REDNews December 2013 SE Texas

December 2013

In this issue: The Shale Revolution FOR 100,000+ CRE BROKERS,INVESTORS & DEVELOPERS

4477 W. Sam Houston Parkway N.

Industrial & Office Development Boom

15011 Katy Freeway

Clay @ Beltway 8

Energy Corridor

Up to 256,000 RSF Available

A Development of: J.A. Billipp Company

Up to 40,283 RSF Available

16200 Park Row

The Pines Business Park

Up to 300,000 RSF Available

6,000 - 40,000 SF Available

The Woodlands

Energy Corridor

Leasing | Property Management | Construction Management & Development PARK ROW

Exterior Renderings

LPC

HOUSTON, TEXAS

National Presence, Local Focus scale: NTS

job#:13013

COPYRIGHT C 2008 O'BRIEN ]www.obrienarch.com

issue date: 11.11.13

THESE DRAWINGS, OR PARTS THEREOF, MAY NOT BE REPRODUCED IN ANY FORM, BY ANY METHOD, FOR ANY PURPOSE, WITHOUT PRIOR WRITTEN CONSENT FROM O'BRIEN & ASSOCIATES, INC.

5847 San Felipe, Suite 4675 | Houston, Texas 77057 | Tel: (281) 248-8060 www.lpchouston.com

EXCELLENT

M ixed U se D evelopment O pportunities

Retail and Office Pad Sites Available

Proposed Live, Work, Play Development

District W est NOW PRE-LEASING

A We s t H o u s t o n M i x e d D e v e l o p m e n t

LO CAT E D AT P E E K ROA D & W E S T PA R K T O L LWAY PROPOSED OFFICE • 6 Buildings (25k SF/Floor) • Over 800,000 SF Proposed • Tiltwall 2-4 Stories • Lake/Park Amenities

PROPOSED RETAIL • Over 1,000,000 SF Proposed • Pad-Sites (Sale/Lease) • Pre-Leasing 25,000 SF Now • AGGRESSIVELY SEEKING RESTAURANTS

IN CONTRACT/DEVELOPMENT 2 Multi-family Sites (600 Units) Senior Living Site (150 bed) 72 Bed Hospital 24 Bed Specialty Hospital National Childcare Facility Sam’s Club

PEEK ROAD

For More Information Contact:

Corey Ferguson 281.860.2272

corey@raintreecommercial.com

Excellent Office & Industrial Space Energy Crossing II - 15011 Katy Freeway

4477 West Sam Houston Parkway North Bldg RBA: 256,000 RSF Available SF: 256,000 RSF Rental Rate: $25.00 per RSF (NNN) Quoted TI: $40.00 per RSF (minimum of a ten yr term) Opex: $9.50 - $11.00 Est. Parking: Parking Ratio – 4/1,000 SF Reserved Rate - $75.00 per space per month

Unreserved Rate – No charge

Bldg RBA: 327, 404 RSF Available SF: 40,283 RSF (2nd Floor) Rental Rate: $24.50 per RSF (NNN) Quoted TI: $40.00 per RSF (minimum of a ten yr term) Opex:

$10.75 Est.

Parking: Parking Ratio – 3.75/1,000 SF A Development of J.A. Billipp

Kevin E. Wyatt

Reserved Rate - $75.00 per space per month

Brandon Brooks

kwyatt@lpc.com 281-248-8062

brbrooks@lpc.com 281-248-8063

Unreserved Rate – No charge

Park Ten Center - 16200 Park Row

Bldg RBA: 142,065 RSF Available SF: 142,065 RSF Rental Rate: $6.00 - $10.00 per RSF (NNN) Quoted TI: $8-$20 per RSF Opex:

$2.57 Est.

Parking: Parking Ratio – 3.75/1,000 SF Reserved Rate - $75.00 per space per month

Kevin E. Wyatt

Brandon Brooks PARK ROW LPC

brbrooks@lpc.com 281-248-8063 Exterior Renderings HOUSTON, TEXAS

Unreserved Rate – No charge

Kevin E. Wyatt

218,488 RSF

Available SF:

25,019 RSF

Rental Rate:

$17.00 per RSF

Quoted TI:

$12.00-$20.00 per RSF (dependent on lease term)

Opex:

$11.71 Est.

Parking:

Parking Ratio - 3.5/1,000 SF

Brandon Brooks

kwyatt@lpc.com 281-248-8062

scale: NTS

job#:13013 COPYRIGHT C 2008 O'BRIEN ]www.obrienarch.com

brbrooks@lpc.com 281-248-8063

issue date: 11.11.13

THESE DRAWINGS, OR PARTS THEREOF, MAY NOT BE REPRODUCED IN ANY FORM, BY ANY METHOD, FOR ANY PURPOSE, WITHOUT PRIOR WRITTEN CONSENT FROM O'BRIEN & ASSOCIATES, INC.

Frost Bank Building - 10333 Richmond Bldg RBA:

kwyatt@lpc.com 281-248-8062

The Pines Business Park - Phase II

Bldg RBA: 300,000 RSF Available SF: 300,000 RSF Rental Rate: $19.00 per RSF (NNN) Quoted TI: $40.00 per RSF

(minimum of a ten yr term) Opex: $9.50 Est. Parking: Parking Ratio – 5/1,000 SF Reserved Rate - $75.00 per space per month

Unreserved Rate – No charge

kwyatt@lpc.com 281-248-8062

Kevin E. Wyatt

Columbia Centre - 11011 Richmond

Reserved Rate: $65.00 per space per month

Bldg RBA: Available SF: Rental Rate: Quoted TI:

Opex: Parking: Reserved Rate:

166,720 RSF 9,255 RSF $15.50-$16.50 per RSF $12.00-$20.00 per RSF (dependent on lease term) $9.79 Est. Parking Ratio - 3/1,000 SF $50.00 per space per month

Unreserved Rate: $35.00 per space per month

Unreserved Rate: $35.00 per space per month

Virgil Hydes

vhydes@lpc.com 713-661-7800

Virgil Hydes

vhydes@lpc.com 713-661-7800

National Presence, Local Focus 5847 San Felipe, Suite 4675 | Houston, Texas 77057 | Tel: (713) 661-7800 | www.lpchouston.com

Fred Hartman Bridge

Table of Contents

Houston Ship Channel

Texas Industrial Market Interviews A Sudden Uptick in Demand

10 – 11

Industrial Real Estate on the Move

14

‘take care of the client’

16 -17

The Shale Revolution

18, 20

Texas Industrial & Office Development Reports Austin

26 - 27

Dallas/Ft. Worth

24 - 25

Houston

22-23

San Antonio

28-29

Ray’s BUZZ

30

Last Page: Commercial Real Estate Business Fundamentals

42

Properties for Sale/Lease

1-3, 5, 7 – 9, 13, 15, 17, 19, 21, 31, 41, 43

Commercial Services Environmental Services

21

What’s Happening in Texas CRE People on the Move

4 REDNews.com

33

Calendar of Events

34-35

Networking Photos

36-37

Deals & Announcements

38-40

VISION | MOBILITY | BEAUTIFICATION | SAFETY | AMENITIES

Amenities

are the fuel to keep us growing.

Westchase District is an ideal environment for growth. We have new Class-A businesses need to attract a competitive workforce: luxury apartments and townhome communities, private and public schools, higher education, banks, health clubs, medical services, and award-winning restaurants.

To learn more about how the Westchase District is creating a positive environment for business, visit westchasedistrict.com/vision.

713-780-9434

WESTCHASE. WHERE BUSINESS IS MOVING.

Publisher’s Letter

PUBLISHER

Ginger Wheless

ginger@rednews.com

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

EDITOR Marjorie Gohmert marjorie@rednews.com STAFF WRITER Janis Arnold CONTRIBUTING WRITERS Ray Hankamer rhankamer@gmail.com Austin - Rosalie Keszler San Antonio - Suzanne Scott North Texas - Amy Sorter ART DIRECTOR Connie Marmolejo - connie@rednews.com ACCOUNTING Benton Mahaffey accounting@rednews.com DATABASE MANAGER Jason Marshall jason@rednews.com SALES Ginger Wheless ginger@rednews.com

Print & Digital Distribution

REDNews is directly mailed each month to commercial real estate brokers, investors & developers in the following cities /areas as well as 200+ locations throughout Texas:

Dear Readers, I just reread what I wrote in the December 2012 issue and am once again reminded what a difference a year can make. Last year we were cautiously optimistic about the beginnings of a CRE turnaround and this year we’re in the middle of the “Texas Shale Rush” which is making Texas the energy capital of the world. How comforting it is to begin thinking that the majority of our fuel will be “Made in USA” or better still, “Made in Texas”!

Texas Brokers 7,650 Texas Leasing / Tenant Rep 6,232 Texas Investors 4,979 Texas Developers 4,710 Outside Texas Investors, Brokers, Developers, etc 81,577 Total redNews Distribution 105,148

REDNews Has Gone Green Using Recycled Content To subscribe to redNews call 713.661.6300 or log on to www.redNews.com/free 5959 West Loop South, Suite 135 Bellaire, Texas 77401

The ICSC Texas’ Dealmakers Conference several weeks ago was the best of any I have ever attended from the standpoint of watching deals happen. Everyone was busily moving from one meeting to another transacting business and if there was any complaint, it was “so many opportunities – so little time”.

This month in REDNews we have focused on office & industrial development throughout Texas. We easily filled eight pages with Texas office & industrial projects that have recently been completed, are under construction and/are planned/proposed and this doesn’t include recent land transactions that have occurred for the purpose of commercial development! (see pages 22-29).

Next month we’ll expand our research to include additional availability & investment/development opportunity in Texas beyond the office & industrial markets, so stay tuned for the January 2014 issue. If there is something you would especially like to see in that issue, please let me know.

Hope you all have a wonderful holiday season!

All my best,

6 REDNews.com

Personalized Service. Proven Results.

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NOW LEASING | 8313 Southwest Freeway

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Visit the new Center website for all the amenities, photos and floor plans! thencenterbuilding.com

Kris Lilly| klilly@tarantino.com

450 N. Sam Houston Pkwy

Airport Office Building | For Sale or Lease

450 N. Sam Houston Pkwy, Houston, TX

8031 Airport Boulevard, Houston, TX

• Up to 3,042 SF Available

• • • •

• Located just 15 minutes from George Bush Airport • Covered Reserved Parking Available • Monitored After-Hour Card-Key Access System

Eric Ohlson | eohlson@tarantino.com

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Corporate Office:

San Antonio Office:

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

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

Austin Office:

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

Woodland Hills (Frontage)

Ella Plaza

11603 Sam Houston Pkwy Humble, TX 77396 | $1.9M ($21.81/SF)

1319 FM 1960 Houston, TX 77090 | $5.9M

•N W Corner of the intersection of N Sam Houston Pkwy & Woodland Hills Pkwy

• • • •

• 2.00 Acres or 87,120 SF • Prime Commercial Land - Humble, TX

2005 Construction Strong Tenancy 5.86% Actual Cap Rate at 61% Occupancy NOI $345,987.20 Acutual

Larr y Vickers | larr y@tarantino.com

De Zavala

12770 Cimarron Path San Antonio, TX 78249 •3 ,000-10,000 SF, office & biomedical space available • Generous tenant finish-out allowance • Northwest location with easy access to I-10 & 1604

Larr y Vickers | larr y@tarantino.com

601 E. Main Street

601 E. Main | Alice, TX • • • • • •

Rare Opportunity for well-established bank space Class A space Separate ATM Pad Site with 11 Lane Motor Bank Exceptional deposit base estimated at $180-$210M 13,722 SF 1st floor Individual Offices Available

Coni Jenkins| cjenkins@tarantino.com

A Sudden Uptick in Demand

by Amy Sorter REDNews Contributing Writer

According to Mike Berry, industrial activity at AllianceTexas’ Alliance Global Logistics Hub in 2012 was trucking along, with existing customers extending and renewing their leases.

Then, beginning in Q4 2012, all heck broke loose.

“We made two build-to-suit leases for Amazon, more than one million square feet at AllianceTexas and the same in Coppell, north of DFW Airport on a site we own,” says Berry, president of Hillwood Properties. Hillwood is the developer of the 18,000-acre-master-planned, mixed-use AllianceTexas, located in North Fort Worth.

the project, which is still under construction, didn’t remain speculative for long. LG Electronics signed a lease to take down the entire building. “We had a lot of vacancy, then all of a sudden didn’t have any,” Berry says, adding that Alliance Center North 2, another speculative building, is moving quickly from the drawing board to construction launch.

In addition to being rail-served by the Burlington Northern Santa Fe’s intermodal facility (as well as rail service via a Union Pacific rail line), the Alliance Global Logistics Hub has access to Interstate 35W and several Texas highways Furthermore, the logistic hub has its own airport, Fort Worth-Alliance Airport.

Meanwhile, on Dallas’ South Side . . .

Mike Berry

Following on the heels of the Amazon deal, WalMart Stores Inc. came to Alliance during the middle of 2013 to take-down approximately 800,000 square feet for a new e-commerce fulfillment center. At the same time, Motorola Inc. wanted about 500,000 square feet at Alliance to assemble its new Moto X smart phone.

The result? “We had more than 3 million square feet of space absorbed within a six-month period, either through construction or expansion,” Berry remarks.

The activity, which left Alliance’s industrial component at 95% capacity, prompted Hillwood to launch construction on Alliance Center North 1, a 1.2-million speculative industrial facility. But

10 REDNews.com

On the other side of the Dallas-Fort Worth Metroplex, on an almost diagonal trajectory from Alliance as the crow flies, is the International Inland Port of Dallas, a 234,000-acre, 12-municipality public-private regional intermodal development.

