REDNews July 2016 Southeast Texas

JULY 2016

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PROPERTY TAX ROLLBACK?

Update from Sen. Paul Bettencourt Interview with

Bernard Uechtritz

On Selling Sandow Lakes Ranch

PRIME SEAWALL BLVD. OPPORTUNITY GALVESTON. TEXAS

For more information about the property, please see page 2

Nolan Mainguy +1 713 577 1841 nolan.mainguy@cbre.com

Jim Stark +1 713 577 1776 jim.stark@cbre.com

PRIME SEAWALL BLVD. OPPORTUNITY GALVESTON ISLAND, TEXAS

PROPERTY HIGHLIGHTS v ±6.4 acres of land on Seawall Blvd. on Galveston Island, Texas

v Easy access to beach and walking distance to Pleasure Pier

v Frontages include: ±550’ along Seawall Blvd. ±255’ along 45th St. ±1,195 along Avenue U

v Owner will divide

Nolan Mainguy

+1 713 577 1841 nolan.mainguy@cbre.com

v Seller Financing available v Price: $40.00 PSF

Jim Stark

+1 713 577 1776 jim.stark@cbre.com

AVAILABLE FOR GROUND LEASE

3000 ALABAMA COURT Kristen McDade 713.577.1808 kristen.mcdade@cbre.com

Nolan Mainguy 713.577.1841 nolan.mainguy@cbre.com

•

±34,562 sf of land located at the southwest corner of W. Alabama and Edloe St. in Houston, Texas. A well-trafficked, lighted intersection near Greenway Plaza and Highland Village.

•

Property is in close proximity to St. John’s School and Lamar High School. Also close to St. Luke’s United Methodist Church and Lakewood Church

•

Ease of access to main transportation arteries; property is nestled among Greenway Plaza, Highland Village, Upper Kirby and West University

•

Property currently has 2 curb cuts from Alabama Court, the western border of the property and one curb cut on West Alabama

•

Property includes ± 93’ of frontage along West Alabama and ± 300’ of frontage along Edloe Street

•

Property is well-suited to a number of uses, including Restaurant/Retail, boutique office, MF/Condo or a variety of specialty uses

•

Please contact Brokers for pricing.

July 2016

3

CONTENTS

10 Sandow Lakes

Market

Sales & Leases 1–3, 5, 7-9, 13-15, 17-19, 21, 35

16

Services

Environmental Services 22 Land Servicing 36 Legal Services 33 Photography 21

Scoop

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

Features

Selling Sandow Lakes 10-12 CIVIL FAIR PLAY Property Tax Rollback: 16, 17 RAY'S BUZZ O’Connor & Associates Land Forecast 20

4

July 2016

20 23 Sandow Lakes

Addicks-Cullen Addicks-Cullen ParkPark 14,000Acres 14,000 Acres

ail Trail Tr dandBi Bikeke Hike Hike an

10.4 ACRES 10.4 ACRES

UNDER CONSTRUCTION

. v.d lBvld tsBt ees kWW arrk l Pa rra nntt CCee

levard ouBoulevard owB Row Park PaRrk

Phase One 170,000-square-feet CONSTRUCTION 2016

Terry Terry Hershey Hershey Park Park

Terry Terry Hershey Hershey Park Park

15.3 Acres 15.3ACRES ACRES 15.3

Interstate 10

Central Park

An easily accessible 80-acre development bordered by permanent green space, located on the north side of Interstate 10 between North Eldridge Parkway and State Highway 6 in The Energy Corridor.

Shops at

Bar ker Cyp res s

6.66.6 ACRES ACRES

ow

R Park

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0 tate 1 Inters

Ten Oaks

An 84 acre mixed-use development in the heart of The Medical Center-West Campus, located at the corner of Interstate 10 and Barker-Cypress Road in The Energy Corridor.

For more information call 713-626-8050 or visit wolffcompanies.com.

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ad

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITER

Janis Arnold janisarnold1@gmail.com Brandi Smith info@REDNews.com

Dear Readers,

We recently enjoyed visiting with Bernard “Bernie” Uechtritz, the transplanted Aussie who is showing Texans how to sell BIG real estate. I first met Bernie last year at the A&M Land Conference where he was promoting the Waggoner Ranch, the 525,000 acre Texas ranch that he had listed for $725 million.

When Bernie secured the listing, the ranch had been in litigation for 22 years due to heir squabbles, plus, for obvious reasons, the list of prospective buyers appeared to be limited. After only 15 months of marketing and 900 offers on the property, Bernie closed the deal! Read his fascinating story on pages 10 -12.

Senator Paul Bettencourt, the chair of the lieutenant governor-appointed Property Tax Reform & Relief committee, has also been busy this year in his quest for property tax reform. We caught up with him recently to get an update about the results of the public hearings he has been conducting throughout the state. His findings to date are interesting, to say the least, and he will be presenting them to the full legislature during its 2017 session. He is encouraging all property owners to protest their values and contact their elected officials to help bring down tax rates. (see pages 16, 17)

CONTRIBUTING WRITERS

Ray Hankamer rhankamer@gmail.com Page Grossman info@rednews.com

EMARKETING DIRECTOR

Rahul Samuel emarketing@REDNews.com

DIGITAL/MARKETING DIRECTOR Tony Nelson digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Ginger Wheless ginger@REDNews.com

PRINT & DIGITAL DISTRIBUTION

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

Next month’s issue will feature a Retail Recap from ICSC Las Vegas so if you were there, I welcome your input.

Best Regards,

Texas Brokers: 8,150 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 26,387

Ginger Wheless

TOTAL QUALIFIED REDNews DISTRIBUTION: 50,458 REDNews has gone green using recycled paper.

Thank you Midway Press!

To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription.

5909 West Loop South, Suite 135 Bellaire, TX 77401

6

July 2016

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NORTHCHASE BUSINESS PARK

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• 1,000-40,000 NRA Available • Completely Remodeled in 2015 • Private Corner Balconies on Upper Floors • Located near FM 1960 & I-45 in Champions Forest

• 1,117-10,551 SF Available • Lobby & Common Areas Remodeled • Covered Two (2) Story Parking Garage • Located near the Energy Corridor

PASADENA PROFESSIONAL

FOR SALE

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• Up to 16,014 NRA Available • Five Level, Class B Office Building • Renovated in 2014 • Property Secured by Security Gate & Card Key Access

• Up to 6,882 SF Retail Space Available • Easy Access to Highway 6 & U.S. Hwy 59 • Traffic Count Exceeds 30,653 CPD

908 EAST SOUTHMORE

908 E. Southmore Blvd.

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• Three Story Office Building • Fully Remodeled Lobby & Common Areas • Conveniently Located Across Bayshore Medical Center

• 46,462 SF, Three Story MOB • 80 Free Surface Parking Spaces • Recently Renovated Lobby • Generous TI Allowance • 532-3,068 SF Available

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• 2,550 SF Available • 22,745 SF Shopping Center • Located at FM 517 & Hansen Dr. • Three Access Drives to its Parking Lot

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• Two Story MOB • Renovated in 2008 • Up to 2,392 SF Available • Services the Memorial & Surrounding Neighborhoods

AUSTIN OFFICE:

502 East 11th Street, #400 July 2016 Austin, TX 78701 (512) 302-4500

7

RETAIL SPACE FOR LEASE

Kaleidoscope

♦ Excellent for retail, office or professional use ♦ 2 blocks west of Beltway 8 ♦ 2,952 SF - 2nd floor ♦ 2840 SF - 1st Floor, former doctor’s office - $18.00 psf & nnn $4.20 psf

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Woodland Park Shopping Center ♦ Shopping center size -75,620 SF Built in 1985 ♦ Retail space available (1st floor) - 1,600 SF ♦ 4,000 SF - $13.00/SF + NNN ♦ Aggressive lease terms ♦ Pylon signage available ♦ Traffic counts - 82,880 CPD (Westheimer) ♦ +/- 592’ of frontage on Westheimer ♦ 372 surface parking spaces available

11380 Westheimer, Houston, 77077

For more information

8

Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108 July 2016 eleung8888@aol.com www.aarealtytx.com

GReenberg & Company Retail/MEDICAL space available FOR LEASE

Commercial Real Estate Brokerage Firm

Great locations - MAJOR THOROUGHFARE

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5959 Richmond Ave. Houston, TX 77057

