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Table of Contents
The I-35 Project - ‘The Smart Corridor’
The New Trans-Texas Corridor
Say ‘Good-bye’ to the Trans-Texas Corridor & ‘Hello’ to I-69
The “Greater” Place to Be
Don’t Be Afraid to Pursue Your Dreams
American By Choice
Last Page: Top 10 Effects of the Millennial Generation on CRE
Properties for Sale/Lease
1 – 3, 5, 7 -9, 11, 15, 18, 19, 23
Commercial Services Environmental Services
What’s Happening in Texas CRE
Calendar of Events
Deals & Announcements
FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS
EDITOR Marjorie Gohmert firstname.lastname@example.org STAFF WRITER Janis Arnold CONTRIBUTING WRITERS Ray Hankamer email@example.com Austin - Rosalie Keszler San Antonio - Suzanne Scott North Texas - Dave Sorter ART DIRECTOR Connie Marmolejo - firstname.lastname@example.org ACCOUNTING Benton Mahaffey email@example.com DATABASE MANAGER Jason Marshall firstname.lastname@example.org SALES Ginger Wheless email@example.com
Print & Digital Distribution
It’s time for New Year’s Resolutions! At the top of my list is the desire to experience international travel this year. I have had limited “experiential history lessons” so not only is travel on my top 10 for 2014, it’s also included in my bucket list: Visit a minimum of 30 countries before I kick the bucket.
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: 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
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This reminded me how international a city Houston is and led me to start a series in REDNews this year recognizing the number of cultures prevalent in our city and the amount of influence they have had in our growth and development. The Asian-American community (primarily Chinese & Vietnamese) are a small, but mighty group representing only about 6.5% of our population. However, Chinatown has been referred to as the “Asian Wall Street” and there are six privately owned Asian-American banks in the area with assets of over $30 billion! I visited with Wea Lee, who took me on a tour of Southern News Group & the International Trade Center, and Donnie Chang of ABC Realty Advisors. Kenneth Li of Century 21 Southwest gave me a tour of Chinatown which piqued my curiosity in visiting the Sharpstown and Westwood areas which are part of the Greater Sharpstown Management District. The Chinese culture of incorporating Feng Shui and Numerology (see Page 21) into their development plans and the fact the Chinatown area didn’t experience a 2008 – 2012 downturn might be worth a case study. The Texas Board of Realtors has even started offering an MCE class in Real Estate Feng Shui. Happy 2014!
Year of the Horse Not only is the Horse a symbol of traveling, but also a sign of speedy success
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The I-35 Project - ‘The Smart Corridor’ by Jason Marshall REDNews
The Texas A&M Transportation Institute (TTI) is a state agency and part of the Texas A&M University system. They have about seven hundred employees, which includes about three hundred students and do research in all areas and all modes of transportation. Ginger Goodin has been with TTI for seventeen years, and most of her research has been in the area of transportation planning and operations. Traffic Congestion, Proposed Solutions and Funding I-35 was ranked fourth in the state for being the most congested and the Austin region was the number one most congested corridor. I-35 has now become the most congested highway in Texas, and the Austin region remains the most congested corridor.
The good news is there are many proposed solutions to help with traffic congestion along Interstate 35. Unfortunately, the scenarios that are possibly financially viable wouldn’t solve the problem and the solutions that would solve the problem are too expensive. With a gas tax that hasn’t been raised in over 20 years and continued concerns over where the funding for new The Texas A&M Transportation Institute (TTI) was asked by the Texas Department of Transportation (TxDOT) to assist in the application and refinement of prior research to help ensure the successful completion of the reconstruction of the IH-35 corridor from Hillsboro to Salado (90 miles total). TTI will implement the project during the five years of the overall IH-35 construction project (2011-2015) for $16.8 million.
TTI will lead the following three efforts: IH-35 Mobility Coordinator The IH-35 project, which will result in the completion of eight lanes through Waco and Belton and six lanes through the remainder of the corridor, is actually made up of 14 individual projects with multiple contractors. The Mobility Coordinator’s role will include: • Facilitate open lines of communication among key stakeholders. • Coordinate and facilitate an expert traffic management team. • Support an ongoing public information campaign to educate property owners, businesses and the general public about the project and its impact.
IH-35 Traveler Information System Developer and Implementer The economic and mobility importance of the IH-35 corridor requires an unprecedented real-time
highways will come from, many who have to deal with traffic congestion on highways are left to wonder when proposed solutions will be implemented. However, Senior Researcher, Ginger Goodin, believes technology now and moving forward will play a vital role in relieving Traffic Congestion on IH-35 near Austin traffic congestion on our highways. “One of the things that we have been doing is [creating] some technology that helps us monitor conditions and provide information to motorists if there’s a closure because of construction or if there’s some kind of incidents that have occurred. We’ve been working very closely with TxDot on this and see it as the start of what you might call a ‘smart corridor’, “ she said. -A Smart Corridor is a corridor in which multiple transportation networks are operationally coordinated, including intermodal connections and collaboration between organizations that participate in the operation of the corridor. Below is an excerpt from the I-35 Corridor Project initiative by Christopher M. Poe and the research teams at Texas A&M Transportation Institute.
travel information system to inform travelers, freight operators and businesses of the potential impacts of travel delay and other travel challenges during construction. Implementations include: • Implement proven Bluetooth® travel time monitoring research developed by TTI, which can be done at a fraction of the cost of traditional monitoring approaches. • Develop a first-of-its-kind, multi-contractor construction activity clearinghouse. • Integrate a private sector-developed and deployed lane closure monitoring system. • Based on user-defined needs, develop an innovative travel information dissemination tool using social media, in-vehicle devices and smart phones. This effort will include guidance from TTI’s distracted driver research team to ensure maximum traveler safety.
IH-35 Intelligent Corridor Development Plan With the expertise gained through this project, TTI will create a plan to support the deployment of the first intelligent transportation corridor in Texas, and provide the data needed to replicate these “smart” corridors in the future. Also: • Incorporate technologies developed through the U.S. Department of Transportation’s IntelliDrive® project (in which TTI is involved) to enable wireless, networked communications among vehicles, transportation infrastructure and passengers’ personal communications devices. • Determine the long-term needs for the IH-35
corridor through stakeholder meetings and input. • Create an advisory panel to provide input to TxDOT on creating intelligent corridors in Texas. Please visit http://tti.tamu.edu/projects/initiatives/i-35mobility for information regarding the complete project. If you would like to find out more about Ginger Goodin and the research that her and other researchers are doing at TTI, please visit www.tti.tamu.edu.
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The New Trans-Texas Corridor by Jason Marshall REDNews
Just 8 years ago the hot button topic in the state of Texas was the proposed new transcontinental highway system, the Trans-Texas Corridor, Governor Perry’s brainchild, intended to be one of the largest highway systems created – extending from Mexico, through Texas, and the Midwest, into Canada. The 4,000-mile “Super Highway” consisting of highways, toll roads and rails would have served as a gateway for trading and transportation, as well as bringing relief to congested roadways. A former member of the Texas Department of Transportation (TxDot), who was a proponent of TTC-35, worked closely with Cintra, the Spanish-based toll road developer and operator, who was signed on by Governor Perry for this project. Chris Lippincott, former Director of Media Relations with Chris Lippincott TxDot from 2006-11 and witness to the demise of TTC35, shared with me his thoughts on what could have been and the ultimate failure of the super highway system, the Trans-Texas Corridor. The former Director of Media Relations said that Governor Perry’s idea was to “interconnect all of our state’s major cities with additional corridors, with transportation pathways for cars, trucks and rail (freight and passenger). And for electricity – which has continued to be a problem for us, for the transport of water and natural gas.”
So, what ultimately killed the Trans-Texas Corridor? “I think people did not see the urgency of solving the transportation problem, or that the problem could be solved.” Lippincott continues, “I think there were people who took advantage of the situation and raised irresponsible allegations relating to foreign involvement or international conspiracies, to score political points.” Lippincott believes misinformation influenced the pushback. “We were never going to build something 1200feet wide that’s going to destroy everything”. In 2010, the Texas Legislature finally put the final nail in the proverbial coffin of Trans-Texas Corridor with the passage of HB 1201. With the demise of one proposition there came to the state of Texas another: the hope for a Super Highway Corridor no longer is a distant memory fading in the rearview mirror, but a light at the end of a not-so-distant tunnel. Enter the Interstate 69 Corridor – a multi-billion dollar proposed Highway ($742 million in current projects) that, along with the previously proposed Trans-Texas Corridor, would work its way from Mexico all the way into Canada. Instead of bisecting Central Texas, the I69 Corridor would originate at US 281 (McAllen, Pharr) US 77 (Brownsville) and US 59 (Laredo), which all come together as US 59, north of Corpus Christi, continue through East Texas, into Arkansas, the mid-Atlantic states and into Canada by way of Port Huron, Michigan. Titled “a future NAFTA Super Highway” by the Deep East Texas Council of Governments, Interstate 69 looks to accomplish Perry’s TTC system – a major intracontinental trade gateway, without having to be as vast and require as much infrastructure.