Situated at the intersection of Interstates 20, 30 and 45, and directly rail-served by both Union Pacific and the BNSF railroads, the IIPOD experienced various hiccups since its official formation in 2005. Even before that, South Dallas, with its land availability, didn’t attract much interest.

That is, until recently.

Earlier this year, L’Oreal Group launched construction on its 513,000-square-foot distribution center. Meanwhile, Prologis has just completed a 653,000-square-foot speculative building in its 20/35 business park, a development offering warehouses and distribution centers. The developer is also building a 1.2-million-squarefoot regional distribution hub for Quaker Sales and Distribution Inc. Development is also underway on a 282,000-square-foot parts facility for BMW. Hillwood and Trammell Crow Corp. are also going north on speculative industrial developments in

Mike Rader, who owns approximately 4,000 acres of land in and around the intermodel development says ...

"During the past 18 months we've seen a lot of distribution centers being planned or coming online in the interstate 20-30-45 corridor.” n n n the region. In short, it’s probably safe to say that South Dallas is the overnight success story decades in the making.

According to Mike Rader, president of Prime Rail Interests in Colleyville, TX, South Dallas carried a negative perception for years. That, plus the lack of water and utility infrastructure, stymied growth of the submarket and the IIPOD. Added to this issue was that the Allen Group, which owned approximately 6,000 acres in and around the intermodal facility, ended up in bankruptcy court, a victim of the Great Recession and its financial aftermath.

But those troubles seem to be in the past.

Infrastructure is in place and the 12 municipalities involved with the IIPOD have banded together.

Rader, who owns approximately 4,000 acres of land in and around the intermodal development, says the result has been that major developers continue to eye the region, with corporations looking at it for everything from manufacturing to logistics. “During the past 18 months, we’ve seen a lot of distribution centers being planned or coming online in that Interstate 20-30-45 corridor,” he adds.

Growth in the South Dallas corridor has become such a certainty, that industrial experts familiar with the area claim the IIPOD will rival Southern California’s Inland Empire as a major distribution hub within the next decade or two.

So Much Demand, So Little Supply Today, however, the industrial-oriented interest in the DFW area has meant vacancy in the single digits. CBRE’s recent Q3 industrial report puts areawide vacancy at 7.3%, while Jones Lang LaSalle’s report covering the same period places the vacancy rate at 6.8%. Furthermore, construction isn’t exactly booming to meet the demand – Both the JLL and CBRE reports point out that approximately 10 million square feet is under construction.

“The starting buzzer for construction is typically 10%,” says Terry Darrow, managing director industrial/ supply chain and logistics at Jones Lang LaSalle’s Dallas office. “Typically, when that happened in the past, everyone with a pickup truck and a ladder would build.”

streaming from the Ports of Los Angeles and Long Beach. And though there is little rail service between Houston and DFW, once containers are offloaded from vessels at the Port of Houston onto trucks, “you can get them from Houston to Dallas in a day’s drive,” comments Josh McArtor, an executive vice president in CBRE’s institutional group.

DFW’s population growth, combined with Texas’ overall business-friendly attitude, has also been attractive to businesses wanting to either relocate or expand. Furthermore, cost has been a factor when it comes to distribution. “It’s less expensive to ship via intermodal containers on flatbeds from the West Coast than to go through the Panama Canal,” Fraker observes. And DFW, with its centric geographic location, is benefitting. “We have the major freeways and a huge population of trained labor here already,” Fraker says. This, in turn, has led to the Dallas-Fort Worth region’s position as an ideal logistics center for companies that want to streamline logistics, and do it at a relatively reasonable cost.

Wide Open Spaces Even better news for Alliance Global Gateway and the IIPOD is that other logical industrial areas, such as those connected with the Dallas-Fort Worth International Airport, are running out of space.

Jack Fraker & Josh McArtor

But then came the Great Recession and its financial aftermath. Given that, Darrow notes, builders became more cautious. Adds CBRE capital markets industrial practice managing director and vice chairman Jack Fraker: “Institutions and developers are doing a lot more due diligence before pulling the trigger on new projects.”

Though the reluctance to build is commendable, especially given the fact that overbuilding was more the exception than the rule during the 1980s and 1990s, the lack of industrial space comes at a time during which the DFW area has grown into an important role in the US logistics chain.

Unlike Houston, which has its port, its energy and is considered an international distribution point, the Dallas-Fort Worth area has become more of a national distribution center, especially for goods

“A lack of land in the interior markets is pushing tenants that want to expand toward Alliance or South Dallas,” McArtor explains. “In addition to being inland ports, there is land available at these two sites; you can take down 50 or 60 acres and build on it. Industrial users trying to find that same amount of land further inland has become more difficult and expensive”, McArtor adds.

Interestingly enough, even with the demand, the experts point out that overbuilding won’t be an issue for a while. “We won’t have cowboys just throwing up buildings,” McArtor says.

Mike Rader, for one, predicts an additional 10 million square feet of build-to-suit and speculative space going north in South Dallas, a mix of speculative and build-to-suit space. Also coming online will be facilities divisible for smaller businesses, he adds.

Terry Darrow

JLL’s Darrow agrees, pointing out that a good chunk of the speculative development will be geared toward the 150,000-250,000-square-foot user.

“That’s a better indicator of the market’s health than the one-million-square-foot build-to-suits,” he comments. “It means the smaller companies are coming in to serve the larger guys.”

Berry sounds a somewhat more cautious note for 2014, pointing out that if GDP continues at its current 2.5%-3% growth, interest rates remain low and the housing market continues rebounding, industrial deals will continue happening.

“Everyone’s back into forward motion and doing capital projects they’ve delayed for several years,” he adds. “I think 2014 will be a good year.”

Growth in the South Dallas corridor has become such a certainty, that industrial experts familiar with the area claim the IIPOD will rival Southern California’s Inland Empire as a major distribution hub within the next decade or two.

n

n

n

R E D N e w s . c o m 11

and click on the EDC logo

City of Burnet Economic Development Office 路 P.O. Box 1369 路 Burnet, TX 78611 路 512.715.3217

The Texas Hill Country is good for business and BURNET is good for YOUR BUSINESS!

INDUSTRY INTERVIEW

Industrial Real Estate on the Move

Kelley Parker, Cushman & Wakefield

REDNews interview with Kelley Parker on his years in industrial real estate beginning in 1976 with The Horne Company.

broker’s commissions. But the day of everybody convening with attorneys and everyone else at the closing table has almost gone away. In the past, 100% of the deals closed in that manner; today likely the number of formal closings is less than 20% of the total deals done.

RN: Tell me about your CRE career path and your focus on industrial real estate?

Electronic communication has totally changed this business as well. Information is much more readily available. In the past, you had to be out there, driving and digging all the time. I’d spend Saturdays or Sundays dragging my wife and kids around with me, looking at properties in different parts of towns. “I’ve got to go look at this part of town, because I don’t know it. I’m going to be doing a tour; I need to learn the area. Or, I’ve got to find a property.” Today, with electronic access, that’s just not as necessary a part of the process. I am able to be much more efficient when I research an area or search for a property that meets my client’s criteria.

But in all honesty, I’ve also been in the business for a while. I’ve done my research and I know what’s out there in myriad ways that I didn’t back then.

Kelley Parker: I actually began my real estate career with The Horne Company in 1976 where I ultimately managed their industrial brokerage department and in 1990 I joined Cushman Wakefield. Before that, when I got out of graduate school, I went to work for my father in the family company, which was part of Parker Brothers & Company, a sand, concrete & building materials company. My father had a division called the Houston Barge Lines which was in marine transportation.

I worked for him for three years. Actually I’d been working in my father’s business since I was fourteen years old. I’d been groomed for it, but it always remained my father’s business. It just wasn’t for me. So a friend got me an interview with The Horne Company and everything sort of went from there. I navigated into industrial with my first CRE job because that’s what I knew.

Over the years you might say I’ve become a bit of a ‘deal junkie’. I just love putting deals together and enjoy difficult site acquisitions/dispositions and lease negotiations.

RN: Many of the experienced brokers are talking about the importance of having a mentor as they started their careers, and they’re talking about utilizing their experience in the CRE field to mentor others. Have you observed mentoring to be important in CRE in terms of ‘staying power’ and effectiveness and job satisfaction?

Kelley Parker: I’ve had some great mentors over the years: David Cook, Howard Horne, Sid Smith, Bill McDade, they have all been great. And there are others I could name as well. I like working with a team, and I try to learn something from each deal that I’m involved with.

RN: How has the CRE field changed during your years within the profession?

Kelley Parker: When I first got in this business, closings were a big deal. I remember spending many a New Year’s Eve, late at night, getting a deal closed before the end of the year. Many times there were some re-negotiations done at closing, including

14 REDNews.com

Something that hasn’t changed much at all is that the broker has got to know the real estate, the happenings, the trends, and the players in the marketplace. Experience, especially for those of us who learn something every time out, really does count in this business. And I guess it is accurate to say that I’m something of a glutton for punishment at times. I like to deal with properties that are interesting, and have problems to solve. This can turn me into a developer type, but I certainly don’t have the liability that the developer has. I don’t have the rewards either.

Much of my experience involves the Houston ship channel and waterfront properties. That market is pretty well developed. Right now we have some properties in the Port Arthur-Beaumont area that we’re marketing. But we have to go out to find waterfront properties for companies that are seeking them. Lake Charles is seeing significant development these days. A lot of what we see in Houston is related to petrochemical. We have become a beneficiary of low-cost natural gas. All of the companies that were building plants overseas are refocusing back in the U.S. now. We’re involved with the customers, the suppliers, the electrical infrastructure, the pipeline infrastructure, and the logistics people.

This is all occurring here on the Gulf Coast, for the most part. I think Chambers County has eight or ten billion dollars worth of projects going on right now.

Louisiana has a bunch. Dow is going great guns. I don’t see this stopping any time soon. Many of the facilities that were structured for export are now being restructured for import. This includes all of the L and G facilities. Cheniere’s has already gotten

their permit, and they’ll be shipping out in a couple of years; they’re in Sabine Pass. This boom is going to last for a while, because these plants aren’t built overnight. At the present time, we have one client for whom we are finding office space, warehouse space, and other requirements for them to utilize for the next few years while they build their plant.

RN: What are some concerns that you have right now with regard to CRE in general and industrial development in particular? Do you have any projections for where the profession is headed in coming years?

Kelley Parker: Properties have to have curative work or analysis work to make them feasible for developers, so we’ll get involved in analysis which could cover anything from brown field sites to contaminated sites, to specific needs of process plants, chemical plants, terminals, things of that nature.

We also get involved with permitting, both for air and water, and that has gotten increasingly complicated and difficult over the years. We’ve got to look at such issues as wetland analysis and traffic impact studies. The good thing is that I’m in a position now where I know the right people to talk to, the ones who can work with us, the shortcuts that we’ve learned based upon previous experience, and how to develop a work flow and time line that will allow us to get the job done as efficiently as possible.

RN: Any predictions or prognostications for the future?

Kelley Parker: Hopefully, I’m still around in 10 to 20 years. I plan to be, but who knows? I think that the Houston market is going to do well. The gas business is just going to keep going on. From what I hear, we’re full speed ahead through 2020. Once you get past that, who knows? I think that we’ll see a positive impact from the Panama Canal widening long-term. I think the initial few years is going to be mixed, in regard to capacity. The entire product that is being produced is going to generate warehousing needs. From the standpoint of distribution, we’ll never become a Dallas, in the way that Dallas is a regional hub like Atlanta, Memphis, or Phoenix. We’ll likely see rail increase. Houston will be playing off of the port activity, and the oil and gas industry, and supplying the city itself, including the medical community. We did a deal with Medline Industries out in Katy, in the West Ten business park. They have to supply Houston, but because they’re out west, they can also supply San Antonio.

San Antonio has a similar relationship with Corpus Christi.

DISSOLVED PARTNERSHIP - PRICED FOR IMMEDIATE SALE

Mainland Medical Campus & 12.9 AC Multi-Family Tract EMMETT F. LOWERY EXPY & HWY 3, TEXAS CITY, TX 77591

PRICED TO SELL SUBMIT ALL OFFERS

Land/Churches

FOR SALE

NW Houston Church - 10225 Woodedge - 20,000 SF............................................................. $1,100,000 Miracle Life Church International - 9930 Aldine Westfield - 3,200 SF....................................... $299,500 Alief Church of Christ - 7130 Cook Road - 7,700 SF............................................. SOLD...............$735,000 Majestic Christian Center - 3512 McLean Rd - 19,500 SF.......................................................$1,500,000 Dome Church - South Acres at Scott Street - 57,000 SF.................................... .SOLD...........$3,740,000 3.9 Acres - 7225 Bellfort Avenue....................................................................REDUCED..............$174,500 League City UMC - 1411 West Main Street - 34,000 SF.........................................................$3,950,000 Land in Tomball, TX - Holderrieth & S. Cherry - 2.03 Acres................................. SOLD................ 230,000 Miracle Christian Fellowship - 16310 Chimney Rock - 15,000 SF..........SALE PENDING..............$855,000 Multipurpose Bldg - 710 College St. - 7,200 SF........................................................................$650,000 Religious Facility in South Houston - Beaumont St. @ Illinois - 11,800 SF.................................$799,000

Next to HCA Mainland Medical Hospital in Texas City, TX Centrally located between Houston and Galveston

Pricing: Recent Price Reduction

Baytown Campus/Training Center Facility (Income producing property) - 301 Ilfrey.................................$3,400,000

Tract A (3.9039 acres) $4.95 psf

$841,766

SE Area Church - 10050 Fuqua - 9,995 SF........................................................... SOLD...........$1,100,000

Tract B (3.63 acres) $4.50 psf

$711,552

Pasadena Church - 4444 Vista Rd. - 46,000 SF.......................................................................$1,200,000

Tract C (2.81 acres) $2.00 psf

$244,807

Aldine Christian Church - 2233 Aldine Mail Rte. - 10,500 SF..................SALE PENDING..............$499,000

Tract D (12.9 acres) $2.50 psf $1,404,810

Newcor Ventures, Inc. www.mainlandmedcenter.com

281-474-4474

International Church Realty (713) 541-4005 7220 & 7330 North Sam Houston Parkway West

Fairbanks 8

Business Park

New Industrial Development 15120 Northwest Fwy #190 Houston, TX 77040 Phone: (713) 956-1000 Fax: (713) 856-5100

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• +/- 178,000 SF in Two Buildings

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• Beltway 8 Frontage

• Tilt Wall Construction

• Easy access to SH 249, US 290 and I-45

• Loading: Dock Level

• Build-to-suit offices

• Clear Height: 24’

• 40’ column spacing

REDNews.com 15

INDUSTRY INTERVIEW

...‘taking care of the client’...