• High Traffic Counts Westheimer - 159,780 CPD Gessner - 62,329 CPD

• Prime Intersection Building Size: 4,433 SF Land Size: 0.35 Acres Call For Details

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1st Floor - 1,809 SF Available 2nd Floor - 1,230 SF Available

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• River Oaks Area •High Traffic Counts 1st Floor - 2,031 SF Available

Building Size: 9,580 SF Land Size: 17,333 SF Call For Details

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• High Traffic Counts • Prime Intersection Suite A - 1,600 SF (End Cap) Suite B - 1,023 SF Suite H - 1.174 SF Suite E - 1,150 SF

Building Size: 9,930 SF Land Size: 28,869 SF

Call For Details

Contact Broker: David Greenberg - David@GreenbergCompany.com 5959 Richmond Avenue, Suite 440 Houston, TX 77057 - Phone: 713-778-0900 - WWW.GREENBERGCOMPANY.COM

TIMBER + dirt

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Whole Tract Offering Managed Timberland

T RINITY F OREST Trinity County, Texas

Photos Credit for all Sandow Lakes Photography: International Icon Properties www.Icon.Global

Selling Sandow Lakes: Meet the Aussie who will

Photos Credit for all Sandow Lakes Photography: International Icon Properties www.Icon.Global

BY BRANDI SMITH

“There is not a single ranch or block of land anywhere in Texas, perhaps nationally, that has the enormous upside and multifaceted revenue generation that Sandow offers to smart money,” said Bernard “Bernie” Uechtritz, founder of International Icon Properties (www.icon.global) and international real estate advisor to Briggs Freeman Sothebys International Realty, in Dallas. “It is the answer to so many of the state’s pending area water issues and that’s just one of its assets. It’s poised to print cash.”

The challenge is clear: how does one market and sell a nearly 34,000-acre Texas ranch for $250 million with water rights alone valued 10

July 2016

at $70 million? Sandow Lakes Ranch is a spectacular multi-faceted property about 45 miles east of Austin. Owned by international aluminum giant Alcoa Inc. for decades, it’s now available for sale and features 14 lakes, along with tremendous intermodal capabilities: water, electric, gas, sealed road, railway access, several million feet of warehouse space and two power plants, ag exemptions and a whole lot more. With such disparate features, very few people would step up to handle such a complex sale.

“This is the most well-placed water reserve and water-monetizing opportunity that there is in Texas, probably the nation" - Bernie The man at the top of that exceedingly short list is Uechtritz. Upon first glance, one might assume Uechtritz is a born-and-bred Texan; however, his story begins almost 8,000 miles away in Papua New Guinea.

Tribal Land Deals to Cattle Trades

Uechtritz was born in Australia, the eighth child of 11 kids, but his parents Alfred and Mary Lou Uechtritz were Papua New Guinea pioneers.

“In Papua New Guinea, my father was a great peacekeeper,” Uechtritz told The Land Report.

“Dad was called upon to negotiate everything from tribal land deals to cattle trades. I watched him intervene in fights between warring natives with axes raised and arrows flying.”

As a youth, Uechtritz spent down time hunting for World War II relics on his family’s cattle station called ERAP, which was, at one time, a part of “NADZAB,” the largest American Air Force base in the South Pacific Theatre. Once a month, the family would make the 40-mile drive into town to watch John Wayne on the silver screen. Suffice to say, Americans have always loomed large on his “hero” screen.

“It was a wonderful and colorful background to have come from and I am both lucky and grateful. I had big responsibilities from an early age,” Uechtritz said. “I think that's what helped shape me.”

After “graduating early” from several boarding schools, Uechtritz spent four years managing a cattle ranch and plantation in Papua New Guinea before succumbing to his fascination with America. In 1989, at age 22, he ventured onto U.S. soil. He jumped into real estate just four years later, earning his license in California in 1993.

Lots of Conviction

It didn’t take long for Uechtritz to dive right in, aiming to prove the impossible possible.

One of his first targets: a home belonging to the notorious Menendez family. In 1989, Lyle and Erik Menendez brutally murdered their parents. The family’s attorney, tasked with selling the Calabasas estate, struggled until the ambitious Uechtritz offered his services.

“It wasn’t the house that they were killed in, but it was stigmatized — bad karma, terrible market and all that,” Uechtritz said. “It had been listed by several other brokers, but not sold.”

“Bernie just came in and said, ‘I can do this,’” lawyer Stephen Goldberg recalled in a 2012 story in The Land Report. “We’d already had some of the more established people try to sell it. Was Bernie qualified on paper to handle that sale? No. Did he do a great job?

You bet. Bernie got offers on the table through unconventional means, pushed forward, persevered, and got it done.”

Uechtritz’s well-thought-out and detailed approach included marketing the property globally. It worked successfully and quickly.

“[The property] sat on the market for five years and I sold it in three months,” said Uechtritz. “The truth of the matter is that I had no idea what I was doing, but I just had a lot of conviction in my plan at the time.”

Live It and Breathe It

Uechtritz admits to capitalizing on his background as well, having retained his Australian accent despite more than two decades living in the United States.

process, he stunned the real estate sector with his one-two punch of an unprecedented savvy marketing campaign and successful close. The sale smashed sales records across the board, including being the biggest sale ever for global behemoth Sotheby’s International worldwide, for American Ranching and set a new bar in the process.

Uechtritz silenced the many naysayers, skeptics and the gaggle of brokers and lawyers who laughed at the listing price announcement. He earned both their silence and dumbfounded respect.

"It's not the most financially rewarding deal I've ever done, but it was the most emotionally rewarding," Uechtritz said. "It was satisfying because everybody said both internally and externally that the deal could never be done and would never be done."

Founded more than 160 years ago, the ranch is said to be the largest within one fence in the United States. Its acreage spans six counties and, for some perspective, is as large as New York City and Los Angeles combined.

The property also boasts more than 1,200 oil and gas wells.

"It was a piece of Texas history, legacy, lore, cowboy and John Wayne stuff," said Uechtritz. "I get very passionate about that and I'd like to think that part of my success is that I immerse myself in that. I live and breathe it, like an actor preparing for a role."

That passion helped Uechtritz beat out the hundreds of other real estate brokers who’d pitched for the listing. When he finally

won the job in 2014, the ranch had been in litigation for 22 years due to family squabbles about how to split up the property.

I’d committed the cardinal sin of what no Realtor should do: Fall in love with the property you are selling." - Bernie After just 15 months of marketing, and screening more than 900 would-be buyers, that deal between Kroenke and the Waggoner descendants was signed.

“This was never a dollar-and-cents proposition,” said Uechtritz. “I’d committed the cardinal sin of what no Realtor should do: fall in love with the property you are selling.

I was bound and determined to find the right steward and caretaker for the next century or two. We fortunately achieved that goal with Stan Kroenke, which provided a fairy tale ending.”

Expect Sandow Lakes to Sell Quickly

Waggoner sold, Uechtritz now had his full attention focused on his next challenge: Sandow Lakes Ranch. The sprawling property, which stretches over three counties in Central Texas, is on the market for $250 million.

“My response to the RFP was four-inches thick,” said Uechtritz. “It detailed every step along the way. Like the Waggoner plan, it

“Winston Churchill said, ‘Polo is your passport to the world’ - and I am a passionate polo player - but your accent and being Australian, used with integrity, is also your passport to the world,” he said.

Uechtritz’s can-do attitude has made him a global “go-to” guy for challenging assignments, ranging from appraising O.J. Simpson’s Brentwood mansion to putting together the complicated Camp Cooley Ranch sale in Texas and saving two major lenders in the process years later. Those deals served as training for what would end up being one of the most complex and challenging projects of his career: leading the global marketing and sale of the famed WT Waggoner Ranch.

Uechtritz sold the 535,000-acre property, listed for $725 million, to Los Angeles Rams owner Stan Kroenke early in 2016. In the

Continued on page 12 July 2016

11

Photos Credit for all Sandow Lakes Photography: International Icon Properties www.Icon.Global

was specific and had a timeline. Like the Waggoner, I committed to market Sandow to the four corners of the world -- and I have. I am also on track with our timeline to sell. Once again, this sale, like the Waggoner, is not a matter of ‘if’; it will sell! But it’s a matter of who will buy it? and for how much? I can even pretty much tell you the when, because I control that factor!”

The property shares similarities with Waggoner: both are world-class assets, both are agricultural powerhouses, both offer a recreational paradise. But the difference in immediate and long-term revenue earning capacity is huge -- staggering, in fact -- by a factor of hundreds of millions of dollars.

