REDNews December 2015 by RE Journals

DECEMBER 2015

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE HWY 90

Don't Cry for TIRZ...Yet Insights You Need to Know

TEXAS MEDICAL CENTER

The

Westchase Story

FM521

Interview with

Ray Hankamer the tell-all

LVD. B D RAN

ST.

ST .

GA CAYU

ER . ST

MEDICAL CENTER PROPERTY

ES R O M

ARD

23 acres Call for Pricing

Ned Torian

Garrett Gilleland

Ed Cummins

713.577.1643

713.577.1848

713.577.1879

ned.torian@cbre.com

garrett.gilleland@cbre.com

ed.cummins@cbre.com

8 H2

LOCATION: ±4.59 acres on the east side of Cutten Rd., just south of FM 1960 West with immediate access to SH 249 (less than 1 mile) and Beltway 8 (approx. 2 miles), in Houston, Texas Additional adjacent land potentially available. FRONTAGE ±318’ along Cutten Rd. & ACCESS: Cutten Rd. is a four-lane road Property has a curb cute at Cockrum Rd. and left turn lane for southbound traffic on Cutten Rd. UTILITIES: 4,100 gpd/waste water capacity from HCMUD #191. Additional capacity available from Cy Champ PUD & HCMUD #191 CALL BROKER FOR PRICING

William A. McDade

713.577.1876 bill.mcdade@cbre.com

Kristen McDade

713.577.1808 kristen.mcdade@cbre.com

±4.59 AC.

CUTTEN RD. South of FM 1960 Houston, Texas

signage

CONTENTS

Market

Sales & Leases 1–3, 5, 7–9, 11, 13, 15, 17, 21–23, 25, 27 –29, 41, 44

Services

Environmental Services 30 Legal Services 41

Scoop

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

Features

RAY'S BUZZ 2015 Houston Land & Housing Forecast 10, 12, The Westchase Story 14, 16 Bauer College of Business Regional Forecast 26 O’Connor & Associates Apartment Forecast 42 CIVIL FAIR PLAY Don’t Cry For TIRZ…Yet 18–20 This Is Your Life, Ray Hankamer! 24, 25 2016 Editorial Calendar 43

December 2015

clear lake area - land | for sale 21.15Âą acres

Multi-Family / Mixed Use

Development Opportunity Bay Area Blvd. & Middlebrook Drive, Houston, TX 77058 nasa road one

clear lake

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ane

NASA - Lyndon B. Johnson Space Center spa ce c

ent

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spa ce c

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University of Houston - Clear Lake Campus middle b

area bay

bay area blvd

blvd

USRA

SUBJECT PROPERTY

ok d r

bay

area b

lvd

middlebro

lvd

Clear Creek I.S.D.

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This property is located at the corner of Bay Area Boulevard and Middlebrook Drive; just south of the Boeing facility and north of University of Houston - Clear Lake. This property is being offered on a sealed bid basis only. To obtain a bid package and instructions, contact Pat Pollan at 832-487-9814 ext. 104.

Flood Zone: Topography: Utilities: Zoning: Key Map:

Property lies outside of the 100 year flood plain Level, slightly above street grade Available None 618D

FOR FURTHER INFORMATION PLEASE CONTACT:

602 Sawyer St., Suite 100, Houston, TX 77007 www.pollanhausman.com

Pat Pollan, CPMÂŽ (832) 487-9814 x104 ppollan@pollanhausman.com

The information contained herein is based upon data supplied by sources deemed reliable, is subject to errors or omissions, and is not in any way, warranted by Pollan Hausman Real Estate Services or by any agent, independent associate or employee of Pollan Hausman Real Estate Services. The information is subject to change without notice.

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,

I hope you’re coming to the close of 2015 happy about your successes and optimistic about the upcoming New Year. Last month we saw a lot of happy people at the Texas ICSC who were excited about doing deals so we know the retail market is still strong in Texas in spite of the price of oil.

Since inception, our goal at REDNews has been to provide a resource to commercial real estate professionals for information that could ultimately help them save time (consolidated market research information) and make them money (a consolidated source of available CRE properties).

CONTRIBUTING WRITER

Ray Hankamer rhankamer@gmail.com

ART DIRECTOR

Payton Watkins payton@camalla.com

DATABASE MANAGERS

Rahul Samuel emarketing@REDNews.com

DIGITAL/MARKETING DIRECTOR

Laura Salazar digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Due to numerous requests, we are now including a “Civil Fair Play” column in REDNews each month. The purpose of this column is to give insight into potential roadblocks that may arise in getting a project valued, sold, developed, etc., and how one can best navigate regulations in order to maximize his/her time and money. And, in fairness, we will offer an opportunity for both “sides” to participate in the article. Our first “Civil Fair Play” column relates to The Falcon Group’s TIRZ 11 in Galveston County which is in jeopardy of being closed. (See pages 18-20).

Laura Salazar digital@REDNews.com Ginger Wheless ginger@REDNews.com

I hope you all have a wonderful Thanksgiving Holiday which includes counting your many blessings, one of which is how lucky we are to be living in the USA.

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

Next month’s "Civil Fair Play" column will address the valuation of Affordable Housing Projects, specifically, and, generally, property valuations through Texas appraisal districts.

Best Regards,

PRINT & DIGITAL DISTRIBUTION

REDNews is directly mailed each month to commercial real estate brokers, investors & developers.