Michael Hill Properties

as they started their careers, and they’re talking about utilizing their experience in the CRE field to mentor others. Have you observed mentoring to be important in CRE in terms of ‘staying power’ and effectiveness and job satisfaction?

Mike Hill, Michael Hill Properties

RN: Tell me about your CRE career path and your focus on industrial real estate?

Mike Hill: Back in 1970, I was working as a self-employed headhunter and a friend, in the same business, and I wanted to go together and form a new company. However, he decided not to do our business together and told me about a real estate company he was going to work for, Coldwell Banker, which was just moving into Houston from the west coast. Their reputation being known out there as a well thought of company, and after research, was attractive to me. So was the starting salary of $600 a month and in 1970, that was a lot of money! They offered me either office leasing or industrial brokerage, and I thought industrial sounded good, so they gave me a desk and said, ‘go do it’. There was no training program. Back then we all believed that if a person could sell, he could sell anything. And that’s true, but you still have to develop a knowledge base about your product. I started out sitting behind a guy named Phil Kennedy and I asked him questions all day, every day, until one day he turned around and yelled at me, “Don’t ever ask me another question.” By that time, I had gleaned much of the information that I needed to survive. Today, my philosophy is that the most successful industrial broker is the one who can lease property, sell property and promote investments. The broker needs to know the properties well enough to explain to an investor exactly why this particular property is the one he or she needs to buy. My staying power in the field, I think, is directly related to the fact that I have tried to take a technical approach to the business and my priority has always been taking care of the client for the long haul.

RN: Many of the experienced brokers are talking about the importance of having a mentor

16 REDNews.com

Mike Hill: Over the course of about thirty years, I’ve been very involved in training young individuals coming into the CRE field. Right now I’m mentoring four young guys who are actually from different real estate firms. Steve Jaggard, a good friend, who ran Vantage Co. called them his “Young Bucks”.

Back in the ‘70s, I started training/mentoring sessions with a series of CRE cassette tapes that were just a step up from the old eight-tracks. In regard to the technical side of Industrial, there is so much to learn. All of us learn something every day from what we do; that process never stops.

RN: How has the CRE field changed during your years within the profession?

Mike Hill: In a word, technology. When I started in the business, we did our available properties database with sheets of paper in books, not on computers. We had about twenty books, lined up on the back of the filing cabinet. That was our database.

RN: I also remember those days. REDNews’ first “database” was a rolodex of 2,000 cards.

Mike Hill: From time to time I still refer to those old books. I tried to digitalize all of the pre-computer era history, but the task was too monumental. I actually helped start the industrial database for CB Commercial and I still use that today. When The Commercial Gateway originally started their available properties activity, I had the opportunity to help them get that going. Then and now, I track every available freestanding building in Houston, for sale or lease, if a size is over 10,000 square feet. It’s an invaluable resource. I receive between 100 and 200 emails a day, and I’m constantly looking at my inbox and asking, “Okay, is this something I keep or throw away?” When a client walks in the door and says, “I’m looking for (as an example) a 50,000 square foot office/warehouse building in northwest Houston and I need rail, dock high loading, and an ESFR sprinkler system, I’m on top of it. In about 12 seconds I can pretty much tell my client what’s out there. My database is unique in that I have about 30 different descriptive criteria loaded for each available property, and each of those criteria is searchable. The biggest problem I have is keeping up with sold and no longer available properties. My secretary and I are constantly watching the sales in the newspaper and industry journals, as well as calling

around to brokers and getting updates. Most of my current clients are people I’ve worked with before.

I also have found myself specializing somewhat by the use of the property. I’ve done a lot of work with the food storage and distribution industry (refrigerated properties), electronics, manufacturing, crane serve building. I’ve also done some work on the Ship Channel. My clients still expect me to remember the details of a deal I did for them, maybe back 25 years or more, and I’ve still got all of the information right there to refer to. I keep everything having to do with done deals.

Over the course of about thirty years, I’ve been very involved in training young individuals coming into the CRE field. n

n

n

RN: What do you see that your competitors are doing and how would you do it differently?

Mike Hill: It’s this observation that makes mentoring young people coming into the profession important. And I’m not just talking about teaching someone the basics of the profession; it needs to be the entire picture. I see some really terrible presentations on properties that are done by guys who don’t think detail and form is important; they just put something out there which, in my opinion, is totally sub-standard. This is one aspect of our profession that really hasn’t changed much at all.

Yeah, technology makes how we do our jobs different, but the ability to carefully present a comprehensive picture of a property, one that tells cooperating brokers and prospective buyers as much as possible about the features, assets and possible liabilities of a property is, in my opinion, a really important key to marketing industrial real estate.

Time matters, so when we communicate with each other and with the client, we have to do a good job of it. The Houston commercial brokers and our clients are busy, and if a CRE professional makes an incomplete, sloppy, obscure presentation, the recipient will certainly not be impressed.

RN: Why did you write the blog on your website about Robert Clay of Clay Development?

Mike Hill: Robert Clay is truly one of a kind. He’s a good friend, but I didn’t write the article about him because of that. I wrote it to explain my observation that he apparently has a unique sense for what to do at exactly the right time. This has included buying large land sites, building certain kinds of buildings, going after certain kinds of clients and pioneering in specific marketplaces, like the Katy area, and others. His timing in starting his development company with his dad in the construction business was absolutely perfect. Robert has the courage to take risks and the smarts to make them work out. It is somewhat unprecedented how he has dominated the particular industrial development market he is in. Few before him have succeeded to the degree he has in the Houston industrial development business. And he’s a fun guy to be with!

RN: Many of the brokers talk about how much they’ve learned from their best deals and, in many cases, how much more they’ve learned from some deals that didn’t go as anticipated.

Do you have any stories to share in this regard?

Mike Hill: The 800,000 sf Albertsons distribution center in Katy, where the new Grand Parkway @ I-10 West construction is taking place, turned out

to be quite an interesting project. This was a long time ago and that property is now owned by $.99 Stores. Albertsons was a very sophisticated company with huge internal resources to bring to bear on location analysis. They knew what they wanted and all I had to do was find it. We had to do parallel due diligence on two sites because they HAD to have a site which would work for them at a predetermined point in time. Everything needed to be one hundred percent confidential, and we had to do the entire search and follow-up clandestinely. I worked with one of the most intelligent, interesting corporate real estate managers that I have ever met, a young man named Bob Banks. We worked together for more than a year, staying out of sight, meeting in hotel rooms and restaurants to go over deal details; it was all great fun. One of my worst experiences was when Conrad Bernard, who was one of my trainees back then, was sitting with me during a presentation that I was making to a client. This occurred at a time when I thought I was pretty smart.

So I was holding forth, and I could tell it wasn’t going well, but I didn’t know what was wrong. All of a sudden the client just exploded, and said, “Mr. Hill, don’t you tell me how I’m going to do this deal. I’m going to tell you how I want you to do this deal.”

As you can imagine, I was pretty much thrown for

a loop at that point. After that moment, the client spoke only to Conrad, who took over, and worked with the client. That man never said another word to me, but we did get the deal done! Conrad and I still laugh about that one!

RN: What’s next for Mike Hill?

Mike Hill: I’m now in the “fall” of my career, and I feel so extremely fortunate to have been able to do the things that I’ve done. CB Commercial was a great company to be with for those 32 years, and after 10 years now on my own, I’m loving that as well. One of the really nice things which makes the job easier and more fun is that, in Houston, the commercial brokerage community is really close.

We’re all good friends. It doesn’t get any better than that. I still do the best I can to serve my clients. I still love the mentoring of young folks in this business, as they are the future. It’s amazing to watch them grow through the start-up years and succeed.

Brendan Lynch is probably my best example of this as he came to me as a well-educated, intelligent, driven and honest individual who I had the great privilege to work with as his trainer. Everyone knows he is a rock star in our business! I would like to help prepare more Brendan Lynches!

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The Shale Revolution has triggered a renaissance in the oil and gas business in the US, and Worldwide Zulay Hankamer Oil & Gas Consultant Only a few years ago, industry experts declared that oil production in the US had peaked and was destined to progressive decline. This July, the US Department of Energy reported the US is the largest oil and associated liquids producer in the world and will surpass Russia and Saudi Arabia in two years to become the largest oil producer.

Texas is playing a key role in this renaissance and the Port of Houston is ideally located and well equipped to receive and process the increasing oil and gas gushing out of the Eagle Ford. The Port is also a gateway for equipment and other supplies needed to sustain the development of the rich deposits.

From its inception and the completion of the deepwater Ship Channel in 1914, the Port of Houston has been intricately linked to the oil and gas industry.

The oil industry has since experienced significant ups and downs, but the activity alongside the Houston Ship Channel has demonstrated great resilience. Today, the waterway serves more than 150 public and privatelyowned cargo terminals and other industrial facilities. The Port of Houston is the nation’s No.1 port in terms of foreign waterborne tonnage and is home to the world’s second largest petrochemical complex after Rotterdam.

There is yet a large new chapter of growth for the Port of Houston being called by the need to process, store and transport the increasing amounts of crude, gas and liquids being unlocked from shale deposit through the revolutionary, Texas-grown technique to inject water and sand in horizontal wells to fracture to shale rock.

In a recent interview with REDNews, R.D. Tanner, Director of Real Estate at the Port of Houston Authority, indicated about 3,500 acres of green field property throughout the Port of Houston is available for development with some of the property having frontage along the Ship Channel.

On the other hand, every week the media reports a new multi-million dollar investment in: • pipelines and rail systems for moving the increasing crude oil and liquids production • new and expanded processing plants and refineries in Texas, or • expansion of marine terminals that will load ships and barges with

the light crude oil to refineries in Louisiana, New Jersey or even some limited exports to Eastern Canada.

The projects also generate a significant amount of skilled jobs: The Greater Houston Port Bureau expects 111,700 direct jobs and 154,100 indirect jobs to be created from announced Ship Channel investments.

Very attractive employment compensation packages are being offered to entice the limited skilled labor available. In turn, the living and amenity demands of these workers will be at a higher end than typical blue collar communities.

Additional facilities are needed to handle drilling equipment and steel pipe for the oil fields. Even coal export facilities are being proposed as US demand is displaced by low cost domestic natural gas.

Demand for oil facilities at the Port of Houston is also coming from production increases in the Permian Basin in West Texas and from utilization of Canadian oil sands that are well suited to the sophisticated Houston high conversion refineries.

Not all of the required infrastructure must have frontage to the Ship Channel, and most of the ancillary services and workers accommodations and amenities will be seeking space nearby. Expansion and development of these secondary businesses will impact land value many miles beyond the Ship Channel.

Below is a description of some of the projects being developed or recently completed within the Ship Channel area and how they handle and take advantage of the increased shale production.

Pipelines: Pipeline is the vehicle of choice for transporting oil in large quantities due to safety and cost. But pipelines take time to build and sometimes they may not be suitable to the terrain between the producing fields and the markets. Texas, and the Port of Houston in particular, have a well developed pipeline system; therefore Eagle Ford production is rapidly finding pipeline access to Houston. In the past 12 months two new pipelines have connected Houston refineries and storage terminals to 650,000 barrels per day (b/d) of Eagle Ford production: • Kinder Morgan started operations on June 14, 2012 of its 300,000 b/d pipeline from Cuero, Texas to the recently expanded Oiltanking Terminal. continued on page 20

18 REDNews.com

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REDNews.com 19

Continued from page 18

From its inception and the completion of the deepwater Ship Channel in 1914, the Port of Houston has been intricately linked to the oil and gas industry.

• Enterprise’s South Texas Crude Oil pipeline system came into service in June 2012 with a 350,000 b/d line from Wilson County to Sealy, which then connects to the Rancho Pipeline into Houston and the Enterprise Houston Crude Oil terminal. Phase 2 of this project, a 200,000 b/d line from Gardendale to Wilson County, was completed in the second quarter of 2013.

Rail is also utitialized.

While Eagle Ford Shale is located close to existing pipeline systems, the large Bakken Shale in North Dakota is not as lucky. Extensive use of rail car has allowed Bakken production to reach markets while pipelines may take up to 5 years to be completed. Petroleum and chemical liquids and gases have been transported by rail for many years in small amounts (3 to 10 railcars per train),.