“Sandow offers tremendous upsides through alternative revenue streams, such as water and its intermodal features, and has a presentday and immediate development value across industrial, commercial

"It’s stunningly beautiful and most people don’t know it’s there" - Bernie

and residential sectors,” Uechtritz said. “Its ready-made intermodal and energy capacities are significant and unlike any ‘ranch.’ Calling it a ranch is somewhat misleading.”

For decades, Alcoa used the land as an open lignite mine. The property includes a 6,000-acre industrial complex, about 200 million tons of lignite coal and nearly 30,000 acres of oil and gas minerals. As a result, the existing 6,074-acre industrial complex offers turn-key access to full utilities in place (electricity, gas, water, water treatment and waste disposal), roads, railhead, intermodal facility, warehousing, manufacturing and distribution.

On the agricultural and exemption side, the ranch’s pastureland produced 16,000 bales of hay in 2015 and Uechtritz estimates that amount could be tripled if the new owner so desired.

Aesthetically, there are few properties in the state of Texas that could rival Sandow Lakes’ pristine beauty. Nearly 24,000 acres are natural or reclaimed property that provide award-winning habitat for 12

July 2016

wildlife, including whitetail deer, javelina, quail, American bald eagle, largemouth bass and tilapia to name a few.

Those, however, are not the ranch’s most alluring features.

“There’s a string of 14 lakes – crystal clear with fish galore. Just the water rights alone are ultimately worth hundreds of million in value,” said Uechtritz. “Water is the new oil, and it’s one of the hot buttons with this property.”

The state’s population is expected to double by 2050 and the Texas Water Development Board estimates that by 2070, the Lone Star State will need an additional 1,039,509,405,966 gallons each year. That’s why Sandow Lakes’ water may be its most valuable asset.

“This is the most well-placed water reserve and water-monetizing opportunity that there is in Texas, probably the nation,” Uechtritz said, pointing to the ranch’s ideal location between San Antonio, Austin and Houston. The proposed ‘Vista Ridge’ pipeline, said to be the South Texas water lifeline, cuts into Sandow Ranch as it stretches from Caldwell in Burleson County down the I-35 corridor through Austin all the way to San Antonio.

“It crosses the south end of Sandow Ranch at the perfect spot to connect to Sandow’s endless water supply,” Uechtritz pointed out.

The lakes Uechtritz mentioned cover roughly 2,000 surface acres and hold more than 48,000 acre-feet of water. But the property owner will also have access to another 58,000 acre-feet of ground water from the Simsboro Aquifer. Combined with diversionary rights from the Little River, Sandow Lakes could control more than 120,000 acre-feet of water.

“Just the value of the surface water, extrapolated over the next 30 years, is worth about $240 million,” said Uechtritz. “Add the ground water and the value is closer to $430 million.”

Based on the level keen of interest so far, Uechtritz is preparing to put out an international call for offers as soon as July. His focus, as always, is finding the right steward for the property, who can both maximize benefits to the community and monetize the investment for a win-win.

“We expect Sandow Lakes to sell quickly, as I believe this opportunity to be unprecedented in the region and state, and perhaps even nationally. We have a rapid and robust global marketing campaign, and have in place an enormous electronic data room as well as on site due diligence available for immediate access,” Uechtritz said.

Once he crosses another “hard-to-sell” property off his list, what’s next for Uechtritz? He says he’s trying to scale back, but the calls just keep coming. That’s forcing him to be more selective with the clients he chooses.

"There are only so many hours in a day and only so many people that you can give 100 percent to," he says. "So I now only pick three or four big projects a year. They're big numbers with high risk and high reward, but they're challenging.

“I've got to like and believe in both the client and the property to infuse the necessary passion, time and well-earned experience that I bring to the table. Fortunately, I have some really cool projects in the pipeline after this, which is exciting and keeps me energized to conquer the next one.”

It’s clear: Uechtritz loves a good challenge. We cannot wait to report on the Sandow sale and see what’s next. l

FM 1960/CYPRESS CREEK PKWY

TWO TRACTS OF LAND

HOUSTON, TEXAS

27 ACRES

9.94 ACRES

±27 acres located on TC Jester Blvd., one block north of FM 1960, in Northwest Houston, the subject property is rectangular shaped, with no pipeline, access or other easements bisecting the tract

±9.94 acres of land, located directly on FM 1960, the most trafficked street in Northwest Houston. There are no pipelines, access or other easements bisecting the tract

Kristen McDade +1 713 577 1808 kristen.mcdade@cbre.com

Nolan Mainguy +1 713 577 1841 nolan.mainguy@cbre.com

LEVCOR, INC. IS A LEADER IN THE DEVELOPMENT AND REPOSITIONING OF RETAIL SHOPPING CENTERS RANGING FROM 100,000 TO 1,000,000 SQUARE FEET THROUGHOUT TEXAS. Houston Eagle Pass

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July 2016

13

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Development Opportunities Residential Developments For Sale Hidden Cove Subdivision (Pasadena, TX) 4.379 acres / +/- 17 lots

Offering Offering Price: Price: $679,150 $679,150 ($39,000 ($39,000 per per lot) lot)

A highly secluded residential subdivision with a Cul-du-sac design. Approximately 17 individual lots sized at 7,650 SF (60’ W x 127.5’ D). Construction to begin the summer of 2016. Located between Vista Road to the north and Fairmont Parkway to the south.

Entry to Hidden Cove via Maple Street, off Vista Road. Maple Street will be extended to provide access to Hidden Cove. Located in the Pasadena Independent School District.

Bayou Trails Estates (Alvin/Liverpool, TX) 20 acres / 16 lots

Offering Price: $639,200 ($39,950 per lot) Lot sizes are approximately 1-acre with detention in place and ready for use. Utilities are negotiable. Located far southeast Houston between Houston and Galveston (near Alvin and Liverpool, TX). Great place to live outside the city with extra room between you and your neighbors.

For More Information, Contact Lynn Stewart or Glenn Graef (713) 854-8981 – lynn@longevityrp.com

Superb Prestigious Corner Location SEC Mason Rd & Fry Rd., Cinco Ranch Lease Offering Data

Space Available:

15,000 +/- SF (can be subdivided-call for terms) Space Condition: 2nd Generation Term: 5+ years (negotiable) Base Rental Rate Space: $24.00 PSF NNN NNN Charge (2015 Est): $11.00 PSF/Year (Landlord paying electric!)

Parking Ratio: 4 per 1,000 SF • • • •

Property Data/Attributes

5005 S. Mason Road, Katy, TX 77450 Newly Constructed 2010 Two Story Building Easy access to Grand Parkway and West Park Tollway Area Demographics

2013 Total Pop.*

FOR LEASE

2013 Avg. HH Income*

1-mile

3-mile

5-mile

11.857

105.681

202.320

$199,351

$132,960

$124,086

*Demographic Data Source: ESRI 2015 Forecast

Contact: Roxanne Edmond 281.391.9252 Roxanne@wolverinepm.net

Great Development Tracts in Booming Pearland, Texas *Excellent Locations *Close to Major Thoroughfares *Limited Restrictions

Offered by:

DAVID L. SMITH REALTY/The Legacy Group 281-485-0244 Susan S. Lenamon, Broker/Owner slenamon@dsmithrealty.com July 2016

15

civil fair play

Property tax rollback?

One Texas senator unveils his plans for rate reform

Sen. Paul Bettencourt

BY BRANDI SMITH

The ongoing tax code debate in Texas between private property owners, municipalities and state lawmakers continues unabated.

Like the tale of Goldilocks and the Three Bears, some parties indicate that their tax rate is just right, others indicate that their tax rate is too low, and others contend that their tax rate is too high.

For most of the past year, REDNews has been tracking Sen. Paul Bettencourt’s efforts to learn more about the state's tax code and, if needed, reform it. As chair of the lieutenant governor-appointed Select Committee on Property Tax Reform and Relief, Sen. Bettencourt spent months touring the state and holding public hearings with the goal of presenting his findings to the full legislature during its 2017 session. Having concluded that tour, REDNews caught up with Sen. Bettencourt for an update.

"We saw many, many jurisdictions that were calculating their tax rates a few thousandths of a point below the rollback rates, so they were just trying to soak up as much money as possible" Bettencourt 16

July 2016

What’s new?

