LIVE: retaillive.com STCAR: www.stcar.org TABB AUSTIN: tabb.org/austin_chapter.php

TABB SAN ANTONIO: tabb.org/san_ antonio_chapter.php ULI AUSTIN: austin.uli.org ULI SAN ANTONIO: sanantonio.uli.org

REC of Austin

nio

CREW San Anto

BOMA Austin

CCIM San Antonio CREW Austin

JUNE 2019

33


NORTH TEXAS

JUNE

2019 3 Monday 4 Tuesday

NTCAR - Commercial Classic Charity Golf Tournament [11:00am - 7:00pm]

13 Thursday

BOMA Dallas - Engineer Training & Happy Hour [3:30pm 5:30pm]

REDNews Newsletter [4:00pm]

17 Monday

REDNews Newsletter [4:00pm]

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

19 Wednesday

BOMA Fort Worth - Allied Council Meeting *Invitation Only [1:00pm - 2:00pm] BOMA Fort Worth - SAC Meeting *Invitation Only [3:00pm 4:00pm] BOMA Dallas - BOMI Course: Refrigeration Systems & Accessories [5:00pm - 8:00pm] NTCAR - YPF: Up Close & Personal w/ Charles Anderson [5:30pm - 7:30pm]

CREW Dallas - Luncheon [11:30am - 1:00pm] Ladies in CRE - #BEFOCUSED [5:30pm - 7:30pm]

20 Thursday

1:00pm]

7 Friday 10 Monday

ULI North Texas - Summer New Member Coffee | Tarrant County [8:00am - 9:00am]

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

21 Friday

BOMA Dallas - BOMI Course: Environmental Health & Safety (Accelerated) [9:00am - 4:00pm]

24 Monday

CCIM North Texas - CI 104: Investment Analysis for Commercial Investment Real Estate [8:00am - 5:30pm]

26 Wednesday

REDNews Newsletter [4:00pm]

27 Thursday

11 Tuesday

IREM Dallas - Breakfast [8:00am - 10:00am]

12 Wednesday

Greater Fort Worth Association of Realtors - Cyber Security, Breaches & Threats [9:00am - 11:00am]

NTCAR - CE: Commercial Lease vs. Own & Legal Update I and II [8:00am - 5:00pm] TREC Dallas - Young Guns New Member Coffee [8:00am 9:00am]

5 Wednesday BOMA Dallas - TOBY Mock Tour & Panel Discussion [9:30am CREW Fort Worth - Luncheon: A City Wide Partnership How

BOMA Fort Worth - CSC Meeting *Invitation Only [11:30am 12:30pm]

CREW Fort Worth - New to CREW Breakfast [8:00am 9:30am] REDNews Newsletter [4:00pm] IREM Dallas - Industry Partner Breakfast [8:30am - 10:00am] REDNews Development/Redevelopment Seminar [8:00am 12:00pm] TABB Dallas - Luncheon [11:30am - 1:00pm]

CORENET North Texas - Are We In a Recession? Economic Update w/ Dr. Jim Gaines [11:00am - 1:00pm] REDNews July Issue Deadline [5:00pm] CCIM North Texas - Happy Hour [5:30pm - 7:00pm]

34

JUNE 2019

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.


BOMA DALLAS: bomadallas.org BOMA FORT WORTH: bomafortworth.org CCIM NORTH TEXAS: ccimconnect.com/ ccimnorthtexas CORENET NORTH TEXAS: northtexas.

corenetglobal.org CREW DALLAS: crew-dallas.org CREW FORT WORTH: crewfw.org GFWAR: gfwar.org IREM DALLAS: irem-dallas.org

IREM FORT WORTH: fortworthirem.org LADIES IN CRE: ladiesincre.com NAIOP: northtexasnaiop.com NTCAR: ntcar.org SCR: scr-fw.org

whatâ&#x20AC;&#x2122;s going on

TABB DALLAS/FORT WORTH: tabb.org/dallas_ ft_worth_chapter.php TREC DALLAS: recouncil.com REC GFW: recouncilgfw.com ULI NORTH TEXAS: northtexas.uli.org