However, the large volume of crude coming from the fields requires moving about 100 rail cars at a time in what is called “unit trains”. These unit trains, more than a mile long, must be taken off the tracks at the origin and receiving terminals and be loaded/unloaded at a rate of up to three unit trains or 300 cars per day. Each rail car can hold about 600 barrels.

ity sprawling 185 acre on the Houston Ship Channel. o Galena Park: A $75 million investment to build five new tanks. o Pasadena: $106 million to purchase 20 acres next to KM Pasadena terminal to build nine new storage tanks and construct a barge dock.

•

Targa Resources is investing $480 million to increase capabilities to handle natural gas liquids (propane and butane) at its Galena Park site on the Ship Channel and its Mont Belvieu site northeast of the Ship Channel off Interstate 10, which are connected by pipeline. The Galena Park facility includes refrigeration facilities and marine docks for exporting propane and mixed propane-butane to international markets. The project will be complete in the third quarter of 2014. The expansion included acquisition of the Patriot Terminal just south of Targa’s Galena Park, with existing dock and nearby access to refined products pipeline.

•

Intercontinental Terminals: $150 million investment announced in March 2013 for the purchase of 180 acres greenfield site in Pasadena and the construction of a new petrochemical and petroleum terminal to be operational in second quarter 2015 .

•

Enterprise Crude Oil Terminal: following the 2012 startup, an additional 0.9 MMBbls of storage capacity is expected to be in service in the second quarter of 2014 for a total 6.0 MMBbls of crude oil storage capacity. The facility covers 187 acres

•

Oiltanking: $200m investment to build 4.2 million barrels of new crude oil storage capacity and pipelines connecting to nearby refineries.

•

Odfjell is adding 10 tanks to its Bayport site by the first quarter of 2014. The facility currently has 100 storage tanks for natural gas liquids derivative chemicals.

Houston refineries are processing increasing domestic shale oil production within their existing capacity by reducing or completely stopping importing similar foreign crude. However, these refineries are very sophisticated, having made large investments in equipment to process heavy and sour (high sulfur) crudes from Mexico, Venezuela, Saudi Arabia and others to take advantage of increasing production and lower prices for those crude grades.

Associated natural gas production from shale oil is the major factor for keeping a lid on natural gas prices in the US today and in the nearby future.

The other associated gases are ethane, propane and butane and they are also experiencing an oversupply as traditional demand and transport infrastructure catches up. Propane and butane can be condensed into liquid form by applying pressure and moved in pressurized vessels or through moderate refrigeration. Ethane and natural gas (methane) can only be liquefied through very low temperature refrigeration at much higher cost.

The lightest portion of the liquid produced is called condensate and is composed of gasoline-like hydrocarbons but not suited for today’s car engines; therefore, it must be upgraded at a refinery or find other uses in petrochemicals or as diluents for heavy oils.

Houston refineries and petrochemical plants are undergoing modifications to handle larger amounts of the light crude oil from US shale production or to manufacture higher value goods using domestic, low cost natural gas and other hydrocarbons produced “associated” to shale oil.

Independent liquid storage facilities receive and transfer crude oil, condensate, liquefied propane and refined products for third parties, like a warehouse.

There are several large such facilities in the Houston Ship Channel that offer enhanced service through excellent and expanding access to pipelines, rail, interstate highway and waterway, together with collocation with the largest oil refining and petrochemical complex in the US. These facilities are also being expanded to handle the increased demand and they require significant real estate.

Some projects underway include: Kinder Morgan’s: o Battleground Oil Specialty Terminal (Bostco): A $485 million new facil-

20 REDNews.com

The Shale renaissance is expected to have a long life: A long-term energy outlook released on Nov. 12 predicts the U.S. will top Saudi Arabia and Russia as the world’s leading oil producer by 2015. The report, published by the International Energy Agency, based in France, attributed this prediction to technological advances in shale drilling such as hydraulic fracturing and horizontal drilling, which allow drillers to explore unreached shale plays.

“United States performance has consistently overshot most projections to date and it is possible that more resources will be found and developed to sustain production at a higher level and for longer than we project,” the IEA said in the report.

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REDNews.com 21

Houston Area

Office Development - Third Quarter 2013 Source: Avison Young, Colliers International, Cushman & Wakefield and REDNews Research Submarket

Project Name - Location

CBD CBD CBD FM 1960/Hwy 249 FM 1960/Hwy 249 Galleria Galleria Greenspoint Inner Loop Inner Loop Inner Loop Inner Loop Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Katy Freeway Northwest Northwest Sugar Land The Woodlands The Woodlands The Woodlands The Woodlands The Woodlands The Woodlands Westchase Westchase Westchase Westchase

609 Main, 47 story tower 1,050,000 Former Macy’s, 1110 Main N/A International Tower, Preston/Prairie/Milam/Travis 925,000 Five Chasewood - Five Chasewood Drive 236,880 SF Noble Energy Center II - 1001 Noble Energy Way 470,000 SF 3009 Post Oak Blvd.

302,000 SF BHP Billiton - Four Oaks Place - Post Oak 600,000 SF Greenspoint Business Center - I45, s. of Beltway 8 350,000 SF 3737 Buffalo Speedway (see page 21 for more information) 395,00 SF 2229 San Felipe, 17 story tower 167,000 SF Shell Woodcreek & Memorial Point, I10/610 400,000 SF Vitrol Urban Campus, Richmond & Wakeforest N/A CityCentre IV - 840 W. Sam Houston Pky. N. 107,552 SF Energy Center Three - 935 N. Eldridge Pky. 520,340 SF Energy Crossing II - 15011 Katy Freeway (see page 3 for more information) 321,508 SF Energy Tower III - 11740 Katy Freeway 428,831 SF Energy Tower IV - 11750 Katy Freeway 428,831 SF Jacobs Plaza - 12140 Wickchester Lane 168,050 SF Mason Creek Office Center - 21420 Merchants Way 135,716 SF Murphy Exploration - 9805 Katy Freeway 315,000 SF Mustang Engineering - 17325 Park Row 225,885 SF Park Ten Center - 16200 Park Row (see page 3 for more information) 300,000SF Shell Woodcreek - 200 N. Dairy Ashford 263,835 SF Shell Woodcreek - 11910 Katy Freeway 284,178 SF The Offices at Greenhouse - 18918 Katy Freeway 203,149 SF Town Centre I - Queensbury Lane and Town & Country Blvd.

254,489 SF Westgate I - 17220 Katy Freeway 248,500 SF Westgate II - 17320 Katy Freeway 186,375 SF West Memorial Place - 15375 Memorial Drive 334,147 SF 4477 W. Sam Houston Pkwy N. (see page 3 for more information) 256,000SF Beltway Lakes Phase III & IV, 5800 Blk N. Sam Hou Pkwy W 540000SF Texas Instruments - 13905 University Blvd.

160,000 SF Anadarko Tower 2 - 1201 Lake Robbins Drive 550,000 SF Building 5 - Repsol - 2455 Technology Forest Blvd.

200,000 SF ExxonMobile North Campus - I-45 and Springwoods Village 3,000,000 SF Research Forest Lakeside Bldg 4 - 2445 Technology Forest Blvd.

300,000 SF Sierra Pines II - 1575 Sawdust Road 153,810 SF Two Hughes Landing - Hughes Landing Blvd.

197,719 SF CGG Office Campus Addition 106,992SF Granite Briarpark Green - 3151 Briarpark Drive 302515SF Two BriarLake Plaza - 2050 W. Sam Houston Pky. South 331,689 SF Westchase Park II - 3600 W. Sam Houston Pky. South 300,000 SF

ExxonMobile Campus

22 REDNews.com

Size

Granite Briarpark Green

Developer or Leasing Rep

Estimated Completion

Hines Hilcorp Stream Realty/Essex Transwestern Trammell Crow Co./Principal Real Estate Investors Skanska TIAA-CREF & Transwestern IDI PMRG Hines Hines Midway Companies Midway Companies Trammell Crow Co./Principal Real Estate Investors Lincoln Property Company Mac Haik Enterprises Mac Haik Enterprises PMRG Myers, Crow & Saviers MetroNational Transwestern Lincoln Property Company Hines Hines Stream Realty Moody Rambin Transwestern Transwestern Skanska J.A. Billip/Lincoln Property Company Radler Enterprises Planned Community Developers Patrinely Group, Inc. Warmack Investments Exxon and Coventry Development Corporation Warmack Development Co Stream Realty Woodlands Development Co. CGG Granite Properties Cassidy Turley PM Realty Group

Westchase Park

2017 TBD TBD 4Q14 3Q15 3Q13 TBD TBD 3Q15 N/A N/A N/A 3Q13 2Q15 4Q13 1Q14 1Q14 2Q14 3Q13 3Q13 3Q14 3Q14 1Q14 4Q13 3Q14 4Q14 4Q13 4Q13 1Q15 TBD TBD 2Q14 2Q14 2Q14 3Q14 3Q13 3Q14 2Q14 4Q14 3Q13 2Q14 4Q14

Houston Area

Industrial Development - Third Quarter 2013 Source: Michael Hill Properties, Colliers International and REDNews Research Submarket Missouri City North North North North North North North North North North North North North North North North North NW NW NW NW NW NW NW NW Rosenberg SE SE SE SE South South South West West West West

Project Name - Location

Size

Beltway Crossing - 13615 & 13721 S. Gessner 208,800 1050 Greens Pky. 67,200 11220 Ella Blvd.

163,000 DCT Airtex Distribution Center - 110 Airtex Road 267,000 First Northwest Commerce Center - 4680 West Greens Road 351,000 Plaza Verde @ Pinto Business Park - Beltway 8 at I-45 North 120,000 500 Northpark Central Drive 174,200 14650 Heathrow Forest Pky. 121,919 16200 Central Green Blvd.

181,067 19245 Kenswick Drive 74,880 Central Green Corporate Center (Bldgs 6 & 7) - 16501 Central Green 258,000 Century Plaza Distribution Center - 400-525 Century Plaza Drive 390,000 Imperial Distribution Center - I-45 and Airtex Road 662,000 Park 8 - North Interstate 45 and Beltway 8 (Data Center) 252,000 Point North Cargo Park - 8120 Humble Westfield Road 240,000 World Houston - 4730 Consulate Plaza Drive 101,200 The Pines Business Park, Phase II- Near I-45 and Hardy Toll Road (see page 3 for more info) 140,000 121 Esplanade 244,550 Fairbanks 8 - 7220/7330 North Sam Houston Parkway West ( see page 15 for more info) 178,000 Rampart Corporate Center - Building 200 - 7310 Langfield Road 563,000 Sam Houston Business Park - 8846, 8844, 8850 N. Sam Hou Pkwy W. 206,000 1315 W. Sam Houston Pky. North 70,000 30602 Mcallister Road 400,000 Intrepid Business Park - 5935 Brittmoore 123,000 Beltway Crossing Northwest - Gessner North of Beltway 8 653,000 Solon Industrial Park - SH 249 & Sam Houston Tollway 27,000 SF Aldi Distribution Center, Rosenberg 650,000 3700, 3750 & 3800 Highway 225 365,462 Ameriport (Phase III) - 616 Logistics Drive 249,600 Bayport North Distribution Center - 4330 Underwood Road 276,000 B225 Railport - Beltway & SH 225 - BTS - Frontier Logistics 600,000 Beltway Exchange @ Colony Crossing - 10207 S Sam Houston Parkway E 90,000 Cottingham Business Park - S. Sam Houston Pky. and Cottingham Rd 90,000-130,000 9380 Kirby Drive 64,260 West 10 Business Park - Medline Industries - I-10 & Highway 90 500,000 Ten West Crossing - 22330 Merchants Way 135,500 21201,21601, 21301 Park Row Drive 144,300 22220 Merchants Way 67,743

Developer or Leasing Rep

Estimated Completion

Stream Realty Partners, L.P. Liberty Property Trust Liberty Property Trust DCT Industrial First Industrial & Davis Commercial Hines Prologis Inc. Wolff Properties Liberty Property Trust Trammell Crow Company Verde Realty Avera Companies Avera Companies Avera Companies Duke Realty EastGroup Properties Lincoln Property Company IDI TNRG/The National Realty Group Avera Companies Levey Development Caldwell Companies KDW Ltd Triten Real Estate Partners Panattoni Development Stream Realty City of Rosenberg and Fuller Realty Partners The Carson Companies National Property Holdings Baron Properties Avera Companies ICO Texas Pipeline Realty Warehouse Associates Medline Industries, Inc. East Group Properties Transwestern InSite Commercial Real Estate

1Q14 1Q14 3Q13 4Q13 TBD TBD 3Q13 3Q13 3Q13 3Q13 4Q13 4Q13 4Q13 TBD 3Q13 3Q13 4Q13 2Q14 4Q13 2Q13 TBD 3Q13 4Q13 TBD 2Q14 4Q14 3Q16 1Q14 TBD 3Q13 3Q14 2Q14 TBD 1Q14 3Q13 TBD 3Q13 3Q13

World Houston Business Center Bayport North Distribution Center

Pinto Business Park

REDNews.com 23

Dallas/Fort Worth Area

Office Development - Third Quarter 2013 Source: Cushman & Wakefield and REDNews Research Submarket

Project Name - Location

Size

Developer or Leasing Rep

Alliance Dallas - CBD Dallas - N. Central Dallas - Turtle Creek/Uptown Far North Central Fort Worth Forth Worth - CBD Frisco Frisco Las Colinas Las Colinas McKinney McKinney Plano Plano Plano Plano Plano Plano Plano

Hillwood Commons - Heritage Trace Parkway and 35W KPMG Plaza - 2323 Ross Avenue BTS - Richards Group 4001 Maple Avenue BTS - State Farm Victory Healthcare - South Main and Pennsylvania BTS - Cook Children’s Office Duke Bridges VII - 3560 Dallas Parkway Hall Office Park Cypress Waters - LBJ Freeway and Belt Line Road Freeport 9 - Freeport Parkway and Regent Blvd.