“Those increases of 20 to 30 percent in just one year are common for commercial properties in the major metropolitan areas all around the state,” he said. “Those are astonishing wakeup calls to commercial business owners. Their income clearly is not growing at 25 percent a year, but their tax bill is.”

While Bettencourt said his hearings introduced him to shocked and frustrated property owners, he also began to understand the mentality behind the ever-growing taxes.

“We saw many, many jurisdictions that were calculating their tax rates a few thousandths of a point below the rollback rates, which indicates they were trying to soak up as much money as possible,” said Bettencourt.

He said that the City of Dallas, for example, calculated its tax rate within a few thousandths of a point below its rollback rate for three years in a row. The average home value had grown by 13 percent, commercial properties were up 18 percent and multi-family was over 20%.

“I asked the mayor, ‘Why don’t you cut the tax rate?’ It seemed to be a concept he’s never considered before,” said Bettencourt.

The senator said conversations and revelations such as the one in Dallas make an exchange in Arlington even more heartbreaking.

“The county judge basically said, ‘Look, we need all the money we can get,’” said Bettencourt. “The next two taxpayers told us they're retired. One of them was on fixed income, and both face losing their homes due to the spiraling tax increases.”

Bettencourt said the discussion resulted in Lieutenant Governor Dan Patrick lecturing

the elected county judge about listening to the needs of his constituents, including not overcharging them on their property taxes.

“People will continue to struggle to pay property taxes when they are going up three times faster than income,” said Bettencourt.

"This is unsustainable by any measure."

"I asked the mayor, ‘Why don’t you cut the tax rate?’ It seemed to be a concept he’s never considered before" -Bettencourt Another issue that Bettencourt heard a lot about during his hearings is disparity within appraisal districts.

“Right now, there appears to be a lot of inconsistency in how CADs [central appraisal districts] apply the law, how they conduct hearings, what information they give to taxpayers, and the extent to which they govern themselves with transparency,” he said. “We had one gentleman drive six and a half hours to the Lubbock hearing to explain that a chief appraiser and an ARB [appraisal review board] chairman colluded in his meeting to basically deny him an ag exemption. The property owner made the presentation. The ARB chairman turned to the chief appraiser and said, ‘Do we have any latitude?’ The chief appraiser said, ‘None.’ Bang. He's done.”

Bettencourt said he would like to see better top-down guidelines for CADs, as well as an organization that can oversee and regulate them.

“The comptroller has a weak position in this, and we actually had a bill pass the Senate last

time to study moving it to an independent agency,” said Bettencourt.

What’s next?

As extensive as the statewide committee hearings were this winter and spring, Bettencourt said he plans to continue them in the fall. However, he said one necessary course of action for the Legislature’s next session is clear.

"We're going to write a very comprehensive report.

There's going to be lots of recommendations. But the key will be lowering rollback rates because that’s the real flaw of the system." - Bettencourt “There is a developing consensus right now that rollback tax rates allow taxing jurisdictions to take in too much money on a yearly basis,” said Bettencourt. “We should consider changing those numbers so that as property values go up, tax rates come down.”

Bettencourt said the proposed change would allow for municipalities to ask voters for an increase in an election, but would otherwise have to stick to a lower rollback rate.

“We're going to write a comprehensive report that includes many recommendations,” said Bettencourt. “But the key recommendation will be lowering rollback rates because that’s the real flaw of the system.”

While Bettencourt’s committee prepares for the full legislative session in January, he recommended that taxpayers - both residential and commercial - keep a close eye on their tax bill and hold CADs accountable.

“Property owners need to be protesting their values,” Bettencourt said.

“They also need to start talking to their elected officials and saying, ‘My taxes have gone up astronomically, and I need you to start lowering the tax rate.’”

Bettencourt expects his report to be released this fall. REDNews will be following up with Sen. Bettencourt as his hearings progress and will bring you updates throughout the year. l

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July 2016

July 2016

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ray’s buzz

O’Connor & Associates Land Forecast Speakers: Kirk Laguarta/Land Advisors Organization; David Marshall/ARA Newmark

BY RAY HANKAMER rhankamer@gmail.com

Takeaway from presentations: There has been a sharp shift in developer/investor/lender interest from West- to East-Houston, driven by $50 billion in petrochemical construction

• Broadly there is skepticism from equity

and loan providers for Houston overall, but quality new projects in certain commercial real estate (CRE) segments such as single family, retail, and healthcare are still attracting capital

• The number of high-rise apartments

and condos has tripled in Houston in the last three years-26 built or still under construction-this is ‘normal progression/ density’ in a city at our stage of development

• Houston’s economic diversity will largely offset oil & gas industry job losses

• Recent sales of $170 SF on Westcreek/

Galleria; $300 SF San Felipe at Post Oak Blvd; $200 SF behind BLVD Place; $170 SF Midtown-most sales for apartments or condos

• Land market holding up pretty well overall in Houston Metro area, except for Energy Corridor area

Retail

• Developers still “catching up with the

single family housing boom” in many areas of the city, especially around the Grand Parkway

• We may see a mild “pause” in several of

• 2.2 million SF under construction-35% of

• For the past several years U-Haul has rated

Office

our CRE segments

Houston as the #1 inbound city, but that has now slowed

• Houston has added 736.000 population since 2010

• Higher construction costs due to shortages of construction crews and labor are adding to developer costs in all segments, and these costs could double in next 24 months

• 13/17 employment sectors will have added jobs in Houston in 2015 & 2016

• International capital still coming in from countries like Brazil, Canada, and China

• The short pre-development (entitlement) time in Harris County and our businessfriendly climate makes our area very attractive to national developers

Land Prices

• Fallen by half in Energy Corridor, from $80 SF to $40

• Tripled in Inner Loop in last five years, and almost impossible to find tracts of 3 acres or more; land scarcity drives up per SF rental rates

• Should hold up in Inner Loop due to scarcity

20

July 2016

it is grocer anchored

• 8.5 million SF of sublease space

dampening market, 1/3 of it in Energy Corridor

• No interest in new developments, unless a rare owner-occupied by credit tenant comes up

• Very difficult time for this segment until at least 2018

Multi-Family

• The next two years will be tough as

absorption progresses with big landlord concessions and new units continuing to come on stream

• New development might be able to find

capital even yet in East Houston, Med Center, or other “Main at Main” location, but with difficulty

Single Family

• 2015 was one of strongest years in

Houston’s history, and strength will continue until 2017 when slight slackening may occur-this segment will not come close to being overbuilt

• Homebuilding not always in synch with oil & gas prices-other factors in lending

Kirk Laguarta

David Marshall

industry affect it-we are still playing catchup from boom in population since 2010

• Lot development must be closely

coordinated, since homebuilders need to know they control lots 2 years before actual building begins-we could run short of lots in 2-3 years

• 90% of lot developers have been financed with all cash, not debt, so there is rare lender pressure on raw land owners to unload their property prematurely, thus stabilizing prices

• Since 2012 there have been on average

26,400 annual home starts-expect 30,000 starts average by 2020-builders have lots of confidence, and 25,000 starts will be the bottom

• 44,000 acres have been sold since 2012

for master-planned communities, which average 2.5 lots per acre including amenities/infrastructure

• Houston has the fewest number of

available lots of any major city in the country, because of continuing demand for homes

• $250,000-$300,000 is the current pricing ‘sweet spot’ for new home pricing

Industrial

• Slowing development on NW and N side

and growing on East side of the county due to demand to store and ship products made by new petrochemical plants

Healthcare

• Still very strong, as major hospitals

continue to build satellite facilities in the far suburbs, “following the rooftops” like retail does

July 2016

21

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Photos Credit Sandow Lakes Photography: International Icon Properties www.Icon.Global

events

BOMA AUSTIN bomaaustin.org BOMA SAN ANTONIO bomasanantonio.org CCIM ccimtexas.com CETA cetalliance.com CREW AUSTIN crewaustin.com CREW SAN ANTONIO crew-sanantonio.org CTCAR ctcaronline.com IREM AUSTIN iremaustin.org

CENTRAL SOUTH TEXAS July 2016 Calendar MONDAY

TUESDAY

WEDNESDAY

IREM SAN ANTONIO iremsanantonio.org RECA AUSTIN reca.org REC San Antonio www.recsanantonio.com TABB Austin www.tabb.org/austin_chapter.php TABB San Antonio www.tabb.org/san_ antonio_chapter.php ULI AUSTIN austin.uli.org ULI SAN ANTONIO sanantonio.uli.org

THURSDAY

FRIDAY CREW Austin: Recruit Committee Chairs & Co-chairs

1

CREW Austin: Nominations for 2016 leadership due

CREW Austin: Special Events Committee (All Day)

4

5

IREM Austin: Board Meeting 11:30AM-1:00PM

6

BOMA Austin: City Council Lunch & Learn 11:00AM-1:00PM CREW Austin: Community Services Committee Meeting 11:30AM

11

IREM Austin: Monthly Luncheon 11:30AM1:00PM

12

13

RECA Austin: Christmas in October Committee Meeting 12:PM-1:00PM

7

8

14

15

BOMA Austin: TOBY Workshop 8:30 AM-10:00AM BOMA San Antonio: Program Committee Meeting

BOMA Austin: New & Prospective Member Orientation 11:30AM-1:00PM CREW Austin: Board Meeting

CTCAR: Property Info.