“The gas tax is not going to get changed…how do we fund transportation? Somehow, we’ve got to come up with the money. There’s no painless way to do it. Hopefully, we find the fairest and most economic way.” -Judge John Thompson 12 REDNews.com
With the Trans-Texas Corridor, we talked about what could’ve been – now talk is about what’s to come. A coalition was formed in 1994 with the purpose of improving the standards of East and Southeast Texas roadways, and then sustaining those highways. Now, the non-profit organization composed of cities, counties, port authorities and community leaders, is focused on the completion and sustainability of Interstate 69 from the Mexican border to Texarkana and Louisiana. I had the opportunity to speak with the Chairman of the Alliance for I-69 Texas, Judge John Thompson, about the Interstate 69 Corridor. In October of 2013, State Senator Robert Nichols and State Representative Joe Pickett were honored for their leadership in the 2013 legislature on Texas transportation funding. As a result, Texas transportation funding expects to see an estimated increase in highway funding of $1.2 billion, which will go before voters for approval in 2014. Judge Thompson believes I-69 will get its share – whether that is the lion’s share is to be determined. “TxDot has been a very good partner with us. I-69 is important to all of Texas, so we’re confident that if voters pass the bill, we’ll get our share of that $1.2 billion.” Thompson, however, emphasized that the $1.2 billion would only be a portion of what it will take to maintain and improve Texas’ highways. As far as funding goes, that has become a different story. “There’s no more 90/10 money (90% Federal funding, 10% State and Local). There is money
Judge John Thompson
Texas Transportation Commission member Jeff Austin and I-69 Alliance Chairman John Thompson raise one of the first I-69 signs to go up on the Southwest Freeway in Sugar Land.
PHARR TOWN CENTER
that comes back to the Department of Transportation in the state of Texas, but it’s not nearly as robust. There’s no program to fund it specifically”, says the Chairman of the Alliance. Thompson goes on to bring up a point mentioned by Lippincott, the gas tax. “It (gas tax) hasn’t been raised in a very long time (since 1991)”, points also made by Lippincott and Goodin. And as far as private investment goes, “That is still an option in certain areas.” Houston, because of its size, could be attractive to private investors. Although possible, The Chairman of the Alliance says Houston is already well taken care of by the Harris County Toll Road Authority. “HCTRA does as good a job as any private investor would”, (regarding the ability to maintain Houston roadways.)
The I-69 Corridor would originate at US 281 (McAllen/Pharr) US 77 (Brownsville) & US 59 (Laredo) on into Arkansas, the Mid-Atlantic states and into Canada.
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As far as progress goes on the aforementioned route of Interstate 69, “It is completed almost down to the Ohio River and Indiana (from Canada), south of Indianapolis. It is in various stages of completion in Kentucky and Tennessee. They’re building as they can.” Recently, US Highway 59 has been designated by law to become I-69, which includes the Houston Metro area. “There will be I-69 through downtown Houston. Thompson goes on to say, “At some point, there will be a reliever to the east and west of Houston”, similar to Interstate 610, Beltway 8 and the current development of Grand Parkway. This means that Houstonians will have multiple ways to get to and through Houston. “Local transportation authorities, elected officials, public input and TxDot, will make all of the decisions as to where and when.” Currently, I-69 signs are up from Interstate 610 North to Liberty County and from 610 South to Rosenberg with the remaining gaps to be filled soon. “I-69 signage from 610 South to 610 North will be complete in 2014. They will all connect…not just to I-69, but at 45 and I-10. There will be multiple ways to get through Houston and on the east side to get things in and out of the port. “
“Our biggest supporter in the Houston area is the Port of Houston. I-69 is important…for imports and exports. It has the ability to work all of our ports down the Gulf Coast, all the way to Brownsville…for us to be the conduit from the rest of the world to the center port of the United States, all the way to Canada.” But Chairman Thompson doesn’t stop there. “Every port, as you go east, New Orleans, Mobile, Savannah or Charleston, all of those ports are gearing up to take advantage of the Panama Canal trade as it is enlarged and opened.” This is one advantage I-69 has over Perry’s TTC – access to the Port of Houston. In addition to freight and high-speed rail, there will be avenues for trade and commerce, via ports. What does all of this add up to? “(Houston) is a great connector. “Brownsville, Corpus Christi, Wharton, Cleveland…all of those towns would benefit greatly just by being on the interstate. But nobody will benefit from it as much as Houston will.” continued on page 14
Continued from page 13
Say ‘Good-bye’ to the Trans-Texas Corridor and ‘Hello’ to I-69 I-369 Signs Unveiled in Texarkana Celebration
Although Judge Thompson says it’s impossible to put a bow on the completion of Interstate 69 in Texas, lawmakers still need to find funding solutions, soon. “Texas has a narrow window of time to get things done, and the federal government is not having a lot of success in Congress. All we have done and lobbied for is innovative ways of funding. The gas tax is not going to get changed…how do we fund transportation? Somehow, we’ve got to come up with the money. There’s no painless way to do it. Hopefully, we find the fairest and most economic way.” The gas tax, as mentioned, has not been raised in over 20 years in Texas and available funding, as well as options for additional funding are limited. So where is the money going to come from? Better yet, where should the money come from?
If you would like to follow along with the latest developments and join the Alliance for I-69, visit their website at www.i69texasalliance.com. If you are looking for a comprehensive list of all the ongoing transportation projects in Texas, visit www.transportationadvocatesoftexas.org.
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The “Greater” place to be! greater sharpstown management district
LEADING SOUTHWEST HOUSTON INTO A NEW ERA by Ginger Wheless REDNews
REDNews is beginning a series featuring the multiethnic groups who have had a profound influence on the growth and development throughout Texas.
O A NEW ERA
We started with the Houston Asian-American community because of the significant impact it has had on growth & development here even though this group represents only about 6.5% of the population. Houston has the largest influx of Asian-Americans in the state and 100 different languages are spoken in Chinatown alone! By definition, “Asian-American”, is a group comprised primarily of Vietnamese (+/-185,000), Chinese (+/-135,000), Taiwanese, (+/- 60,000) and Korean, etc. According to the Greater Houston Partnership, the overall Asian-American population in the Houston MSMA in 2012 was approximately 376,000. After English and Spanish, Vietnamese and Chinese are the most spoken languages in Harris County. The influx of Vietnamese to the US began with the fall of Saigon in 1975 and by the late 1980s to 1990s,Dr, Houston had become a desirable des9788 early Clarewood Suite 109 tination city of Asian immigration and investment. Houston, Texas were 77036 The 1990s also fueled by a steady stream of in713.271.2119 ph coming immigration and capital from Hong Kong, www.sharpstowndistrict.com caused by the pre-1997 take-over jitters. (Today there is a direct flight from Beijing to Houston which makes the commute relatively easy.) We visited first with Kenneth Li, who was born in
Taiwan, raised in Hong Kong, and came to Houston in 1981. He immigrated at the encouragement of an uncle who had already arrived and who urged Li to come to Houston for both the higher education and the entrepreneurial opportunities. According to Kenneth, Chinese immigrants arrive in the US with a passion for owning real estate since it is not possible to acquire private property in their homeland. “Twenty years ago an additional US fascination was the TV show, Dallas and today it’s Oil & Gas”, according to Li. Li’s uncle entered into a joint venture with a Houston landowner to develop a shopping center on Bellaire Blvd which became DihoPlaza. The center was anchored by the Diho Grocery Store, an expansion of the largest Asian grocery store in California. They chose the Bellaire location because it was convenient and close to a major freeway and had an abundance of apartments in the area. Li became involved with the project from the start, which led to his commercial real estate career, thereby becoming a highly respected CRE professional in the Houston area and the owner of Century 21 Southwest.
ways grows,” he notes. Immigration is a factor in the Asian-American community as the number of Asians wishing to come to America continues to grow. Statistically, the number of legal immigrations to the United States each year is Canadian first, followed by Chinese; however, a substantial number of the Canadian legal immigrants are actually Chinese, as they have learned that it is easier to get into Canada and then on to America. Li notes that the Chinese community centers form hubs where ‘old-timers’ such as he is, and newcomers can feel both at home and experience multiple opportunities to learn about their new land and culture.