BTS - Emerson Process Management, U.S. 75 and Highway 121 (McKinney) McKinney Corporate Center - Craig’s Ranch 5101 Tennyson Parkway 6111 West Plano Pky. 8050 Dominion Parkway 8058 Dominion Parkway Granite Park IV - SEC Dallas North Tollway and State Hwy 121 Legacy Tower - SEC of Dallas North Tollway and Legacy Drive Lincoln Legacy Two - 5810 Tennyson Pkwy

200,000 454,500 250,000 170,000 1,520,000 90,000 120,000 200,000 200,000 180,000 153,315 128,000 120,000 82,000 180,000 200,000 150,000 304,500 341,000 130,000

Hillwood Hall Financial Group SBR Real Estate Holdings LP Crow Holdings KDC Victory Healthcare Cook Children’s Medical Center Duke Realty Hall Financial Group Billingsley Myers & Crow N/A Craig International N/A Billingsley N/A N/A Granite Properties Trammell Crow Lincoln Property Company

Hall Office Park

Granite Park IV Legacy Tower

KPMG Plaza Lincoln Legacy II

24 REDNews.com

Estimated Completion 2Q14 1Q15 1Q15 3Q13 1Q15 2Q14 3Q13 1Q14 2Q14 3Q14 1Q14 3Q13 1Q14 3Q13 2Q14 3Q13 3Q13 3Q14 3Q14 3Q14

Dallas/Fort Worth Area

Industrial Development - Third Quarter 2013 Source: Cushman & Wakefield and REDNews Research Submarket

Project Name - Location

Size

Developer or Leasing Rep

Estimated Completion

Alliance Alliance Alliance Alliance Alliance Alliance Arlingon Ft Worth Ft Worth Grand Prairie Hutchins Irving/Coppell Lewisville Richardson S. Dallas (Lancaster) S. Dallas (Lancaster) South Dallas South Dallas

BTS - Amazon Distribution Center - 700 Westport Parkway BTS - Motorola BTS - Walmart Alliance Center North I - NEQ IH-35W and Eagle Parkway Alliance Center North II - NEQ IH-35W and Eagle Parkway Alliance Gateway 57 - Freedom Drive (Roanoke) Arlington Commerce Centre Bldg C - 4900 Sherry, Arlington BTS - Our Nation’s Best Sports Speedway Distribution Center, Far North Ft. Worth area BTS - Restoration Hardware - 1303 West Pioneer Parkway Just off I-45 between Cleveland St & Nichols Drive BTS - Amazon Fulfillment Center - 940 West Bethel Road Majestic Airport Center DFW, 2900 S. Valley Pkwy AdvoCare - 2800 Telecom Pkwy 20/35 Business Park , 1-20 BTS - BMW, Quaker/Pepsi-Co,20/35 Business Park, I -20 Mountain Creek Pkwy, n. of Merrifield Rd Trammell Crow Penn Distribution Center, I-20

1,100,000 500,000 800,000 1,200,000 1,000,000 310,000 820,097 60,000 733,200 850,000 1,600,000 1,100,000 1,000,000 260,000 653,000 1,800,000 600,000 800,000

Hillwood Hillwood Hillwood Hillwood Hillwood Hillwood Exeter Property Group Our Nation’s IDI Weeks Robinson Properties Hillwood Hillwood Majestic Realty Co. KDC Prologis Prologis Mountain Creek Investments Trammell Crow

3Q13 3Q13 3Q13 2Q14 2Q14 3Q14 4Q13 1Q14 4Q14 3Q13 TBD 3Q13 3Q14 3Q14 TBD 1Q14 3Q14 2Q14

Alliance Center North

Arlington Commerce Center Building C

Majestic Airport Center

REDNews.com 25

Austin Area

Office Development - Third Quarter 2013 Source: J.L.L., REOC Austin and REDNews Research Submarket CBD CBD CBD CBD CBD CBD CBD CBD CBD CBD Cedar Park E FNW FNW N N N NE NW NW NW NW NW Round Rock SW SW SW SW SW SW SW SW SW SW

Project Name - Location

Size

4th and Colorado 5th and Colorado 501 Congress Avenue, BofA annex redevelopment Colorado Tower - 303 Colorado Street IBC Bank Plaza - 500 West 5th Street Offices at the Bowie - 311 Bowie Street Redevelopment of Green Water Treatment Plant Seaholm Power Plant - 800 Cesar Chavez Shoal Creek Walk - West Sixth and Bowie Street Waller Creek - E Cesar Chavez & Red River, large mixed-use project Paloma Ridge - SH 45 between Lake Creek Pkwy and West Parmer Lane Eastside Village - SEC 6th Street & Comal Street, mixed-use w/office Aspen Lake 2 & 3 Four Points Bldg 3 - FM 2222 and Hwy 620 Domain 1 - reportedly pre-leased Domain 2 Domain 7 - 11501 Alterra Parkway Parmer 3.2 - 13101 McCallen Pass Champion Office Park - NWC Capital of Texas Hwy. and FM 2222 Quarry Oaks IV - Mopac and Hwy 183 Research Park V - US 183 and Riata Trace Parkway Research Park VI UT--Pickle West. UT System land, sw of the Domain. Mixed-use planned Frontera Ridge - NWC Interstate-35/SH-45/North Loop-1 317 Gracie Lane 3700 San Clemente - 3700 North Capital of Texas Highway 9225 Bee Caves Bldg D Capital Ridge - 320 Capital Of Texas Highway (hotel & office planned) Encino Trace - 5707 Southwest Parkway Hill Country Galleria, Bld. Q - 126000 Hill Country Blvd Lantana - Southwest Parkway at William Cannon Drive Rollingwood - Bee Cave Road near Mopac Super Nature Office & Media Campus (movie studio & tech office park) The Terrace - South Mopac Expressway & Loop 360

Estimated Completion

LPC LPC Stream Cousins Endeavor Endeavor Trammell Crow SW Strategies Group Schlosser Mac Pike Stream Transwestern Crimson Brandywine Endeavor Endeavor Endeavor Trammel Crow/Karlin Endeavor Riverside Cousins HPI Hines Simmons Vedder ECR HPI Kucera Riverside Koontz McCombs Galleria Texas, LLC LPC Endeavor N/A TIER REIT

Colorado Tower

Domain 7 Encino Trace

26 REDNews.com

90,000 180,000 116,437 374,348 195,279 40,985 490,000 148,000 245,000 500,000 324,500 90,000 257,400 73,126 117,787 143,331 221,973 184,500 230,000 80,000 173,530 117,321 TBD 400,000 87,748 250,500 30,077 150,000 321,870 53,453 260,000 214,587 575,000 700,000

Developer or Leasing Rep

Proposed Proposed 2Q14 3Q14 2Q14 1Q15 Proposed 3Q14 Proposed Proposed Proposed Proposed Proposed Proposed Proposed 3Q14 3Q14 1Q15 2Q14 Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed 3Q13 Proposed Proposed Proposed Proposed

Austin Area

Industrial Development - Third Quarter 2013 Source: J.L.L., Oxford Commercial/Cushman& Wakefield, REOC Austin and REDNews Research Submarket

Project Name - Location

Size

Bastrop Cedar Park N N RR RR RR RR

JAMCo - Hwy. 71 and S. Jackson, Bastrop Brushy Creek Corporate Center - SH 620 & 183 Heritage Crossing -Long Vista and Bratton HID Global - 611 Center Ridge Drive Commerce I30 Business Park - SH I30 & Pecan Mtech - 1720 Royson, Pflugerville Scottsdale Crossing - 5900 NW 183A, Cedar Park (Phase 1) Scottsdale Crossing - 5900 NW 183A, Cedar Park (Phase 2)

30,100 266,000 447,656 200,000 240,000 33,000 27,500 200,000

Developer or Leasing Rep

Estimated Completion

BTS - JAMco Capital City Partners N/A BTS - HID Global N/A BTS - Mtech TIG Real Estate TIG Real Estate

Proposed Proposed 4Q13 1Q14 3Q13 Proposed 2Q13 Proposed

Scottsdale Crossing HID Global

Brushy Creek Corporate Center

REDNews.com 27

San Antonio Area

Office Development - Third Quarter 2013 Source: J.L.L., REOC San Antonio and REDNews Research Submarket

Project Name - Location

Far North Far North Far North Far North Central Far North Central Far West Far West Far West Far West Far West New Braunfels New Braunfels North Central North Central Northeast Northeast Northwest Northwest Northwest Northwest Northwest Northwest Northwest Northwest

Heritage Oaks Building 3 - N Loop 1604 W Shavano Center IV Ridgewood Business Center La Arcata Office Building - 18638 Tuscany Stone - Phase II Villages on Sonterra III - 1314 E Sonterra Blvd - Building 2 Christus Medical Plaza III - State Highway 151 Town Center Medical at Westover - 10622 Westover Hills Blvd.

Power Loft @ Westover, flex space Monterrey Office Park, Hwy 151/Westover Hills Stream Private Data Center, 9550 Westover Hills Resolute Medical Plaza - FM 306 & FM 1101 @ Freiheit Road Town Center at Creekside - 1101 Creekside Way El Cerrito Place - 607 Arion Pky Quarry Village II - 250 E Basse Rd Live Oak Medical Complex - 12601 Judson Rd - Phase One Bld #2 The Crossing at Live Oak - Palisades Dr & Loop 1604 - Office (3) WestRidge One at La Cantera -La Cantera Pky Hausman Center, 13615 W IH-10 Hamilton Wolfe Medical Building 1 - 5301 Hamilton Wolfe Lockhill Crossing - 4630 N Loop 1604 Lockhill Selma - 4400 Lockhill Selma - Building 2 The Oaks at University Business Park - Network Blvd. - Bldg III The Oaks at University Business Park - Bldg II Corporate Campus, 4602 N Loop 1604W, Loop 1604/Lockhill Selma

Chirstus Medical Plaza III

Size 84,000 43,500 65,000 30,000 30,000 70,000 45,000 300,000 120,000 75,840 42,000 36,000 156,000 40,510 58,513 39,000 128,700 104,500 36,000 126,626 116,000 103,000 120,000 110,600

Developer or Leasing Rep

Estimated Completion

R.L. Worth & Associates N/A R.L. Worth & Associates LaArcata Office Newmark Grubb Knight Frank Endura Advisory Group Westover Commercial Group Power Loft Westover R.L. Worth & Associates Stream Realty Partners Transwestern Onair Development Casey Development Ltd. Reata Real Estate Fiddlers 60 LTD Commercial Property Investments Patrinely Group, Inc. Koontz McCombs MSL Investments Stream Realty Partners Stream Realty Partners R. L. Worth R. L. Worth N/A

The Oaks at University Business Park

West Ridge One at La Cantera

28 REDNews.com

Proposed 3Q13 4Q13 Proposed Proposed Proposed Proposed TBD Proposed TBD 2Q14 Proposed Proposed 2Q14 Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed 4Q13 Proposed

San Antonio Area

Industrial Development - Third Quarter 2013 Source: J.L.L., REOC San Antonio and REDNews Research Submarket

Project Name - Location

FW FW FW NC NC NE NE/Schertz NE/Schertz NE/Schertz NE/Schertz NE/Schertz New Braunfels NC NW NW S S S S SE SE Seguin Seguin

BTS - Glazer’s Distributors - Hwy. 151 and S. Callaghan Road 518,000 Power Loft @ Westover flex space 300,000 Stream Private Data Center, 9550 Westover Hills Blvd 75,840 Aero Airport Industrial Development - 9007 Aero Street 80,000 Thousand Oaks Business Park 3 - 3660 Thousand Oaks 73,074 Cornerstone Industrial Park - 8562 NE Loop 410 171,397 BTS - Amazon Fulfillment Center - Enterprise Ave & Verde Pky. 1,200,000 Titan Industrial Park, Bldg 1 - 10 - Enterprise Ave & Lookout Rd. 1,600,000 Tri-County 2 - 7045 FM 3009 80,650 Tri-County 3 - FM 3009 and Tri-County Pky. 40,800 Tri-County 4 - FM 3009 and Tri-County Pky. 22,560 New Braunfels Distribution Ctr - 451 FM 306 105,600 Green Mountain 10 - Loop 1604 and Green Mountain Road 120,000 Alamo Business Center - Alamo Downs Pkwy 98,000 Alamo Ridge Business Park - 7007 Fairgrounds Pkwy 158,000 BTS - Halliburton - NEC I-37 and Loop 1604 400,000 BTS - Maruchan Noodle Facility - 11389 IH-35 S 500,000 BTS - Nexolon America - Brooks City-Base 240,000 Medio Creek Business Park, Bldgs 7,8, 10 -21, 11400 I-35 1,600,000 Alamo Junction Rail Park - 16456 Old Corpus Christi Road 400 ac rail/ind park Mission Rail Park - Old Corpus Christi Road 10000 ac rail hub Green Valley Industrial Park - I90 & FM 464 500,000 Seguin Commerce Center, NWC I10 & Hwy 46 1,500,000