Exchange 7:30AM-9:00AM IREM San Antonio: Chapter Luncheon 11:30AM-1:00PM

18

25

CREW Austin: Networking Luncheon 11:30AM

CREW Austin: Networking Luncheon 11:30AM

19

26

RECA Austin: Membership Committee Meeting 12:00PM-1:00PM

July 2016

20

TABB Austin: Luncheon 12:00PM

21

22

28

29

CREW San Antonio: CREW Movie Mixer 6:00PM-9:30PM

TABB San Antonio: Monthly Luncheon 11:30AM

24

BOMA San Antonio: Board Meeting

27

BOMA Austin: Shoot Out Committee Meeting 11:30AM-1:00PM

BOMA Austin: July Board of Directors Meeting 7:45AM-9:15AM

BOMA Austin: July Monthly Membership Luncheon 11:30AM-1:00PM CTCAR: Networking Luncheon & Presentation 11:30AM-1:00PM

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

July 2016

social

October 2015

CENTRAL SOUTHEAST TEXAS TEXAS SOUTH

BOMA SAN ANTONIO GOLF TOURNAMENT

From Top: Tim Martinez, Western States Fire Protection, Michael Ortega, Western States Fire Protection Rebecca Douglas,WCRE Group, Wyatt Stevenson, FSG Brian Ramirez, Ralph Hernandez, Quentin Bell, Wyatt Stevenson

REALSHARE AUSTIN

IREM SAN ANTONIO

From Top: Moderator: Matt Mathias, Mathias Partners Moderator: Molly Alexander, Downtown Austin Alliance Todd Kuhlmann, Moderator, Office Tech panel

SOCIAL EVENT JUNE 9TH SERVICES

CREW AUSTIN 2016 BOARD

From Top: Carrie Holt, Rachel Knox, Shelly Rosales Alexis Michael, CREW Austin 2016 President Elect, Kathryn Lumpkin,Tia Amburn,

From Top: Amanda Gladstone, REOC, Cindy Hernandez, Cedar Ridge Cindy Hernandez, Sally Flanagan, Lyndsay Walbran Howard Haring, Transwestern Mona Lowe, Minerva Group, LLC

Cacki Jewart, Amy Hurst, Debby Williams Board members not shown above are: Amy Harvey, Marcus Bove, Marcy Phillips, Yvonne Heerema

July 2016

25

events

BOMA DALLAS bomadallas.org BOMA FORT WORTH bomafortworth.org CORENET NORTH TEXAS northtexas. corenetglobal.org CREW DALLAS crew-dallas.org CREW FORT WORTH crewfw.org/ IREM DALLAS irem-dallas.org IREM FORT WORTH www.fortworthirem.org

NORTH TEXAS

July 2016 Calendar MONDAY

TUESDAY

WEDNESDAY

NAIOP northtexasnaiop.com NT CCIM chapters.ccim.com/northtexas NTCAR ntcar.org REC DALLAS recouncil.com REC GFW recouncilgfw.com TABB DALLAS www.tabb.org TABB FORT WORTH www.tabfortworth.com/ ULI NORTH TEXAS northtexas.uli.org

THURSDAY

FRIDAY REC Dallas: Real Estate 101 11:15AM-1:00PM

4

11

18

NTCCIM: Investment Analysis for Commercial Investment Real Estate July 18-21

5

CREW Fort Worth: Communications/ PR Committee Meeting 9:00AM-9:30AM

BOMA Dallas: Monthly Luncheon 11:00AM1:00PM

12

13

CREW Fort Worth: Programs Committee Meeting 11:45AM-1:00PM

BOMA Fort Worth: CSC: Rahr & Sons Brewing Company Fundraiser 6:00PM

REC GFW: Board Meeting Luncheon 11:30AM-1:00PM

7

8

14

15

ULI North Texas: Breakfast Forum 7:30AM-9:30AM

19

CREW Dallas: Industry Luncheon 11:30AM

20

NTCCIM: Class Happy Hour 5:30PM-7:00PM

NTCCIM: Investment Analysis for Commercial Investment Real Estate July 18-21 REC GFW: July Get Together 4:30PM-6:30PM

25

6

CREW Fort Worth: Treasury Committee Meeting 1:00PM

1

26

ULI North Texas: Member Recruiting Event 5:30PM-7:30PM

ULI North Texas: New Member Breakfast 8:00AM-9:00AM

27

CORNET North Texas: Young Leaders Happy Hour 4:40PM-7:30PM

BOMA Fort Worth: CSC Meeting 11:30AM

21

22

NTCCIM: Investment Analysis for Commercial Investment Real Estate July 18-21

28

TABB Dallas: Luncheon 11:30am-12:00pm

29

BOMA Dallas: Board of Directors Meeting NTCAR: Young Professionals 2nd Quarter Event REC GFW: Mentoring Kick Off Party 5:00PM-7:00PM TABB Fort Worth: Monthly Meeting

26

July 2016

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

July 2016

social

October 2015

NORTH TEXAS

BOMA DALLAS

Annual Golf Tournament From Top: More than 200 members and guests enjoyed 18 holes of golf and beautiful weather.

REC OF FORT WORTH

The Panther Den Urban Design Competition From Top: Winning Team with Judge Tom Galbreath, Dunaway Associates, Jesse Herrera, Tarrant County College, Kyle Cornett, Dunaway Associates, Stephen Gebren, G.L. Barron Companies, Tyler Marshall, Spire Realty Group, Sarah Ward Rega, North Texas Certified Development Corporation, Edward Manel, Trademark, Gary Walker, Coldwell Banker Commercial Alliance A group at The Panther Den work on their land plan: Chase Parker, Beck Architecture, Michelle Lutzky, Trademark, Jack Barkley, Hillwood Development, Kyle Kattner, Peloton Land Solutions Marshall Mays, Holt Lunsford Commercial, Skyler Blankenfeld, PRIM Construction, Will Norther, Hillwood Development, Tyler Arbogast, James R. Harris Partners

NTCCIM/SIOR DFW Joint Event

From Top: Allen Feltman, CCIM, Emmitt Smith, North Texas CCIM President Saadia Sheikh, CCIM, E Smith Realty, Jay Lucas CCIM, Cushman & Wakefiled, Bruce Hecht, Emmitt Smith Howard Fuerst, Emmitt Smith, Todd Gladis Saadia Sheikh, Emmitt Smith

BOMA DALLAS

BOMA Dallas tradeshow “Superhero” themed at Dallas Market Hall

A group at The Panther Den works on their land plan: Jesse Herrera, Sara Ward Rega, Kyle Cornett A group gives their presentation: Casey Tounget,Coldwell Banker Commercial Alliance, Jordan Kayler, Peloton Land Solutions, Brian Bowden, Dunaway Associates,Matt Schneider, Peloton Land Solutions,Sam Rhea, Hillwood Development July 2016

27

events

ACRP acrp.org BACREN bacren.com BOMA HOUSTON houstonboma.org CCIM HOUSTON ccimhouston.org CORENET houston.corenetglobal.org C.R.E.A.M. creamtx.com CREN crengulfcoast.com CREW HOUSTON crewhouston.org FBSCR fbscr.com

SOUTHEAST TEXAS

July 2016 Calendar MONDAY

TUESDAY

WEDNESDAY

GREATER HOUSTON PARTNERSHIP houston.org HREC houstonrealestatecouncil.org IREM HOUSTON iremhouston.org NAIOP naiophouston.org O'CONNOR & ASSOCIATES poconnor.com SIOR www.sior.com/ TABB Group www.tabb.org ULI houston.uli.org