TOTAL REDNews DISTRIBUTION: 105,148 REDNews has gone green using recycled paper. Thank you Midway Press!

Ginger Wheless

To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription. 5909 West Loop South, Suite 135 Bellaire, TX 77401

December 2015

Major Redevelopment! Come see the AMAZING CHANGES!

MALL OF THE MAINLAND 100000 Emmett F. Lowry Expressway, Texas City, TX 77591

PROPERTY INFORMATION • New Power/Entertainment Redevelopment • Current retailers include Cinemark Movies 12, Sears, Palais Royal, World Gym, Olive Garden, Gringos, Beyond Burger, Tuscany Village Salons and Galaxy Nutrition • 7,000 new homes coming to immediate trade area • 3 miles from College of Mainland with over 5,000 students

RENT NOW CALL TODAY AT YESTERDAY’S PRICES Brokers welcome 6% commission

CONTACT INFORMATION

Deanna Jerome (409) 986-7000 (832) 282-8451 mainlandmalltx@gmail.com

5,500 SF

Press 0 for more information on sales or leasing

PAD SITES FOR SALE surrounding the mall

PAD SITES

Parcel #

Size (acres)

Size (SF)

4.0260

175,373

1.1040

48,090

1.0000

43,560

0.6037

26,297

4.4600

194,278

0.7161

31,193

3.9390

171,583

1.1060

48,177

9.3710

408,201

9.6830

421,791

Total

36.0088

1,568,543

• •

• • •

PREVIOUS RESTAURANT, BAR & GRILL

Kitchen appliances & some glass ware included, 2 walk-in coolers Located in retail shopping center & within walking distance from 4 hotels: Hampton Inn, Fair Field Inn, Best Western & Holiday Inn Express Directly across from Cinemark Movies 12, Sears, World Gym & Palais Royal Great location for neighborhood pub/ sports bar, beautiful hardwood floors Beer, wine, & liquor license can be obtained

Personalized Service. Proven Results.

www.tarantino.com ASHFORDPROFESSIONAL PROFESSIONAL ASHFORD

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

909 Dairy Ashford Rd, 909 Rd, Houston, TX 77079 Houston, 77079

NANES NANES PROFESSIONAL PROFESSIONAL

17030 Nanes Dr, Dr, Houston, 77090 Houston, TX 77090

MEDIC AL MEDICAL • Two Story • Medical/ Two Story Medical/ Professional Office Building • 11,929 NRA Contiguous Space Available on Second Floor • Located 2 Miles from the Houston NW Medical Medical Center • Center 15 Minutes • 15 fromMinutes IAH & The from IAH & The Woodlands Woodlands

NORTHGREEN ATRIUM BUILDING 7660 WOODWAY • • • • • •

7660 1300 N. SamWoodway Houston Parkway Houston, 77063 Houston, TX 77032

5507575 GREENS SANPARKWAY FELIPE

7575 San Felipe 550 Greens Parkway Houston, Houston, TX TX 77063 77067

ASHFORD PROFESSIONAL December 2015

• 46,462 SF, SF, Three Three • 46,462 Story Medical Medical Story Office Building Building Office • 80 Free Free Surface Surface • 80 Parking Spaces Spaces Parking • Recently Renovated Lobby • Generous TI Allowance

Up toOwnership 16,014 New NRA Available 1,000-56,000 Five Level, Class B NRA Available Office Building Building Identity Available Renovated in 2014 Beautiful Atrium Property Secured Lobby with Granite by Security Gate & Finishes Card Key Access

• Three Story Office Building • Beautiful Fully Remodeled Lobby & Common Areas • Conveniently Located Across Bayshore Medical Center • Generous • Generous TI IT Packages Allowance

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

OFFIC E OFFICE • 1,510-2,398 SF Available in • Suburbs Full Building, of the 72,000 NRA Galleria Available for Lease • Common Areas, • Lobby New Ownership & Restrooms in • Remodeled Beautiful Atrium 2015 Lobby, High End • Monument Signage Finishes & Lush Available Landscaping • Numerous Secured Covered Shopping Parking Centers & Restaurants Nearby

• Two Story Medical Office Building • Renovated in 2008 • Up to 2,392 SF

908 908E. E. SOUTHMORE SOUTHMORE

908 E 908 E Southmore Southmore Blvd, Blvd, Pasadena, TX TX 77502 77502

PASADENA PROFESSIONAL PROFESSIONAL PASADENA

3315 Burke Burke Rd, Rd, Pasadena, TX TX 77504 77504

NORTHCHASE BUSINESS NORTHCHASE BUSINESSPARK PARK

14505 14505 Torrey Torrey Chase Chase Blvd, Blvd Houston, TX 77014

1505 HIGHWAY HIGHWAY 66 1505

• 1, 1,117-10,551 117- 8,849 SF Available • Lobby & Common Areas Remodeled in 2014 • Covered two Two (2) (2) story Story parking Parking garage Garage • Located • Located near near the the Energy Energy Corridor Corridor

Personalized Service. Proven Results. 1505 Highway Highway 66 www.tarantino.com Houston, TX TX 77077 77077

• 46,462 SF, Three Story Medical Office Building • 80 Free Surface

908 E. SOUTHMORE

WOODFOREST SHOPPING SHOPPING CENTER WOODFOREST CENTER • Up Up to to 11,017 11,017 SF SF • Available Available End Cap Cap Available Available • End NWC I-10 I-10 EE • NWC Frontage @ @ John John Frontage Ralston Ralston