ULI North Texas

CREW Fort Worth

CCIM North Texas

BOMA Fort Worth

CREW Fort Worth

BOMA Dallas

BOMA Dallas

JUNE 2019 JUNE 2019

35 35


SOUTHEAST TEXAS

JUNE

2019 3 Monday 5 Wednesday 7 Friday

REDNews Newsletter [4:00pm] CREW Houston - Members Only Luncheon Creative Leadership: Building a Culture Innovation [11:30am - 1:00pm]

18 Tuesday 19 Wednesday 20 Thursday

ACRP - Fishing Tournament [7:00am - 12:00pm] IREM Houston - Ethics for the Real Estate Manager (ETH800) [8:00am - 5:00pm] CREN Gulf Coast- Luncheon [11:00am - 1:00pm]

10 Monday 11 Tuesday 12 Wednesday

REDNews Newsletter [4:00pm] BOMA Houston - Forum: Tenants Have the Right to Remain Safe [8:00am - 10:00am] CREAM The Woodlands - Luncheon [11:30am - 1:00pm] REDNews July Issue Deadline [5:00pm]

13 Thursday 17 Monday

FBSCR - Monthly Meeting [8:00am - 9:00am] ­CREMM - White Hot Summer Soiree [6:00pm - 8:00pm] HBRC - Breakfast: Joel Kotkin w/ Center for Opportunity Urbanism [7:00am - 9:00am] CCIM Houston/Gulf Coast - Site To Do Business (STDB) Seminar [9:00am - 4:00pm] BACREN - Luncheon [10:30am - 1:00pm]

24 Monday 27 Thursday

REDNews Newsletter [4:00pm] REDNews Development/Redevlopment Seminar [8:00am 12:00pm] TABB Houston - Chapter Meeting [11:30am - 1:00pm] CREN Gulf Coast - Happy Hour [4:00pm - 7:00pm] CCIM Houston/Gulf Coast - Young Professionals Trivia Event [5:30pm - 7:30pm]

CCIM Houston/Gulf Coast - Luncheon [11:30am - 1:00pm] BOMA Houston - BOMI Course: Real Estate Investment & Finance [8:00am - 5:00pm] REDNews Newsletter [4:00pm]

36 36

JUNE2019 2019 JUNE

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.


ACRP: acrp.org BACREN: bacren.us BOMA HOUSTON: houstonboma.org CCIM HOUSTON: ccimhouston.org CETA: cetalliance.com

CORENET HOUSTON: houston.corenetglobal.org C.R.E.A.M.: creamtx.com CREN: crengulfcoast.com CREW HOUSTON: crewhouston.org FBSCR: fbscr.com

GREATER HOUSTON PARTNERSHIP: houston.org HAA HOUSTON: haaonline.org HRBC: houstonrealty.org HREC: houstonrealestatecouncil.org IREM HOUSTON: iremhouston.org

whatâ&#x20AC;&#x2122;s going on

NAIOP: naiophouston.org O'CONNOR & ASSOCIATES: poconnor.com SIOR: sior.com TABB HOUSTON: tabb.org/houston_chapter.php ULI HOUSTON: houston.uli.org

IREM Houston

FBSCR Social at Ferguson House on CREMM Houst

th HBRC Breakfast wi shaw en Cr n Da an sm Congres

CREN Gulf Coast Luncheon

BACREN JUNE 2019

37


CENTRAL SOUTH TEXAS AUSTIN, TX VALCOR CAPITAL BUYS TWO OFFICE BUILDINGS New York-based Valcor Capital Partners purchased Rialto I & II, a 160,000 sf office complex on 29 acres off Southwest Parkway in Lantana Place just south of the Barton Creek community. The seller was represented by HFF. CAMDEN PROPERTY TRUST BUYS THE MILLENNIUM Camden Property Trust purchased The Millennium, a 326-unit apartment project located at 91 Rainey Street, from The Dinerstein Companies. Patton Jones with Newmark Knight Frank represented the seller. Camden paid approximately $120 million for the project which they have renamed Camden Rainey Street.

728-UNIT STORAGE FACILITY PLANNED The Jenkins Organization, Inc purchased 7.65 acres at 7919 W. State Highway 71 for the development of a 123,000 sf, 782-unit storage facility. The facility is expected to open September 2019. HANA KITCHENS TO OPEN IN AUSTIN Hana Kitchens is opening a commercial kitchen & culinary incubator in 7,560 sf at 11190 Circle Drive in far southwest Austin. Adam Green & Michael Becker with Stream Realty represented the tenant RAM WINDOWS LEASES 7,170 SF RAM Windows leased 7,170 sf of industrial space at South Tech Business Center located at 2101 E. St. Elmo Road. Ace Schlameus with JLL represented the landlord & Brian Cheek with Newmark Knight Frank represented the tenant.

reported $17 million. Livestrong will lease the building back for six month while securing new office space.

