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MARCH 2019

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Conroe Waterfront Center Conroe, Texas

Brad LyBrand or Neal Thomson | 281.477.4300 For more information, see page 7

Up to 84 Acres available For Sale or Lease Conroe Marketplace Teas Crossing

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FM 3083/T EAS NURSE RY RD

60,000 sq. ft. Office

Multi-Family/Senior Development Site

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Leasing

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Tenant Representation

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Development

Retail/Restaurant/Multi-Family/Hospitality/Senior’s Sites Available Prime I-45 Frontage in one of the fastest Growing Cities in US Shadow Anchored by Conroe Marketplace Close proximity to several acclaimed master planned communities

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Land Brokerage

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Acquisition

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MARCH 2019

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MARCH 2019


MARCH 2019

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IN THIS ISSUE

8

10

12

Market

Sales & Leases 1, 3, 7, 11, 13, 15 – 17, 20, 21

Services

Aerial Photography 20 Environmental 22, 35 Financial 2, 15 Legal 15 Property Tax 17 Real Estate Summits 5, 36

18

Scoop

Events 24, 26, 28 Social 25, 27, 29 Bulletin 30 – 32

Features Red River Review 8, 9

Coming Online In Conroe 10 Discover The Opportunity In Harlingen, Texas 12 A Sea Of Change 18, 19 RAY’S BUZZ CCIM Forecast Competition 14 O’Connor & Associates Hotel Forecast 34 O’Connor & Associates Office Forecast 34

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MARCH 2019


Real Estate Opportunity

Zones Summit

and Real Estate Tax Deferred Strategies

Breaking New Ground:

Emcee: John Hammond President & CEO Riverway Title

Duane Lund CEO NAI Legacy

Hear Experts Explore the Uncharted Territory of Qualified Opportunity Zones

B. J. Simon Associate Executive Director Baytown West Chambers County EDF

Brad Elmore Vice President NewQuest

Amanda Timm Executive Director LISC Greater Houston

Zach Scott Economic Development Manager Greater Houston Partnership

Raj Bandla Attorney Locke Lord LLP

Omar Izfar Attorney Wilson Cribbs + Goren

Chris Goodrich Partner Crady Jewett McCulley & Houren

Raudel Garza Manager & CEO Harlingen Economic Development Corporation

Craig Bernstein Founder OPZ Bernstein

Cory Older President River City Capital Partners

More speakers to be announced

Title Sponsor:

RIVERWAY TITLE Silver Sponsor:

Register Now!

www.resummits.com/HoustonOppZones

March 28, 2019

The Briar Club | 2603 Timmons Ln Houston, Texas 77027 4 Hours of Real Estate Continuing Education Credits applied for with the Texas Real Estate Commission •TREC Provider # 1016 •TREC Instructor # 4153

Bronze Sponsor:

For More Information Contact: Ginger Wheless | REDNews Jeff Johnson | Real Estate Summits 713-661-6300 | ginger@rednews.com 952-405-7780 | jeff.johnson@resummits.com MARCH 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

I

n this issue, we review the Red River States Conference & Deal Making event held in early January. The event was in Fort Worth for the first time after many successful years in Dallas during the month of November. We received mixed reviews about the relocation but the event was still a resounding success overall. The Texas retail market remains strong although changes continue to happen surprisingly fast. All other aspects of the 2019 Texas CRE market continue to beat historical averages – even Houston’s sublease office space is improving.

Allen Crosswell talks about his Conroe Waterfront Center on page 10. Allen personifies the resiliency and perseverance of the successful real estate developer, this is a must read. Ray recaps the office and hotel markets from O’Connor & Associates’ luncheons as well as the CCIM forecast competition. Mark Dotzour, guest speaker at the CCIM Forecast, has the right idea (in my humble opinion) of “don’t make business decisions based on what you hear on TV”. There has been much speculation and confusion about how and who will benefit from the Opportunity Zones Tax Incentive that was established by Congress in the 2017 Tax Cut and Jobs Act. If you want to be enlightened and take advantage of “Ozones”, mark your calendar to attend my Texas Opportunity Zones Summit on March 28th at The Briar Club in Houston. We have a line-up of experts who will be clarifying the rules and regulations associated with the program. (See page 7 for more information) Have a great March and a wonderful Spring Break if you’re so inclined!

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

MANAGING DIRECTOR Benton Mahaffey accounting@REDNews.com

EMARKETING DIRECTOR emarketing@REDNews.com

CREATIVE DIRECTORS Terry Martinez & Steve Smith 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. Texas Brokers: 8,150 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 26,387

TOTAL QUALIFIED ONLINE REDNews DISTRIBUTION: 50,458

Best Regards,

REDNews has gone green using recycled paper. Thank you Midway Press!

Ginger Wheless

To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription. 2537 S. Gessner, Ste. 126 Houston, TX 77063

6

MARCH 2019


CONROE WATERFRONT CENTER CONROE, TEXAS

UP TO 84 ACRES ±9 ACRES MULTI FAMILY OR SENIORS SITE

MULTI FAMILY COMING SOON

CONROE MARKETPLACE

SOLD

CONROE MARKETPLACE

Up to 84 Acres available in one of the fastest growing Cities in the U.S. with I-45 frontage pads available

Adjacent to Conroe Marketplace with Kohl’s, Ashley, Petsmart, Ross, Bed Bath & Beyond, T.J. Maxx, and many other national retailers

Ideal for retail, restaurant, multifamily, seniors, medical & office, hospitality & more

Brad LyBrand 713.438.9516 blybrand@newquest.com

Short drive time from the Woodlands, Woodforest, Grand Central Park, Graystone Hills and several other highly acclaimed master planned communities

Multiple points of access from I-45, Drennen Road, Teas Nursery Road & Plantation Drive

Excellent I-45 visibility & utilities available

Neal Thomson 713.438.9513 nthomson@newquest.com

MARCH 2019

7


Unrestricted hard corner pad site included in sale

RED RIVER & RETAIL REVIEW:

O FFER I N G S U MMA

Attendees offer feedback on new Texas ICSC event 6.5 Acre Future Commercial

BY BRANDI SMITH

Future Commercial Lakeview Oaks 330-Unit Class-A Multifamily Project Coming in 2019

PRICE

$

PRICE PSF:

$

PROFORMA NOI:

$

CURRENT Annual Rent:

$

OCCUPANCY

4

GLA:

1

TOTAL LAND AREA:

+

YEAR BUILT:

2

PAD SITE:

EXISTING TENANTS:

3

Tenant Representation | Leasing

w w w. c a p i t a l r e t a i l

T

housands of people flocked to Fort Worth in early January to make connections and assess the future of retail development at ICSC’s inaugural Red River States Conference & Deal Making. The three-day meetup signaled a change from years past when multiple similar events were held across the region. This year, ICSC brought together industry professionals from throughout Texas, Louisiana, Arkansas and Oklahoma. Rafael Tapia That consolidation was applauded by attendees, such as Rafael Tapia, executive director of the Alamo Economic Development Corporation. Representing Alamo, Texas this year, it marks the ninth time Tapia has attended the Texas conference. “I’ve started to notice that the show has become more developer driven. There used to be a lot more retail exhibitors. Last year, there were maybe 20. This year, they had about 40,” he says. “I was pleasantly surprised.” Tapia also complimented the Retailer Central event, previously called Retail Roundup, held on Friday.

Capital Retail Properties’ Eric Walker thinks mixing other states into the Texas event muddied the waters a bit. “That would have more impact on Dallas brokers who are doing deals in Oklahoma than people in southeast or central Texas,” he explains. Walker added that many retailers and his major clients did not attend, likely because of the event’s date. “I’m not sure they could have picked a worse date for a convention for a couple of reasons,” he says. “First, most people were either just getting back from the holiday break or still on break so leaving family was difficult. For this reason a lot of retailers did not bother to come.” The location change from Dallas to the Fort Worth Convention Center was a positive for Walker, though. “It was an easy convention hall to access and it was next to several good hotels and restaurants, so it made for a very easy venue to navigate and set up dinners and events,” he says. The Texas convention, Walker says, has always been more about connecting with the Texas real estate community than it is about formal meetings Capital Retail holds at RECon, the flagship ICSC event in Vegas.

“It was much better attended by the exhibitors than it had been in years past,” he says, adding that it appeared more organized. “It had been a mad scramble in my experience. This year, all the retailers who committed to being there attended.” While the diversity of exhibitors benefited community representatives like Tapia, development experts like 8

MARCH 2019

Eric Walker

“Since most of the brokerage community did attend we got a lot of quality time catching up with friends and peers from the industry, so the trip was a success,” he says.

Tapia would also bill it that way, explaining that ICSC’s Texas event creates a central location where small communities such as Alamo can have meet-and-greets with the actual site selectors. “I felt this year was a lot more productive,” says Tapia. That could be because the region’s small towns are starting to get a lot of interest from developers interested in single and multi-tenant properties. “Some of the places being discussed in the meetings had to be looked up on map. They are not your wellknown suburbs and fast-growing communities,” according to Jon Kendall, Bohler Engineering’s director of business development for its Texas division. “If you can find sites on the more-affordable suburban edge near regional hubs that feed the outlying, underserved rural communities, you have the required demographics

“Aside from looking at new, potentially smaller, target markets, another trend in retail development is the focus on value-add centers.” – Jon Kendall.


for certain retailers with lower cost of land and property.” Alamo is an example of that. Located in the Rio Grande Valley, the city of nearly 30,000 is growing. Sales tax revenue increased by roughly 6 percent in 2018, suggesting the community needs more retailers to serve those increased rooftops. “It’s one of the fastest growing MSAs in the state of Texas. We have a retail trade area of 150,000 with a retail potential of more than $900 million,” boasts Tapia. Bohler’s Kendall points out that, while many communities were represented at the show to promote themselves, developers were able to share their concerns and challenges. “Whether expanding open-space ordinances on the front or less-than-timely construction inspections on the back, owners and communities need to keep looking for the win-win in their relationship,” he says. Alamo is doing just that on its end. The city created a 90-acre tax increment zone for its retail corridor along Interstate-2 as incentive for new development. Tapia’s job is to let the commercial real estate world know what kind of opportunities await. “By attending the Red River States Conference, I’m able to find out who is actually expanding in Texas,” Tapia says, adding that he uses it to follow up contact with people he’s met in Vegas or, alternately, initiate conversations he can continue in Vegas. “Being able to meet with different businesses that might be headquartered in Atlanta or Dallas or Austin, the event saves us time and money. We’re able to concentrate our visits in one or two days.”