10907-11095 I-10 East 10907-11095 Houston, TX 77029 Houston,

DE DE ZAVALA ZAVALA

12770Cimarron Cimarron Path, Path 12770 SanAntonio, Antonio, TX 78249 San 78249

1005 1005 INDUSTRIAL INDUSTRIAL

• Hard Corner Corner of of • Hard Hwy 90 90 & & Dairy Dairy Hwy Ashford Ashford • Up to 3,901 2,170 SF Available • Great Co-Tenancy • Traffic Count Exceeds 78,000 CPD

• 3,000 3,000 –- 10,000 • 10,000 SF, Flex Flex Office Office & & SF, Biomedical Space Biomedical Space Available Available Climate Controlled Controlled • Climate Warehouse Warehouse • Generous Generous Tenant Tenet Finish-Out Finish-Out Allowance Allowance • Northwest Northwest Location Location with with Easy Easy Access Access to to I-10 I-10 & & 1604 1604

• Suite 250: 4,225 SF Warehouse & • 3,336 Suite 116: 12,421 SF Office NRA Available Space Available • Easy Access to Beltway 8, I-45 & IAH and IAH Semi-Dock High •2 Fully Sprinkled Bays • Loading Three Loading •1 Up- Ramp Docks to Allowing Drive Dock in Accommodate Access High Loading • Air Conditioned Warehouse

INDUSTRIAL INDUSTRIAL

1005 Industrial Industrial 1005 Sugar SugarLand, Land, TX TX 77478 77478

Houston, TX 77063 (713) 974-4292

SUGAR SUGARPOINT POINTSHOPPING SHOPPING CENTER CENTER

• 3,965 3,965 SF SF End End Cap Cap • Available Available Freeway Visibility Visibility • Freeway from I-45 I-45 North North from • Ample Ample Parking Parking • Anchored Anchored by by Walgreens, Walgreens, Party Party City, Subway City, Subway

• Stand-alone 15,000 • Stand-alone SF Building 15,000 SF Building • (3) 10ft. 10ft.Roll Roll Up Up doors-Grade doorsGrade Level Level Loading • Warehouse Ceiling Height 20ft. • New Roof

CORPORATE OFFICE: WOODFOREST CENTER 7887 SanSHOPPING Felipe, #237

3340 FM 3340 FM 1092 1092 Missouri City, Missouri City, TX TX 77459 77459

RETAIL RETAIL

RESEARCH PLAZA RESEARCH PLAZA

19189 I-45 North 19189 Shenandoah, TX 77385 Shenandoah,

TOWNSHIP TOWNSHIP SQUARE SQUARE

• Up to 6,882 SF • Up to 6,845 Retail Space Retail Space Available Available • Easy • Easy Access Access to to Highway Highway 6 6& & U.S. U.S. Hwy Hwy 59 59 • Traffic • Traffic Count Count Exceeds Exceeds 30,653 30,653 CPD CPD

• 3500 SF, Air- Conditioned Space Available • 10,663 SF • Deed Restricted Available Business Park •3 Phase at Power Located the • 18ft Ceiling Height Corner of Fallbrook & Beltway 8 to • Easy Access • Beltway Tilt Wall 8 Construction with Decorative Interior Walls

SAN ANTONIO OFFICE:

9920 Hwy Hwy 90 90 Sugar Land, TX TX 77478 77478

15421 VANTAGE 15340 VANTAGE

15421Vantage VantageParkway Parkway,E, 15340 Houston, TX 77032 77032 INTERCONTINENTAL BUSINESS PARK LEGACY PARK BUSINESS CENTER

15344 Vantage Parkway E 10930 W. Sam Houston Parkway N. Houston, TX TX 77064 77032 Houston,

AUSTIN OFFICE:

TOWNSHIP 12770 Cimarron Path St. 122 502 East 11th Street, #400SQUARE December 2015 San Antonio, TX 78249 • Up to 6,845 Retail Austin, TX 78701 Space Available (512) 302-4500 • Up to 11,017 SF 212-6222 (210) Available

• Easy Access to

ray’s buzz

2015 Houston Land & Housing Forecast On October 14, 2015, Duane Heckmann and Kirk Laguarta of Land Advisors Organization gave a 2015 Houston Land & Housing Forecast presentation to a full house. The presentation also included a panel discussion from various experts in the commercial real estate lending, residential construction and energy fields. BY RAY HANKAMER

• According to REOC San

Antonio, since mid-2012 there have been 52 land-for-lots transactions totaling 41,285 acres • 26,000 homes per year are

currently being delivered in the Houston market • Lot delivery is lagging but supply/demand is generally in balance, so there are no cheap ‘investor lots’ due to over-

production available

• In this cycle, the vast

lion’s share of land-for-lots transactions has been for all cash from funds and private investors, since so much money is available and desperate for yield • There is a reasonable and healthy supply of lots coming on-stream for future homes • Houston has about 60,000 population ”organic” growth per annum, not counting anyone moving here from elsewhere • It is wrong for us and for outsiders to judge our Houston economy solely on the price

of a barrel of oil-our port and our medical center are just two of our ‘treasures’ which continue to grow more or less irrespective of the price of oil

We are optimistic that a barrel of oil will be selling for $80 by the end of 2016