THURSDAY

FRIDAY 1

4

C.R.E.A.M: Eminent Domain & Economic Development 11:00AM1:00PM

11

5

Greater Houston Partnership: HYPE Networking Social with Houston Summer Interns

12

6

IREM Houston: Education Committee Meeting 8:30AM

13

IREM Houston: Community Involvement Committee Meeting 11:30 AM

7

CCIM Houston: Luncheon 11:30AM-1:00PM

14

FBSCR Breakfast 8:00AM-9:00AM

19

O'Connor & Associates: Apartment Forecast Luncheon 11:30AM-1:00PM

20

BOMA Houston: Energy Star Update 8:00AM-10:00AM

25

26

BOMA Houston: TOBY Entry Fee Registration

8

15

CREN: Marketing Session 7:30AM-9:00AM

IREM Houston: Public Policy Committee Meeting 11:30 AM

18

CREN: Luncheon 11:00AM

27

BACREN: Luncheon Jim McIngvale 10:30AM

21

22

28

29

IREM Houston: Summer Social & Trivia Throwdown 5:00PM-7:30PM

TABB Houston: Monthly Luncheon 11:30am-1:00pm ACRP: Cocktails/ Networking 5:00PM-7:00PM CREN: Happy Hour 4:30PM-7:00PM

28

July 2016

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

SOUTHEAST TEXAS

PlusCorp Photography & Marketing PlusCorp Photography & Marketing

PlusCorp Photography & Marketing

July 2016

social

PlusCorp Photography & Marketing

FBSCR

Breakfast

From Top: Commissioner James Patterson and FBSCR Pres.

Danna Sossen Dana Sossen, Jackie Wilcox

PlusCorp Photography & Marketing

PlusCorp Photography & Marketing

PlusCorp Photography & Marketing

CCIM HOUSTON June Luncheon

PlusCorp Photography & Marketing

From Top: Adrian Trujillo, Ed Ryland, CCIM Tawnya Dornak, Jane Nodskov, CCIM, Linda S Larabee, CCIM, RPA

ACRP

Joe Nickels, Hande "Heidi" Castiglione, Juan Aybar

From Top: Jason Atkinson, Robbie Jacobs, Randy Young, Phillip Mathews

PlusCorp Photography & Marketing

October 2015

PlusCorp Photography & Marketing

Fishing Tournament

Caitie Beth Truitt, Bill Dampier, Captain Tom Brown (Guide), Waylon Themer

PlusCorp Photography & Marketing

PlusCorp Photography & Marketing PlusCorp Photography & Marketing

CORENET

Houston Breakfast

C.R.E.A.M

From Top: Ryan Hargrove, Wendy Guidroz, Heidi Y. Zachman, Allie Lutz, Elizabeth Huff

June Luncheon From Top: Jarrad M. Cormier, Bridgette R. Johnson, VP,

Cindy Young, Beccy Whyte

Jim Wilkie, CCIM, David F. Paul

Derek Gaskamp, Charles Zube, Stephen Crawford

Martha Schauer, Shawn Jaks, Karen Plummer

Joan Albert, Spencer Moore, Wendy Heger

PlusCorp Photography & Marketing

PlusCorp Photography & Marketing

Doug Anders, Missy Collura, Daniel Vertrees

PlusCorp Photography & Marketing

O'CONNOR

Forecast Luncheon From Top: Sujithra Shyamalan, Yazhini Thangadurai, Pat O’Connor, Suresh Babu, Karthick Devaraj Cade Rhoden, Kirk Laguarta, Duane Heckmann, Mark Bramlett

PlusCorp Photography & Marketing

BACREN

May Luncheon From Top: Katy Val Verde, Becky S. Pool, Chris Bittinger Helen I. Hodges, Adrian Combs, CCIM and Harold Hunt July 2016

29

bulletin

AUSTIN, TX

CENTRAL SOUTH TEXAS Austin/San Antonio Areas

MIXED-USE DEVELOPMENT

The proposed Grove at Shoal Creek mixed-use project near 45th Street & Mopac Expressway did not get PUD approval from the Environmental Commission.

The project will now go to the Zoning & Platting Commission.

Ultimate approval will be determined by the City Council.

MIXED-USE DEVELOPMENT

Photo Courtesy: KDC

SAN ANTONIO, TX MIXED-USE DEVELOPMENT

The redevelopment team for the former Lone Start Brewery is being led by San Marcos-based Aqualand Development and includes Peloton Commercial Real Estate & CBL^ Associates Properties, Inc. Gross leasing capacity upon redevelopment is projected to include 424,330 sf of retail, restaurant, office & entertainment space plus a hotel & multi-family units. Ground breaking is projected for mid 2017.

SAN ANTONIO, TX RIVER WALK-STYLE DEVELOPMENT A new River Walk-style development along San Pedro Creek is planned, according to Bexar County Judge Nelson Wolf who indicated ground breaking is projected for this summer with first phase completion by May 2018. The goal is to complete the first part of the $175 million project in time for the city’s tercentennial celebration in 2018.

Goodnight Ranch is under development near East Slaughter Lane & Old Lockhart Road which is across I35 from Southpark Meadows. The first phase of construction is expected to begin within two months which will include 113 homes with 3500 homes projected at build-out. Retail and commercial developments are also planned.

MULTI-FAMILY SALE

Catherine Tower LLC, an affiliate of Austin-based Christopher Investment Company, purchased the 300-unit Catherine Tower high rise which is located just south of Lady Bird Lake. The project was purchased from StreetLights Residential & Hunt Properties.

OFFICE LEASE

Deloitte, Inc., New York Citybased services firm, leased 13,153 sf at 7700 W. Parmer. David Putman, Bart Matheney & Ben Tolson with AQUILA Commercial represented the landlord, Accesso Partners.

OFFICE SALE

CapRidge Partners purchased the 180,558 sf Lakewood on the Park building located at 7600 Capital of Texas Highway (Loop 360) from Equity Commonwealth.

Andy Scott & Jim Curtin in HFF’s Dallas office arranged the financing and the seller was represented by HFF in Dallas.

RESIDENTIAL/RETAIL DEVELOPMENT

The Kalantari Group is building Sixty Five, a project that will include 52 residential units with 4000 sf of ground floor retail at 750 Burnet Road.

RETAIL LEASE

Sky Marketing leased 4650 sf at Biz Park 290 W located at 11190 Circle Drive. Andrew Perkel of Retail Solutions represented the landlord and Rodney Schwalback of ESC Realty Advisors represented the tenant.

30

July 2016

RETAIL LEASE

CBRE & Argyle Residential have announced all except 1589 sf of the ground floor retail space has been leased at Burnet Marketplace, a new 343-unit multifamily development which included 10,858 sf of retail.

Barley Bean, an Austin-based café, will occupy 2408 sf, Spavia, a day space, will occupy 3230 sf and King & Rose Optical will occupy 833 sf.

RETAIL SALE

Lionstone Investments of Houston purchased Brodie Oaks Shopping Center located in the vicinity of SH 71 & Capital of Texas Highway (Loop 360). The project includes 285,044 sf of retail, 37,546 sf of office and sits on 31 acres of land. It is believed that the property was previously owned by a partnership of Dallasbased L&B Realty Advisors LP & Barshop & Oles Company of Austin.

RETAIL SALE

H-E-B purchased Twin Oaks Center located at 2315 S. Congress Avenue which sits on 10 acres. H-E-B does not yet have a specific redevelopment plan for the property.

SENIOR LIVING PROJECT DEVELOPMENT

Austin-based W2Real Estate Partners in conjunction with Bridgewood Property Company are building The Village at The Triangle, a 206 unit upscale senior living project located at Guadalupe, North Lamar Blvd & West 45th street. The project is expected to be completed in early 2018.

STUDENT HOUSING DEVELOPMENT

Austin-based developer Lincoln Ventures is building a Class-A student housing development called The Ruckus at 2502 Nueces Street which will be a seven-story project that includes 45 units with a mix of two – five bedrooms totaling approximately 160 beds.

CORPUS CHRISTI, TX OFFICE SALE

Kleberg Bank purchased a 120,000 sf building located at 5350 S. Staples Street that will house its new market headquarters. The bank will retain approximately 30,000 sf for its operation.

PFLUGERVILLE, TX MULTI-FAMILY SALE

Suffern, NY-based Castle Lanterra Properties purchased the 455unit, 1825 Apts. from The Royal Trust. This is the buyer’s third investment in the Austin area.