“...both the Dallas-Fort Worth area and Houston area gained over 2,000 jobs a week throughout the entire year.”

– Dr. Ray Perryman

Aside from looking at new, potentially smaller, target markets, another trend in retail development is the focus on value-add centers, Kendall says. “The cost and uncertainty of new construction combined with fast-changing retail expectations makes value-add acquisitions a quick way to invest and generate the desired returns,” he explains. All the chatter about big-box bankruptcies signaling the end of brick-and-mortar locations for retailers isn’t backed up by data. Per CBRE’s Q4 2018 report on Houston, retail occupancy hit 94.9 percent at the end of the year. “Even several big box closures, like major retailer Toys ‘R’ Us, were not able to derail the market,” the report says. More than 3.7 million square feet or retail is in development in Texas’s largest city, a decline from years past, but still a strong showing.

That’s consistent with what economist Mark Dotzour said in his keynote presentation at the STRIVE Symposium, hosted by STRIVE managing partners Jason Vitorino and Jennifer Pierson. Former chief economist of the Real Estate Center at Texas A&M University for nearly two decades, Dotzour suggested that 2019 won’t be a correction to 2018’s economic boom, but he did compare it to a “commercial flight that has hit 30,000 feet and is leveling off.” He also indicated employment growth will be key for Texas. In 2018, the state added 391,800 jobs with Dallas-Fort Worth and Houston leading the way. The DFW MSA, for example, created 116,400 new jobs last year and Houston generated 108,300, placing them in the Top 3 in the country (New York City came in second). “What this tells us is if you stop to think about this for a minute, literally both the Dallas-Fort Worth area and Houston area gained over 2,000 jobs a week throughout the entire year. That’s truly an amazing situation,” says Dr. Ray Perryman of The Perryman Group. “They’re very different economies.” Different indeed, but like all other cities, development there hinges on fundamentals such as interest rates. In that realm, Dotzour is optimistic, suggesting it is unlikely for the fed to increase rates any further. As such, he believes in a continued “intense appetite” for commercial real estate. How will that carry over for the likes of Tapia and Walker? We’ll have to wait and see at RECon in Vegas in May this year. Be sure to keep your eye out for REDNews! We’ll be there as well and have a full report on the happenings and feedback in an upcoming issue. MARCH 2019

9


COMING ONLINE IN CONROE NewQuest Crosswell’s Conroe Waterfront Center

ALLEN CROSSWELL

BY BRANDI SMITH

“I

t’s been hidden for a while, but now it’s become very active.”

That statement from Allen Crosswell, managing principal of NewQuest Crosswell, is intended to describe the Conroe Waterfront Center, a 115-acre, master-planned, mixed-use development along I-45. But it could just as easily apply to the development’s home: Conroe. Though the city has been steadily growing since its incorporation in 1904, Conroe began booming in 2011. The Montgomery County seat offers lakeside living along the 20,000-acre Lake Conroe. It butts up against Sam Houston National Forest and the housing options are less expensive than nearby alternatives, such as The Woodlands. “When I started this business in 1989, I thought The Woodlands was too far away because I grew up in the middle of town. Then I watched as it grew and grew. Then I saw corporations move there, building these towers. The whole area just blossomed,” Crosswell says. In 2016, Conroe boasted a growth rate of 7.8 percent, 11 times higher than the national average, making it the fastest-growing city (with a population of 50,000 or more) in the entire U.S. It beat out several other

Texas cities for this honor, including Frisco, McKinney, Georgetown and New Braunfels. Now, more than 84,000 people call the Houston suburb home and that number is expected to reach six digits by 2020. “There are really great home sales in the market. You see excellent price points for homes, which are very affordable,” says Crosswell. “I just think large companies will keep inching north.” Crosswell saw the potential in Conroe a decade ago. That’s when he began working on a 115-acre property with a company called Angel/McIver. The property ended up going back to IBC Bank, which continued work on the parcel, ensuring Plantation Road was completed from Loop 336 to Teas Nursery Rd. “I have so much time invested in it that I want to stick with it. It took a long time, but the market is finally coming to me,” he says. “Conroe is a good territory to grow.” The 10-year project morphed into the Conroe Waterfront Center about two years ago when Crosswell decided to switch things up and began buying up some of the acreage. The first purchase was about 100 acres, some of which was sold off for a 60,000-square-foot office development. Encore Enterprises out of Dallas is planning a multi-family development in the most northwestern corner.

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Retail/Restaurant/Multi-Family/Hospitality/Senior’s Sites Available Prime I-45 Frontage in one of the fastest Growing Cities in US Shadow Anchored by Conroe Marketplace Close proximity to several acclaimed master planned communities

Source: NewQuest Properties

MARCH 2019

NewQuest Crosswell is also working with IBC Bank to buy the remainder of the property, which is currently covered in lakes and trees. “That is a long process to turn that into a larger commercial business park for corporate-type locations and perhaps some more multi-family,” Crosswell explains. “We haven’t started construction on that portion yet, but we’re working through the city to get all of our entitlements.”

Though it’s taken a decade and, Crosswell says, some heartbreak as well, he believes the time and effort to bring Conroe Waterfront Center online has been worth it.

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“That kind of frontage is hard to come by. Access and visibility are good and we have a great circulation with the freeway, frontage road, and exit ramp. Teas Nursery Rd. is to our north, Plantation Dr. is open to our east and also Drennen Rd., which extends from I-45 to Frazier, all the way through Conroe,” Crosswell says. “Being on the east side of I-45, which is the main portion of Conroe, I don’t think there is anything quite like what we are trying to do.”

It’s also bolstered by the incredible number of rooftops going up to the north and south. Those projects include Johnson Development’s Grand Central Park, the initial plans for which call for roughly 2,600 residential units. Four miles south of Conroe Waterfront Center, the massive development is being built on what was the Boy Scouts’ Camp Strake for years. Howard Hughes Corp. is working on a 2,000-acre project called The Woodlands Hills, a new master-planned community stretching between Conroe and its northern neighbor, Willis.

Overpass

Multi-Family Coming Soon

What might be the most desirable parcel is butted up to the I-45 frontage road, offering lots of eyes and traffic.

Conroe Waterfront Center is immediately next door to Conroe Marketplace, a retail power center anchored by the likes of Kohl’s, Ashley Furniture, Old Navy and PetSmart.

Conroe Marketplace Teas Crossing

“Prime sites are available for office professional, medical, restaurant, hospitality and retail,” says Crosswell. “We feel like there’s probably a play here for some age-restricted uses, but we don’t have anything in the works right now.”

Says Crosswell: “We want to design and build something that brings users in because we can offer excellent visibility, accessibility and a pretty good price point for land and the market.”


RETAIL

| OFFICE | MEDICAL | SPACE FOR LEASE

WOODLAND PARK SHOPPING CENTER

800 -7,350 SF available on first floor. Excellent for medical office. Base rent $15.00-$18.00 PSF & NNN $4.80 PSF

+/- 592’ of frontage on Westheimer

372 surface parking spaces available

Traffic counts - 82,880 CPD (Westheimer)

Pylon signage available

Aggressive lease terms

11380 Westheimer Houston, 77077

AA Realty Co

Accredited Management Organization

For more information call: Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108 eleung8888@aol.com www.aarealtytx.com

END CAP FOR RESTAURANT/RETAIL

Premium High Traffic/Income Area in West Houston – NWC Briar Forest & Wilcrest • 6,224 SF Available (Can be divided) • 27,688 VPD on Briar Forest • 21,675 VPD on Wilcrest • Generous Build Out I-10

GESSNER RD

BELTWAY 8

N KIRKWOOD RD

R T A GRE

N W I L CR E S

DAIRY ASHFORD RD

N A R U A T ES

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BRIAR FOREST DR

BRIAR FO REST

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DR BELTWAY 8

2022 Population Projection

1 Mi Ring

3 Mi Ring

5 Mi Ring

30,091

200,391

518,842

2017 Estimate

26,967

181,434

468,253

Total Aggregate Income ($1mil)

$1,130.9

8,823.6

$18,123.8

Average HH Income

$92,067

$107,376

$94,952

Median Household Income

$62,767

$74,015

$65,463

Contact: Mark Adkins Adkins Properties Company

713-782-3222

Cell: 832-712-2935 • Markapc9@gmail.com MARCH 2019

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DISCOVER THE OPPORTUNITY IN HARLINGEN, TEXAS Harlingen EDC Launches Aerotropolis

T

he Harlingen Aerotropolis is a 479-acre, shovelready site adjacent to the airport. It has been designated as a Certified Site by McCallum Sweeney Consultants, one of the world’s leading site selection and economic consulting firms. The site is a premier manufacturing destination in South Texas. The development plan for the Aerotropolis incorporates a mixed use for the property that includes manufacturing, warehouse, office and retail purposes. In addition, logistics, transportation and other industries will be able to take advantage of its strategic location. Raudel Garza, manager and CEO for the Harlingen EDC states that the proximity of the Aerotropolis to

the Port of Harlingen, the Port of Brownsville, State Highway 550, the Los Indios Free Trade Bridge and the Valley International Airport makes it the ideal location for both local and global manufacturing 12

MARCH 2019

companies. “Harlingen is located in the middle of the Rio Grande Valley, one of the fastest

growing regions in the United States. Where else can you enjoy a great quality of life, low cost of living, and a year-round tropical climate? Over four hundred manufacturers have already discovered that in

South Texas and Northern Mexico.” United Launch Alliance is already a partner of the Valley International Airport and is located adjacent to the Aerotropolis. “We were looking for a place with very high quality workers, with a great cost of doing business and with a community that was very supportive. In Harlingen, we found all three,” said Dan Collins, former Chief Operating Officer with United Launch Alliance. The Harlingen Aerotropolis is home to the new aerospace cluster in South Texas. With SpaceX building a new launch facility in Brownsville, and United Launch Alliance building rocket components in Harlingen, the Harlingen Aerotropolis is well-positioned to be the next home for the aeronautical and aerospace industry in South Texas. For more information on opportunities in the Harlingen area, please contact Raudel Garza, Chief Executive Officer of the Harlingen Economic Development Corporation at 956-216-5081.


BEARDEN

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

Balcones Heights

410

Olmos Park

421 345

Woodlawn Lake Park 515 Richland Hills Drive 151

421

San Antonio Museum of Art

410

35

San Antonio 10 151

90

37

90

Patricia Gassmann • Bearden Investments

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

371

Lackland AFB

353

35

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LAND FOR SALE

LAND FOR SALE

LAND FOR SALE

LAND FOR SALE

Two tracts on N. Main St. Houston, TX 77009

S.H. 96 @ Walker St. League City, Tx 77573

FM 2100 Harris and Liberty County

Beltway 8 @ Kirby Dr. Pearland, TX 77047

35,000 SF and 59,240 SF

LAND SQ. FT.