Large Acreage Sales 2012 -• 2015

The Medical Center and its jobs are expected to double by

Large Acreage Sales 2012-2015 10

December 2015

SEC 288 & FM 1462 ROSHARON, TEXAS

2,962 acres PROPERTY DETAILS •

2.5 miles of frontage on Hwy 288 (South Fwy)

•

Within the Alvin City limits Property lies within a Tax Increment Reinvestment Zone, supervised by the City of Alvin - offers a tremendous financial reimbursement opportunity to the ultimate developer

•

Under a normal development scenario, this property will support some 7,000 single family homes plus some 350 acres of commercial development

SITE

Ed Cummins 713.577.1879 ed.cummins@cbre.com

HWY 290 & PINEMONT DRIVE

TRACT SIZES

7-A 1 2

10 8

9 5

18.05 acres

Ned Torian

Garrett Gilleland

713.577.1643

713.577.1848

ned.torian@cbre.com

garrett.gilleland@cbre.com

PROPERTY DETAILS •

Approximately 18.07 Acres of Land Available for Purchase

•

Perfect Retail or Hospitality Opportunities

•

High Visibility and Easy Access from Two Roads Off the Feeder

•

Excellent Internal Circulation

Tract 1

1.5397 Acres $19.50 PSF

Tract 2

1.5718 Acres $19.50 PSF

Tract 3

1.6250 Acres $19.50 PSF

Tract 5

1.5815 Acres $19.50 PSF

Tract 6

1.5772 Acres $25.00 PSF

Tract 7-A

1.5772 Acres $12.50 PSF

Tract 8

1.5019 Acres $12.50 PSF

Tract 9

2.10 Acres $15.00 PSF

Tract 10

4.9925 Acres $10.50 PSF

Interest rates for homes should stay relatively low compared with the past, although Millenials, who are just starting to buy homes are used to rates in the 3% range, and a Federal boost up to 4% will be hard for them to digest

2025, for example

• The port is experiencing plant

expansions like never before and this is because of low prices of natural gas • Construction costs are high and will stay high due to ongoing private and public sector projects • Land prices may ‘pause’ in their growth but will not come down • There are no ‘nervous banks’ this time around due to prudence in lending and due to so much of expansion being financed by non-traditional sources • By late 2016/early 2017 growth should pick up again • It takes up to 3 years from the time acreage is put under contract until the finished lot can be delivered • Now is the time for acreage buyers to make their buys • We are seeing private money buying large tracts-they are ‘placing a bet on Houston’s future’ • We are optimistic that a barrel

From Left: John Bonner, First Continental Investment Co., Ltd; Karl Mistry, Toll Brothers, Inc.; Ted Nelson, Newland Communities; Maynard Holt, Tudor, Pickering, Holt & Co.

of oil will be selling for $80 by the end of 2016

• Global demand for oil historically grows at 1.5% per year • Global supply is harder and more expensive to find and produce

with every passing year—the cheap, easy to reach oil has mostly all been found • Interest rates for homes should stay relatively low compared with the past, although Millenials, who are just starting to buy homes are used to rates in the 3% range, and a Federal boost up to 4% will be hard for them to digest • 30 year fixed rate is the going deal, with few adjustable rate mortgages being made • We are in a mild slowdown or correction in the homebuying market, but this is balanced by the fact that there are for the first time in history three active generations out there buying houses... ●

Plant Expansion - Location Map 12

December 2015

Greenberg & Company

Retail-Office-Industrial-Property Management-Development-Aquisitions Tenant Representation Landlord Representation

Commercial Real Estate Brokerage Firm

Great locations - Vacant land for sale or lease

6111 Richmond Houston, TX 77057

Excellent Site For Retail/Office Hotel Development/Mixed Use Land Size: 100,000 SF • Major Thoroughfare • Richmond Near Fountain View

Sale Price: Call For Details

4510 Main Houston, TX 77002

1700 Dowling Houston, TX 77003

Prime Midtown Site Sale/Lease/Build To Suite Land Size: 50,000 SF

Great Site Available Sale or Lease Land Size: 34,407 SF

• Easy access to I-69, Highway 288 & I-45 • Directly Between Downtown and the Texas Medical Center

Sale/Lease Price: Call For Details

• Great Visibility • High Traffic Area

Sale/Lease Price: Call For Details

5959 Richmond Avenue, Suite 440 Houston, TX 77057 - Phone: 713-778-0900 - WWW.GREENBERGCOMPANY.COM

Wolverine Property Management LLC

Cinco Ranch Office

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 December 2015 281.391.9252 Roxanne@wolverinepm.net

The Westchase Story What we know today as The Westchase District includes land which has been owned by many visionary men. Although some of these preceded Andy Andrau, a geologist for Shell Oil, we are going to start with him, in the late 1940s, when he bought a large tract of land where the core of the present day district now stands. BY RAY HANKAMER

In 1955 after Andrau met his death in a Louisiana plane crash, the farmland was sold to oilman R.E. “Bob” Smith who preached to anyone who would listen: “Buy land west, along Westheimer Road” (then a two lane farm-to-market road). Urban geography classes teach that cities-in the absence of topographical barriersgenerally grow to the west. But Smith was probably going on instinct. By 1964, Smith owned 11,000 acres of land, more than any other landowner in Harris County, including the land under the Astrodome and Astrodomain. Smith was an original partner in Houston Sports Association, which 14

December 2015

brought major league baseball to Houston. Smith’s widow sold 760 acres to Jack Rogers of Dallas, who formed The Westchase Corporation. Rogers hired an extremely bright Hotchkiss/ Yale/Harvard graduate named Andy Lear, and sent him to Houston to start putting in

Lear and Rogers wanted to create lasting value for the buyers of their tracts. They created restrictions and building standards in coordination with SWA Architects, which included high quality setback and landscaping requirements, which they reasoned would set Westchase apart from other office parks. Nearby, CityWest (Prudential) and Woodlake (Friendswood Development) were being developed by owners who were also farsighted in their insistence on aesthetics and quality of life. Along the way, developers, landlords, and tenants bought

in to the idea that by doing a little extra they would create a lot of extra value.