After buying another retail center in the area and riding out the recession of the late 1980s, Li introduced investors from New York, California and overseas to the area (see map, page 17). He also began development of several residential subdivi- When asked about the American “millennial” effect 9788 Clarewood Dr, Suite 109 sions as well as an office and medical condo project on his children he said that he has sent his chilTexas dren 77036to Chinese Language and Culture classes and in Chinatown. According to Mr. Li, theHouston, Chinatowns 713.271.2119 located in the US never saw a downturn in recent phthough they were reluctant to go at first, eventually years due to the increase of immigrants wanting to they seem to discover that learning about their hiswww.sharpstowndistrict.com torical origins is both interesting and fun. This really come to the US to embrace the American Dream. becomes apparent when they return to China for a Li attributes his success to hard work and dedica- visit. It appears that the core values that first gention to working within the community in which eration immigrants taught their children of hard he lives. He is proud of his CCIM designation, be- work, the value of education and the sense of oblicause the post college credentials that he’s earned gation to one’s family and community continues on in the real estate business highlights his ability to within the Asian-American community. ‘work well with the mainstream’. Along the way, he’s learned a lot about his adopted country and city. Kenneth gave me a tour of Chinatown and I was He expects Houston’s Chinese population to triple surprised to see the amount of retail, office/ofwithin the next ten years, and sees some additional fice medical and residential condo ownership in regional expansion, but also notes that he expects the area, especially since that has not been that to see vertical development as land is getting more successful in other areas. The recently completed expensive. He feels very lucky to be a Houstonian Hilton Garden Inn is owned by a Taiwanese group and expects to keep on expanding. “Sometimes who also built an adjoining retail/office condo projbusiness is slow, sometimes it’s quicker, but it al- ect adjacent to the hotel. The Asian Dream of home
ownership and owning a business, eventually owning the real estate under that business is quite apparent here. Another interesting fact is that during the period from 2008 – 2013 when much of the city was experiencing a downturn, Chinatown was growing. Retail development doubled in size and a 12-story bank tower was built. Li attributes the success of Houston’s Chinatown to the ‘town center’ community concept from which Chinatown has been developed. Today, Chinatown contains over 1000 retail establishments and there are 200 restaurants within the ½ mile on Bellaire between Beltway 8 and Ranchester and each shopping center is anchored by a grocery store. Referencing the area’s many restaurants, Li notes “Our regular luncheon menu consists of great food and costs less than a meal at McDonald’s.” (After having an outstanding lunch for $6.00 at the area’s Tan Tan Restaurant, I completely agree with him!) There are eight banks in Chinatown and six are owned by Asian-Americans which is the highest density of banks in Houston. This area has been referred to as ‘Houston Asian Wall Street ’ and the total assets of the Asian-American banks are over $30 billion. In 2005, Kenneth became involved in helping to establish The Greater Sharpstown Management District (GSMD) and became Chairman of the Board when it was formed in 2006. The GSMD is part of the revised and expanded Houston Council District J. This region has been referred to as Texas’ Ellis Island as it serves as the gateway to Houston for people around the world. Truly an international community within Houston, most of the new residents are Asian and today there are approximately 100 languages spoken in District J. The Greater Sharpstown Management District was once considered to be an unsafe area of Houston; however, the area’s security profile is significantly improved due to efforts of the GSMD. It is noteworthy that the GSMD saw the highest assessed value appreciation in the Houston area in 2012-13. This is related to the GSMD’s infusion of capital (approximately $2.5 million) over the past 5 years to increase safety and security in the district through security patrols, messaging systems and other measures.
Houston’s GSMD is divided into six regions: (see map below) Chinatown: 1000+ acres of commercial & multi-family properties. 400+ Chinese/ American owned commercial properties assessed by HCAD at +/- $800 million. By 2011, there was 2 million + SF of new construction underway. Four (4) Chinese/Taiwanese community centers totaling 100k SF. Eight (8) major Temples/Churches. Fifteen (15)+ Chinese newspapers, Three (3) Chinese radio stations. South Asia: Includes primarily Indian & Pakistani retail, grocery stores & restaurants. Sharpstown: includes the mall itself which is now called Plaza America and is owned by a REIT and managed by Boxer Property. The former JC Penney is owned by a Vietnamese group and Macy’s is owned by a Chinese group. There is also an office building that is recognized as one of the largest wholesale jewelry locations in the country. Westwood: known as a technology center and includes the former Westwood Mall which is now utilized as a service center related to health care. University: includes Houston Baptist University with $168 million in expansion underway which will include retail as well as student housing. Memorial Hermann is also located in this area. Harwin: characterized by mini-outlets, and is one of the largest wholesale districts in the United States. Traders from around the world including Korea, India, Vietnam and China have established outlets in this section of the Greater Sharpstown Management District.
The GSMD is the only such Asian district within a major city in the US and largely accounts for the success of Houston’s Chinatown. Li has been to most of the other Chinatowns in the US and says that many of them are now interested in coming to Houston to learn how to emulate the methods used as a model for success.
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Wea Lee, who describes himself as a new arrival to way 59 and is improving economically all of the the United States, immigrated to this country from time. Lee envisions bringing more investors to the Taiwan almost forty years ago and now owns the area while working through the International Trade Lee notes that one largest Asian media company in the nation. Lee Center. developments and his wife completed graduate school in Beau- of the major is the strong mont and then came to Houston and started their in this country migration to first newspaper in 1979. Lee says, “I love print pub- influx of imVolume the country. He references lications”, but admits that heI - 2011 has expanded to digiwww.IMDHouston.org and the Arabian tal television and the Internet as well, in order to Spain A MessAge froM countries and attributes their broaden his audience. executive Director decline to the lack of new - DAviD HAwes moving into those Today Lee’s publishing operation, primarily serving blood Management team and staff countries. Lee reports that a major force in the Inthe international community, publishes of the IMD over are hard one at work implementing the vision of hundred newspapers and magazines and is based ternational District is the business that is brought the Board of Directors in the adopted Service Plan. daiIn late into the area by the new immigrants. in ten different U.S. cities. Lee publishes three 2010 the new District offices ly newspapers: the Southern Chinese Daily News, opened in the Universal CenterWashat 11360 Bottom line: Lee hopes that all of the community Houston and one from Dallas and Shopping one from Bellaire setting the stage for will continue to appreciate the tremendous opporington D.C. “Thethekey to success, whether it be work to begin in the new year. As we entered intoprint 2011 the District budget was approvedsays with over $1.3M allocated for tunities offered in this country. or digital information, is content”, Lee. new street signage, landscaping and monumentation to create an identifiable look for the District’s major thoroughfares, entranceways, pedestrian crosswalks and business area.
The Public Safety Program continues to work on targeting hotspots and areas of concern with a proactive, rather than reactive, approach to law enforcement. An apartment life committee works to address issues and concerns in our multifamily housing complexes. The Bike Patrol Program is a big hit with the shopping center owners and businesses with officers patrolling the district on bicycles, able to respond more quickly to incidents in crowded areas and places where patrol vehicles cannot go.
His advice for people hoping to succeed in the United States is threefold:
Lee lectures to university students and gives them this advice which he presents with the acronym: HAATS
•G ood credit is very important. Make sure that you maintain your credit rating.