2 to 14 ACRES

LAND AVAILABLE:

1600 N Main St. = +/- 59,240 SQ. FT. 1515 N Main St. = +/- 35,000 SQ. FT.

Lot 11 = +/- 14 ACRES Lot 12 = +/- 13.18 ACRES

FEATURES:

FEATURES: -

Leon Valley

1 block from Burnett Light Rail Station Easy access to I-10, I-45 and Downtown Blocks away from U of H Downtown Opportunity Zone

- No on-site detention required: water and sewer available from city of League City - Opportunity for retail, multi-family, commerical, medical, and professional offices. - 5-7 mins from Nasa and other related aerospace industry

2,740 ACRES

LAND AVAILABLE: +/- 2,740 ACRES

FEATURES: - 5 MUD districts in place - 2,900’ of FM 2100 frontage - Close proximity to proposed Grand Parkway extension - Opportunity Zone

3 to 25 ACRES

TRACTS AVAILABLE: Tract 1 = +/- 25 ACRES (Divisible) Tract 2 = +/- 11.5 ACRES (Divisible) Tract 3 = +/- 7 ACRES (Divisible)

FEATURES:

Located within The Lower Kirby District Utilities to the Site Regional Detention Available Signalized Hard Corner Close proximity to the new 288 Toll Lane Expansion, making a direct connect to the Texas Medical Center and Downtown The information herein has been obtained from sources believed to be reliable. However, this does not guarantee, warranty or make any representations to its completeness or accuracy. The information contained herein is subject to errors, omissions, and change of price or conditions.

Justin Patchen

| (713) 222-1400 Justin@BuffaloREP.com

-

MARCH 2019 www.BuffaloREP.com

13


ray’s buzz BY RAY HANKAMER rhankamer@gmail.com

CCIM Real Estate Forecast Competition

Speaker: Patrick Jankowski, Sr. V.P. Research-Greater Houston Partnership Guest Speaker: Mark Dotzour, PhD. ● No indications of recessions this year or next

● Land sales are energized by highway and other transportation development, such as 290, Grand Parkway, and 288 in Houston Metro area

● Houston & Texas economies much stronger than national economy by many indicators

● Big box stores and restaurants are big consumers of land, wanting to be near these residents

● Turn off TV and read books the rest of your life-TV and especially cable news are nothing but propaganda designed to upset you and sell advertising

● Short commutes to the workplace drive residential land sales

● Above all don’t make business decisions based on what you hear on TV ● Top one-third of home market experiencing slow sales, while bottom third is booming

● Uptown and CBD will see large demand for vertical residential development due to transportation improvements and other amenities ● Opportunity Zones and the tax benefits they drive will be game-changers in land use patterns

● Wages are averaging 3% growth

Medical Sector Moderator: Ashley Cassel-Transwestern Contestants: Chris Wadley-JLL; Brandy Bellow Spinks-CBRE

● There is high consumer confidence, and the current expansion is in 116th month, the second longest in history

● Health care is not yet a ‘well-tracked’ asset class-statistics are spotty

● Recessions can’t begin until corporate layoffs begin, and businesses are hiring like crazy

● Lots of growth in Clear Lake and especially in Texas Medical Center, where high-tech incubation by the major institutions is in full swing

Retail Sector Moderator: Carson Wilson, Fidelis Contestants: Ben Brown-Baker Katz & Josh Jacobs-Edge Realty Partners ● Best retail environment we’ve ever seen ● Highest occupancy and rents; virtually no class A space available ● Last quarter holiday sales highest ever ● When space comes available it is immediately recycled, sometimes to non-traditional users like medical and entertainment ● Brick and mortar not going away, and online vendors may start building brick and mortar stores to sell clothes and groceries (amazon bought Whole Foods and may purchase a big national retailer with many locations, or build their own) ● Returns are so high with online purchases that they are hurting online retailers ● In a brick and mortar store, it is about the ‘experience’ and ‘entertainment’ and ‘social’, and also about touching and feeling the product (like clothing) ● Retailers like to locate within 7 miles of their urban customer ● Big expansion of fast-casual restaurant concepts ● Technology is being used more and more by retailers to evaluate and satisfy customers Land Sector Moderator: Taylor Schmidt-Lee & Associates Contestants: Davis Adams-HFF; Dave Ramsey-Newquest ● No pullback in land sales and prices due to oil pricing ● Land sales are driven by job creation and the housing that follows, and the residents in that housing needing goods and services 14

MARCH 2019

● Houston and State of Texas are investing to compete for start-ups in the medical field ● In the medical sector, change is slow but follows both overall population growth and the fact that people are living longer ● ACA survived Republican control of Congress and now that Democrats are in power, we should see continued growth in national medical care Industrial Sector Moderator: Will Hedges-Triten Real Estate Partners Contestants: Rob Stilwell-Newmark Knight Frank; Drew Coupe-Stream Realty Partners ● “We’ve never seen anything like this”- unprecedented demand, much of it for distribution to growing population, but also a lot in SW Houston, driven by petrochemical industry and the port ● NW sector has more distribution due to residential demand created by Grand Parkway ● Deals are getting larger as demand for bigger facilities grows ● Development costs are up due to land prices and demand for buildings with higher volume, office space, increased truck parking, retention, and in some cases, elevating sites out of flood zones ● Big institutional demand for Houston industrial properties; lots of outside money wants to own in Houston; way more money looking for investment deals than deals available ● Many large spec warehouses are going up; nevertheless, vacancies remain very low, in the 5% range ● Rental rates increase as developer costs increase

● Some warehouses now must include retail space and the car parking that goes with it Multi-Family Sector Moderator: Ryan Terrell-Greystar. Contestants: Ryan Epstein-Berkadia; Jennifer CampbellInstitutional Property Advisors ● Harvey ‘scrambled’ multi-family occupancy patterns but that is getting sorted out now ● S and SE Houston strong due to petrochemical employee demand; Energy Corridor continues soft ● CBD occupancy is a little soft due to subsidies to developers but that market is strengthening now ● Opportunity Zones will stimulate development and may also distort the normal supply/demand balance ● Houston is still seen as a very affordable city, where one can rent an apartment for 20% of monthly salary instead of 40% in other cities ● Empty nesters/downsizers are making the decision to rent in increasing numbers ● Outside equity coming to Houston in a big way seeking value-add opportunities ● New construction currently at a very low level, but is starting to pick up Office Sector Moderator: Allie Hubbard-Limestone Commercial Contestants: Rich Pancioli-CRBE; Damon Thames-Colvill Office Properties ● “Cautious optimism with hint of positivity” that the tenant/ landlord relationship will return to equilibrium, as sublease inventory is absorbed; already seeing some shrinking concessions by landlords ● The office market is really a building by building story and every building is different ● Building landlords are getting very creative to help tenants retain employees by pleasing them with amenities in the buildings, such as fitness, restaurants, co-working spaces, and opportunities to personally interact with other tenants ● Better amenities equal happier employees equals greater productivity ● It is easier and cheaper to retain an existing employee -AND an existing tenant-by making them happier-AND if content in their workplace, they are more productive ● Co-working is a concept which is still being experimented with-it is expensive for the landlord to provide, but it suits some tenants who like the flexibility of having it in the building


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GReenberg & Company Commercial Real Estate Brokerage Firm

Retail/Office Space Available| Great Locations BEECHNUT & BELTWAY 8

8201 W Sam Houston Pkwy | Houston, TX 77072 RETAIL/OFFICE SPACE AVAILABLE

• Pylon Signage • High Exposure

PRIME FRONTAGE

WESTCHASE DISTRICT

8104 Southwest Fwy | Houston, TX 77074 9703 Westheimer Rd | Houston, TX 77063

RETAIL PROPERTY FOR LEASE

• Major Thoroughfare • Great Visibility

RETAIL | BANK | MEDICAL | DRIVE THRU

• Prime Intersection • High Foot Traffic

This is a single story free-standing building A multi- tenant single -story retail shopping A two -story building situated on the southwest corner of Westheimer and S. Gessner. It is west located on the Southeast corner of the Sam center located on the southwest corner of the Southwest Freeway and Beechnut. of Loop 610 and the Galleria, south of the Katy Houston Tollway and Beechnut. Easy access Prime frontage exposure and easy access Freeway and one mile east of the Sam Houston from the Southwest Freeway and minutes along the Southwest Freeway. Parkway. Major thoroughfare along Westheimer. from Downtown Houston.

3,125 SF AVAILABLE Price: Call For Details

900 - 5,300 SF AVAILABLE Price: Call For Details

4,480 SF AVAILABLE Price: Call For Details

GREENWAY PLAZA

3815 Richmond | Houston, TX 77027

RETAIL SPACE FOR LEASE

• Excellent Location • High Traffic

Multi-tenant retail shopping center located on the southeast corner of Richmond at Weslayan. Between the Central Business District, Texas Medical Center and Galleria/ West Loop. Adjacent to Edwards Theatre and Lakewood Church.

2,175 SF AVAILABLE Price: Call For Details

The information contained herein was obtained from sources deemed reliable; however, no guarantees, warranties or representations are made as to the completeness or accuracy thereof. The presentation of this real estate information is subject to errors; omissions; change of price; prior sale or lease; or withdrawal without notice.

5959 Richmond Avenue, Suite 440 Houston, TX 77057 WWW.GREENBERGCOMPANY.COM

Broker Contact: David Greenberg | Phone: 713-778-090015 MARCH 2019 EMAIL: DAVID@GREENBERGCOMPANY.COM


NEED TO TRACT DOWN GREAT SITES? GIVE CALDWELL A CALL.