“Granite loves Westchase-[we] developed and sold 6 Class A projects totaling 1.8 million SF… Westchase District has done a great job of controlling and enhancing the environment… you definitely know when you are in Westchase”, said Steve West, Director of Leasing for Granite Properties, a highly respected developer. In the late ‘80s the Sam Houston Tollway / Beltway 8… also billboard free and with landscape requirements…went through the heart of what was to become The Westchase District, which was itself formed in 1995 by petitioning the Texas Legislature.

Credit: houstonlifestyles.com

Part of his land remained in farming, and part went to construct Andrau Airpark, for general aviation. Much later this single runway airpark was sold and became Royal Oaks subdivision.

infrastructure and to sell tracts for development.

R.E. "Bob" Smith

Credit: Westchase District

Andy Lear

SAFETY | AMENITIES | VALUE | VISION | BEAUTIFICATION

Big-business amenities for small-business budgets

There are many big new office buildings in Westchase District perfect for large, international companies. But what if you’re not a giant company? Don’t worry; you can still enjoy all the benefits of the District in a smaller, more affordable multi-tenant building. Many are newly updated. Some offer whole-floor opportunities. And they all offer access to everything you’d expect from the District: great mobility, beautiful surroundings, desirable amenities, close proximity to many of the city’s leading companies, and easy access to our new trail system. So learn more today. Learn more: WestchaseDistrict.com or 713-780-9434

WESTCHASE. WHERE BUSINESS IS MOVING. December 2015

Homes and Offices in Westchase District

‘spare time’ serves in the Texas Legislature.

Jim Murphy

The District, among other things, provides distinctive signage (similar to Upper Kirby and The Uptown District), a police force, litter control (one worker patrols 65 miles of streets in the District picking up illegal ‘bandit signs’), comprehensive street lighting, and other amenities.

The activities of The Westchase District mirror the precepts developed by Scenic Houston, a Houston non-profit civic organization, for livable neighborhoods and welcoming streetscapes. Andy Lear has long been associated with Scenic Houston, whose antecedent organization formed in the early ‘80s to launch a (successful) campaign to sharply reduce the visual pollution in our city caused by an overabundance of billboards. Westchase is now home to dozens of large well-known corporations doing business in oil and gas, engineering, software, multi-family, hardware, education, clothing, banking, medical, grocery, and other industries.

Today, after celebrating its 20th birthday, the District encompasses more than 2,700 acres, and a professional staff has big plans –and funding -for bringing the area to the next level, and it will be a very high level indeed. Heading up the District and overseeing the grand plans for the future – and their funding – is Jim Murphy, a high-energy and personable executive who came from the West Houston Association and who in his 16

December 2015

Linear parks, canals, hike and bike trails connecting Braes Bayou with Buffalo Bayou and the Terry Hershey Trail (yes, Westchase is THAT large), and increased landscaping are in the works. Additional upgraded infrastructure will include improved streetscapes and even more pedestrian friendly hike and bike paths, as well as inclusion of projected commuter rail, transit centers, and centrally located parking to enable Westchase office and residential users to get out of their cars, whether for commuting to work or for interconnectivity within the district’s retail, hotels, multiand single-family residents, and offices. The 380 Area Agreement with the City of Houston is poised to take the District to an even higher level in the next ten years, starting this year, and moving forward immediately in noticeable steps. The goals are to:

• Become a ‘brand name’ urban center, i.e. west Houston’s ‘downtown’

• Offer a vibrant urban lifestyle

• Become more mobile

and connected to public transportation and the citywide bicycle path network

The 380 Agreement functions somewhat like a Tax Increment Reinvestment Zone (TIRZ) and is expected to contribute $63 million in funds over and above existing sources of capital.

Westchase and the visionaries who conceived and implemented it have created a quality urban template, and a challenging model for other neighborhoods in urban Greater Houston and other cities nationwide to copy. ●

WESTCHASE STATISTICS • 16 million SF office space in 118 buildings (88,000 work here)

• 1.2 million SF in office warehouse (18 service centers)

• 70 residential communities (almost 19,000 units and 30,000 residents)

• 100 restaurants, 15 banks, 5 day care centers, 13 churches, and 4 assisted living communities

• Sampling of corporate owners

and corporate tenants: Cameron International, Chevron, DataVox, Emerson Process Management, Halliburton, Jacobs Engineering, Schlumberger, AFF, Aker Solutions, BMC Software, Cardtronics, Honeywell, National Oilwell Varco, Phillips 66, Samsung Engineering, and StatOil