CEDAR PARK, TX

Courtesy: City of Cedar Park

U.S. TENNIS ASSOCIATION TO HQ IN INDIGO RIDGE The U.S. Tennis Association plans to locate their headquarters in the planned 155- acre Indigo Ridge mixed-use development located northwest of Sam Bass Road & East Whitestone Blvd intersection. Upon completion Indigo Ridge projects to have more than 5 million sf of offices, retail, residential, restaurants & entertainment venues.

SAN ANTONIO, TX BRAZOS HALL BUILDINGS SOLD Former Austin Mayor Roy Butler purchased Brazos Hall located at 204 E. Fourth Street & the 4th & Brazos office building located at 216 E. Fourth Street. The property encompasses half of a downtown city block.

Courtesy: Page Architects

HABITAT FOR HUMANITY BUILDING 50-PLUS CONDOS Austin Habitat for Humanity is planning to build a six-story, 50-plus condo project at 4th & Onion Streets. This will be Habitat’s first endeavor to build muti-family affordable housing. Construction is projected to begin late spring 2020 if funding & building partners are secured for the project. 38

JUNE 2019

Courtesy: Trammell Crow

THE TEACHER RETIREMENT SYSTEMS OF TEXAS LEASES 100,992 SF on Block 71, the new office building, Indeed Tower, which is under construction at the corner of Sixth Street & Colorado Avenue. The new space will be occupied by Teacher Retirement’s investment management division which is currently housed at 816 Congress. The 709,000 sf building is being developed by Trammell Crow. HORIZON BANK BUYS OFFICE WAREHOUSE BUILDING Horizon Bank purchased a 5,000 sf office warehouse building located at 3900 Woodbury Drive from Woodbury Venture, Inc. Greg Gaynor with Fokus Commercial represented the seller & John Bundy with Development 2000 represented the buyer. NOTLEY VENTURES BUYS LIVESTRONG HEADQUARTERS Notley Ventures purchased the 30,000 sf Livestrong headquarters building located at 2201 E 6th Street for a

FIVE-PROPERTY APARTMENT PORTFOLIO SOLD Austin-based private equity firm Pennybacker Capital purchased a fiveproperty apartment portfolio including the 224-unit Tara Apartments at 8051 Broadway, 70-unit Greenwich Village at 215 Jackson Keller Road, 48-unit Tahitian Apartments at 202 Birchleaf Drive, 46-unit Four Seasons Apartments at 1779 Nacogdoches & 34-unit Herweck House at 231 Herweck Drive.

bulletin BED BATH & BEYOND LEASES 37,760 SF Bed Bath & Beyond leased 37,760 sf at 201 Central Park. Gene Williams with CBRE represented the landlord. SAGEVIEW PARTNERS BUYS OFFICE BUILDING Pond Hill Sa, LLC sold the 69,498 sf office building located at 4372 North Loop 1604 to Sageview Partners, LLC. Jason Adkison & Scott Boynton with CBRE represented the buyer and the seller was represented by James & Amber Japhet. PIERCE CORPORATION LEASES INDUSTRIAL SPACE Pierce Corporation leased 23,660 sf at 3407 Steen Street. David Wieder with Commercial Property Investment represented the tenant & Rob Burlingame & Joshua Aguilar with CBRE represented the landlord. FRATT CENTER SELLS JDH Enterprises, LLC sold the 7,200 sf retail property located at 4948 Eisenhauer Road to Darren Lakatos. Hans Rohl with REOC San Antonio represented the seller & Chrystal Garcia with RE/MAX Integrity represented the buyer.

Courtesy: LoopNet

Courtesy: Cowboy Dance Hall Website

COWBOYS DANCE HALL BANKRUPTCY SALE Cowboys Dance hall, a 70,000 sf event center located at 3030 NE Loop 410 sold by auction to Austin-based Heieser Development Corporation for a reported $6.5 million. The facility includes two dance floors, a mechanical bull & a 20,000 sf indoor rodeo arena.