• H: Happy. Be happy that you have physical health, psychological health, because without health you can’t do much!
on’t depend upon others; you have to do it on Lee moved his physical newspaper location from • D your own. There’s lots of help available through downtown Houston to the southwest part of town the International Center, but ultimately business25 years ago. At Inthat time he and several friends business and economic development we will launch a multimen and women have to work hard and vote for faceted marketing outreach campaign to property owners, envisioned the creation of the International Trade business tenants and the residential community. Key elements themselves. Center as a non-profit to provide a will include: organization advertising in select magazines and other media encourage shopping dining in the District;Trade increased venue for eventsto(last year theandInternational • Understand the business you plan to create. For participation in strategic and community partner events to Center hosted over 300 events to audiences promote the District brand; development of a businessrepowners example, don’t open a restaurant if you don’t know marketing forum and a complete revision of the District ’s new office resenting four towebsite fiveto thousand businesses in the tionAl District60 Bellaire rd ste 960 how cook! ernA increase usability and take advantage of marketing intto 113 ng center region). His goal the is District to help American businesses through all products forms of social exmedia universal shoppi brated the Grand available in today’s high tech market. the District cele bon port to the overseas markets, and to help American On October 5th offices with a rib ir new District the of ht Out ng eni Op by national Nig ed located,and we areremain one of the competipremier areas of ow small businessesStrategically become, foll ony on cutting cerem Hubert Vo was Houston for those who seek to start, expand or grow their Representative ng with festivities. State tive, in today’s market. Leewhopersonally organized bon cutting alo rib the business. For those are thinking of opening a business or h wit hand to assist Wea Lee and trict Chairman, for a newBank home, you need lookseventeen no further than the the Southwesternsearching National about International Dis , The Houston es, Brian Burks International District. For more information on all the exciting ector of Servic the Boy Scouts Dir ff, sta e erc years ago, and they ableplease to help of Comm things have happeningbeen in our District visit our many website at . ber am Ch st We the celebration folks joined in attend a board meeting, teachor call us at and many other small businesses.www.IMDHouston.org, Services provided include 281-564-5252 to volunteer for a committee. ing individuals how to apply for loans and perform other banking related functions. Today more than 30 companies operate within Lee’s International Trade Center, including ExxonMobil, Chevron, Caribbean Chamber of Commerce, Eastern Chamber of Commerce, Myanmar Chamber of Commerce, and the United Nations Association. The International Trade Center sponsors the Texas Africa Summit and the Texas China Summit, events that are designed to connect the Houston International Community to the world. Houston’s International District is about twelve square miles, from Beltway 8 to Highway 6 to High-
• A: Ambition. Don’t be afraid to pursue your dreams. Go after what you desire with your whole heart. • A: Action. People can’t just dream. They have to pair their dreams with their actions. If you want to be a writer, you have to write; you can’t just talk about it.
• T: Timing. Pay attention to it. Sometimes, you can’t get a loan and you can’t start a business, because it isn’t happening. The key is wait for the right time. • S: Sincerity. Be sincere in all your relationships. Treat all of your friends and business acquaintances with respect. Family relationships are important in this community. Many times each family member can invest and the business can get off the ground without ever having to go to a bank and borrow money.
I had lunch with Donnie Chang at the Tan Tan Restaurant in Chinatown where I enjoyed Wonton Noodle soup, stories about his family and a lesson in Chinese culture which included numerology and feng shui. (Get Donnie to tell you the story about a large Houston homebuilder who increased his profits substantially by incorporating feng shui and numerology principles in subdivisions that he was developing in the southwest region.) Donnie is a first generation Chinese-American who came to Houston with his parents via New York in 1975. Gerald Chang, Donnie’s Dad, came to New York to obtain a graduate degree in engineering from Cornell University in 1945. Gerald was engaged to be married to Sheila Liu prior to his move to the US and in 1949 Sheila followed him to New York and they were married the same year. Donnie Chang Donnie also shared with me a copy of his Mom’s book, “Destiny” which was self published in 2007. It is a fascinating read about Mrs. Chang’s life in China and her life in America. Her honesty, courage and determination is evident throughout the book. She overcame numerous illnesses throughout her lifetime, including childhood polio, to become a famous restaurateur in New York. This ultimately led her to Houston in 1974 where she opened the first authentic Hunan/Szechuan restaurant. Many of you old timers may remember the Shanghai East Restaurant, which was an outstanding Hunan/Szechuan restaurant on the 3rd floor of the Galleria from 1974 - 1994. The Changs
came to Houston because Ms. Chang was advised that “everyone in the south grows pepper trees in their backyard”. It’s apparent that the Changs were pioneers because according to Ms. Chang, “When we moved here, one could rarely see an Oriental unless we went to Walker Street in Chinatown”. Donnie, the eldest of the Chang’s three sons, was in his teens and resisted Sheila Chang moving from New York to “Bonanza Country”. (He later learned that the location for the ranch in the Bonanza television series was in Nevada.)
Feng Shui (in Chinese thought) a system of laws considered to govern spatial arrangement and orientation in relation to the flow of energy (qi), and whose favorable or unfavorable effects are taken into account when locating and designing buildings: features including floor plans, room size, the building’s shape. Construction features and location of stairs, windows and doors will have a considerable impact on the energy of the space in question. There is also consideration given to land formations and landscaping. It’s interesting to note that there is a subtle linkage to green building concepts in feng shui.
Donnie assisted his family in the family restaurant while obtaining his real estate license in 1976. He has been associated with and/or owned several full-service real estate companies since then and established ABC Realty Advisors (aka American By Choice) in 1991. He is an accomplished real estate professional with numerous designations including CCIM (1994 President), CIPS and GRI. ~Ginger “Destiny”, published in 2007, chronicles Mrs. Chang’s life in China and America
Numerology The belief of numerology is deep set in Chinese culture. For example, 8 is considered to be a prosperous number because it sounds similar to the word for prosper in Cantonese. In fact, the 2008 Olympics in China began at 8 am and ended at 8 pm, on 8.8.08 because of the importance of the number 8 in Chinese numerology. Decisions regarding telephone numbers and car registration numbers are influenced by numerology. The effectiveness of numerology comes from your perception of what the numbers can do for you in your life. (Check out the addresses and phone numbers of the Asian-American banks in Chinatown.)
R AY ’ S
H O U S TO N Commercial Buzz BoyarMiller Law Firm Annual Houston Commercial Real Estate Breakfast Forum Panelists discuss homebuilding, office and industrial development in Houston
RAY HANKAMER Hankamer & Assoc, Broker, Houston Contributing Writer
Will Holder, President Trendmaker Homes • The pendulum swings fastest in the middle, and we are in the middle • Home building in Master Planned Communities accounts for about 25% of homebuilding in Greater Houston, and is growing, although most existing communities are almost sold out of lots • New developers are coming on the scene, many north of I-10 and west of BW-8, driven by Grand Parkway construction, Energy Corridor growth, and ExxonMobil campus • We have a super low inventory of new home supply, and builders are bidding for lots—absorption of lots exceeds supply • More and more builders are developing their own lots • There is a talent shortage in the homebuilding industry, from executives in the home office down to the carpenter and mason on the job • Homebuilders are densifying Houston at a steady pace, converting one single family lot, for example, to four dwellings • Trend now is toward two ground floor living suites per home, counting on aging relatives living with their children • The two demographic bubbles are Baby Boomers and Millennial, and homebuilders are building to these bubbles • The perception of the quality level of the school district drives home buyers • Rental rates now exceed costs of home ownership, which has consequences for multi-family developers and homebuilders • The quality, value, and finish the Houston homebuyer gets is the best in the nation
Jay Sears, Managing Partner NewQuest Properties – Retail • 2008-2011 were tough years in this segment, and those who fared best were grocery-anchored centers • Houston job growth is twice as strong as in the rest of US…homes follow jobs, and retail follows homes • Walmart has 100 deals in the Texas pipeline, and Target has one • Online shopping will account for 6% of retail sales in
2013 as opposed to 2% in 2004-however, this is not a threat and online actually helps bring shoppers into the bricks and mortar stores-online is a significant issue but not a “deadly” one • Jeff Bezos said on 60 Minutes recently that 18 years ago when he started Amazon he personally drove orders to the post office • NewQuest is focusing on creating an administrative team which mirrors the marketplace from an ethnic point of view—they want to have the right feel for what all shoppers want, whether Asian, AfricanAmerican, Hispanic, etc.—“We are using Los Angeles as an example of how to market to an ethnically diverse population, and Houston has a similar diversity of population.” • Not all bad news in the “Big Box” department, since Best Buy has turned around and their stock is up to $44 from $11 due to increasing sales—J.C. Penny, a 100 year old brand, may be in its final death throes • Kroger is the largest US grocer in the US and the largest florist in the world--Kroger and WalMart and H.E.B. each have about ¼ of the Houston grocery market • Whole Foods is now moving out from the inner city to the far suburbs • The Grand Parkway is a game changer, and has stimulated growth in all segments, including retail • River Oaks District mixed-use development just east of the Galleria is pulling high-end retailers out of the Galleria, retailers who want to be in a more exclusive environment—Galleria has “too much” traffic for them • Some trophy retail centers in Houston are selling for cap rates in the 5s, 6s, and 7s and “there are 20 buyers competing for each one” • Huge industrial investments have been announced for the East Side and this is where significant new retail development will be going
Jonathan Brinsden, CEO Midway Companies-Office and Mixed-Use • Office development is expanding due strongly to big oil—Woodlands, Energy Corridor/Katy,Downtown, Grand Parkway NW
Welcome Wilson, Jr.