Cornerstone Industrial Park

Thousand Oaks Business Park

Size

Developer or Leasing Rep

Estimated Completion

Glazer Distributors Power Loft Westover Stream Realty Peloton Commercial Real Estate Cavender & Hill Properties, Inc. Cavender & Hill Properties, Inc. N/A Titan Development Santa Barbara Development Services, LLC Santa Barbara Development Services, LLC Santa Barbara Development Services, LLC Koontz McCombs Green Mountain Associates ALC Partners EastGroup Halliburton N/A Brooks City-Base Union Pacific RR Co N/A N/A n/a Newquest/Panattoni Development

3Q13 Proposed Proposed Proposed 3Q13 Proposed 4Q13 Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed 3Q13 1Q14 2Q14 Proposed 1Q14 2Q14 Proposed Proposed

Alamo Ridge Business Park

Seguin Commerce Center

REDNews.com 29

R AY ’ S

H O U S TO N Commercial Buzz R AY H A N K A M E R Hankamer & Assoc, Broker, Houston Contributing Writer

Houston Commercial Real Estate (CRE) Outlook

by David Luther, V.P. and Regional Manager Marcus & Millichap Presented at Houston CCIM monthly luncheon, 11/14/13

In General: • We are seeing far more Texas buyers (54% of total deals) in this up-cycle-in the past out of state buyers were more dominant • We are seeing generally about a 430 basis point spread on our graph comparing cap rates to 10 year treasury yields • Investors in CRE in Texas overall are bullish, as are lenders-Investors are “hungry” • Local banks prefer lending to “local” developers • REITS are disposing of non-core assets Multi-Family: • Lots of “covered land plays”, i.e. older MF units being bought for the land… especially projects with good locations but which are 25-50 years old and lower density

• Some “value-add plays”, with B units being upgraded to A, where the yield potential is greater than C to B • The deal making is spreading to smaller cities across Texas now, and to secondary and tertiary markets within the bigger cities • There are few distress sales at this stage in the cycle

Office/Industrial: • Office-industrial sector is attracting cross-over investors experienced in other sectors of CRE • Lots of new development in this sector as oil & gas support firms bulk up their operations and need more space Hotel:

Retail: • Activity spreading to secondary and tertiary markets • Retail “covered ground” activity, i.e. older less productive properties being bought for the land, to be redeveloped as retail or other asset class • High competition for single tenant deals is driving yields down and is driving some investors to other asset classes • Some “cross-over investors” none theless are coming into the retail sector

• The franchisors are aggressive in selling “flags”, sometimes cannibalizing hotels already in place in their own family of brands • Oil & gas demand has pushed hotel occupancy and rates to stratospheric levels in some very small and remote markets in South and West Texas, and new development is underway there • There has been much activity in recent years with large private equity firms buying and operating some of the largest hotel chains-some of

David Luther these chains, having been “taken private”, are now on the verge of “going public” once again Investor Concerns in All Segments: • Interest rates are poised to return to “normal” ranges, i.e. higher • Land in prime markets is less available, and when it is available, it is now very pricy • Infrastructure costs are rising • Rising property taxes are feared • Changing tenant / user demands • Rising labor and construction material costs

Clint Duncan of Transwestern made the following comments about Houston’s Multi-Family (MF) Market at the recent O’Connor & Associates luncheon: • It’s a good time to be a buyer OR a seller • Class A projects running at 90% occupancy with rising rates, in spite of new supply coming on line • 6-8% rent growth in last year, but this should “cool” with increasing Clint Duncan new supply…we have had four years of upward trending rents • Transwestern and their investors focus more on sales of B & C apartments because that’s where higher, stable yields are to be found • The CMBS market is stepping up to securitize packages of multi-family deals that fit their criteria • There are some value added plays still going on, although

30 REDNews.com

lender-held properties on the market are diminishing.

One Clear Lake area deal was recently bought for $11,000 per unit and sold for $40,000 • Financing rates are rising-example was given of one project which locked rate at 4.25 at beginning of summer on a loan which would be priced today at 5.0% • Most submarkets in Greater Houston are good…exceptions are Greenspoint and Antoine-West Gulf Bank, where there is almost flat rate growth and occupancy around 80% • Lots of investment transactions of MF projects in recent years: 76 in 2009; 101 in 2010; 150 in 2011; 206 in 2012; 130 to date in 2013. [Lots of happy brokers!]

• Booming office markets are mirrored by heavy MF development: Energy Corridor, Woodlands, Inner Loop “re-fill”, etc., where office and MF development is strong • Equity players in MF segment getting leery: 18,000 units under construction and 20,000 more proposed, although many of the “proposed” will never get out of the ground

• Project costs going up due to tight labor-ExxonMobil construction site near Woodlands, for example, has guard gates to keep out contractors who might poach labor • Labor costs are pushing up single family home costs as well, as sub-contractors struggle to find workers, with the competition for them coming from the oil patch • Now outside investors are coming to Houston to “get in on the action” and are paying very high prices for local MF projects • Net addition to MF supply is unclear, given huge numbers of MF units being razed in current Houston economic cycle Summary: pent-up demand and Houston’s growing economy has led to increased MF housing demand and higher than ever rental rates; after spurt of construction to meet this demand, investors are starting to pause to evaluate future supply/demand equation; Houston’s economy is slowing a bit, so caution is warranted.

Greenberg & Company

GREENWAY SUBLEASE OPPORTUNITY

Commercial Real Estate Brokerage Firm

Eight Greenway Plaza

OFFICE SPACE FOR LEASE - GREAT LOCATIONS - HIGH VISIBILITY

Ideal Law Firm Space

Richmond @ Fountain View 5959 Richmond Ave. Houston, TX 77057 Space Available: *Suite 103 - 1,809 SF (Retail) *Suite 220 - 1,918 SF (Retail) Suite 310 - 755 SF (Office)

4,714 SF Available on 11th Floor Space Information

Bldg Size: 30,923 SF Land Size: 43,844 SF *NET-NET-NET LEASES

Rate:

ATASCOCITA

3323 Richmond Avenue Space Available: Greenway Plaza Area 12,300 SF

$15.00 NNN psf/yr

Estimated OpEx: $12.21/SF Occupancy:

Immediate

Term:

Through June 30, 2017

Parking Ratio:

3/1,000 SF

5900 Memorial - Memorial Area Space Available:

Bldg Size: 12,300 SF Land Size: 19,000 SF

*1st Floor: 4,759 SF (Retail) 2nd Floor: 1,958 SF (Office) 3rd Floor: 1,655 & 1,733 SF (Office)

For more information

Jim Vann

Contact Broker: David Greenberg - David@greenbergcompany.com Phone: 713-778-0900 Fax: 713-782-7445

jim.vann@moodyrambin.com

Visit our website at: www.greenbergcompany.com 5959 Richmond Ave., Houston TX 77057

$15/SF Office Space!

Great Location!

COMMERICAL SITES

FOR SALE

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Richmond Ave

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Harwin Dr.

Paradigm Commercial Brokerage

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Houston, TX 77042 • Located in Westchase close to Sam Houston & Westpark Tollways • 1,500 SF sf in very versatile floor plan • Shared conference room available • Excellent condition

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Nancy Chen | 832-818-6688 (Cellular) | nancygri@aol.com REDNews.com 31

WHAT’S HAPPENING IN CRE TEXAS

The following pages contain a calendar of Texas CRE events, networking photos and deals/announcments. For more of the above, log on to REDNews.com. We update CRE news and events every day!

Events Calendar Networking Deals& Anouncements

Sponsored By:

PEOPLE on the

Move...

Southeast Texas Brooke Bagby has joined Stream Realty as a transaction manager on its tenant representation team.

Ed Cummins has joined CBRE Houston as a Senior Vice President in the Land Services Group.

Jerrod McQuain has joined CBRE Houston as a senior associate on the Office Occupier team.

Kevin Saxe has joined CBRE Houston as First Vice President of the Office Occupier Team. The National Association of Industrial and Office Properties (NAIOP) named Saxe the ‘2012 Rising Star’.

Brooke Bagby

Transaction Manager Stream Realty

Ed Cummins

Senior Vice President CBRE Houston

Ned Torian has joined CBRE Houston as a Senior Vice President in the Land Services Group.

Jerrod McQuain

North Texas

Senior Associate CBRE Houston

Kelley Ahrens, CCIM has joined CBRE Dallas as a Vice

President in the firm’s Healthcare Services Group.

The Woodmont Company is pleased to announce new hires for 4th Quarter 2013...

Austin Barrett has joined CBRE Dallas as an associate in the firm’s Healthcare Services Group.

Randy Bell has joined The Woodmont Company as an associate in investment property sales.

Greg Cannon has joined Colliers International as the Executive Vice President of industrial sales and leasing.

Kevin Saxe

First Vice President CBRE Houston ing solid relationships

Ned Torian

Senior Vice President CBRE Houston

Erik Coslik has rejoined The Woodmont Company as a Vice President in landlord leasing of existing projects and new developments.

Kelley Ahrens, CCIM Vice President CBRE Dallas

ocation at a time…

Jacob Cox has joined The Woodmont Company as a Vice President in tenant and landlord representation.

over 130 properties for or for lease, and over illion SF of space under agement, Woodmont he experience to help retail project succeed.

Jordan Gronholz has joined The Woodmont Company as an associate in landlord and tenant representation.

us online to see our Austin Barrett nt work and connect Associate our quality team.

CBRE Dallas

Central South Texas Randy Bell

Associate The Woodmont Company

John T. Baird has been promoted to Senior Vice President at Commercial Texas and will continue to strengthen the company’s tenant representation and development consulting services.

Greg Cannon

Executive Vice President Colliers International

ww.woodmont.com Development Brokerage Tenant Representation Retail Consulting Investment Sales Asset Management Property Management Receivership Services

Erik Coslik

Jacob Cox (Leasing) jcox@woodmont.com (214) 217-4609 Randy Bell (Investment) rbell@woodmont.com (817) 377-7726 Jacob Cox

Worth Headquarters Dallas Office Vice President Vice President West 7th St 3100 Monticello Ave, Ste 825 Company The Woodmont Company The Woodmont Worth, TX 76107 Dallas, TX 75205

Erik Coslik (Leasing) ecoslik@woodmont.com (817) 377-7726

Jordan Gronholz (Leasing) jgronholz@woodmont.com (214) 217-4609 Jordan Gronholz

Associate The Woodmont Company

John T. Baird

Senior Vice President Commercial Texas

Share your good news!

Submit your announcements to info@rednews.com

REDNews.com 33

events

CALENDAR

SOUTHEAST TEXAS

( H O U STO N A RE A )

December 4 - Wednesday CREW Houston Holiday Luncheon - Members Only 11:30a - 1:00p www.crewhouston.org

December 9 - Monday CREAM Houston Luncheon - Judge Alan “Barb” Sadler 11:00a - 1:00p www.creamtx.com

December 5 - Thursday HOLBA Holiday Party 5:30p - 8:00p www.ccimhouston.org

December 10 - Tuesday CREN Houston Holiday Party ® 5:30p - 8:00p www.crengulfcoast.com

December 5 - Thursday CCIM Houston Holiday Party 5:30p - 9:30p www.ccimhouston.org

December 10 - Tuesday ICSC Holiday Networking Party 3:30p - 7:00p www.icsc.org

December 6 - Friday Houston BOMA Holiday Luncheon 11:00a - 2:00p www.ccimhouston.org

December 11 - Wednesday O’Connor & Associates Industrial Forecast Lunch 11:30a - 1:00p www.poconnor.com

December 12 - Thursday Greater Houston Partnership Luncheon: State of Transportation with State Representative Joe Pickett 10:00a - 1:30p www.houston.org

Your real estate deserves real m December 12 - Thursday SIOR Houston Holiday Party 6:00p - 8:00p www.iremhouston.org

Count on a CPM professional to deliver real r

CPM

December 12 - Thursday IREM Houston IREM Holiday Party - Monte Carlo 6:30p - 10:30p www.iremhouston.org

For optimal returns on your December 17 - Tuesday Houston turn to ACRP a C- ERTIFIED PROPERTY

®

Holiday Party 5:30p - 8:00p www.acrp.org

® 11 - Wednesday To find a CPM® December has:17 - Tuesday A CPMDecember ULI Houston FBSCR - Sugar Land Members Only Tour of Award z in your area, visitFinalists Monthly Meeting Demonstrated experience 8:00a - 9:00a 11:30a - 2:30p www.fbscr.com www.houston.uli.org z Pledged www.irem-dallas.org commitment to standards z Proven expertise in maxim

December 9 - Monday Greater Houston Partnership Power Hour with State Representative Jim Keffer 8:00a - 9:00a www.houston.org

IREM AUSTIN PRESENTS

Networking

Educat ion

Technology

CCIM Course Scholarships ETH800 -Ethics for the Real Estate Manager CI 101, CI 102, CI 103, CI 104

34 REDNews.com

or CCR & Exam

th

events NORTH TEXAS

CALENDAR

( DAL L A S/ F T. WO RTH A RE A S)

December 4 - Wednesday SCR Ft. Worth Breakfast 7:30a - 9:45a www.scr-fw.org

December 6 - Friday TREC - Dallas Speaker Series - Global View 7:30a - 9:00a www.recouncil.com

December 5 - Thursday BOMA Ft. Worth Holiday Soiree - Members Only 5:30p - 8:30p www.bomafortworth.org

December 11 - Wednesday IREM Dallas Santa for Seniors 1:30p - 4:30p www.irem-dallas.org