I-10 in Sealy, TX 7.32 Acres For Sale

FM 529 near Fry Road - Houston, TX 1 - 11.78 Acres For Sale • +/-1,300' of frontage along FM 529 • Unrestricted • Utilities available through HC MUD 157 • Will divide • Ideal for Commercial Development

• +/-1,950' of frontage on Katy Hockley Rd • Hard corner at Jack Rd and Katy Hockley Rd • Unrestricted • Located outside of the flood plain • Prime Industrial/Commercial Development Site

Keith Grothaus, CCIM, SIOR 281.664.6635 | KGrothaus@CaldwellCos.com

Daniel Greco 281.664.6629 | DGreco@CaldwellCos.com

Daniel Greco 281.664.6629 | DGreco@CaldwellCos.com

FM 1486 in Montgomery, TX 373 Acres For Sale

Hwy 105 & FM 2854 - Montgomery, TX 16.98 Acres For Sale • TXDOT-approved driveways in place • Pad sites available • Across from new Kroger and future HEB • Montgomery utilities on-site • Prime Retail Opportunity

2527 Old Louetta Loop - Spring, TX 2.68 Acres For Sale

• +/-390' of frontage on Louetta Rd • Potential annexation into HC MUD 104 • HEB and future Kroger less than 1 mile away • Located out of flood plain • Ideal for Commercial, Retail, or other Development

Keith Edwards, CCIM, SIOR 281.664.6633 | KEdwards@CaldwellCos.com

Travis Smith 281.664.6663 | TSmith@CaldwellCos.com

Hunter Grimes 281.664.6639 | HGrimes@CaldwellCos.com

• I-10 frontage • City of Sealy Water and Sewer • +/-1.5 miles east of Hwy 36 • Located near Sealy Outlet Mall • Ideal for Medical, Office, Retail or Commercial

• +/-1,912' of frontage along FM 1486 • 2 miles from Bluejack National Golf Community • Unrestricted • Very minimal flood plain • Excellent Development Opportunity

16

MARCH 2019

Katy Hockley Road - Hockley, TX 96 Acres For Sale

Houston | Cypress | The Woodlands | College Station | Caldwellcos.com | 713.690.0000


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PRIME RETAIL/RESTAURANT SPACE ON INTERSTATE 10/KATY FREEWAY HIGH GROWTH KATY AREA (88.8% INCREASE SINCE 2000) Ideal Location • Excellent Visibility • Extremely High Traffic Count

New Retail: Katy Mills Plaza 2404 Texmati

Shadow Anchored by Bass Pro & Katy Mills Mall

• On Interstate 10 in front of Katy Mills Mall • 1,020 SF – 20,000 SF Available • End Caps with potential drive-thru • $50/sf Tenant Improvement Allowance • Near new Katy Convention Center • Up and coming area with National Credit Tenants minutes away • Adjacent to Katy Mills Mall, Texas Typhoon & the new Katy Boardwalk District

Pre-Leasing: The Shops at Cane Island 27252 Katy Freeway

Shadow Anchored by Buc-ee’s

• On Interstate 10 and next to Buc-ee’s • 1,500 sf – 19,543 SF Available • $20/sf Tenant Improvement Allowance • End Caps with potential drive-thru & pad site • Close proximity to Cane Island’s 1,100 acre master planned community • Ground leases available

Retail or Ground Lease: Retail Space Hwy 90 @ Cane Island

New: Shopping Center Coming to West Ten!

West Ten Business Park near Buc-ee’s

• On Interstate 10 at Cane Island • 6000 SF Available • $30/sf + NNN • In the prime West Ten Business Park near Buc-ee’s • Close proximity to Cane Island’s 1,100 acre master planned community • Extremely high daily traffic • Great visibility • Ideal location in Katy

Retail Space Hwy 90 @ Cane Island

Shopping Center Coming to West Ten!

Katy Mills Plaza 2404 Texmati

The Shops at Cane Island 27252 Katy Freeway

• 4,000 SF Retail Space Available • Located in the prime West Ten Business Park vicinity

Joe Rothchild, Broker | 713-857-0567 | rothchil@yahoo.com 920 South Fry Road, Katy, Texas 77450

MARCH 2019

17

Each office independently owned and operated


A A Sea Sea of of Change Change A Sea of Change

By:By: Brandi Brandi Smith Smith and and Paul Paul Chavez Chavez By:equipment Brandi Smith and Paul Chavez TheThe appearance appearance of road of road construction construction equipment is not is not typically typically

something something we celebrate, we celebrate, but but it isitaissign a sign of progress of progress for the for the citycity of of TheSeabrook, appearance of construction equipment is not typically Seabrook, which which hasroad has been been watching watching and and waiting waiting for work for work to start to start something we celebrate, but itHighway is a sign of progress for the city of on the on the expansion expansion of State of State Highway 146.146. Seabrook, which has been watching and waiting for work to start on the expansion of State Highway 146.for new “This “This pproject pproject hashas presented presented a challenge a challenge for new development development for for the the greater greater partpart of two of two decades,” decades,” sayssays PaulPaul Chavez, Chavez, director director of the of the “This pproject has presented a challenge for new“Now development fortell Seabrook Seabrook Economic Economic Development Development Corporation. Corporation. “Now we can we can tell thepeople, greater part of two decades,” says Paul Chavez, director of the people, ‘Yes,‘Yes, it’s finally it’s finally happening.’” happening.’” Seabrook Economic Development Corporation. “Now we can tell people, ‘Yes, happening.’” SH146 SH146 runs runs through Seabrook Seabrook andand serves serves as aasdirect a direct route route be- bethit’sthrough thfinally tween tween Houston Houston andand Galveston. Galveston. TheThe highway highway hashas become become so conso conSH146 runs through Seabrook and serves a directitroute th hashas gested, gested, TxDOT TxDOT expressed expressed interest interest in overhauling inasoverhauling for it nearly forbenearly tween Houston and Galveston. The highway become so con20 years. 20 years. Finally, Finally, in mid-February, in mid-February, Phase Phase 1 of1has construction of construction began. began. gested, TxDOT has expressed interest in overhauling it for nearly 20 years. Finally, in mid-February, Phase 1 of construction began. “It feels “It feels good good to finally to finally havehave thisthis project project rolling rolling forward forward because because it's delayed it's delayed many many upgrades upgrades to existing to existing franchises. franchises. There There hashas been been a lota of lotuncertainty of uncertainty about about when when it was it was going going to begin to begin andand whether whether it was it was going going to begin, to begin, quite quite honestly,” honestly,” Chavez Chavez says. says. “It feels good to finally have this project rolling forward because it's delayed many upgrades to existing franchises. There has been a lotcame of came uncertainty about when itTxDOT, was going begin and it was going toAdministration, begin, quite honestly,” Chavez says. Certainty Certainty in October in October 2015, 2015, when when TxDOT, in partnership intopartnership withwhether with the the Federal Federal Highway Highway Administration, announced announced thatthat it would it would widen widen SH146 SH146 up to up12 to lanes 12 lanes from from the the current current fourfour lanes. lanes. ThatThat alone alone spurred spurred a new a new energy energy in Seabrook, in Seabrook, which which is located is located justjust 30 30 Certainty came October 2015, when TxDOT, in partnership with the Federal Highway Administration, announced that it would minutes minutes south south ofinHouston. of Houston. widen SH146 up to 12 lanes from the current four lanes. That alone spurred a new energy in Seabrook, which is located just 30 south of Houston. “minutes A lot “A of lotthe of the businesses businesses along along the the SH146 SH146 corridor corridor havehave been been relocated relocated or shut or shut down. down. Several Several of the of the buildings buildings are are getting getting demoldemolished,” ished,” sayssays Chavez. Chavez. “We're “We're starting starting to see to see thatthat happen happen at aatmuch a much faster faster raterate thanthan earlier, earlier, so that's so that's good. good. We're We're starting starting to see to see “A lot ofprogress.” the businesses along the SH146 corridor have been relocated or shut down. Several of the buildings are getting demolthat that progress.” ished,” says Chavez. “We're starting to see that happen at a much faster rate than earlier, so that's good. We're starting to see thatTxDOT progress.” TxDOT is also is also working working withwith pipeline pipeline companies companies andand withwith the the citycity on relocating on relocating utilities. utilities. Right-of-way Right-of-way acquisition acquisition is also is also ongoongoing.ing. Phase Phase 1 will 1 will focus focus on widening on widening the the northbound northbound Clear Clear Creek Creek bridge bridge andand building building a new a new northbound northbound frontage frontage road. road. When When thatthat TxDOT iscrews also working with pipeline companies with the city on relocating utilities. Right-of-way acquisition is also ongois done, is done, crews willwill start start on Phase on Phase 2: widening 2: widening theand the southbound southbound Clear Clear Creek Creek bridge, bridge, building building a new a new southbound southbound frontage frontage road road andand ing.constructing Phase 1 will focus widening thebridge. northbound Clear Creek bridge building a new northbound frontage road. When constructing the the bulk bulk ofon aofnew a new express express bridge. Then Then comes comes Phase Phase 3, which 3,and which will will rebuild rebuild andand raise raise SH-146’s SH-146’s main main lanes, lanes, and andthat is done, will start finishing on Phase 2: widening thebridge. southbound Clear Creek bridge, building newyears, southbound frontage road and Phase Phase 4,crews which 4, which involves involves finishing the the express express bridge. TheThe project, project, slated slated to be to finished be finished in five inafive years, alsoalso includes includes more more greengreenconstructing the bulk of a new express bridge. Then comes Phase 3, which will rebuild and raise SH-146’s main lanes, and ery ery andand landscaping. landscaping. Phase 4, which involves finishing the express bridge. The project, slated to be finished in five years, also includes more greenery and landscaping.

18

MARCH 2019

Your Your Busin Busi Your Busi

Paul Paul Chavez Chavez | pchavez@seabrooktx.gov | pchavez@seabrooktx.gov 281-291-5730 281-291-5730 | seabrookedc.com | seabrookedc.com Paul Chavez | pchavez@seabrooktx.gov 281-291-5730 | seabrookedc.com


iness Belongs in Seabrook iness Belongs in Seabrook

MARCH 2019

19


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HANKAMER & ASSOCIATES BROKERS, L.L.C.

Hospitality Consulting Services 40 Years Experience As Hotel Developer, Owner/Operator and Commercial Broker

Offering Properties & Hotel Consulting

PROPERTIES AVAILABLE • 1/3 Acre - Clarewood @ Atwell - Houston • Freeway Sites - I-20 - Monahans, TX (Permian Basin) • 30 Acres Commercial/Rail Serviced - Tomball, TX • 12 Acres Residential/Commercial - I-45 - Huntsville, TX • Hotels - Statewide

20

Ray Hankamer, Jr MARCH 2019 713.922.8075

rhankamer@gmail.com / www.hankamer.com


GATEWAY TO THE GULF

+/- 8.5 ACRES

Potential Hotel Site TAP INTO TOURISM PRICED TO SELL PRIME I-45 FRONTAGE INCENTIVES AVAILABLE

● Tap

in to tourism marketing including Galveston cruise ship terminal, Kemah Boardwalk, NASA, Magical Winter Lights

● Geographic

Center of Galveston County; just 4 miles south of Galveston Island and 15 miles south of Houston

● Protected

by hurricane levee system

TRAFFIC COUNTS Interstate 45 at Vauthier - 59,449 Source: TxDOT 2017

PROPERTY INFORMATION Interstate 45, Exit 11 - high traffic corridor connecting Houston’s business deals, Texas City’s petrochemical complex and Galveston Island’s tourism industry 45 Expansion bringing improved intersection with turn lane, community branding, landscaping. Current road offers north and south bound access $1 Billion investment for new road infrastructure in La Marque and Galveston County over next 10 years Owned by EDC offering incentives for hotels

DEMOGRAPHICS (Based on 2018 data)

Alex Getty, Executive Director

La Marque Economic Development Corporation agetty@lmedc.com 409-938-9258

Variable

La Marque

RTA

2018 Population

15,794

104,386

Average HH Income

$63,092

$77,487

38.56

38.48

Median Age

* RTA – Retail Trade Area; the geographic area from which 21 MARCH 2019 retailers derive approximately 80-85% of their business.