whole can be greater than the sum of the parts: i.e. each component can charge higher rents, thanks to the amenities provided by the other nearby components • Mixed-use developments which have failed have done so because they were driven by developers too rooted in one single discipline to be able to balance all the different components in a synergistic way • Current Midway projects include a mixed-use development on Kirby and re-development of the former Pavilion in the CBD
Welcome Wilson, Jr., President & CEO GSL Welcome Group • We have 521 million existing industrial square feet with only 5 million under development; hence demand exceeds supply, and there is only a 5.3% vacancy rate, and it has been stable for at least two years • Industrial demand is driven by companies relocating here and by expansion of local companies • Igloo and Goya Foods are the two largest projects currently under development with over 400,000 SF each—Igloo says it is now just as economical to manufacture here as to manufacture in China and ship trans-Pacific • The Grand Parkway is a “game changer” and will open large new territory for industrial development • Houston is a full-fledged “Gateway City” now in the eyes of the national investor/lender • ExxonMobil and Qatar Petroleum have just signed a $10 billion deal for a project on the Ship Channel • The trend will be toward more “campuses” for industrial firms – think Google, Microsoft, ExxonMobil—think of an industrial “campus” as a mixed-use development where an employee can have all of his needs met in one accessible location • Panama canal expansion will have a big positive influence on industrial development in Houston: terminals, pipelines, rail, storage, distribution
• There is the risk that outside developer money wanting to come to Houston will result in overbuilding [sound familiar?]
• Houston industrial space provides support to the fracking boom all over the world, not just in Texas fields
• Well-executed mixed-use developments can be extremely profitable if carefully put together, and the
• Industrial outlook overall is very promising in Houston for years to come
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WHATâ€™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:
SOUTHEAST TEXAS January 8 - Wednesday SIOR Houston January Luncheon – Mike Inselmann, EastGroup Properties 11:30am – 1:00pm www.siorhouston.com
( H O U STO N A RE A )
January 15 – Wednesday ULI Houston MY ULI Breakfast 7:30am – 9:00am www.houston.uli.org
January 21 – Tuesday CORENET Houston Annual Award and Market Overview 11:00am – 1:00pm www.houston.corenetglobal.org
January 16 – Thursday BACREN January Marketing Session and Luncheon - Speaker Bill King 10:30am – 1:00pm www.bacren.com
January 22 – Wednesday O’Connor & Associates Office Forecast Lunch 11:30am – 1:00pm www.poconnor.com
Your real estate deserves real m
January 9 – Thursday CCIM Houston January Luncheon – Speaker Patrick Jankowski, GHP 11:30am – 1:00pm www.ccimhouston.org
Count on a CPM® professional to deliver real r
January 10 – Friday CREN Houston January Luncheon – Speaker Dan Braun, President of Braun Enterprises 11:30am – 1:00pm www.crengulfcoast.com
January 10 – Friday IREM Houston January Luncheon – Town Hall on the Healthcare Reform Act 11:30am – 1:00pm www.iremhouston.org
January 16 – Thursday IREM Houston IREM Young Professionals Meeting and Happy Hour 5:00pm – 8:00pm www.iremhouston.org
January 16 – Thursday NAIOP Houston Forecast and Howard Horne Legacy Award Luncheon 11:00am– 1:00pm www.naiophouston.org
January 30 – Thursday CREN Houston CREN Happy Hour 6:00pm – 9:00pm ® www.crengulfcoast.com
A CPM has: Demonstrated experience Pledged commitment to standards z Proven expertise in maxim
IREM AUSTIN PRESENTS
January 28 – Tuesday ULI Houston 7th Annual Development of Distinction Awards 6:00pm – 9:00pm www.houston.uli.org
For optimal returns on your turn to a CERTIFIED PROPERTY
January 17 – Friday January 13 - Monday CREN Houston CREAMTX ® Breakfast – Marketing Session January Luncheon – Speaker Greg Smith, 7:30am – 9:00am Shenandoah City Administrator www.crengulfcoast.com 11:00am – 1:00pm www.creamtx.com January 21 – Tuesday z FBSCR January 13 - Monday January Meeting z CREW Houston 8:00am – 9:00am Luncheon: Panama Canal Expansion: www.fbscr.com Impacts on the US Markets 11:30am – 1:00pm www.crewhouston.org
To find a CPM in your area, visit www.irem-dallas.org
January 28 – Tuesday Greater Houston Partnership 2014 GHP Annual Meeting – 25th Anniversary 10:30am – 1:30pm www.houston.org
January 31 – Friday Houston BOMA TOBY Awards & Houston BOMA 80th Anniversary 11:00am – 1:00pm www.houstonboma.org
2 6 R E D N eCCIM w s . c Course om Scholarships
ETH800-Ethics for the Real Estate Manager
CI 101, CI 102, CI 103, CI 104 or CCR & Exam
events NORTH TEXAS
( DAL L A S/ F T. WO RTH A RE A S)
January 7 – Tuesday BOMA Ft. Worth January Membership Luncheon 11:30am – 1:00pm www.bomafortworth.org
January 15 – Wednesday IREM Dallas January Luncheon 11:30am – 1:00pm www.irem-dallas.org
January 21 – Tuesday BOMA Ft. Worth Engineer Lunch & Learn: 2nd Session 11:30am – 1:00pm www.bomafortworth.org
January 8 – Wednesday CREW Ft. Worth Development in Weatherford 11:30am – 1:00pm www.crewfw.org
January 16 – Thursday BOMA Ft. Worth Holiday Party (Rescheduled) 5:30pm – 8:30pm www.bomafortworth.org
January 21 – Tuesday NAIOP North Texas January Luncheon 11:30am – 1:00pm www.northtexasnaiop.com
January 9 – Thursday NTCAR Dallas Broker Forecast 7:30am – 9:00am www.ntcar.org
January 16 – Thursday ULI North Texas Full Breakfast and Panel Presentation: Mixed Use and Form Based Zoning 7:30am – 9:30am www.northtexas.uli.org
January 22 – Wednesday CREW Dallas & North Texas CCIM Joint CREW & CCIM Luncheon – Speaker Dr. Mark Dotzour 11:30am – 1:00pm www.crew-dallas.org; www.ntccim.com
January 21 – Tuesday BOMA Dallas January Luncheon 11:30am – 1:00pm www.bomadallas.org
January 30 – Thursday TREC – Dallas Community Breakfast 7:30am – 9:00am www.recouncil.com
January 14 – Tuesday BOMA Ft. Worth Engineer Lunch & Learn: 1st Session 11:30am – 1:00pm www.bomafortworth.org
(AUSTIN/ SAN ANTONIO AREAS)
January 7 - Tuesday IREM Austin Board & Committee Chair Luncheon 11:30am – 1:00pm www.iremaustin.org
January 9 – Thursday IREM San Antonio January Luncheon 11:30a - 1:00p www.iremsanantonio.org
January 8 – Wednesday CCIM Texas Networking Luncheon & Presentation 11:30am – 1:00pm www.ccimtexas.com
January 9 – Thursday Real Estate Council of Austin Happy Hour Event 5:30pm – 8:00pm www.recaonline.com
January 8 – Wednesday ULI Austin ULI/USGBC Sustainability Series: M Station Apartments 11:30am – 1:00pm www.austin.uli.org
January 14 – Tuesday Real Estate Council of Austin January Membership Luncheon 11:15am – 1:00pm www.recaonline.com
January 9 – Thursday CTCAR Property Information Exchange 7:30am – 9:00am www.ctcaronline.com
January 21 – Tuesday CREW Austin Networking Luncheon & Presentation 11:30am – 1:00pm www.crewaustin.com
COMMERCIAL January 29 – Wednesday CTCAR Networking Luncheon – Waller Creek Conservancy 11:30am – 1:00pm www.ctcaronline.com
“Commercial Lease Analysi Comparison & Lease vs Own January 30 – Thursday CTCAR Property Information Exchange & MCE – San Marcos 11:00am – 4:00pm #09-00-035-25248 www.ctcaronline.com
hours of MCE - Course
January 169– Thursday BOMA Austin January Luncheon 11:30am – 1:00pm www.bomaaustin.org