December 5 - Thursday NTCAR - Dallas Stemmon Service Award Ceremony 6:00p - 8:00p www.ntcar.org

December 12 - Thursday BOMA Dallas Engineer Lunch & Learn 11:30a - 1:00p www.bomadallas.org

CENTRAL/SOUTH TEXAS

December 12 - Thursday BOMA Dallas Young Professionals “Bring Your Boss” Happy Hour 5:00p - 7:00p www.bomadallas.org December 12 - Thursday CREW Ft. Worth Holiday Party 5:30p - 8:30p www.crewfw.org December 13 - Friday CREW Dallas Holiday Awards Luncheon 11:00a - 1:00p www.crew-dallas.org

(AUSTIN/ SAN ANTONIO AREAS)

December 4 - Wednesday CCIM Austin Holiday Party 6:00p– 9:00p www.ccimtexas.com

December 10 - Tuesday IREM Austin Holiday Party 11:30a - 1:00p www.iremaustin.org

December 4 - Wednesday CTCAR - Austin Holiday Party 6:00p - 9:00p www.ctcaronline.com

December 10 - Tuesday CREW Austin Holiday Party 6:30p – 9:30p www.crewaustin.com

December 12 - Thursday IREM San Antonio Holiday Party 11:30a - 1:00p www.iremsanantonio.org

December 4 - Wednesday Real Estate Council – San Antonio Annual Members Only Government Affairs 7:30a - 9:00a www.recsanantonio.com

December 11 - Wednesday ULI Austin Monthly Breakfast 7:30a - 9:00a www.austin.uli.org

December 17 - Tuesday RECA Austin December Awards Reception 4:30p - 6:00p www.recaonline.com

December 10 - Tuesday CREW San Antonio Luncheon and Awards Program 11:30a - 1:00p www.crew-sanantonio.org

December 11 - Wednesday 9 CCIM Austin Networking Event 5:30p - 7:00p www.ccimtexas.com

December 12 - Thursday BOMA Austin Monthly Membership Luncheon 11:30a - 1:00p www.bomaaustin.org

COMMERCIAL

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December 18 - Wednesday hours of MCE - Course #09-00-035-25248 - Provide Holiday Mixer 5:00p - 7:30p

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Out and About – Texas CRE Networking It was another great month of catching up with old contacts and making new ones at the Texas networking events in October and November. REDNews also had a booth at the ICSC Dealmaker’s Conference in Dallas where we spent time with a lot of our clients – Tarantino, AmREIT, J. Beard, to name a few. Check out our pictures and be sure to send your own pictures to info@rednews.com to be included in our next issue!

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To view more photos go to: http://www.rednews.com/networking-event-photos

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N E T W O R K I N G

S o u t h E a s t T E X A S 3 Riverway Title’s 10th Annual Texas Hold ‘Em Event at Cadillac Bar 1. John Hammond, Riverway Title; Morgan Moliver, Phase Engineering

ACRP Happy Hour at Cadillac Bar 2. Neal Stephenson, Capital Title, Jeanne Bassetti Jullien, Gorrondona & Associates; Waylon Themer, City Bank Texas

City Bank Texas Grand Opening 5. Neal Stephenson, Capital Title Commercial; Bill Dampier, City Bank Texas; Russell Simmons, Texas Area Properties CCIM Houston November Luncheon 6. Esau Liu, EastWest Bank; Corey Ferguson, Raintree Commercial; Bud Friedman, Fort Bend Real Estate Corp.

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O’Connor Luncheon at Courtyard on St. James 3. Les Lobo, Lobo Energy; Morgan Moliver, Phase Engineering; Bud Thomas, Operations/Metrics Analyses/Real Estate 4. Dana Thorpe, Brightside Properties; Brian Janak, Inner Loop West

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N E T W O R K I N G

C e n t r a l S o u t h T E X A S

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2 CBRE’s Dart Bowl The Austin office of CBRE hosted a bowling fundraiser at Dart Bowl to raise funds for Austin Habitat for Humanity. They successfully raised a little over $9,000! Congrats, CBRE! 1. Eric DeJernett, Jessie Browning, Bryan McMurrey, Della Maxson, John Heffington 2. CBA in Austin hosted its Second Annual Real Estate Challenge and here are the CBRE Volleyball team winners!

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CCIM Central Texas Networking Luncheon at Westwood Country Club 3. Nathan Smith, CCIM, Austin Tenant Advisors(left) and Bruce Evans, CCIM of Texas Investment Property Group received the CCIM designation in Denver October 24th, 2013. Lise Wineland, CCIM of Kennedy Wilson congratulates them on achieving this accomplishment!

CREW Austin 10th Annual Golf adventure at Grey Rock 4. Emily Layton, Layton Architecture & Designs; Beth Guillot, GSC Architects; Cynthia Ehlert, Patcraft; Lara Burns, Urbanspace

N E T W O R K I N G

N o r t h T E X A S ICSC Dealmaker’s Conference in Dallas

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1. Radkey Jolink, AmREIT 2. S ean Gildea, Eric Drymalla, Alex Curry, Grady Field, Janie Colin, Meghan Allen, Peggy Rougeou of Tarantino Properties 3. Jeff Beard, The J. Beard Real Estate Company 4. C atherine Harbove, REDNews, drawing the business card of the lucky winner of a free email blast! Congrats to Sheri Arnold of Coldwell Banker Commercial!

5. L ee Ayers, Kaufman Economic Development Corporation 6. MIMCO Booth at ICSC!

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SOUTHEAST TEXAS

DEALS DONE

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INDUSTRIAL

OFFICE Houston (LEASE) – Falcon Control Systems, LLC leased a 20,000 SF at 3901 Airline Drive in Houston. Preston Yaggi of The National Realty Group represented the tenant, and Travis Land of NAI Houston represented the landlord, Tapper Investments.

Houston (LEASE) – Stockbridge leased 17,325 SF more at Griggs Industrial Park in Houston. Matteson Hamilton and Jeremy Lumbreras of Stream Realty Partners represented the tenant.

Houston (SALE) – Quasar Navigation Ltd purchased a 302,800 SF warehouse facility at 6501 Navigation Boulevard in Houston. Clay Pritchett of NAI Houston represented the buyer and Jim Foreman, Cape Bell and Beau Kaleel of Cushman & Wakefield represented the seller, a Bellaire-based Levey Group.

LAND Houston (SALE) – Ligomore LLC and Orinokia Supply LLC purchased a 111.93acre tract at FM 1960 and Broze Road in Houston. Ivan Arjona of Re/Max Woodlands represented the buyers, and A. David Schwarz III and Carlos Bujosa of Transwestern represented the sellers, Skinner Lands Turkey Creek.

Houston (SALE) – Avanti Properties Group purchased 502 acres on Berdett Road in Rosenberg. Matthew Herring, James Kadlick and Chris Hutcheson of McAlister Real Estate represented the seller, Rockspring Capital.

Houston (SALE/DEVELOPMENT) – Park Underwood, LLC purchased approximately 90 acres at Bayport North Industrial Park II in Pasadena. Tim M. Thomas, B. Kelley Parker, III, SIOR, John F. Littman, SIOR, MAI and Coe Parker of Cushman and Wakefield represented the seller, Duke Realty Limited Partnership. The industrial land will be developed into finished lots for sale or buildto-suits.

MULTIFAMILY Conroe (SALE) – Abbey Residential purchased two multi-housing properties: Stone Ridge at 231 Interstate 45 North and Cimarron Park at 2201 Montgomery Park Boulevard, both in Conroe. Ryan Epstein, in conjunction with the CBRE Houston Multi-Housing Group, represented the seller.

Houston (SALE) – Abbey Residential purchased three multi-housing properties: Ridge at Willowbrook at 8330 Willow Place Drive South, Woodedge at 10802 Green Creek Drive and Aston Brook at 14101 Walters Road all in Houston. Ryan Epstein, in conjunction with the CBRE Houston Multi-Housing Group, represented the seller.

Houston (DEVELOPMENT) – Mill Creek Residential, the national apartment developer, investor and operator, broke ground on the Premier Medical Center, a luxury apartment community in the Texas Medical Center in Houston. Dallas-based Hensley Lamkin Rachel Inc. is the architect. The apartments will be move-in ready in April 2015.

Houston (DEVELOPMENT) – MAS Lodging Capital LLC, on behalf of Chasewood Park Hotel, LP purchased a 7 acre site within the 32 acre master-planned office community, Chasewood Technology Park in Houston. Lisa Hankamer of Uniquity RE Partners and Mark Fowler of Transwestern represented the seller. The new Marriott SpringHill Suites Hotel is projected to open September 2014.

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Houston (LEASE) – Petrofac, Inc. leased 35,854 SF at 2020 Dairy Ashford in Houston. Gary Lawless Jr. of Cresa Houston represented the tenant, and D.A. Smith of Briarhollow Realty Group represented the landlord in house.

Houston (LEASE) – Children’s 1st Dental and Surgery Center leased 7,700 SF at the Monroe Medical Plaza in Houston. Mark Sondock of Stream Realty Partners represented the tenant, and Joel Dalak of TIG Real Estate Services represented the landlord.

Corpus Christi (SALE) – An undisclosed buyer purchased the Bank of America Tower, a 350,000 SF building at 500 N. Shoreline Boulevard in Corpus Christi. David L. Carter and Martin O’ Malley of Colliers International represented the seller, Lake Street Corpus Christi Holdings, Inc. Houston (SALE) – Dornin Investment Group purchased two office buildings at 1250 Woodbranch Park Drive (102,950 SF) and 11931 Wichchester Lane (61,872 SF) in Houston. Dan Miller and Marty Hogan represented the seller, Peloton Commercial. There was no buyer broker.

Houston (SALE) – Cole Corporate Income Trust, Inc purchased a 97,501 SF building in the West Belt Corridor in Houston. Bernard Branca and Jared Chua of CBRE represented the seller, Crimson Real Estate Advisors, LP. Houston (SALE) – James P. & Patricia Wuerth purchased 17,280 SF at 1739 Bingle in Houston. Thompson Green of GRI Commercial Real Estate represented the buyer, and Tim M. Thomas, B. Kelley Parker, III, SIOR, John F. Littman, SIOR, MAI and Coe Parker of Cushman & Wakefield represented the seller, Blalock 3 Joint Venture LLC. Houston (SALE) – Tomball Regional Medical Center leased 11,396 SF at Magnolia Landmark Building at 18230 FM 1488 in Magnolia. Jason Whittington and Chris Caudill represented the tenant, and Ross Foldetta of Woodlands Commercial Realty represented the landlord.

Houston (DEVELOPMENT) – Developed by Lincoln Property and Stonelake, construction is underway on Park Ten Center, two 150,966 SF buildings located at Park Row and Park Ten Boulevard, just north of the Katy Freeway in Houston. The buildings were designed O’Brien Architecture out of Dallas. The project is expected to be completed in July 2014.

RETAIL/RESTAURANT Houston (LEASE) – USA Baby leased 9,400 SF at Piney Point Shopping Center in Houston. Bob Conwell of NewQuest represented the landlord, RPI Management.

Houston (LEASE) – Diabetes America, LLC leased 6,184 SF at FM 1960 and Eldridge Parkway in Houston. Mike Raines of CBRE represented the tenant, and Glenn Dickerson of NewQuest represented the landlord, Inland American Retail Management, LLC. Houston (LEASE) – Flexi Compras leased 4,800 SF at 7800 Longpoint in Houston.

Randy Moudry of Moudry Real Estate Advisors represented the tenant, and Simon Ha of Retail Solutions represented the landlord.

NORTH TEXAS

DEALS DONE

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INDUSTRIAL

Chris Lipscomb and Michael Carmichael of Colliers International represented the landlord, GT Dallas Properties.

Dallas (LEASE) – Supreme Custom Fabrications, Inc. leased 19,416 SF at 11470 Hillguard Road in Dallas. Brett Lewis and Tom Walrich of Lee & Associates represented the tenant, and John Hendricks of CBRE represented the landlord, IndCor Properties, Inc. Grand Prairie (LEASE) – Stelfast, Inc. leased 59,400 SF at 2750 113th Street in Grand Prairie. Matt Dornak and Cannon Green of Stream Realty Partners represented the landlord, Prologis.

Grapevine (LEASE) – KMM Telecom leased 200,000 SF at 4051 N. State Highway 121 in Grapevine. Cannon Green and Blake Kendrick of Stream Realty Partners represented the landlord, DCT Industrial.

Carrollton (SALE) – A local investor purchased 30,000 SF at 3210 Skylane in Carrollton. Larry Robbins of Capstone Commercial arranged the sale Dallas (SALE) –Vibrio Properties I, LP purchased 23,900 SF at 1849 Empire Central in Dallas. Jason Moser of Stream Realty Partners represented the buyer, and Allen Gump, SIOR, CCIM and Allyson Gump of Colliers International represented the seller, MRSL Properties.

Irving (SALE) – Manara Academy, Inc. purchased 30,000 SF at 8201 Tristar Drive in Irving.

Michelle Hudson of Hudson Peters Commercial represented the buyer, and Mark Graybill of Lee & Associates represented the seller, Denkmann Associates, LLC.

MULTIFAMILY Arlington (SALE) – A California-based investor purchased Mitchell Apartments, a 16-unit property at 304 East Mitchell Street in Arlington. Steve Bogoyevac of Marcus & Millichap’s Long Beach office represented the buyer, and Boyan Radic, Mason Green and Doug Banerjee of Marcus & Millichap’s Ft. Worth office represented the seller, RSP Mithcell LLC. Carrollton (SALE) – Pensam Capital purchased Bella Vida at Coyote Ridge, an 814,904 SF multifamily property located at 4253 Hunt Drive in Carrollton. Brian O’Boyle Sr. and Jr. and Brian Murphy of Apartment Realty Advisors represented the seller.