UNIVERSITY BLVD. OPPORTUNITY

TWO TRACTS TOTALLING

TYLER, TEXAS

±44 acres

PROPERTY DETAILS •

Two tract of land, totalling 44 acres TRACT 1: 35 acres TRACT 2: 9 acres

•

Less than 1/2 mile from University of Texas at Tyler campus

•

University Blvd. is currently being widened

•

Easy access to Loop 323 and future Loop 49 (under construction)

•

Property lies outside of City of Tyler - no zoning

•

Asking Price: $20,000/acre

UNIVERSITY OF TEXAS AT TYLER

Kristen McDade 713.577.1808 kristen.mcdade@cbre.com

WASHINGTON CORRIDOR | 901 Parker Street, Houston, TX 77007

Great Investor/User Office Building

• Contemporary 2-Story High-End Office Space (2682 sqft) • Perfect Fit for most small to medium businesses (Attorney - Architect - Accounting - Real Estate - Oil & Gas Office) • Former Home Converted to Office Space in 2011

Blake Hillegeist Real Estate blake@blakesellshouston.com

• All Construction Work Permitted through the City of Houston. • Commercial Occupancy Permit in place • 8 dedicated parking spaces • Close-in desirable Location near Shepherd Drive @ Washington Ave • List Price: $999,900

Contact: Blake Hillegeist 832-860-6066

•

259- acre campus

•

Enrollment: 8,036 (6,062 Undergraduate, 1,974 Post Graduate)

•

NCAA Division 3, American Southwest

Credit: Kirksey Architects

civil fair play

Don't Cry for TIRZ...Yet BY BRANDI SMITH

Miles away from the downtown Houston skyline is another set of high rises that are just as exquisite: The combination of the cobalt blue lighting and Memorial Hermann’s space age design help set Memorial City apart from any other area in Houston. However, aesthetics aside, it shares a core commonality with many other neighborhoods and districts within America’s fourthlargest city: it was built, in part, using a Tax Increment Reinvestment Zone - or TIRZ. “The motivation for creation of this Tax Increment Reinvestment Zone was to incentivize development in areas that are blighted or historically underdeveloped,” says Richard Anderson, vice president of development for Falcon Group.

TIRZs and TIFs (Tax Increment Financing districts) were first created in California in 1952, but after significant federal spending cuts in the 1970s, their use expanded. By the late 1980s, Arizona was the only state without TIF legislation. Though the state of Texas can boast hundreds of TIRZs and TIFs, 18

December 2015

California and Illinois use them more than any other states.

“If you want development done sooner, then you approve the TIRZ and allow the developer to front the cost,” said Chuck Turet, attorney and former chairman of TIRZ 17 (Memorial City). “If you don’t, then you can wait 10 or 15 years until land values go up enough so that it’s affordable for somebody to add the additional cost to their development.”

The formation of a TIRZ can be initiated by the city, the county or property owners. When a TIRZ is approved, it receives a finite timeframe (generally 30 to 40 years) and assessed property values are frozen.

assessed due to increased property value (the “increment”) are funneled back into the TIRZ for infrastructure improvements, such as streets, landscaping and sewers. When the zone’s term is complete, all real property tax revenue returns to local government.

“These tools, I think, were implemented as a way to bridge the gap between what maybe the city wanted to do and couldn’t do in some cases, as well as what the property owners wanted to do to improve their areas,” said Barron Wallace, attorney with Bracewell & Guiliana and panelist for ULI Houston’s “Houston’s Toolbelt for Development” forum in October. “The TIRZs provide needed infrastructure in the hope that we would induce more development, bring in more residents.” TIRZs and TIFs have had incredible success throughout the state of Texas. Houston has used TIRZs to develop the Midtown area and Memorial City, as well as 23 other areas. “TIRZs, when paired with management districts, end up being a really remarkable companion,” said Bob Eury, another panelist at the ULI Houston forum and executive director of the Houston Downtown Management District. “[They] basically provide real horsepower in terms of financing public infrastructure, capital improvements.”

With nearly 20 active TIFs, Dallas has clearly adopted the approach to prompt development, as has San Antonio, which was operating 29 at one point. Some of Texas’ smaller cities have also jumped on the TIRZ train as a way to draw in developers, including the City of Galveston.

To date, Galveston has operated 14 TIRZ, four of which are currently active. Two of those are controlled by developers: TIRZ 11 (Palisade Palms) & TIRZ 13 (Beachtown). The cash-strapped city estimates roughly $1.8 million in taxes is essentially locked inside the TIRZs.

TIRZ 11, set for a 30-year period, was formed in 2002 with developer Falcon Group planning to build what is now Palisade Palms, luxury beachfront condos, on Galveston’s East Beach. Richard Anderson, the company’s vice president of development, says the city requested $5 million dollars be spent on public infrastructure based on the $60 million building plan.

“I didn’t spend any money on my zone until I pre-sold 60 percent of my units. About six months after I broke ground on the towers, I started doing my TIRZ work,” Anderson said. “We were going to do two phases of towers down there. We’ve done one, so we’re halfway through the deal right now.” Thirteen years into the project, Anderson says Palisade Palms has increased the value of the property from $780,000 to $170 million. “TIRZ 11 is a textbook example of a great public/private partnership. The subject property was vacant, unproductive, had title problems and was devoid of

vice president, falcon group "Thirteen years into the project, Palisade Palms has increased the value of the property from $780,000 to $170 million...terminating TIRZ 11 early could paint Galveston in anti-development."