Instructor Cliff Bogart, CCIM
Visit www.ctcaronline.com for pricing & registrati
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C TC A R
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Out and About – Texas CRE Networking Check out our pictures and be sure to send your own pictures to firstname.lastname@example.org to be included in our next issue! To view more photos go to: http://www.rednews.com/networking-event-photos 1
n e t w o r k i n g
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
CCIM Holiday Party 1. B ob Watson, Frances Watson, Robert Avary and Ed Nwokedi 2. Sandy Benak and A. David Schwarz IV 3. Paul Daily, Howard Mayne and Tip Strickland IREM Holiday Party - A Night in Monte Carlo 4. L ynn Kelleher, CPM and Janie Snider, CPM
5. J Blanchard, Rhonda Stanley, CPM and Jeffrey Burck, CPM Greater Houston Women’s Chamber of Commerce Luncheon 6. Susan Dray, Suzan Deison and Dr. Mary Ann Wilkins 7. Ginger Wheless and Beth Young 28 REDNews.com
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C e n t r a l S o u t h T E X A S
CREW Holiday Luncheon & Awards 1. 2013 Eva Rosow Award of Excellence Winner - Carolyn Johnson Fletcher From L-R, Kim Ghez, Carolyn Johnson Fletcher and David Rosow 2. The Winner of the CREW SA Maverick Award - Brad Radick - From L-R, Kim Ghez, Brad Radick and Dena Welch
IREM Austin 24th Annual Economic Forecast Forum 3. Jeff Newberg and Gary Farmer 4.Dacia Boyce, Brandi Herdzina and Carolyn Griffin
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CREW Careers: Building Opportunities® program in Dallas 1. Sandy Watson, Brandon Bledsoe and Rebecca Tudor 2. Rick Salinas, Hannah Koski, Jan True, Brandon Bledsoe, Christie Myers and Scott Rohrman 3. Charity Wallace, Belva Lowry and Lindsay Jones
IREM Dallas 2014 Council 4. Sworn in by IREM Regional VP George Griffin III, CPM - L to R: Brian Bordelon, ARM, Debbie Lister, CPM, Adam Bernhardt, Christopher King, CPM, Ginny Goldsmith, CPM, Scott Stovall, CPM, Christie Clenney, CPM, Claudia Ferrara, CPM, David Bryant, CPM, Susan Heath, CPM and 2014 President Jessica Warrior, CPM
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INDUSTRIAL Houston (LEASE) – Strategic Filtration leased 20,155 SF at 2500 Fairway Park Drive in Houston. Taylor Schmidt and Reed Vestal of the Finial Group represented the tenant, and David Munson and Greg Barra of Boyd Commercial represented the landlord, FR Massachusetts 7, LLC. Houston (LEASE) – Falcon Control Systems, LLC leased 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. Tomball (SALE) – Joe A. Laughlin purchased 10,200 SF at 14695 Brown Road in Tomball. Tom Carter of Greater Houston Commercial Properties represented the buyer, and Patrick Buckhoff of Coldwell Banker Commercial United, Realtors represented the seller, Steve Perry of Action Window Covering, Inc.
LAND Conroe (SALE/DEVELOPMENT) – Johnson Development LP purchased 2,038 acres at Camp Strake in Conroe, Texas. Dan Bellow, John Tallheim, Tom Kirschbraun, Scott Cullen and Mark Lindebaum of Jones Lang LaSalle represented the seller, the Sam Houston Area Council Boy Scouts of America. Houston (SALE/DEVELOPMENT) – D.R. Horton purchased 119 finished, singlefamily lots in The Reserve at Klein, 3 miles west of the new Exxon Campus in Houston. Lee Jones of Avison Young brokered the transaction. The seller was Reserve at Klein, LLC. D.R. Horton plans to purchase the remaining lots in the development in 2014. Houston (SALE/DEVELOPMENT) – Mercan Greenhouse, LLC purchased 6.134 acres to be developed into a 120,000 SF office building in Forresta Village in Houston. Chris D’Agostino represented the buyer, and Nabil Murad of NM Management, LLC represented the seller, Forresta Inc, Ltd.
MULTI-FAMILY Houston (DEVELOPMENT) – A new Hyatt Regency has broken ground in the Galleria submarket in Houston. The 325-room hotel that will sit on 7.6 acres was purchased earlier in 2013 by two developers – Atlanta-based Songy HighRoads LLC and Washington, D.C.-based The Carlyle Group. McCarthy Construction is the general contractor, and Aimbridge Hospitality will manage the property.
OFFICE Houston (LEASE) – ConocoPhillips preleased 600,000 SF at Energy Center Four located in the Energy Corridor in Houston. Cody Armbrister and Steve Rocher of CBRE represented the landlord. Energy Center Four is expected to be completed in the second quarter of 2016.
Houston (LEASE) – ROI Global Solutions leased 3,728 NRA at The Center at 8313 Southwest Freeway in Houston. Realty Associates represented the tenant, and Peggy Rougeou and Kris Lilly of Tarantino Properties represented the landlord. Houston (LEASE) – Engineers and Constructors International, Inc leased 12,800 SF at 1505 S. Hwy 6 in Houston. Jim Cummins of Transwestern represented the tenant, and Peggy Rougeou and Eric Ohlson of Tarantino Properties represented the landlord. Houston (SALE) – A limited liability company purchased a 70,474 SF property at 8300 FM 1960 West in Houston. Ron Herbert and Christopher W. Jones of Marcus & Millichap’s Dallas office represented both the buyer and seller. Houston (DEVELOPMENT) – Atlanta-based Piedmont Office Realty Trust will break ground on Enclave Place, a 302,000 SF building in the Energy Corridor in Houston. The 11-story building will sit on a 4.7 –acre site, north of Piedmont’s 1430 Enclave Parkway building. Gensler is the architect, PMRG is the project manager, Tellepsen Builders will be the general contractor and Colvill Office Properties will handle the leasing. The building is expected to be completed in the second quarter of 2015. Houston (SALE/REDEVELOPMENT) – Milam 2 Interests, LLC purchased a 10,584 SF building on 17,500 SF of land at 3315 Milam in Houston. Kevin Ward of Kimball Ward Development & Consultants represented the buyer, and Alana Parker of Alan Parker Properties, L.P. represented the seller, Stanley M. Leventhal Partnership, et al. The buyer plans to redevelop the building into a nightclub and a restaurant.
RETAIL/RESTAURANT Houston (LEASE) – Prohibition Bar leased 14,841 SF at 1000-1010 Prairie St. in Houston. Simon Ha of Retail Solutions represented the tenant, and Dan Braun of Braun Enterprises Real Estate Inc. represented the landlord. Houston (LEASE) – Man’s Best Friend leased 6,000 SF at the Bingle Village Shopping Center at 2300 Bingle in Houston. Howard Sims of Howard J. Sims, Inc represented the tenant, and Peggy Rougeou and Eric Drymalla of Tarantino represented itself, as they manage the property. Houston (LEASE) – Echo Workshops leased 5,044 SF at Richmond Business Center at 6262 Richmond Avenue in Houston. Mike Wong of KW Commercial represented the tenant, and Abe Tieh of Retail Solutions represented the landlord. Kingwood (LEASE) – School of Rock leased 3,078 SF at the Market in Kingwood at 1522 Kingwood Drive in Kingwood. Thad Lang and Simon Ha of Retail Solutions represented the landlord. Spring (LEASE) – KM Bridgeview Plaza, LP purchased Bridgeview Plaza, a 19,873- SF strip center at 19620 Kuykendahl Rd in Spring. KM Realty Management represented the buyer, and Marcus & Millichap represented the seller. Nelson Spitz of KM Realty Advisors will handle the leasing of the shopping center. Houston (SALE) – USA Properties purchased Northwest Crossing Centre, a 179,469 SF shopping center in Houston. Jones Lang LaSalle’s Capital Markets closed the deal. Weingarten Realty was the seller.