22

MARCH 2019


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

MARCH 2019

23


CENTRAL SOUTH TEXAS

MARCH

2019 1

Friday

4 Monday

ULI San Antonio - Young Leaders Steering Committee Meeting [7:30am - 9:00am]

13 Wednesday

CCIM Central Texas - CI 103 Course [8:30am - 5:00pm]

14 Thursday

REC Austin - Regional Update in Kyle *Members Only [12:00pm - 1:00pm]

BOMA Austin - Joint Luncheon with AAFAME [11:30am - 1:30pm] CREW San Antonio - Luncheon: Economic Update [11:30am - 1:00pm] ULI Austin - Young Leaders Cheers & Chat: Foundation Communities *YL Members Only [11:30am - 1:00pm] CCIM Central Texas - Networking Social & Happy Hour [5:30pm - 7:30pm]

6 Wednesday

IREM Austin - Future Leader Group Tour [9:00am - 10:00am]

7 Thursday

REC Austin - RECA 101 [8:00am - 9:00am]

CBA Austin - Luncheon [11:30am - 1:00pm]

18 Monday

IREM Austin - Asset Management Track [8:00am - 5:00pm]

21 Thursday

TABB Austin - Luncheon [11:30am - 1:00pm]

25 Monday

REDNews Newsletter [4:00pm]

27 Wednesday

ULI Austin - Breakfast: City of Austin Strategic Mobility Plan (ASMP) [7:30am - 9:00am]

REDNews Newsletter [4:00pm]

REDNews Newsletter [4:00pm]

12 Tuesday

CREW Austin - March Money Madness - Meet the Money [11:30am - 1:00pm] ULI Austin - Greater Austin Regional Lunch: ProjectConnect [11:30am - 1:00pm] REDNews April Issue Deadline [5:00pm]

REC San Antonio - 27th Annual Main Event/Fight Night [6:30pm - 10:00pm]

CREW Austin - Lunch & Learn: Creating Employee Engagement, Wellbeing and Community with Art [11:30am - 2:00pm]

CREW Austin - Hard Hat & Heels [10:30am - 2:00pm]

11 Monday

CTCAR - Property Information Exchange: “Savings with Cost Segregation” [7:30am - 9:00am] ULI Austin - Coffee Chat (South) - Learn how to get involved with ULI [8:00am - 9:00am]

REDNews Newsletter [4:00pm]

5 Tuesday

BOMA Austin - Emerging Professionals Meat & Mingle Dutch Lunch [11:30am - 12:30pm]

CTCAR - Luncheon @ Maggiano’s “Economic Forecast” [11:30am - 1:00pm] TABB San Antonio - Luncheon [11:30am - 1:00pm]

28 Thursday

REDNews/REPC - Real Estate Opportunity Zones [8:00am - 12:00pm] BOMA Austin - BOMI Course - Law & Risk Management [8:00am - 5:00pm] BOMA Austin - TOBY Workshop [8:30am - 10:00am] IREM San Antonio - Board Meeting *Invitation Only [10:00am - 10:30am]

24

MARCH 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

what’s going on

RECA reca.org RECSA: recsanantonio.com/ RETAIL LIVE: retaillive.com 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 San Antonio

CREW Austin

CTCAR

o Board of Directors

The 2019 CREW San Antoni

Past Presiden

ts of CREW Sa

n Antonio

MARCH 2019

25


NORTH TEXAS

MARCH

2019

1

Friday

ULI North Texas - New & Prospective Member Coffee Tarrant County Spring 2019 [8:00am - 9:00am]

18 Monday

BOMA Dallas: Foundations of Real Estate Management [9:00am - 4:00pm]

REDNews Newsletter [4:00pm] NAIOP North Texas - Mayoral Forum [5:30pm - 7:30pm] TREC Dallas - Developing Dallas: 2019 Mayoral Forum [5:30pm - 7:00pm]

4 Monday

REDNews Newsletter [4:00pm]

5 Tuesday

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

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

BOMA Dallas - Industrial Lunch & Learn [11:30am - 1:00pm]

Greater Fort Worth Association of Realtors - Discovering Commercial Real Estate [1:00pm - 4:00pm]

19 Wednesday

BOMA Fort Worth - SAC Meeting *Invitation Only [3:00pm - 4:00pm]

21 Thursday

BOMA Dallas - Luncheon, Sponsored by Guard Texas [11:00am 1:00pm]

NTCAR - 2nd Quarter Membership Meeting [7:30am - 9:00am]

6 Wednesday

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

7 Thursday

IREM Dallas - College Case Competition Luncheon [11:30am - 1:00pm]

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

BOMA Dallas - Bring Your Boss Happy Hour [5:00pm - 8:30pm]

BOMA Fort Worth - Top Golf 2019 [5:00pm - 8:00pm]

TREC Dallas - Casino Night [7:00pm - 10:00pm]

8 Friday

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

11 Monday

REDNews Newsletter [4:00pm]

12 Tuesday

REDNews April Issue Deadline [5:00pm]

14 Thursday

26

NTCAR - Tenant Representation: Process & Analysis + Legal I & Legal II [8:30am - 5:30pm]

MARCH 2019

Greater Fort Worth Association of Realtors - Charter School Field Trip [8:30am - 12:00pm] IREM Fort Worth - Luncheon [11:30am - 1:00pm]

25 Monday

CCIM North Texas - Introduction to Development Workshop [8:00am - 1:00pm] REDNews Newsletter [4:00pm]

28 Thursday

REDNews/REPC - Real Estate Opportunity Zones [8:00am - 12:00pm] NTCAR - Young Professionals Forum 1st Quarter Meeting [5:00pm - 7:00pm] TABB Dallas - Luncheon [11:30am - 1:00pm]

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


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

what’s going on

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

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

UNT advanced Real Estate Students atten

ding the Apt Association of Dallas Education Convention

Strive Symposium REC Fort Worth

Photo Credit: KelleMoulton.com

BOMA Dallas, Billingsley Tea

m Awards

CREW Dallas

BOMA Dallas

MARCH 2019

27


SOUTHEAST TEXAS

MARCH

2019

1

Friday

CREN Gulf Coast- Luncheon [11:00am - 1:00pm]

4 Monday

REDNews Newsletter [4:00pm]

5 Tuesday

CCIM Houston/Gulf Coast - CI 101: Financial Analysis for Commercial Investment Real Estate [8:00am - 5:00pm]

6 Wednesday

BOMA Houston - Read Your Boss’ Mind: Workshop Seminar [8:00am - 5:00pm] CREW Houston - Luncheon [11:30am - 1:00pm]

8 Friday

BOMA Houston - Women in BOMA: A Great Day with Deborah Duncan [8:00am - 5:00pm]

11 Monday

REDNews Newsletter [4:00pm]

12 Tuesday

CORENET Houston - Breakfast Meeting [7:30am - 9:30am] REDNews April Issue Deadline [5:00pm]

13 Wednesday

CREAM The Woodlands - Luncheon [11:30am - 1:00pm]

14 Thursday

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

18 Monday

REDNews Newsletter [4:00pm]

19 Tuesday

CREN Gulf Coast- Property Information Exchange [11:00am - 1:00pm] IREM Houston - Public Policy Committee *Members Only [11:30am - 12:30pm]

20 Wednesday 21 Thursday 22 Friday

BOMA Houston - Foundations of Real Estate Management [8:00am - 5:00pm] BACREN - Luncheon [10:30am - 1:00pm] BOMA Houston - Luncheon: Recession is Coming. But When? [11:00am - 1:30pm] IREM Houston - What Asset Managers Want [8:30am - 10:30am]

25 Monday

REDNews Newsletter [4:00pm]

27 Wednesday

ULI Houston - 2019 Urban Marketplace [8:00am - 5:00pm]

28 Thursday

REDNews/REPC - Real Estate Opportunity Zones [8:00am - 12:00pm] TABB Houston - Chapter Meeting [11:30am - 1:00pm] BOMA Houston - Board of Directors Meeting *Invitation Only [11:30am - 1:00pm] CREN Gulf Coast- Happy Hour [4:30pm - 7:00pm]

29 Friday

28

FBSCR - Monthly Meeting [8:00am - 9:00am]

MARCH 2019

IREM Houston - Golf Tournament [9:30am - 5:00pm]

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


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

what’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

BOMA Houston

CREW Houston’s 2019 Annual Economic

BACREN

Outlook

ncheon

CREN Gulf Coast Lu

CREMM Yoga Event

CREMM Yoga Event MARCH 2019

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CENTRAL SOUTH TEXAS

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DAVID THIBODEAUX has joined Newmark Knight Frank as senior managing director for its valuation & advisory division based in Austin.

AUSTIN, TX

CIBOLO, TX

Photo: Austin Business Journal

AMAZON LEASES HALF OF DOMAIN 10 Amazon is leasing 145,000 sf on four floors which is half of Domain 10 tower & they currently occupy approximately 250,000 sf in the Domain 7 & 8 towers. Endeavor & TIER REIT Inc are the developers of the project located off Loop 1/Mopac. WINERY & TAPROOM MOVE TO EAST AUSTIN Infinite Monkey Theorem is relocating to an 11,489 sf former warehouse at 702 Shady Lane this spring. Spencer Holbert with JLL negotiated the lease for the tenant. GOOGLE LEASES BLOCK 185 Google has pre-leased the 35-story, 723,000 sf office building known as Block 185 located at 610 West Second Street. Trammell Crow is the developer of the building & CBRE handled the leasing. Google currently has more than 800 employees in the 500 West 2nd building adjacent to this building. MORE COWORKING SPACE IN AUSTIN New York-based Industrious LLC will open a second location of 23,658 sf at 823 Congress Avenue in the third quarter of 2019. PGA SUPERSTORE TO OPEN PGA Superstore will open its first Austin location in 30,050 sf at The Shops at Arbor Walk at 10515 N. Mopac. Cole Brodhead with Edge Realty Partners represented the landlord & Jeff Smith with Stonecrest Investments represented the tenant. MEDICAL CENTER SOLD Attila Management & a group of private investors have purchased the 19-bed acute care hospital located at 3003 Bee Caves Road.