AT&T BUILDING SELLS The University of the Incarnate Word purchased the 347,426 sf former AT&T building located at 4119 Broadway. The property is situated on 10 acres & includes a parking garage. Cushman & Wakefield represented the seller. PROVENDER PARTNERS BUYS BEN E. KEITH BUILDING Provender Partners purchased the former Ben E. Keith Company distribution center located at 5505 Kaepa Court. The company relocated to a 563,000 sf distribution center in Selma.


NORTH TEXAS RYAN STEVENS has joined Cushman & Wakefield as Managing Director of its Institutional Capital Markets group.

bulletin JIM KNIGHT has launched civil engineering & design company KFM Engineering & Design.

ALLEN, TX .

Courtesy: Dallas Morning News

Courtesy: BOKA Powell

KAIZEN BREAKS GROUND ON OFFICE BUILDING Kaizen Development Partners has started construction on an 8-story, 200,000 sf office building at Watters Creek just west of US 75 near Bethany Drive. This is the company’s second building in the development & it is scheduled to open in late 2020.

AMARILLO, TX

LONESTART HEART CENTER SOLD The Richland Companies has purchased a 4,830 sf medical office building situated on .83 acres at 6111 West Amarillo Blvd. This is the company’s first purchase of a medical office property.

VALLEY VIEW MALL CONTINUES DEMOLITION The demolition of Valley View mall has continued after a one-year stall. Beck Ventures has partnered with Life Time Athletic to create a Life Time Village concept on the 70 acre site. Upon completion the project will also include a 20-acre park. BRIGGS FREEMAN LEASES 22,624 SF Briggs Freeman leased 22,624 sf at 3131 Turtle Creek Blvd. The tenant was self-represented & the landlord was represented by Lauren Napper & Trey Smith with Cushman & Wakefield.

BURLESON, TX

Courtesy: Omniplan

MCALISTER SQUARE SELLS The 169,378 sf McAlister Square retail center located at 12700 South Freeway sold to an undisclosed buyer. Venture Commercial represented the seller & KMAC Group represented the buyer.

DALLAS, TX

MEGGER GROUP BUYS INDUSTRIAL FACILITY Megger Group, an electrical diagnostic equipment manufacturer, purchased a 127,000 sf industrial/office building located at 4545 West Davis Street. Craig Jones & Caleb McCoy with JLL represented the purchaser

RED BIRD MALL REDEVELOPMENT Palladium USA is redeveloping the 44-year old Red Bird Mall located at US 67 & I20. They are adding a fourstory apartment project to the $160 million redevelopment. They are also tearing down part of the old shopping center to build offices & new retail & restaurants. CENTRAL MARKET-ANCHORED MIXED-USE DEVELOPMENT KDC Real Estate Development & Investments is planning to redevelop the property at McKinney & Lemmon Avenues into a Central Marketanchored mixed-use development which will include 500,000 sf of office space & more than 150,000 sf of retail & restaurants. Completion is estimated as first quarter 2022.

PARK HERITAGE DEVELOPMENT UNDERWAY Seritage Growth, in partnership with KDC, has begun construction on the 2 million sf, 22-acre office, residential & retail project at LBJ Freeway & Preston Road. The development is located within Midtown Dallas Redevelopment Zone. It includes the demolition of a former Sears building & automotive center. TOLLWAY PLACE BUILDING SELLS Triten Real Estate Partners purchased the 90,795 sf Tollway Place building which is located at 15110 North Dallas Parkway. FIRST NATIONAL BANK TOWER CONTINUED REDEVELOPMENT Dallas-based Todd Interests, along with Mariah Real Estate, have taken over the redevelopment of the 52-story First National Bank tower at 1401 Elm Street from Drever Partners. Todd & Moriah must finish the project within a short timeline in order to secure $95 million in federal & state historic tax credits & $50 million tax incremental financing, according to a report in Morning News. 1900 PEARL BUILDING SELLS State Teachers Retirement System of Ohio purchased the 25-story office building 1900 Pearl for approximately $180 million. It was sold by Goldman Sachs & Company & Cushman & Wakefield handled the transaction.