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INDUSTRIAL Garland (LEASE) – Enterprise Commercial Trucks leased 6,000 SF at 3220 S. Jupiter Road in Garland. Janice Peters, CCIM of Hudson Peters Commercial represented the landlord, James A. Lincoln. Irving (LEASE) – Graybar Electric Company, Inc leased 202,500 SF at DFW Trade Center I at 2700 Regent Blvd in Irving. Mark Miller of NAI Robert Lynn Company represented the tenant, and Steve Trese of CBRE Dallas represented the landlord, Airport Trade Center I, LP. Plano (LEASE) – Nitro Fiber leased 47,773 SF at the Jupiter North Distribution Center at 2801 Technology Dr. in Plano. Paul Tichacek of JSC Realty Investment Services, Inc. represented the landlord. Richardson (LEASE) – MP Aquiport Industrial, Inc leased 4,372 SF flex industrial space at 860 N Dorothy Drive, Suite 610 in Richardson. Janice Peters, CCIM of Hudson Peters Commercial represented the tenant, and Josh Barnes and Byron McCoy of Holt Lunsford Commercial represented the landlord, Gulf Energy Mechanical, Inc. Carrollton (SALE) – GH Techridge Five (Grupo Haddad) purchased 470,000 SF at 2625 Belt Line in Carrollton. Jack Fraker, Josh McArtor, Jonathan Bryan and Heather McClain Venegoni of CBRE Dallas represented the seller, Cabot II.
LAND Double Oak (SALE) – A buyer purchased a 37,897 SF land tract at Chinn Chapel at Justin Road in Double Oak to be used for a Bahama Bucks. Rich Muller of Vintage Realty represented the buyer, and Scott Jackson, CCIM and Janice Peters, CCIM of Hudson Peters Commercial represented the seller, the Torley Family.
MULTI-FAMILY Denton (SALE) – A local partnership purchased McKinney Park, a 250-unit multifamily property near Loop 288, just west of Interstate-35 East in Denton. Al Silva of Marcus & Miilichap’s Ft. Worth office represented the buyer, and along with the Tax Credit Group of Marcus & Millichap (Seattle), marketed the property on behalf of the seller, a national owner based out of Washington. Lancaster (SALE) – An out-of-state partnership purchased The Meadows, a 120unit multifamily property at 1500 Blue Grove in Lancaster. Al Silva of Marcus & Miilichap’s Ft. Worth office represented the buyer and the seller, CJ Meadows Properties LLC, a local partnership.
OFFICE Arlington (LEASE) – USMD PPL LLC leased 4,918 SF at 811 W. Interstate 20 in Arlington. Renee Efimoff of SCM Real Estate Services represented the landlord, USMD Hospital of Arlington LP. Dallas (LEASE) – Invesco leased 42,750 SF at Trammell Crow Center at 2001 Ross Avenue in Dallas. Jeff Ellerman and Robert Blount of CBRE represented the tenant, and Ramsey March and Sarah Erickson of Stream Realty Partners represented the landlord, Trammell Crow Center.
Addison (SALE) – Gaedeke Group LLC purchased Millennum Tower, a 351,683 SF building at 15455 N. Dallas Parkway in Addison. Glenn Lickstein of Gaedeke Group led the negotiating team for the buyer, and Gary Carr, John Alvarado, Eric Mackey and Robert Hill of CBRE represented the seller, KBS Realty Advisors. Dallas (SALE) – An investor purchased Oakbrook Plaza, a 176,872 SF complex at 1515 to 1575 W. Mockingbird Lane in Dallas. Creighton Stark and Ben Lurie of Colliers International represented the undisclosed seller.
Dallas (SALE) – A local investor purchased III Hillcrest Green, a 66,000 SF building at 12740 Hillcrest Road in Dallas. Deverly Heflin of Trinity Investments represented the buyer, and Eric Deuillet of Structure Commercial represented the seller, LAB Holdings, Inc. Richardson (SALE) – Modjarrad & Abusaad Law Firm purchased an 11,420 SF building at 212 W Spring Valley Road in Richardson. Kent Smith of NAI Robert Lynn represented the buyer, and Janice Peters, CCIM and Michelle Hudson, SIOR, CCIM of Hudson Peters Commercial represented the seller, Medwed Properties. Dallas (DEVELOPMENT) – Harwood will break ground on a Class AA, 22-story build-to-suit office project in Uptown Dallas. The high rise will have 167,251 SF of office space and over 9,000 SF of mixed retail and landscaped space. Frost Bank will be the naming tenant.
RETAIL/RESTAURANT Richardson (LEASE) – North Dallas Martial Arts, LLC leased 2,959 SF at 420 N Coit Road, Suite 2020 in Richardson. Janice Peters, CCIM of Hudson Peters Commercial represented the tenant, and Rick Currey of Forbare Commercial represented the landlord, AGF Promenade II, Ltd. Ft. Worth (SALE) – GK Development Inc purchased 1,272, 812 SF at 1888 Green Oaks Road in Ft. Worth. Chris Cozby and Chris Gerard of CBRE Dallas represented the private seller. Harker Heights [Dallas] (SALE) – Cole Credit Property Trust IV, Inc (CCPT IV) purchased Market Heights, a 412,645 SF power center in Harker Heights. HFF procured the buyer, and represented the seller, Direct Development. HFF team members involved in this transaction were, Ryan Shore, Doug Hazelbaker, Jim Batjer, Barry Brown, Kevin MacKenzie and Adam Herrin. Richardson (SALE) – A trust purchased a 9,451 SF Golden Corral located at 1440 E. Campbell Rd in Richardson. Matt Mousavi of Faris Lee Investments represented the buyer, and Mousavi and Dennis Vaccaro, also of Faris Lee Investments, represented the seller, a private investor. Southlake (DEVELOPMENT) – The Woodmont Co. has begun to develop Park Village, a 190,000 SF retail development at the southwest corner of Carroll Avenue and Southlake Boulevard in Southlake. Park Village will sit on 22 acres and is expected to be completed in the fall of 2014. Hershman Architects is the project designer, Peter Jacobsen of The Woodmont Co. will handle the leasing, and Jacobsen, Stephen Coslik and Rick Machak, also of The Woodmont Co. are overseeing the development of Park Village.
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INDUSTRIAL El Paso (LEASE) – Logistics Insight Corp leased 54,000 SF at 360 Avenue of Americas in El Paso. Chad McCleskey of CBRE El Paso represented the tenant, and IDI represented the landlord, Verde 360 Americas, Lp. San Antonio (LEASE) – Sun Automatic Fire Sprinkler leased 3,500 SF at 13409 Western Oak, Suite 102 in San Antonio. John Cannon of DH Realty Partners, Inc. represented the landlord, Rockett Development, LLC. San Antonio (SALE) – Valliant RE, Ltd. purchased 10,000 SF at 12016 Valliant in San Antonio. Steves Rosser of DH Realty Partners, Inc. represented the buyer, and Darren Kuyrkendall of Kuyrkendall & Co. represented the seller, SA Sign Building Co. LLC. San Antonio (LEASE) – Beavex, Inc. expanded its space from 21,642 SF to 31,642 SF at the Isom Business Center at 919-995 Isom Road in San Antonio. Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord.
LAND Converse (SALE) – Environmental Alternative Fuels, LLC, purchased 2.8 acres of land at the northwest corner of Loop 1604 and I-10 East in Converse. Bruce Baumann of Bruce Baumann Real Estate represented the buyer, and Ryan Harrison, VP of Stream Realty’s San Antonio office, represented the seller, American Bank of Texas. Selma (SALE) – Selma Retail, Ltd. purchased 9.361 acres of land at 14989 IH-35 North in Selma. P.J. Pfeiffer of Birnbaum Property Co represented the buyer and Charles L. Jeffers of DH Realty Partners, Inc, represented the seller, Ruben Lopez Castro/A. & M. Rodriguez.
MULTI-FAMILY Austin (DEVELOPMENT) – Oden Hughes LLC broke ground on Landmark Conservancy, an upscale apartment community located west of the intersection of US Highway 290 and Texas Highway 81 in Austin. Oden Hughes LLC purchased the 22-acre site, will develop the complex and serve as its own general contractor. Charlie Fowler of Bury is the project engineer. Kelly Grossman Architects designed Landmark Conservancy. Austin (DEVELOPMENT) – TDI will break ground in the first quarter of 2014 on 5100 South Congress in Austin. 5100 South Congress will have 352 units on 1.2 acres by Williamson Creek. The project is expected to cost $50.8 million.
OFFICE Austin (LEASE) – Solarbridge Technologies Inc leased 22,854 SF at 9229 Waterford Centre Blvd in Austin. Nate Stricklen of CBRE Austin represented the tenant. Austin (LEASE) – Event Management & Merchandise, LLC leased 12,646 SF at 4401 Freidrich Lane in Austin. Ace Schlameus of CBRE Austin represented the landlord, KBS Realty Advisors. Austin (LEASE) – Liquid Litigation Management, Inc leased 8,966 SF at 1300 Guadalupe in Austin. Will Douglas, CCIM, SIOR of CBRE Austin represented the tenant and Ben Tolson of Aquila represented the landlord, Thirteenth & Guadalupe Partners Lp.