CHUCK TURET

However, the city voted in September to begin the process of closing TIRZ 11.

attorney, frank, elmore, lievens, chesney & turet, L.L.P. “If you want development done sooner, then you approve the TIRZ and allow the developer to front the cost. If you don’t, then you can wait 10 or 15 years until land values go up enough so that it’s affordable for somebody to add the additional cost to their development.”

However, the city voted in September to begin the process of closing TIRZ 11.

“The problem that I understand is happening is that certain people on city council and some other influential people don’t like TIRZs. They think there ought to be a developer’s cost and they think that this development would have happened anyway,” said Turet. “That is not true. Because for 10 or 15 years before [Palisade Palms], without the TIRZ, the east end of Galveston Island did not develop at all.”

BARRON WALLACE

attorney, bracewell & guiliana

"The TIRZs provide needed infrastructure in the hope that we would induce more development, bring in more residents.”

“They’re going to unilaterally terminate a contract in order to be able to grab the money that’s in my TIRZ account and get cash flow to the city,” said Anderson.

REDNews reached out to the City of Galveston multiple times for response, but received none.

BOB EURY

former executive director, houston downtown management district

Anderson says, if TIRZ 11 does end before he finishes his project, the city will reap approximately $5 million in cash, then $1.3 in taxes each year. But he says if the city were to wait until the project were complete, it would be able to collect much

Credit: Galveston County The Daily News

Richard Anderson

RICHARD ANDERSON

municipal utilities. The TIRZ was the most effective way to solve the problems,” said Sue Darcy, president of Marsh Darcy Partners. “With the City of Galveston, Galveston County, the Galveston County Navigation District all participating in the TIRZ, the developer had a performancedriven financing structure that provided sufficient reimbursement capacity to make the deal work. Palisades Palms truly has been a singularly successful project.”

“TIRZs, when paired with management districts, end up being a really remarkable companion [They] basically provide real horsepower in terms of financing public infrastructure, capital improvements.”

SUE DARCY

president, marsh darcy partners “TIRZ 11 is a textbook example of a great public/ private partnership. The subject property was vacant, unproductive, had title problems, and was devoid of municipal utilities. The TIRZ was the most effective way to solve the problems."

December 2015

civil fair play

Anderson says his frugal approach, while best for the project, may have inadvertently led to the termination of TIRZ 11. more because the property value would increase greatly.

“The city would like to shut the TIRZ down because they feel it’s in the last stages of the development and all the development has been done,” said Turet, who also represents Falcon Group. “It actually hasn’t. In addition to the second phase, there’s still stuff in the first phase that hasn’t been done.”

Anderson says he’s tried to work with the city to develop plans that would allow TIRZ 11 to operate until 2032, as the city originally agreed, even offering to split the tax increment with the city.

“Richard Anderson and Falcon Group have been extremely flexible and creative in their proposals with regard to TIRZ 11 to try and balance the needs of the City of Galveston for tax revenue and the use of the tax increment funds to install needed utility infrastructure that would accelerate development on the east end of Galveston island,” Turet said.

Anderson says his frugal approach, while best for the project, may have inadvertently led to the termination of TIRZ 11.

“If I went out to the bond markets, which a lot of zones do, and leveraged it all up, we wouldn’t even be having this conversation,” he said. “[The city] would have to keep it open because they wouldn’t have me to worry about; they’d have some billion-dollar bond fund coming after them with lawsuits. They wouldn’t even exist as a town.” Anderson says he hasn’t given up hope of keeping TIRZ 11 operating, but he has

learned a valuable lesson from the project. “If you make yourself look ugly, no one wants to mess with you,” he said, referring to leveraging bonds to cover initial infrastructure costs.

In addition to the legal woes that potentially lie ahead, Anderson says terminating TIRZ 11 early could paint Galveston as antidevelopment.

“Making a move like that sends a signal to the world that if you come here, [the city] isn’t going to necessarily honor agreements,” Anderson said. “It is imperative that cities understand that if they’re going to create challenges and encumbrances to the development community, that developers will go to some other town. Why shouldn’t they?” Though the future of Galveston’s TIRZ 11 remains unclear, it’s evident that Tax Increment Reinvestment Zones and Tax Increment Financing Districts can be valuable tools to help cities and counties spark development in needed areas - if both sides fully understand and agree to the terms. ●

Credit: Kirksey Architects

December 2015

FOR SALE

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Texas Hill Country Ranch & Log Home Estate

100 Private Acres of Country Ranch Ponds, over half a mile of pristine creek, canyons, forests, hilltops, hunting & wildlife (deer, turkey, hogs, quail, dove), ranch w/ herd of sika deer, fish, & mecca for birds, tax exemption, gun range, 18 acre fenced pasture for livestock, hiking and off-road trails, and treesâ&#x20AC;&#x201C;huge cypress, elm, Texas buckeye and more!

Chase Cribbs P: (713) 744-7426 ccribbs@tnrg.net

Thomas Leger P: (713) 744-7430 tleger@tnrg.net

Robert McGee P: (713) 744-7408 rmcgee@tnrg.net

2004 Rustic Log Home 5 bedrooms, 6 baths, large deck, screened porch & fire pit, 20 minutes from Bee Cave Galleria, grid-tied solar w/ generator backup, reclaimed materials, open floor plan, deer resistant landscaping, sprinkler system, fruit orchard and vegetable garden, and excellent internet connection!