FORT WORTH, TX

CTDI LEASES 705,955 SF CTDI leased 705,955 sf at 1753 Chaplin Drive from Transwestern Investment Group(TIG) who purchased the distribution facility December 2018 along with a 494,041 sf building at 15453 Wolff Crossing FORT BEHAVIORAL BUILDING SOLD Ridgeline Capital Partners & Harrison Street have acquired the 124,990 sf healthcare property located at 7140 Oakmont Blvd. The 125-bed facility provides addiction treatment programs & adolescent residence for individuals with autism spectrum disorder.

GARLAND, TX

J&C WAREHOUSING BUYS INDUSTRIAL BUILDING J&C Warehousing, LLC purchased a 70,400 sf industrial building located in the Miller Road Business Center. Holt Lunsford represented the landlord & CBRE represented the tenant.

GRAND PRAIRIE, TX

TRUCK PRO LEASES 22,140 SF Truck Pro leased 22,140 sf of industrial space at 1129 Avenue R. Gary Lindsey, Jim Rainer IV, James Rainer V & Will Klinke with NKF represented the tenant and CBRE represented the landlord.

PLANO, TX

PLATINUM PARK BUILDING SOLD The 166,323 sf Platinum Park Building located at 6000 Tennyson in Legacy West sold to Hawaii-based James Campbell Company. CBRE represented the seller & Stream Realty Partners represented the buyer.

PROSPER, TX

NEW PEDIATRIC HOSPITAL UNDER CONSTRUCTION Cook Children’s Health Care System is building a pediatric hospital on 23 acres at Windsong Parkway & Highway 380. The inpatient hospital will open in 2022.

RICHARDSON, TX

CAMPBELL GLEN BUILDING SOLD Stanton Road Capital purchased the vacant 210,000 sf Campbell Glenn II building located at 1125 E. Campbell Road. The building was previously occupied by AT&T. HFF brokered the transaction.

ROANOKE, TX

SENIOR LIVING CENTER UNDERWAY Civitas Senior Living & LKP Ventures have broken ground on a senior-living community located on the SH 114 corridor between SH 170 & US 377. The development will have 67,000 sf of assisted-living and memory-care apartments. It is scheduled to open fall 2020. JUNE 2019

39


SOUTHEAST TEXAS ROBERT ALINGER has joined Colliers International as Senior Vice President in their industrial advisors division.

ANGLETON, TX FGB ENTERPRISES SELLS 125 ACRES FGB Enterprises sold 125 acres at FM 521 & CR 44 to an undisclosed buyer. Doug Nicholson with NKF represented the seller.

ERIC LESTIN has joined Cushman & Wakefield as Managing Director of their newly formed retail services group.

Phase One of the project, a 51,000 sf classroom/lab, is expected to open fall 2019.

BROOKSHIRE, TX

27,211 SF INDUSTRIAL BUILDING SOLD A single-tenant industrial building occupied by H&E Equipment has been sold by a foreign institutional group. The property was originally purchased for $4.2 million April 2019 by a Southern California-based investor on a 1031 exchange. Zach Harris with Stan Johnson Company represented the seller.

HOUSTON, TX

Courtesy: Clay Development

CLAY DEVELOPMENT BREAKS GROUND ON DISTRIBUTION FACILITY Clay Development has broken ground on their 524,528 sf Kennedy Greens Distribution Center located at JFK Blvd & Lauder Road. The building is located within the company’s 145-acre Kennedy Greens south Business Park which they purchased in 2013. LENNAR BUYS TWO ACRES AT WESTCREEK & SAN FELIPE Lennar affiliate, LMC Westcreek Holdings multi-family developer, purchased two acres at the corner of Westcreek & San Felipe. Plans for the property have not been announced.

ARCHSTONE TOSCANO APARTMENTS SELL FOR $98 MILLION AvalonBay Communities sold the 474unit Archstone Toscano apartments located at 2900 N. Braeswood for $98 million. The project was built in 2013 with units ranging from 642 sf to 1,745 sf. BEECHCREST RETAIL CENTER SOLD Wu Investments purchased the 89,679 sf Beechcrest Shopping center located on 7.17 acres at 10828 Beechnut Street from Global Fund Investments, LLC. HFF handled the transaction. SAN JACINTO COLLEGE BREAKS GROUND ON 57-ACRE CAMPUS San Jacinto College has broken group on its 57-acre campus in Generation Park located at W. Lake Houston Parkway & Lockwood Road. 40