ROUND ROCK, TX MEDICAL CENTER SALE

St. David’s Health Care purchased Forest Park Medical Center located at 1201 Louis Henna Blvd. The sale included the 146,997 sf hospital, a 79,708 sf medical office building & a 508-space parking garage for approximately $115 million. The sale was announced by CBRE;s U.S. Health Care Capital Markets Group.

MULTI-FAMILY SALE

California-based Bascom Group purchased the 300-unit Melograno at Teravista project located at 401 Teravista Parkway.

HFF represented the seller & also arranged debt financing on behalf of the borrower.

WATER PARK DEVELOPMENT

Wisconsin-based Kalahari Resorts & Conventions is planning to build a $250 million. 200,000 sf water park & hotel complex located on a 355-acre site across from the Dell Diamond minorleague baseball stadium. The projected development date was not announced.

SAN ANTONIO, TX DISTRIBUTION CENTER DEVELOPMENT

Dollar General Corporation is close to celebrating the completion of its $100 million distribution center at 6601 Cal Turner Drive in South Foster Industrial Park. The 1,000,000 sf facility will employ more than 530 workers.

OFFICE DEVELOPMENT San Antonio-based HOLT CAT is building a three-story, 85,000 sf headquarters building at Loop 410 & East Southcross Blvd.

The building is expected to be completed October 2017.

OFFICE LEASE W.W. Grainger Inc has leased 40,330 sf & Sorenson Communications has leased 25,000 sf at Fountainhead II in northwest San Antonio on Horizon Hill Blvd. Both leases were signed 4Q2015 & bring the building from zero-percent occupancy to 90%.

ALLEN, TX RETAIL EXPANSION

Simon Property Group is expanding the Allen Premium Outlets, located at 820 Stacy Road, by 122,000 SF with 30 new retailer.

CARROLLTON, TX INDUSTRIAL LEASE

Goodman Networks Inc. & 1-800-PACK-RAT, LLC, have leased 152,389 sf in Crosby Trade Center located at W. Crosby Road & Hutton Drive near Highway 190. ML Realty Partners handled the transaction.

CLEBURNE, TX INDUSTRIAL SALE

Eli Sassoon, a Houston investor, purchased the 144,698 sf Grandview Industrial Complex located at 8800 FM 916 in southeastern Johnson County from Hangover Opportunity Fund who had purchased the property out of foreclosure three years ago. This was an all cash transaction.

COPPELL, TX INDUSTRIAL LEASE

Label Source, Ltd., Intercom, Inc., Central Sprinkler LLC & Peiker Acustic, Inc. has leased 77,064 sf in Park West Commerce Center & Southwest Sales, Inc. leased 15,894 sf at Park West Crossing.

Both developments are located near I635 & Beltline Road. ML Realty Partners handled the transaction.

OFFICE LEASE

Signet Jewelers Ltd, the world’s largest diamond jewelry retailer, has relocated their headquarters to Cypress Waters with a 250,000 sf corporate office and a 31,000 sf facility. Neal Golden, Richard Golden & Derek Myers with Newmark Grubb Knight Frank represented the tenant.

DALLAS, TX INDUSTRIAL DEVELOPMENT

Courtland Development is buying 161 acres on the north end of Mountain Creek Business Park for the expansion of their 700 acre industrial park located off I20 west of Spur 408. The property is zoned for upward of 1.6 million sf of industrial space in addition to the 3.2 million sf completed or underway.

OFFICE SALE

DRA Advisors LLC, a New York City-based investment advisor, purchased the seven story, 122,799 sf office building located at 5050 Quorum Drive. They also purchased 5000 Quorum in 2014 and plan to renovate and combine the two buildings.

Stream Realty will be handling the construction, leasing and management of the project.

Developer Craig Hall sold KPMG Plaza, an 18-story, 450,000 sf office tower to an undisclosed investor. The deal was reportedly an off-market transaction that was funded by two South Korean banks. Hall Group will continue to manage and lease the building.

RESIDENTIAL HIGH-RISE DEVELOPMENT

North Carolina-based Greystar Real Estate Partners is building a 10-story high-rise development at Live Oak & Texas streets. A fullservice Tom Thumb supermarket will be located on the ground floor.

the Trinity River. The tract is occupied by Hawthorn Suites hotel which will be redeveloped into ground-floor retail, a signature hotel & apartments.

FRISCO, TX RETAIL LEASE

The $1.6 billion, 175-acre Wade Park mixed-use development has signed two large leases to national retailers, Anthropologies & Free People to occupy prominent corners within the project. Atlanta-based Thomas Land & Development is developing the project.

Richard-Marcus, Inc. leased 64,753 sf at 13821 Diplomat Drive from ML Realty Partners.

FLOWER MOUND, TX RESIDENTIAL HIGH-RISE DEVELOPMENT

Dallas-based Realty Capital Management is breaking ground on a 15-story CONDO TOWER ON Lake Grapevine within the $1 billion Lakeside DFW mixeduse development at Lakeside Parkway & Edgemere Road. The project will have 48 units and is scheduled for completion fall 2017.

FORT WORTH, TX INDUSTRIAL LEASE

Fort Worth-based Quorum International, a light fixture & accessories manufacturer, is expanding its operations by 10l,000 sf at 400 Railhead Road which brings its total space to 305,000 sf. Nick Talley with Bradford Commercial Real Estate worked on the direct deal with the landlord, Sun Life Assurance.

VACANT LAND SALE

Fort Worth-based developer Trademark Property Company purchased a 3.5 tract contiguous to its 278,000 sf WestBend mixed-use development along

NORTH TEXAS

Dallas/Fort Worth Areas

Photo Courtesy: Dallas Business Journal

GRAND PRAIRIE, TX MULTI-FAMILY DEVELOPMENT

Ventures Development Group, a Baton Rouge-based housing development, is building a 247unit apartment complex near I20 & Hwy 360 intersection. The project is slated for completion by fall 2017.

MCKINNEY/ FARMERS BRANCH, TX SOUTHLAKE,TX INDUSTRIAL LEASE

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RETAIL SALE

An Ohio-based company that buys & operates shopping centers with large grocery stores has purchased Suntree Square in Southlake and McKinney Market Street. Suntree Square has 99,000 SF with Tom Thumb as its supermarket and McKinney Market has 88,000 SF with Market Street as the grocer.

DALLAS, TX INDUSTRIAL DEVELOPMENT

Dermody Properties, Inc, a Reno, Nevada development firm, is developing a two-phase, 1.1 million sf industrial hub at Bonnie View Road & Telephone Road in southern Dallas.

The development is called LogistiCenter SM and the first phase will include a 622,440 sf distribution center that can be expanded to 1.1 million sf. Dave Anderson with CBRE will be handling leasing.

Brian Scruggs has joined Westmount Realty Capital as Managing Director-Acquisitions.

RICHARDSON, TX OFFICE DEVELOPMENT

Transwestern Development is building a five-story, 310,000 sf speculative office building within Richardson’s CityLine Campus at 3400 N. Central Expressway.

This is a joint venture between Transwestern & Dallas-based Malouf Interests.

Mike Lafitte has been promoted as one of CBRE’s global group presidents.

SOUTLAKE, TX INDUSTRIAL SALE

Southlake Flex Properties, a Texas LLC, purchased an 18 building flex portfolio in Southlake from Lago Del Sur LLC, a Utah LLC. D. Michael McGee & John McGee with McGee & Associated & Kevin Archer & Max Schwartzstein with United Providential Realty Partners, LLC represented the seller and Stephen Swann with Belfort Assets represented the buyer.

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SOUTHEAST TEXAS Houston Area

Photo Courtesy: Houston Business Journal

BAYTOWN, TX DISTRIBUTION CENTER LEASE

Netherlands-based Ikea has leased 1,000,000 sf in Clay Development Company’s , Cedar Port Industrial Park near the Port of Houston. Ikea will occupy two of the three 500,000 sf rail served distribution buildings.

They plan to move into one building in 3Q 2016 and into the other building in 4Q 2016. The first building is located at 4820 Borusan Road.

HOUSTON, TX HIGH-DENSITY DEVELOPMENT

HOUSTON, TX FULFILLMENT CENTER DEVELOPMENT

Seattle-based Amazon.com Inc is reportedly interested in building a 855,000 sf fulfillment center in Pinto Business Park which is located at the SWC of I45N & Beltway 8. Amazon’s proposed $136 million facility would be separate from the company’s Prime Now facility in Humble.