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MARCH 2019

MIRAVAL AUSTIN SPA TO OPEN Hyatt has opened its Miraval spa at 13500 FM 2769 overlooking Lake Travis on 220 acres. The property was formerly known as Travaasa Austin & was purchased by Hyatt in 2016 for redevelopment. HILLWOOD BUYS SOUTHPARK COMMERCE CENTER Hillwood purchased the three-building, 350,171 sf office complex located at 4500 S. Pleasant Valley Road from Transwestern Development Company. The seller was represented by Trent Agnew, Adam Herrin, John Taylor, Stephen Bailey & Dom Espinosa with HFF.

Photo: AQUILLA Commercial

FORMER SUPER WALMART BECOMES OFFICE SPACE The former super Walmart located at 8201 N. FM 620 has been redeveloped into 225,000 sf of modern office space know as The Preserve at 620 by San Diego- based owner, PacVentures, Inc. Corning Optical Communications LLC recently leased 52,000 sf with plans to occupy the space second quarter 2019.

SHERWIN-WILLIAMS BUILDING SOLD A local Austin investor sold the 12,805 sf Sherwin-Williams building located at 5795 Airport Blvd to a private investor from Fort Worth. James Anderson with STRIVE represented the seller & Daniel Wenz with STRIVE represented the buyer.

SENIOR LIVING COMMUNITY UNDER DEVELOPMENT Civitas Senior Living & Trepex Construction are building a 192,981 sf independent living & 54,840 sf assisted living & memory center called The Brooks of Cibolo just outside the Bentwood Ranch development.

LAREDO, TX

ROBSTOWN, TX OUTLETS AT CORPUS CHRISTI BAY SOLD Oklahoma-based Real Estate Holdings LLC purchased the Outlets at Corpus Christi Bay through a foreclosure bid of more than $42 million. The buyer has hired Fort Worth-based Woodmont Company to operate the outlet mall which has remained open despite going through foreclosure. Woodmont plans to bring restaurants & entertainment facilities to the mall.

ROUND ROCK, TX Photo: AQUILLA Majestic Realty

MAJESTIC REALTY CONSTRUCTING 423,280 SF SPEC BUILDING Majestic Realty is constructing building 2 at Port Grande Logistics Port which will include 423,280 sf and is projected for completion fourth quarter 2019. The building is located at 1402 Carriers Drive which is 10 miles from the Port of Laredo commercial border crossing. Majestic Realty purchased the 2000-acre Port Grande land site from a subsidiary of Mercedes-Benz in 2015 with plans to fully redevelop the property. 132,000 SF WAREHOUSE DEVELOPMENT An affiliate of Fort Worth-based Tailwind Real Estate Equities LLC purchased 10.5 acres for the development of a 132,000 sf warehouse. Completion is scheduled for early 2020.

REEVES/JEFF DAVIS COUNTIES

37,000 ACRE KC7 RANCH SELLS Paul Foster, CEO of El Paso-based Franklin Mountain Capital purchased the 37,000-acre KC7 Ranch for $32 million with cash out of bankruptcy from Fort Worth oilman Thomas Darden.

DIAMOND OAKS UNDER CONSTRUCTION A 29.68 acre mixed-use development at 3750 E. Palm Valley Drive is underway across from Kalahari Resorts & Conventions on Hwy 79. The development will include a 13,545 sf retail center & restaurants as well as 120 homes & a hotel.

SAN ANTONIO, TX

LAND & INDUSTRIAL BUILDINGS SELL Taylor Street Venture LP purchased 4.7 acres including 78,353 sf of older industrial properties in five buildings. Acme Screens Manufacturing, Inc was the seller who was represented by Pruitt Realty. Urban Capital Strategies represented the buyer. THE PREISS COMPANY BUYS STUDENT HOUSING PROPERTY Raleigh, NC-based Preiss Company, et al, purchased the 694-bed Luxx student housing complex that serves the University of Texas San Antonio. Preiss, along with its partners, also recently purchased another student housing project in San Antonio as well as one in North Carolina. CLEAR CHANNEL LEASES 31,096 SF Clear Channel Outdoor Holdings, Inc. has leased 31,096 sf at Pinnacle Oaks Tech Center located at 4830 N. Loop 1604. Claudia & Hank Pruitt with Pruitt Realty represented the tenant & Ed Cross with Cushman & Wakefield represented the tenant.


NORTH TEXAS DAVID DE CARION JOINS LANCARTE COMMERCIAL REAL ESTATE AS VICE PRESIDENT David de Carion joined LanCarte Commercial in December, 2018 and has broad experience in the office, industrial and retail sectors including brokerage, leasing, and investments. David successfully closed over $8 million in

bulletin bulletin transactions in his first year and a half in the commercial industry and enjoys finding creative solutions to match all of his clients’ needs while maximizing their return on investment. LanCarte Commercial Real Estate, a Fort Worth based company, offers brokerage and investment services throughout the Dallas–Fort Worth metroplex. Boutique in nature, the firm offers breadth of

ALEDO, TX COLLIN/DENTON PHASE II BEGINS ON WALSH RANCH COUNTIES Republic Property Group has started

SAM RAYBURNon TOLLWAY EXPANSION construction the 550-home second The NorthofTexas Tollway Authority (NTTA) phase the Walsh Ranch development plans to the is Sam westtoofbegin Fort improvement Worth. The project Rayburn beginning January locatedTollway at the (SRT) intersection of I-20 & I-30 2019 which will begin in Coppell end in & will eventually have 15,000 & homes McKinney. Theresidents project is scheduled to and 50,000 be completed late 2021 & will consist of constructing an additional lane in each direction along the 26-mile tollway from west of Denton Tap Road to US 75.

DALLAS, TX

Source: Texas Alliance of Land Brokers

TRAMMELL CROW BUILDING JMJ DEVELOPMENT RESIDENTIAL TOWER BUYS 2,000 ACRES JMJ Development purchased the 2000+ Trammell Crow Residential is building a acre Bear Creek Ranch from the Dixon 13- Water story, 185-unit luxury residential tower Foundation for nearly $35 million. on The landproperty they purchased Grove is locatedon15Oak minutes west Avenue Hallthe Street & Lemmon of Fortbetween Worth near Walsh Ranch Avenue. The site includes more community. Cynthia Inman withthan Ranch brokeredfrom the sale. oneConnection acre & wasLLC purchased three different property owners.

DALLAS, TX FORT WORTH, TX HALL ARTS HOTEL TO OPEN

Dallas-based HALL Group is developing HARRIS PACKAGING BUYS 101,896 SFa 183-room boutique hotel at Ross Avenue & BUILDING Leonard Street next to KPMGaPlaza at Hall Harris Packaging purchased 101,896 sf building located at 1801 Riverbend West Arts. The developer is also constructing Drive from Stage28-story Industrial. Seth Koschak a $250 million, residential tower & which Forrest with Stream is Cook set to open in 2020.Realty represented the seller & Terry Anderson with BJ Anderson represented the buyer. EQUINIX ADDING NEW DATA CENTER FACILITY Equinix purchased the Dallas Infomart building in 2018 for $800 million & is NACK DEVELOPMENT CONSTRUCTING MIXED-USE PROJECT planning to build a $138 million data Nack Development has startedbuilding center next to the existing construction a three-story, 38,500 sf located aton Stemmons Freeway & Oak building Patios the Rail will Lawn called Avenue. Theatnew datawhich center is include office, to retail & restaurant scheduled open in 2020. space near Main Street in historic downtown. This project is in addition to their Tower at the Rail residential & commercial project 717 HARWOOD ADDS TENANTS which is underway. Roofstock, Inc, a financial technology company, leased 10,038 sf & American HALL GROUP ADDING HIGH-RISE College of Education, Inc leased 6,011 sf at DEVELOPMENT 717 Harwood. & Fletcher Developer HALLThom GroupRidnour has received Cordellto with the to approval addCBRE 2000represented residential units landlord. Frank McCafferty with Saville HALL Park including building towers more Studley represented Roofstock & than 25-floors tall. The 162-acre project is Brooke Armstrong & Scott Hage with located along Dallas Parkway. JLL represented ACE.

FRISCO, TX

Source: Oaxaca Interests

W&B REFRIGERATION BEING CONVERTED TOESTATE ENTERTAINMENT NUVEEN REAL LEASES AT CENTER UNION TOWER Oaxaca is converting NuveenInterests Real Estate, an arm ofthe TIAA, and former 10,000 sf company W&B Refrigeration a management with $125 billion Service Company building, withnew its in assets, has leased spacealong for their loading areas, into a retail, restaurant & Dallas regional office at Cedar Springs entertainment complex located at Field 660 Fort Road & Field Street (2300 North Worth 50% of the Street)Avenue. in UnionApproximately Tower. space is reportedly pre-leased. SALES FORCE CONSOLIDATES AT 2300 NORTH FIELD CRM giant Salesforce will consolidate workers from across North Texas to FORMER COUNTRY CLUB BECOMES reportedly more than 100,000 sf in the SPECIAL COMMUNITY 420,000NEEDS sf building located at 2300 The former Eastern North Field Street.Hills ClayCountry Vaughn & Club located onwith 178-acres 3000 S. Preston Lynn CBREatrepresented Country Club&Road purchased the tenant Johnwas Brownlee, Gini byRounsaville the nonprofit organization, & Brooke OliverMy with Peloton Possibilities, forthe thelandlord. development of an represented inclusive special needs community which CYPRESS REAL ESTATE SELLS incorporates both the general publicRETAIL & CENTER adults & families with special needs. Cypress Real Estate Advisors sold the 63,209 sf Shops at Lake Highland Town Center to First Washington Realty. ZALES HQ BEING CONVERTED TO of The project is located at the corner OFFICE Walnut Hill Lane & Skillman Street. Coppell-based Varidesk purchased the former 424,000 sf office building which was formerly Zales headquarters and has plansRto convert the building into TOYS US TO BECOME ADVENTURE anPARK active workplace environment called Varispace Las Toys Colinas. building The former R Us The located at is located a 15-acre sitereportedly located at 901 801 S.on Mesa Hills will be West Walnut Hillinto Lane. transformed a 50,000 sf Urban Air Adventure Park. Urban Air is a Dallasbased indoor entertainment facility with trampoline/recreation & entertainment 1.6areas MILLION SF ELECTRONIC DATA for kids. They currently have 80 SYSTEMS SELLS sites in the US. Dallas-based Highland Capital has purchased the 1.6 million sf former Electronic Data Systems office complex located on Legacy Drive just eastLEASES of STANLEY BLACK & DECKER the NorthSF Tollway from DXC 1.2Dallas MILLION Technology. The&sale consisted of 1.2 two Stanley Black Decker leased eight-story & the transaction million sqbuildings for a distribution center within was handled by CBRE. Alliance which they will open in March at I35W & SH 114.