JUNE 2019

bulletin

Courtesy: Goodnight Hospitality

BOUTIQUE HOTEL IN MONTROSE Houston-based Goodnight Hospitality is planning a nine-room high-end hotelat 2509 Dunlavy near the corner of Westheimer which they plan to open late 2020. EXETER PROPERTY GROUP BUYS BUSINESS PARK Exeter Property Group purchased the 245,860 sf Century Oaks Business Park located at 10621 -10641 South Sam Houston Parkway from Bearden Investments. Clay Peeples & Bob Pettit with Boyd Commercial represented the seller & Daniel Miller & David Moore with Rubicon represented the buyer.

CENTRE ONE OFFICE BUILDING SOLD Hrise, LLC purchased the 218,312 sf Centre One office building located at 9800 Centre Parkway. The seller was represented by Colliers International & the buyer was represented by Captex Commercial. LOGISTICS CENTER UNDER CONSTRUCTION Houston-based Davis Commercial Development & Colliers International have broken ground on Cypress Preserve, a 32 acre logistics center just north of FM 1960 between I-45 & the Hardy Toll Road. The development will include two distribution buildings & two tilt-wall single-tenant buildings. HONEYWELL LEASES 114,068 SF Honeywell will occupy Building One at CityWestPlace, a four-building office campus, located at 2103 CityWest Blvd. Building One includes 114,068 sf and will be occupied by Honeywell late 2019. CBRE represented the tenant & Parkway Properties represented the landlord.

JON FARRIS has joined CBRE as Executive Vice President in their industrial division.

MAGNOLIA, TX

PET SUPPLIES PLUS LEASES 8,000 SF Pet Supplies Plus leased 8,000 sf retail space near the northwest corner of FM 1488 & Pin Oaks Drive. The tenant was represented by Baker Katz & the landlord was represented by Bruce Wallace & Radkey Jolink with CBRE.

PASADENA, TX

HOBBY LOBBY LEASES 47,768 SF Hobby Lobby will open a 47,768 sf retail store in Fairway Center located at Beltway 8 & Fairmont Parkway. Edge Realty Partners represented the landlord & Riverway Retail represented the tenant.

STAFFORD, TX

SPECIALTY TRP, LLC LEASES 67,000 SF Specialty TRP, LLC, a supplier of piping & tubing, leased 67,000 sf at 13125 Royal Drive. NAI Partners handled the transaction.

SUGAR LAND, TX

8.19 ACRES SOLD IN SUGAR LAND BUSINESS PARK Oil Logging People’s House, LLC purchased +/-8.19 acres of land located on Jules Rivers & Reed Road in Sugar Land Business Park. Bob Gulley with Moody Rambin represented the seller, Cirrus SL, LP. Courtesy: Downtown Redevelopment Authority

L-SHAPED PARK FOR DOWNTOWN HOUSTON An L-shaped park will occupy threefourths of the block bounded by Bell, San Jacinto, Leeland & Fannin. The remaining one-fourth block currently serves as surface parking for South Texas College of Law. PARK PLACE TOWER 21% LEASED Three tenants have been secured for Park Place Tower which is under construction at 4200 Westheimer. The largest, Compass Real Estate, is a tech-focused residential real estate brokerage company, who will occupy a full floor totaling 27,249 sf.

MARCEL GROUP BREAKING GROUND ON MIXED-USE PROJECT Marcel Group plans to break ground on a mixed-use project including 41,785 sf retail, restaurant, serviceoriented space & 27,000 sf Class A office space at the corner of LJ Parkway & University Blvd.

THE WOODLANDS, TX ALIGHT SOLUTIONS LEASES 180,000 SF Alight Solutions leased 180,000 sf within Research Forest. The building they will occupy is currently under construction by The Howard Hughes Corporation. JLL represented the tenant.