Plano (SALE) – An investor purchased The Encore, a 240-unit property at 4700 Tribeca Lane in Plano. Charles Cirar, Ryan Reid and Jeremy Faltys of CBRE represented the seller, Zale/Corson Group, who also developed the residential property.

OFFICE (DALLAS TECH CENTER PIC) Dallas (LEASE) – Coram Healthcare Corporation of North Texas leased 9,764 SF at the Dallas Tech Center at 10105 Technology Boulevard., Suite 102 in Dallas. Lee & Associates represented the tenant, and Kevin Brookmole and Wade Smith of Colliers International represented the landlord, FSCP Dallas Portfolio 1 LLP. Dallas (LEASE) – Sunwest Communications Inc. leased 6,898 SF at 13355 Noel Road, 1000 in Dallas. Bob Myer of Myers Commercial represented the tenant, and

Grapevine (LEASE) – Orange Energy Consultants LLP leased 5,813 SF at 1900 Enchanted Way in Grapevine. Nick Talley of Bradford Commercial Real Estate Services represented the tenant, and Melanie Hughes and Sharon Friedberg of Bradford Commercial Real Estate Services represented the landlord, Capital Commercial Investments, Inc. Colleyville (SALE) – Gene Young Standard Insurance Agency Corp. purchased a 19,626 SF building in Meadow Creek Plaza at 8190 Precinct Line Road in Colleyville. Mark Wood of Howe/Wood & Company represented the buyer, and Russ Webb and LeAnn Brown of Silver Oak Commercial Realty represented the seller, 8910 Precinct Line Partners, Ltd. Colleyville (SALE) – CCI-Colleyville I, LP purchased a 15,217 SF mixed-use office/retail condo building in the Village at Colleyville at 99 Main Street in Colleyville. LeAnn Brown of Silver Oak Commercial represented the seller, Kinecta Federal Credit Union.

Dallas (SALE) – KBS Realty Advisors purchased Highland Park Place, a 164,011 building at 4514 Cole Avenue in Dallas. Gary Carr, John Alvarado and Eric Mackey of CBRE represented the seller, Heitman.

Dallas (SALE) – Boxer Property purchased a 153,387 SF building at 4100 Spring Valley Road in Dallas. Boxer Property represented itself, and Jack Crews and Evan Stone of Jones Lang LaSalle represented the seller.

Plano (SALE) – Grupo Haddad purchased the 190,000 SF Plano Office Commons at the Telecom Corridor in Plano. Eric Mackey, Gary Carr and John Alvarado of CBRE arranged the transaction of behalf of an investor represented by Peloton Commercial Real Estate.

RETAIL/RESTAURANT Arlington (LEASE) – Serenity Dental has leased approximately 3,000 SF at North Cooper Street and Lamar Boulevard in Arlington. George Michael Lambert of The Lambert Company represented the tenant, and Cynthia Bailey of WindStar Properties represented the landlord, Lamar Land Partners I, Ltd. Dallas (LEASE) – Sam’s Club, UTLA and Five Below leased 136,085 combined SF at The Mansfield Town Center off US Highway 287 at West Debbie Lane in Dallas. Tom Hudson of Tom Hudson Co. represented Sam’s Club, Jennifer Frank of Princeton Partners represented ULTA and Tyler Grishman and Greg Bracchi of EDGE Realty Partners represented Five Below. Stephen Coslik and Bryan Dyer of The Woodmont Co. represented the landlord, Kossman Development Co., in all three transactions.

Richardson (LEASE) – Five Star Café leased 14,672 SF at 970 N. Coit in Richardson. Eric Deuillet and Jeremy Cummings of Structure Commercial negotiated the lease.

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CENTRAL/SOUTH TEXAS

DEALS DONE

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INDUSTRIAL

RETAIL/RESTAURANT San Antonio (LEASE) – Omnicare of San Antonio leased 11,980 in Building C of the Network Tech Center at 12400-12460 Network Boulevard in San Antonio. John Worthen of Jones Lang LaSalle represented the tenant, and Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord, an entity controlled by Clarion Partners.

San Antonio (LEASE) – Lone Star Safety & Supply Inc expanded to 10,000 SF at 5516 Business Park Drive in San Antonio. Carl Salvato of CBRE San Antonio represented the tenant, and Charlie Hargis of Endura Advisory Group represented the landlord, Atlas San Antonio 2, LP. San Antonio (LEASE) – Paychex North America, Inc. leased 7,808 SF in Building A of Network Tech Center at 12400-12460 Network Boulevard in San Antonio. Todd Smith of Acclaim Group and David Ballard of Reata represented the tenant, and Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord, an entity controlled by Clarion Partners.

MULTIFAMILY Austin (SALE) – Omninet Capital purchased

Park at Crestview Apartments, a 224,272 SF property at 8200-8220 Research Boulevard in Austin. Omninet Capital was self-represented, and Forrest Bass and George Deuillet III of Hendricks & Partners represented the seller, FIRMUS Equity Partners.

OFFICE Austin (LEASE) – Neighbors Emergency Centers leased a 9,497 SF building at 12701 RR 620 in Austin. Brian Novy of the Novy Company represented the tenant, and Nick Nelson and Jim Young of KW Commercial represented the landlord.

El Paso (LEASE) – Handgards, Inc. leased 126,000 SF at 32 Celerity Wagon in El Paso. Anthony Mash of CBRE El Paso represented the landlord, 1901 Bragaw, LLC. Austin (SALE) – Spire Realty Group LP purchased the 445,322 SF Austin Oaks, a twobuilding complex at 7718-7719 Wood Hollow Drive and 3409-37373 Executive Center Drive in Austin. Todd Mills and Casey Knust of CBRE represented the seller, Riverside Resources Corp.

Cedar Park (DEVELOPMENT) – VERP LLC purchased a 4.5 acre parcel from a Florida investor to be developed into a 43,240 SF medical office and retail space at the corner of South Vista Ridge Boulevard and East Park Street in Cedar Park.

The first phase, a 9,500 SF building, will break ground in the first quarter of 2014. William Harrell of Duke Commercial Real Estate will handle the leasing assignment, and RVL Architects is the architect.

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Austin (LEASE) – Texas Entertainment Bingo Hall leased 16,944 SF at The Great Northwest Shopping Center at 8721-8755 Grissom Road in San Antonio. Tim

McBrearty of Retail Solutions represented the landlord.

Austin (LEASE) – Shake Shack leased 3,500 SF at 1100 South Lamar in Austin. Eric DeJernett, CCIM of CBRE Austin represented the tenant, and Bryan Dabbs of Stream Realty Partners represented the landlord, GDG South Lamar Plaza, LP. Austin (LEASE) – Hair Studio Barbershop leased 2,000 SF at Shops on Howard Lane at 1200 Howard Lane in Austin. Dorca Simmons of Prudential Commercial represented the tenant, and Cole Brodhead and Brian Harris of Retail Solutions represented the landlord.

Austin (LEASE) – Austin Skinny Limits leased 1,827 SF at Rundberg Square at 825 E. Rundberg in Austin. Adam Fike of Southwest Strategies Group represented the tenant, and TJ Powell and Brian Harris of Retail Solutions represented the landlord.

Austin (LEASE) – Growler Room leased 1,800 SF at Willow Creek at 2400 E. Oltorf in Austin. Tami Greenberg of Office Solutions represented the tenant, and Herman Tjahja of Retail Solutions represented the landlord.

Austin (LEASE) – Deco Window Fashions leased 1,780 SF at Plaza 183 at 13450 Research Boulevard. in Austin. Andrew Perkel of Retail Solutions represented the tenant, and Monica Moore of Live Oak-Gottesman represented the landlord.

Austin (LEASE) – SRA International leased 1,760 SF at Cannon West Shopping Center at 6800 Westgate Boulevard. in Austin. Jones Lang LaSalle represented the tenant, and TJ Powell of Retail Solutions represented the landlord.

Brownsville (LEASE) – Valley Dollar Mart leased 5,000 SF at Southmost Retail at 2865-2905 Southmost Road in Brownsville. Horacio Gallegos, CCIM of Retail Solutions represented the landlord.

Brownsville (LEASE) – Crocs leased 3,100 SF at Boca Chica Square at 2921 Boca Chica Boulevard. in Brownsville. Susan Schulte of Schulte Real Estate Resources represented the tenant, and Horacio Gallegos, CCIM of Retail solutions represented the landlord.

Pflugerville (LEASE) – Bamboo Bistro leased 2,000 SF at the Overlook at Pfluger Crossing at the Southwest corner of FM 685 and Pflugerville Parkway in Pflugerville. Herman Tjahja of Retail Solutions represented the tenant, and David Simmonds of Retail Solutions represented the landlord.

McAllen (SALE) – A private, Midwest-based buyer purchased a 13,029 Walgreens at the Northwest corner of Pecan Boulevard and North 23rd Street in McAllen. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, an East Coast institution.

Austin (LEASE) - Evans Dermatology leased 5,800 SF at 3508 South Lamar in Austin. Hale Umstattd of Transwestern represented the tenant, and Tucker Francis and Alan Rust, CCIM of Retail Solutions represented the landlord.

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INDEX

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Broker

advertiser A. A. Realty Company............................................ 13 ACRP.................................................................... 34 APC Holdings........................................................ 19 BACREN. . .............................................................. 34 CCIM............................................................... 34, 35 City of Burnet. . ................Cover-Central/South, TX, 12 Coldwell Banker Commercial United ..................... 21 C.R.E.A.M. .. ......................................................... 34 CREN .................................................................. 34 CREW ................................................................ 35 CTCAR ................................................................ 35 Fuller Realty Partners ............................................7 Greenberg & Co. . . ................................................ 31 Hankamer & Associates ....................................... 19 International Church Realty .................................. 15 IREM ................................................................... 34

INDEX

Lincoln Property Company ...... Cover-Southeast, TX, 3 Moody Rambin Interests . . ..................................... 31 NAI Houston ........................................................ 21 NEWCOR ............................................................ 15 Paradigm Commercial Brokerage .......................... 31 Phase Engineering . . ............................................ 32 PM Realty Group ................................................ 21 Raintree Commercial, LLC .....................................2 TAO Interests, Inc. ............................................... 41 Tarantino Properties, Inc. ................................... 8, 9 The National Realty Group, Inc. .. .......................... 15 Westchase District ................................................5 Zarsky Industries ................................................ 17 REDNews.com 41

by Mike Hill Michael Hill Properties www.mhprop.com

COMMERCIAL REAL ESTATE BUSINESS FUNDAMENTALS 1. Be very aware of what you do, how it affects others … and how it looks to others.

2. Understand your weaknesses and build your business tools to accommodate them.

3. This is a “technical business;” take an educated approach to it.

4. The clients’ needs are the focus; it’s not about what YOU want.

5. Work hard, work smart, over a long period of time, in the same commercial real estate marketplace.

6. Never lose the information you have learned …. on EVERY deal.

7. Be very, very careful of how you spend your money; things change quickly.

I could go into much more detail on each of the above but I won’t, because anyone who reads this with interest will know what I am talking about, without additional explanation.

I am, however, going to pass on a SECRET here … one which we probably all know on some level but may not really be paying attention to: The Deal Fairy! In everyone’s life, there are moments (maybe waking up in the middle of the night, maybe while driving, etc.) when something occurs to you about a person, a property, a situation, etc., and you think “…maybe I should call, follow up, etc. on this…”, and then you forget it and don’t. What just happened is – the Deal Fairy landed on your shoulder and whispered in your ear about this situation. Whether you listen to him/her (not sure!) is up to you. What I have learned is: always, always, always stop, write it down, and MAKE that call! It is your subconscious working for you. Consistently, I have found that the call bears results which many times makes the difference between an average year’s earnings and a really good year!

GOOD LUCK AND REMEMBER, STAY WITH THE COMMERCIAL REAL ESTATE BUSINESS FUNDAMENTALS AND ….

LISTEN FOR YOUR DEAL FAIRY’S WHISPERS!

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2014 Editorial Calendar 100,000+ Print / Digital Distribution + Over 200 Newsstands Throughout Texas * REDNews will have additional magazines at these events

*Bonus Distribution

Office / Office-Medical

Sustainability Trends

Retail / Vacant Land / EDCs

Retail / Vacant Land & Development Opportunities

Industrial / Vacant Land

Guide to Commercial Services

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April

ICSC Las Vegas

Office / Office Medical Trends

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Office / Office-Medical

June

Texas Land Markets Conference

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Retail /Vacant Land / Texas Development Opportunities The New Texas

May

Industrial / Vacant Land / EDCs

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July

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Office/Medical

Industrial

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September

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Retail /Vacant Land / Texas Development Opportunities The New Texas

August

October

CCIM Forecast Competition

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March

Technology & Innovation in Commercial Real Estate/Social Media

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February

Retail /Vacant Land / Texas Development Opportunities The New Texas

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January

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Month

November

December

Retail / Retail Land / The New Texas

Broker Industrial Sales/Leasing Trends; Commercial Services Broker Opinions & Surveys

State of the 2014 CRE Market

Fall Festivals; Weekend Getaways; Hunting & Fishing; The Port of Houston 100 yr anniversary Retail Interviews; Supplement - Special Retail Focus

ICSC Texas

Industrial / Office / Land

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