GARLAND, TX

IRVING, TX

EL PASO, TX

PLANO, TX

FORT WORTH, TX

experience and acumen that rivals nationally recognized real estate companies.

BILLINGSLEY EXPANDS INTERNATIONAL BUSINESS PARK Billingsley has signed new leases & will start construction on the next section of its office campus within International Business Park. The project will include an additional five-buildings at 6161 Plano Parkway within the 300-acre mixed-use project. BANK OF AMERICA BUILDING SELLS Austin-based Capital Commercial Investments purchased the five-story, 231,479 sf Bank of America building located at 6400EXPANDING Legacy DriveALLIANCE situated HILLWOOD on 16 acres. is It is directly adjacent to a Hillwood developing three new portion of Plano’s Legacybuildings West & the speculative industrial which Campus at Legacy West. salesfwas will include close to 1.5The million in their brokered byproject. JLL. Alliance LEGACY WEST BUILDING OFFICE/ RETAIL INSTEAD OFBUYS HOTEL TRANSWESTERN IN ALLIANCE President & CEO of The Karashan SUBMARKET Cos., the developer of Legacy DHL Supply Chain sold their West, 1.2 million sf announced that due to demand, they cross dock buildings located at 15453 will be building 87,000 sf Chaplin of office Drive spaceto Wolff Crossing & 1753 Transwestern Investment Group. Dustin Volz with JLL represented DHL in the transaction.

PLANO, TX

scheduled for completion next summer. AMERICAN CRAFTSMAN/FARMHOUSE DEVELOPMENT Shaddock Caldwell is building an 18-home development called Mimosa Place near CoitSOLD & Campbell The NTT DATA DATA roads. CENTER homes will be built in American craftsman CAMPUS or farmhouse ranging price sf GI Partners styles purchased the in 1 million+ between & $1located million.at 2300 W. office &$800,000 tech complex Plano Parkway from NTT Data who will

ROWLETT, TX on a long-term lease back the property

lease. GI Partner also purchased an NTT CITY SUES CRYSTAL LAGOON data center in Quincy, Washington. DEVELOPER The City of Rowlett has filed suit against Bayside Land Partners LLC & Bayside District Partners, the proposed 121,420 SF OFFICE BUILDING SOLD developers of a $1 billion mix-use Pillar Commercial & Ascent Real Estate development to be called Bayside. Advisorsto purchased a 121,420 sf office According the city, the developer made building changes located at 2703 Telecom significant to the original agreedParkway. Jennings & Andrew upon projectJamie including the elimination of Rabinovich withdifferentiators, Stream Realtyone of several important represented the seller. which was the artificial lagoon.

RICHARDSON, TX

SAGINAW, SACHSE, TX TX

NEWMILLION RETAILMIXED-USE DEVELOPMENT UNDER $250 CONSTRUCTION DEVELOPMENT ANNOUNCED Segovia Group is PMB CapitalRetail Investments is leasing building aa new retail center at the southeast $250 million development, The Station, LAKESIDE CENTER GETS OFFICE corner Basswood Blvd & North Blue which willof feature residential, commercial APPROVAL Road calledonVictory Shops & Mound retail development both side of at The city of Flower Mound has approved Realty Capital Management’s ten-acre the George Bush Turnpike betweenis being Basswood. The development Lakeside Center project which will include Miles Merritt The built&over 26Roads. acres & willdevelopment include 19 Source: Dallas News Staff Photographer two office buildings totaling 138,500 sf encompasses 119 acres upon building including a & Lidl grocery store. CENTURION AMERICAN near FM 2499 & Northwood Drive. completion will include 400,000 of Other tenants include Chase sfBank, DEVELOPMENT TRANFORMING commercial & retail space, more than 600 Jersey Mike’s Subs, Chipotle, Verizon, MENTAL HOSPITAL apartments & over 250 residential homes. Chick-Fil-A, etc. Centurion American Development Group NEXT PHASE OF STATION plans to transform theFRISCO defunct Timberlawn GRIFFIN PARTNERS BUYS ZACHRY’S Hillwood,Health Van Trust Real Estate & the Behavioral System psychiatric HQ Rudman Family Partnership are jointly hospital campus located on Samuell Blvd Houston-based Griffin Partners NIAGARA BOTTLING BUILDING NEW developing Frisco Station & have into a residential neighborhood. The FACILITY Zachry Corporation’s 84,000 sf started the encompasses next phase ofnine the building $1.5 billion purchased development includes a $43.5 million Niagara Bottling LLC has started onproject nearly which 50 acres. headquarters building located at 2330 apartment project. The 240-acre mixed- N.construction on ain450,000 sf bottling Loop 1604 West a sale/leaseback usemore development is located onspace the with than 24,000 sf of retail facility which is phase one of their $90 agreement. DallasofNorth Tollway. instead a hotel within their next million development on 50 acres in the phase of Legacy West. The project will BRAUN TOIndustrial REDEVELOP Temple Park.OFFICE commence next month at Headquarters BUILDING Drive & Windrose Avenue within the MEDICAL CENTER UNDER After acquiring the 187,000 sf office Legacy West Urban Village. CONSTRUCTION building at 84 OPENING NE Loop 410INabout six ACADEMY Covenant Medical Center has started months ago, Braun Enterprises will CROSSROADS construction on its new 220,000 sf redevelop theSports property&toOutdoors include 20,000 sf Academy is Hope Tower which is located at 3615 KDC BUILDING 5TH DATA CENTER developing a store at Crossroads at of retail space & is also adding a multi19th Street. The hospital will have Dallas-based KDC is building their fifth 89 bedscenter with room forE.60 more. Drive. Terrell, the garage. 275,000 sf center located level parking database at 1510 Lookout Construction the130,000 $125 million at I20 & FM 148. Opening is scheduled The building willon have sf & isproject is expected to take two years. for Fall 2019.

FLOWER MOUND, TX

FRISCO, TX

TEMPLE, TX

LUBBOCK, TX

TERRELL, TX

RICHARDSON, TX

MARCH 2019 MARCH 2019

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SOUTHEAST TEXAS

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New York-based Almanac Realty Investors is funding Welcome Group LLC up to $300 million to add more office & industrial buildings to their portfolio.

BAYTOWN, TX 225 ACRE INDUSTRIAL DEVELOPMENT Adkisson Group Inc purchased 225 acres on the west side of Grand Parkway, just south of I10 East for the development of Bay 10 Business Park from Parkside Capital. The developer will offer sites for sale or build to suit & will soon begin construction on 10,000 sf to 30,000 sf freestanding buildings.

CONROE, TX DICK’S SPORTING GOODS TO OPEN Dick’s Sporting Goods is leasing 45,000 sf in the 336 Marketplace shopping center in Johnson Development Company’s Grand Central Park project.

DEER PARK, TX ECOSERV OPENING 36,000 SF FACILITY Industrial cleaning & robotics company, Ecoserv, is opening a new 36,000 sf facility on US Hwy 167. The company specializes in environmentally friendly industrial cleaning for chemical plants & refineries.

HOUSTON, TX BOUTIQUE HOTEL IN THE HEIGHTS Ben & Bob Ackerley are building a 37room boutique hotel at 347 W. 20th Street which is scheduled to break ground within the next 6 – 9 months with completion by December 2021.

Midtown’s broader innovation district which will ultimately incorporate commercial development, housing, public spaces & infrastructure within 16 acres. MORE CO-WORKING SPACE International coworking company, Spaces, leased 63,000 sf in 1201 Fannin & 60,789 sf in CityCentre located near I10 & Beltway 8. Damon Thames, Connor Saxe & Vince Strake represented the tenant at 1201 Fannin & Michael Anderson & Connor Saxe handled the CityCenter lease. MENTAL HEALTH HOSPITAL TO BE BUILT A 220,000 sf mental health hospital with 240 beds within 10 units will be built adjacent to the UTHealth Harris County Psychiatric Center at 5601 W. Leland Anderson Street near the Texas Medical Center. Construction is expected to begin summer 2019. GRANITE PROPERTIES BUYS ELDRIDGE PLACE Granite Properties purchased the 824,632 sf Eldridge Place office complex which includes three buildings located at 737, 757& 777 N. Eldridge Parkway from TIER REIT Inc. Jeff Hollinden & Martin Hogan with HFF represented the seller & Scott Martin & Paul Bennett with Granite represented their company.

Photo: Cityfeet.com

Photo: HFF

BRAUN BUYS OFFICE RETAIL COMPLEX WEDGE Properties sold their 193,853 sf office retail project located at 5353 & 5373 West Alabama to Braun Enterprises who plans to extensively remodel the interior of exterior of the buildings. Davis Adams,Wally Reid & Kelly Layne with HFF represented the seller. MIDTOWN’S INNOVATION DISTRICT The transformation of the former Midtown Sears building into an innovation hub is expected to be the first phase of 32

MARCH 2019

HARTMAN BUYS 11211 KATY FREEWAY BUILDING Hartman vREIT, Inc purchased the 77,882 sf office building located at 11211 Katy Freeway. The building is currently 68% leased. MEDISTAR BUILDING MIXED-USE OFFICE TOWER

Houston-based Medistar Corp will begin construction on the 476,500 sf Innovation Tower in the third quarter of 2019. The project will be built at 6700 Main which was formerly occupied by a hotel. The tower will be connected via a skybridge to Medistar’s hotel/multi-family facility across the street.