Arizona-based Mertiage Homes purchased 3.2 acres near Gessner & Clay roads from MetroNational Corp for the development of a high-density residential project. Darin Gosda, Jazz Hamilton & Alex Makris of CBRE represented the seller.

HOTEL DEVELOPMENT

The Houston Bar Center building located at 723 Main street will be converted into a multimilliondollar hotel with the $44 million construction expected to commence after the Super Bowl next year.

INDUSTRIAL DEVELOPMENT Hande “Heidi” Castiglione has joined Marcus & Millichap’s Multi Housing Group.

Edge Development Partners is developing International Tech Park Houston on 72 acres just south of Humble. Upon completion, the Class A park will have 750,000 sf of industrial space with a 33,000 sf spec building breaking ground soon.

INDUSTRIAL LEASE Ian Douglas has been named COO of Allied Orion Group’s property management division.

A1 Warehousing leased a 154,114 sf industrial facility at 1060 Lockwood Drive from Stonelake Capital Partner. The landlord was represented by Cushman & Wakefield.

INDUSTRIAL LEASE Lee Jeane has joined Lee & Associates as a director in their office division.

Akurate Dynamics, LLC leased 30,721 sf at 7618 Bluff Point .

Travis Land & Nick Peterson of NAI Partners represented the landlord, Carson Companies, and David Carter of Collier International represented the tenant.

INDUSTRIAL LEASE

Dupuy Storage of Houston leased 7500 sf at 9024 Scranton from Scranton Property, Ltd. David Boyd of Boyd Commercial/ CORFAC International represented the tenant & Andy Trinh represented the landlord.

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July 2016

MIXED-USE DEVELOPMENT

Houston-based real estate investment firm, Moody National Companies, bought the 164-unit Le Renaissance apartment project from Texas Pinnacle Apartments for the eventual redevelopment into a retail/ office project. The property is located at 970 Bunker Hill Road, just south of I10. Ed Cummins & Ryan Mendez of Transwestern represented the seller.

MULTI-FAMILY SALE

Elandis purchased four multifamily communities in Houston totaling approximately 1,000 units. The project includes Kirkwood Land on S. Kirkwood Road, The Forese on Imperial Valley Drive, Valencia at Spring Branch on Long Point & Pine Crek on Maxey Road. The projects will be ugraded and managed by Elandis Property Management Company.

OFFICE BUILDING AUCTION

The six building, 36-acre office complex located in Greenspoint which was occupied by Exxon Mobil Corp and is owned by Hines in partnership with the General Motors Pension fund will reportedly be auctioned in a foreclosure sale on July 5th.

OFFICE LEASE

D&M Auto Leasing, the largest car leasing company in the country is relocating its office to Executive Plaza at 4635 Southwest Freeway and will have signage on the building. Kevin Saxe with CBRE represented the tenant and John Hornbuckle with Cypressbrook Company represented the landlord.

RETAIL SALE

Hartman Retail II, DST, a Delaware Statutory Trust, purchaed the 140.576 sf, Mission Bend Shopping Center for $15,070,000. The center is located at the SWC of Belliare Blvd & Hwy 6. George Cushing & Wendy Vandeventer with JLL represented the seller and Dave Wheeler, Julian Kwok and Russell Turman represented the buyer.

VACANT LAND SALE

Nest USA, Inc. sold 1.19 acres at the NWC of Huffmeister Road & Birdcall Land to Jai Jawan Jai Kissan, Inc for the development of a convenience store. Nabil Murad of NM Management LLC represented the seller and Don Stringham of Carroll& Carroll represented the buyer.

HUMBLE, TX RESIDENTIAL DEVELOPMENT Land Tejas Companies has broken ground on Balmoral, a new residential community north of Beltway 8 & Generation Park close to West Lake Houston Parkway and located within the Humble ISD. The project will encompass 580-acres. A grand opening is expected summer 2017.

KATY, TX CONVENIENCE STORE/ TRAVEL CENTER DEVELOPOMENT

Buc-ee’s has purchased 15 acres at the NEC of I10 & Cane Island Parkway for the development of a convenience store/travel center. The property is located within Parkside Capital’s 470acre West Texas Business Park.

The store is projected to open spring 2017.

PASADENA, TX INDUSTRIAL DEVELOPMENT

Avera Companies purchased 41.5 acres for the development of a three-building industrial project within Bayport North Industrial Park on the east side of Underwood Road, just south of Fairmont Parkway . The total project is projected to be 738,610 sf and construction should commence 3Q2016.

RICHMOND, TX SELF-STORAGE DEVELOPMENT

Wheless-DeSpain Interests is building an 818-unit self-storage facility at the intersection of Westpark Tollway/FM1093 & Mason Road. In addition to the 818 units, the facility will offer 10 parking spaces and 11 boat/RV spaces.

TEXAS CITY, TX MASTER-PLANNED COMMUNITY DEVELOPMENT

LAND Tejas Company has finished developing about half of the 520 homes planned for the first phase of their 4,000-home community Lago Mar which is located on 2033 acres at I45 & Holland Road. They recently sold land for a Class A apartment complex and anticipate an additional 1 million sf of mixeduse development within the project.

ADVERTISER INDEX A. A. Realty Company 8 BOMA Dallas 34 CBRE 1-3, 13, 35 CCIM North Texas 34 City of La Porte 18-19 CREW San Antonio 34 David L. Smith Realty 15 Greenberg & Co. 9 Hankamer Commercial Brokers, LLC 17, 21 Homeland Properties, Inc. 9 Levcor, Inc. 13 Longevity Realty Partners 14 Phase Engineering 22 PlusCorp Photography 21 REC Austin 34 REC Ft. Worth 34 Robert Ryan Realtors, Inc. 15

classifieds & index Showalter Law 33 Tarantino Properties Inc 7 Waller County EDC 17 Windrose Land Services 36 Wolff Company 5 Wolverine Management 14

In Next Month's Issue...

Civil Fair Play will bring you an update on Texas Water Rights

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CREWTINI IS BACK!

SAVE THE DATE!

SEPTEMBER 15TH

| 6-9 PM

The premier advocacy and networking organization for the Central Texas commercial real estate industry

Why Should You Join RECA?

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• Networking opportunities with other industry professionals • Access to development discussions with local government

A fundraiser for the benefit of CREW member and real estate student scholarships!

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Do you prefer shaken or stirred? Want to sign up to compete?

Contact Yesenia Dominguez, Director of Charity & Community Outreach: yesenia.dominguez@transwestern.com or call 210.563.7070

BRING YOUR TEAM & JOIN US AT THE JULY LUNCHEON Sponsored by LOGIX Communications Join us at the July 2016 “Bring your Team” luncheon!

Chad Hennings, Former Air Force Pilot & Dallas Cowboys defensive tackle, will discuss “Living Excellence—It Takes Teamwork”.

Register TODAY on the BOMA Dallas website or contact Alyssa Trongaard (atrongaard@bomadallas.org) Luncheon Details: When: July 19, 2016 Where: Eddie Deen’s Ranch 944 S. Lamar Street Dallas, TX 75207

• Discounts on events and educational programming

Chad Hennings

Schedule of Events: ♦ 11:00 am to 11:30 am Networking/Badge Pick Up ♦ 11:30 am to 12:00 pm BOMA Announcements ♦ 12:00 pm to 1:00 pm Luncheon Program

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500 Baybrook Mall Dr, Friendswood, TX 77546 • Located at I-45 & Baybrook Mall Drive • The Baybrook Mall is currently undergoing a 555,000 sf expansion • Average sales psf at Baybrook Mall is #3 compared to The Galleria and Memorial City Mall • Excellent visibility from IH-45 with 150,000 vpd • ±75,870 sf (combined 1st and 2nd floor) with 13,860 sf auto center • Surrounded by a dense population of almost 82,000 in a 3-mile radius with an AHHI of $82K+ • Demisable at 25,000 sf

9570 Southwest Fwy, Houston, TX 77074 • Located at the corner of Bissonnet Street & SW Fwy with over 300,000 vpd • Great visibility and access to SW Freeway • ±91,810 sf (combined 1st and 2nd floor) with detached 27,710 sf auto center • Surrounded by a dense population of over 220,000 in a 3-mile radius with a daytime population of over 94,000 • Demisable at 25,000 sf

Golden Triangle Mall

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