Austin (LEASE) – Hitachi Global Storage Technologies, Inc leased 4,441 SF at Arboretum Plaza I and II at 9442 Capital of TX Hwy in Austin. Ryan Bohls and Jake Ragusa of Jones Lang LaSalle represented the tenant, and Troy Holme and Katie Ekstrom of CBRE Austin represented the landlord, OTR. San Antonio (LEASE) – Tristar Risk Management expanded to 6,206 SF at 70 NE Loop 410 in San Antonio. Newmark Grubb Knight Frank represented the tenant, and Taylor Dorris of CBRE Austin represented the landlord, Camden Properties. San Antonio (LEASE) – Rewix, LLC leased 2,444 SF at 4204 Gardendale Ave in San Antonio. John Cannon of DH Realty Partners, Inc, represented the tenant, and Rudy Fuentes and Charlie Weil of Transwestern Commercial Real Estate represented the landlord, Stuyvesant, LLC. (AUSTINOAKS PIC)Austin (SALE) – Spire Realty Group LP purchased the 445,322 SF Austin Oaks at 7718-7719 Wood Hollow Drive and 3409-3737 Executive Center Drive in Austin. Todd Mills and Casey Knust of CBRE represented the seller, Riverside Resources.
RETAIL/RESTAURANT Austin (LEASE) – Extramet Mechanical leased 3,000 SF at Biz Park 290 West at 11190 Circle Drive in Austin. Nick Boyd of KW Commercial represented the tenant, and Andrew Perkel of Retail Solutions represented the landlord. Austin (LEASE) – Local Slice Pizza leased 1,122 SF at Walnut Creek Retail Center at 8063 Exchange Drive in Austin. Carter Bailey and Tucker Francis of Retail Solutions represented the landlord. Georgetown (LEASE) – Advanced Pain Care leased 4,884 SF at Williams Crossing at 3316 Williams Drive in Georgetown. Troy Hellman of Century 21 represented the tenant, and Herman Tjahja and Preston Wolfe of Retail Solutions represented the landlord. Kenedy (LEASE) – Sun Loan Partnership #4, Ltd leased 1,155 SF at 131 Business Park Drive in Kenedy. Graham Ketchum of CBRE San Antonio represented the landlord, Kenedy Retail LLC. Round Rock (LEASE) – State Farm leased 1,695 SF at 581 University Drive in Round Rock. Keith Ferris of Marketplace Realty represented the tenant, and John Heffington of CBRE Austin represented the landlord, Univ Capital, LLC. San Antonio (LEASE) – Diabetes America, LLC leased 4,500 SF at 20330 Huebner Road in San Antonio. Scott Herbold of CBRE San Antonio represented the tenant, and Jonathan Collins and Drew Smith of Valcor Commercial Real Estate represented the landlord, So-Huebner Venture, LP. San Antonio (LEASE) – Tony Le & Kathy Vu leased 3,000 SF at 8223 Marbach Road in San Antonio. UCR represented the tenant, and Graham Ketchum of CBRE San Antonio represented the landlord, HEB Grocery Company LP. San Antonio (LEASE) – Mystle, Inc. d/b/a/ Great Clips leased 1,683 SF at 8181 Tezel Road, Suite 106 in San Antonio. Michael D. Hoover of DH Realty Partners, Inc. represented the landlord, University of the Incarnate Word.
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A. A. Realty Company ...................................... 5
ICSC - NY . . ....................................................36
International Church Realty ............................ 11
BACREN . . ...................................................... 26
Bastrop EDC . . ...........................................18-19
LandPark Commercial...................................... 11
CCIM .................................................. 26-27, 35
Levcor, Inc. ....................................................13
Colliers International ......................................15
Conroe Industrial Development Corporation .. 1, 3
Moody Rambin . . ............................................. 11
CREN ............................................................ 26
Phase Engineering, Inc. .................................25
Raintree Commercial, LLC ...............................2
TAO Interests, Inc. ......................................... 33
Greenberg & Co. . . ...........................................15
Tarantino Properties, Inc. ............................ 8- 9
Homeland Properties, Inc. ..............................23
Zarsky Industries ...........................................15 REDNews.com 33
Top 10 Effects
of the Millennial Generation on Commercial Real Estate by Eric Hawthorn Reprint from www.llenrock.com
The following is a reprint of an article on REJournals.com, which in turn draws from a recent report published by the researchers over at Jones Lang LaSalle. Whether you are a millennial or not, I hope you enjoy this Top 10. Here is a list of the Millennial Generation’s Most Significant Effects on CRE: Change in Workplace Demand There is a decreased demand for office space as increasingly mobile workers rely on technology to work from home, the coffee shop, etc. Change in Workplace Structure Likewise, this generation seems to desire moreopen spaces for co-working and a variety of uses, and calls for fewer individual offices or cubicles. Office developers and landlords have taken note, creating or renovating spaces to accommodate this more collaborative, less-compartmentalized working environment. Older office buildings are often converted to hotels and multifamily properties, which tend to attract younger tenants/guests. Space Requirements Are Shrinking Particularly in top-tier markets (such as Manhattan and San Francisco), we’re seeing increased demand and development of “micro” real estate. Millennial tenants are willing to compromise on space in the name of an ideal location, accepting lodging or apartments with a minuscule footprint. Increased Demand for Discount Retailers In the retail sector, properties that host dollar stores and discount retailers have a significant advantage. Many higher-end department stores and boutique retailers are struggling in some markets. Technology Holds Greater Role in Retail Sector Millennials are likely to shop according to sales,
use coupons, shop at discount and dollar stores, and rely on technology for price comparison, reports the JLL article. Real Estate Goes High-Tech Consumers expect hotels, as well as office and residential properties, to be technologically up to date. Wi-fi and easily accessible power outlets are especially necessary. Millennials Are Interested in Sustainability and Green Design Perhaps it’s a reaction to the extravagant and wasteful 90s (SUVs, suburban sprawl, big-box stores, and other unsustainable trends were hallmarks of this decade). Perhaps everyone from the Millennial Generation was greatly affected by Al Gore’s global warming documentary. For whatever reason, this younger generation views sustainability and environmental issues with greater urgency than Gen X, it could be argued, and is more attracted to energy-efficient, low-impact real estate. The Renewed Prominence of the Urban Core Millennials desire dense urban development and the variety of retail and restaurant selections that are reachable by foot. Likewise, millennials walk and ride bikes and take public transportation. These factors are driving multifamily development and renovations in urban areas. In CBDs, established neighborhoods, and resurgent submarkets, residential and mixed-use construction activity is booming, driven by cities’ major industries–especially technology and eds and meds. Many suburbs are beginning to reshape themselves according to this New Urbanist model, favoring mixed-use and transit-oriented developments, density over expansion. Outlying suburbs are at a significant disadvantage as younger professionals and residents converge on dense urban areas.
Hotels are Hipper, More Experience Oriented As the JLL article explains, “One could argue that a traditional full-service hotel caters to baby boomers, and younger consumers often seek a more hip product.” These “hip” products increasingly include “lifestyle” concepts like those of Thompson Hotels and Morgans Hotel Group. Sleek, funky, artsy, and other non-traditional looks and appointments are becoming increasingly prevalent as consumers show a greater appetite for new and different. Lounges and wide-open lobbies with seating areas are increasingly attractive, and can even be found in some select-service lodging properties. A New Perspective on Homeownership Keeps Many in the Rental Pool For a variety of reasons, owning a single-family home in the suburbs doesn’t mean what it used to mean. For one thing, young professionals are often attracted to densely built areas with fewer available (or affordable) homes for sale. Thus, the emigration from the suburbs is taking a toll on the housing market. On top of this, the fact that millennials are in massive debt (turns out getting that second master’s degree was not the best financial decision…) means that many can’t afford a home even if they want to buy. Finally, the housing bubble that burst in 2008 has quashed the “American Dream” conception of homeownership—home equity isn’t the nest egg we once thought, it seems. It may be quite some time before this generation views home-ownership as a strong personal investment strategy. Until then, expect continued high demand for multifamily and single-family rentals. Source: http://llenrock.com/blog/top-10-effects-of-the-millennial-generation-on-commercial-real-estate/
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