Photo: Forney Construction

HOUSTON ENDOWMENT BUYS BUFFALO BAYOU LAND Houston Endowment, Inc purchased 1.5 acres at 3615-3683 Willia Street near the intersection of Memorial & Waugh which overlooks Spotts Park. The buyer plans to construct a 35,000 sf – 40,000 sf building on the site which they will occupy. Cushman & Wakefield represented Houston Endowment in the purchase. H-E-B BUILDING STORE IN THIRD WARD H-E-B has broken ground on a 90,000 sf store at SH 288 & MacGregor Way on nine acres. It is expected to open by year end. MUREX PETROLEUM CORP LEASES 20,423 SF OFFICE Houston-based Murex Petroleum Corp leased 20,423 sf 363 N. Sam Houston Parkway E. Terri Torregrossa & Kurt Kistler with Moody Rambin represented the owner, TA Realty Associates & Ryan Fasset & Josh Marcell with Moody Rambin represented the tenant.

KATY, TX ENERGY RECOVERY’S COMMERCIAL DEVELOPMENT CENTER Energy Recovery, Inc, a leader in pressure energy technology, leased 25,000 sf on 4 acres at Energy Park West Business Park in Katy. The site will include a 25,000 sf facility in addition to a two-acre yard for field testing & product development. Bob Berry & Jacob Bravo with Avison Young represented the tenant & Mark Kidd, Sr. & Mark Kidd, Jr. represented the landlord.

KINGWOOD, TX MEDICAL OFFICE BUILDING SELLS Windland Kingwood Investments LLC purchased a 29,658 sf medical building located at 2627 Chestnut Ridge Road. McAlpine Interests represented the seller & Proximity Commercial Advisors represented the buyer.

MAGNOLIA, TX LONE STAR COLLEGE BUYS PROPERTY Chris & Gail Osborne sold 35 acres to

Lone Star College for the construction of the new Long Star College-Magnolia Center which is scheduled to open in 2021. The property is located at 505 FM 1486. Diana Gaines with The J. Beard Company represented the sellers & Ed Ryland, Elgin Wells & Tiffany Ryland with Arvo Realty Advisors represented the buyer.

ROSENBERG, TX

DOLLAR TREE BUILDING $130 MILLION DISTRIBUTION CENTER Dollar Tree plans to build a $130 million distribution center on 140 acres at Spur 10 near Klosterhoff Road. Construction of the 1.2 million sf facility is expected to begin in spring 2019 with completion by summer 2020.

STAFFORD, TX PHASE ONE OF THE GRID ALMOST COMPLETE The first phase of the $500 million mixeduse project located on the former Texas Instruments site at Kirkwood & W. Airport will be completed this summer. The project is being developed by Dallasbased SteetLevel Investments & Provident Realty Advisors.

SUGAR LAND, TX CITY OF SUGAR LAND LOOKING FOR PARTNER The city of Sugar Land is looking for a private development partner to build & operate a hotel & convention center on city owned property located near US 59 & University Blvd.

THE WOODLANDS, TX MED-DATA LEASES 50,717 SF OFFICE Med-Data Inc leased 50,717 sf at Havenwood Office Park located at 25700 I45 North. Lisa Hughes & Tim Maczko with the J. Beard Company represented the landlord & Kevin Saxe & Alex Hayden with CBRE represented the tenant.


advertiser index AA Realty Company .................................

11

Adkins Properties Company ...................

11

Bearden Investments .............................. 13 Berkadia ...................................................... 3 Buffalo Real Estate Partners, Inc............13 Caldwell Companies ...............................

16

City Bank ..................................................... 2 City of Seabrook ..............................

18-19

Equity Secured Investments..................

15

ERJCC ........................................................... 17 Greenberg & Co. ......................................

15

Hankamer Commercial Brokers, LLC ...

20

Keller Williams Signature......................... 17 La Marque EDC ........................................

21

LanCarte Commercial Real Estate ......... 31 Lane Property Tax Advocates...................... 17 National Environmental Services, LLC .... 35 NewQuest Properties ........................... 1, 7 Opportunity Zones Summit.............. 7, 36 Phase Engineering .................................. 22 Pro Aire ....................................................

20

Showalter Law Firm ................................

15

MARCH 2019

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ray’s buzz BY RAY HANKAMER rhankamer@gmail.com

O’Connor & Associates Hotel Forecast Luncheon

Speakers: David Parker, DPC Hospitality; John M. Keeling, The Valencia (Hotel) Group Takeaway: Nationally and locally hotel occupancy and rates generally line up with job growth, since they are largely impacted by the same economic factors. New development continues, but construction labor costs and hotel operating costs are being driven sharply up due to immigration policies restricting the formerly reliable labor supply. Average hotel wages have gone from $12.80 / hour in 2012 to $14.93 / hour in last 7 years due to demand for workers exceeding supply. ● Opportunity Zone tax legislation creates some incentive to build hotels, although often the zones are in depressed areas not subject to adequate hotel demand and therefore not desirable to developers…

● Katy-West (the Energy Corridor / I-10 ) with 13,000 rooms has experienced softness due to fall in oil prices and company layoffs, but should cycle back up with increasing oil activity…

● Houston’s CBD with many new hotel rooms, restaurants, theatres, and other amenities has become a new ‘staycation’ destination for suburban dwellers looking for a fun weekend close to home…

● Well-run ‘boutique’ or non-franchise brand hotels can have extremely attractive operating results if they are well-located, well-promoted, and well-managed…in Houston, think ZaZa, Sorella, Icon, Alessandra, Derek, Post Oak Hotel, and Granduca. In addition, they do not have to pay 10% + of room sales as franchise fees…

● Galleria area hotels have experienced a mild softness in demand, perhaps because of reduced overflow bookings from guests whose first choice was always the CBD… ● Medical Center hotels (5,500 rooms) continue stable and strong, serving as they do the nation’s largest collection of medical institutions; new hotel development is in progress there but is hampered by very high land costs, some as high as $200 SF… ● The Woodlands, with the same number of rooms as The Galleria and the CBD (about 8,300), does well with the opening of the Grand Parkway and the ExxonMobil HQ, although there is some softness due to slight oversupply…

● There is an almost overwhelming plethora of new brands being created by the big chains such as Hyatt, Marriott, IHG, Hilton, etc. These include unfamiliar names such as Andaz, Canopy, A/C, Hotel RL, Moxy, and Tru…there are many many more as the big chains try to keep growing their revenue to satisfy shareholders… ● There are also loosely affiliated ‘collections’ and ‘referral groups’ with shared reservation systems such as Curio, Luxury Collection, Tribute Portfolio, Historic Hotels, Leading Hotels, and Preferred Hotels…all competing for customers’ attention, and dollars

● The13,000 room IAH market, consisting largely of limited service and budget hotels, has experienced a little softening in demand…

O’Connor & Associates Office Forecast Luncheon

Speakers: Mike Fransen, Parkway Realty, and Bruce Rutherford, JLL Takeaway: To expedite absorption of Houston’s large pool of unleased office space, landlords, leasing agents, and management companies are developing exciting and creative new ways to make buildings more attractive and cost-effective to tenants and their employees. ● Food amenities are being fine-tuned, by working with in-building delis and by scheduling food trucks, to cite only two examples ● Fitness amenities are being added, and in some cases landlords are providing subsidies to membership dues for employees ● Co-working spaces are being added where appropriate so employees can intermingle ● Walkability is being encouraged-common areas are the key to tenant satisfaction, longer leases, and higher rents ● Availability of natural light to work areas is being emphasized-how does a lease space make an employee ‘feel’?

● Houston economy is strong and 2019 may go down as the year in which negotiating leverage moves back to the landlord-already we are seeing shrinking tenant move-in amenities, but rental rates are still ‘soft’ ● All drivers in Houston economy are moving, and creating jobs, except the traditional oil & gas sector-offshore exploration is still uneconomic at current prices ● Overall Houston and Texas future looks good for oil & gas, but more onshore-the Permian Basin alone is said to hold more hydrocarbons than Saudi Arabia ● Distribution is moving to Houston, instead of automatically going to the DFW Metroplex

● Human interaction is important to productivity, and it is being encouraged

● Due to concentrated tenant amenities and walkability, CBD and Galleria may be the first of our sub-markets to return to high office occupancy; Westchase and Energy Corridor may be last to return to strong occupancy

● Tenants are moving up to higher quality buildings while rates are low, and Class A may be the first class to ‘fill up’

● More employees are coming to work by means other than passenger cars-walking, public transportation, bicycles, etc., so parking ratios are being re-thought

● Houston office segment is trying to emphasize that Houston is equally as ‘cool’ a place to move to, and we are in competition with many other cities which have a strong ‘cool’ factor

● Employees who have to commute more than 40 minutes are deemed to be at risk of quitting and looking for work closer to their homes

● The ‘little things’ in an office building environment can make big differences to tenants, who have the upper hand now in the market place 34

MARCH 2019

● The cost of hiring and training employees is so high that companies appreciate office buildings which create a genial atmosphere that helps retain their workers


A 360° approach to environmental services

National Environmental Services Gabriel Environmental Group 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

MARCH 2019

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Real Estate Opportunity

Zones Summit

AL ROSS SIGN GROUP SET TO

MAKE ITS MARK ON HOUSTON

Houston-based equity firm, Al Ross

and Real Estate Tax Deferred Strategies

Breaking New Ground: “We’re committed to delivering the

Group, LLC recently acquired a large sign

best value to you on every

companyEmcee: in Houston, and rebranded to Al John Hammond President & CEO The sign company, in Ross Sign Group. Riverway Title business 27 years has a solid, loyal client

project, whether we’re creating

base and experienced, passionate people.

difference you’ll experience when

With aggressive marketing and a high

working with Al Ross Sign Group.”

Hear Experts Explore the Uncharted Territory of Qualified Opportunity Zones signage that is functional, artistic,

Raudel Garza Manager & CEO Harlingen Economic Development Corporation

or a bit of both. That’s the

level of service, Al Ross Sign Group will quickly inElmore Duane rise Lund to theB. top, Brad J. Simonnot only CEO Vice President Associate Executive Director Houston, the NewQuest country. NAI LegacyTexas, but Baytownacross West Chambers County EDF

Amanda Timm Executive Director LISC Greater Houston

Al Ross, CEO Zach Scott Raj Bandla Economic Development Attorney Manager Greater Locke Lord LLP Houston Partnership

Omar Izfar Attorney Wilson Cribbs + Goren

Chris Goodrich Partner Crady Jewett McCulley & Houren

Craig Bernstein Founder OPZ Bernstein

Cory Older President River City Capital Partners

More speakers to be announced

Register Now!

Title Sponsor:

RIVERWAY TITLE Silver Sponsor:

Expect the best!March 28, 2019

www.resummits.com/HoustonOppZones

Bronze Sponsor:

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

Contact us today to learn more about what we can do for you! 36

713.661.1500

MARCH 2019

|

alrosssigngroup.com

For more information see page 5

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REDNews March 2019 Southeast  

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