advertiser index AA Realty Company ........................................... 25 Beacon Developments LLC, 1-SE Texas .......... 15 Bearden Investments ......................................... 11 Berkadia ................................................................. 3 CHC Investments, LLC.................................... 17, 25 City Bank............................................................. 29 City of Seabrook ................................................... 5 DHRP 1-C/So Texas ........................................... 12 Equity Secured Capital....................................... 17 Greater Houston Commercial........................... 17 Greenberg & Co.................................................... 23 Hankamer & Associates. .................................. 28 InSite Realty, Inc.....................................................2 JD Woodruff......................................................... 19 KW Signature ...................................................... 19 La Marque EDC...................................................... 13 M Kidd Properties, Inc......................................... 11 National Environmental Services, LLC........... 43 NKF .......................................................................... 9 Phase Engineering ............................................. 30 Showalter Law Firm............................................ 21 STCAR .................................................................... 21 Texas Funding Corporation ............................. 21 The Shoreline at Waterpoint............................. 7 Worth & Company.............................................. 23 JUNE 2019

41


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NATIONAL ENVIRONMENTAL SERVICES Houston, Texas GABRIEL ENVIRONMENTAL GROUP San Bernardino, California

A 360° APPROACH TO E N V I R O N M E N TA L SERVICES National Environmental Services, based in Houston, Texas and Gabriel Environmental Group, based in Redlands, California, are sister environmental consulting companies, established in 1995, that conduct a full range of reliable and cost-effective environmental assessment and corrective services, with competitive pricing and convenient turnaround. • Phase I Environmental Site Assessments (AAIs-ASTM E 1527-13) • Transaction Screens (ASTM E 1528-06) • Asbestos & Lead-Based Paint Inspections (Licensed Texas Asbestos Consulting Agency)

• RSRAs (Records Search with Risk Assessments) • Phase II Subsurface Investigations* • Remediation and Corrective Activities* • Soil, Water, and Air Testing Services

National Environmental Services LLC 5773 Woodway Dr, Suite 96 Houston, TX 77057 Phone (281) 888-5266 Toll Free: (833) 4-Phase1 hgabriel@nationalenv.com www.nationalenv.com

• Indoor Air Quality/Mold Surveys (Licensed Mold Consulting Agency) • Underground Ground Storage Tank Testing Services* * Performed in Texas in partnership with Terrain Solutions, Inc.,Texas Geoscience Firm Registration # 50018

Gabriel Environmental Group 700 East Redlands Blvd, Suite U618 Redlands, CA 92373 Phone (951) 545-0250 Toll Free: (833) 4-Phase1 hgabriel@gabrielenv.com www.nationalenv.com

Satellite Offices: Portland (Tigard), Oregon and New York (Little Neck), New York JUNE 2019

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POSTMASTER: PLEASE EXPEDITE TIME SENSITIVE MATERIAL 5909 West Loop South, Suite 2537 S. Gessner, Suite 135, Bellaire, TX 77401 Houston, TX 77063

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AL ROSS SIGN GROUP SET TO MAKE ITS MARK ON HOUSTON

Houston-based equity firm, Al Ross

Development / Redevelopment “We’re committed to delivering the

Group, LLC recently acquired a large sign

best value to you on every

company in Houston, and rebranded to Al

project, whether we’re creating

business 27 years has a solid, loyal client

or a bit of both. That’s the

base and experienced, passionate people.

difference you’ll experience when

Hear Experts Talk About Development &signage Redevelopment Challenges & Opportunities In Houston’s MSA Ross Sign Group. The sign company, in that is functional, artistic, With aggressive marketing and a high Emcee: David Hagy Jay Cutler Regional VP level of service, Al Ross Sign Group will AIRWAVZ External Affairs Texas Central quickly rise to the top, not only in

working with Al Ross Sign Group.” David Showalter David Hawes Duane Heckermann Principal Managing Partner Adviser Showalter Law Firm Hawes Hill & Associates Land Adviser Organization Al Ross, CEO

Kirby Liu Director Lovett Commercial

Houston, Texas, but across the country.

Ashley Strickland Vice President NewQuest Properties

Vince Yokom Executive Director Waller County EDC

Pat Duffy Kenneth Katz President Principal Colliers Houston Baker Katz More Speakers to be Announced

Expect the June 27,best! 2019

Melanie Edmundson Principal Phase Engineering

Senator Paul Bettencourt CEO Bettencourt Tax Advisors

Register Now! www.resummits.com/Houstondevredev/ Title Sponsor:

Corporate Sponsors:

The Briar Club | 2603 Timmons Ln | Houston, Texas 77027

Contact us today to learn more about what we can do for you! 44

713.661.1500

JUNE 2019

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alrosssigngroup.com

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