TNRG

15120 Northwest Freeway, Ste. 190 Houston, Texas 77040 P: (713) 956-1000 | F: (713) 856-5100 www.tnrg.net

The inform ation contained herein, w e believe, has been obtained from reasonably reliable sources, and w e have no reason to doubt the accuracy of such inform ation; how ever, no w arranty or guaranty either expressed or im plied, is m ade w ith respect to the accuracy thereof. All such inform ation subm itted is subject to error, om issions, or changes in conditions, prior to sale, lease or w ithdraw al w ithout notice. All inform ation contained herein should be verified to the satisfaction of the persons relying thereon.

HillCountryRanch4Sale.com Charles Meek (512) 377-6920 cmeek01@msn.com

COMMERCIAL REAL ESTATE FORECAST COMPETITION FRIDAY, FEBRUARY 12, 2016 8:00 AM - 12:00 Noon

Keynote Speaker:

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Westchase Marriott 2900 Briarpark Drive, Houston, TX 77042

Registration is open: www.ccimhouston.org Tickets: $75 Members / $100 Non-Members $1000 table of 8 with preferred seating

December 2015

COMMERCIAL SERVICES

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• Lot Size: 1.43 AC • Commercial/Other (land) Loopnet ID: 19410494

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's Margie ray’s^buzz

This is Your Life, Ray Hankamer! BY MARGIE GOHMERT REDNews Editor

or the past seven plus years, REDNews has been the recipient of Ray’s BUZZ, including everything from comprehensive interviews with so many notable Houstonians, to sage advice on making our lives more productive and rewarding, as well as how to lose weight! Now, we have decided it's time to find out what makes Ray buzz.

After graduating from the University of Texas in 1965, then spending a year at the University of Geneva with studies at Goethe Institute Munich and some business studies at the University of Houston thrown in, Ray started working as desk clerk for his father at his new Holiday Inn at the Manned Spacecraft Center. While he was there, Ray caught the manager and chef in an embezzlement scheme, which resulted in Ray becoming manager at age 22, the youngest in the Holiday Inn system. As a side line (?), Hankamer/ Mehrein wines-by-the-case monthly home delivery wine company was launched in 1966 and after obtaining 900 customers, Ray sold out to his 24

December 2015

partner as he had too many irons in the fire, with the hotel business being his top priority. He and his father developed new Holidays Inns in Huntsville, Conroe, Baytown, New Braunfels, Channelview, NW, SW and North Freeways. He also developed Ibis Hotels at DFW and IAH, with a management team of approximately 1,000 employees at 14 hotels totaling 2400 rooms.

A note here to any young, or not so young, enterprising, adventuresome person interested in any aspect pertaining to real estate—see Ray. He has/knows all the skills needed to run an expanding business. During his illustrious career, beside developing hotels, Ray has also developed office buildings, four in partnership with architect, John Kirksey,

plus an apartment project, all of which he also managed and, during this time frame – 1967 to 1984 – he served on the board of directors of Fannin Bank (#5 in Houston in size) and of McFaddin Ventures which operated 45 disco clubs coast to coast. Those in Houston were Todd’s, Ocean Club, elan, Cowboy, Confetti and Ciao (ring a bell with anyone?) Then there is the Texas Steak Ranch restaurant (which many or some of you may remember) near the Fountainview/ Richmond intersection that Ray built, owned and operated – Houston’s first “ethnic Texas restaurant" with live, progressive country music.

Beginning in the early ‘80s and up to the present time, Ray has served on the board of directors of Scenic Houston which is devoted to improving the aesthetics of the city, including the removal of thousands of unsightly bill boards. He also served with Trees for Houston. He was active in the Holiday Inn owners' association serving as president of the association in 1987 & 1988, representing 2000 plus worldwide hotel owners. His company , SW

Ray during his trip to the Swiss and Austrian Alps, July 2005

Inns, Ltd., had a 78% occupancy rate in the early 1980s, the highest worldwide of any multi-franchisee.

f course, it wasn’t all work for Ray. He was married and his family did a lot of traveling, including trips to Japan and Europe, as well as trips throughout the United States. He’s a runner, a walker, a roller-blader, and a hiker of the Rockies and the Alps, spending as long as a week at a time with small groups where they stayed in remote Alpine refuges. Oh, yes, he likes to cook, too! But then the oil states economic crash of ’85 caused the Hankamer hotel occupancy to fall to a low 40% range where it stayed for a number of years. They were able to negotiate with the banks to sell or give back 13 or 14 hotels. Ray says typically the banks would take title and then give the hotels back to them to manage, for a fee, and would list with them to sell. They were also given other people’s hotels to manage by banks, life companies and S&Ls. By this process

the Hankamers were able to keep their staff together while negotiating millions of dollars of financial workouts and slowly pay back lenders and vendors, but not without a lot of pain, just like many other Houstonians. After this experience Ray became wary of signing loan guarantees, so he started doing more hotel and hotel and hotel-site related brokerage.

back as the mid ‘70s. when the Hankamers were courting them to lease their office buildings. Oh, yes, Ray also writes a monthly restaurant review which reaches approximately 4,000 people, advising CRE practitioners where the latest and greatest spot is for entertaining clients, as well as family and friends.

Now it’s 2000, so what does Ray do? He oday, in this nearly ended year 2015, developed six – yes, six – Hampton Inns at Ray says going from a staff of 1,000 to Houston Hobby Airport, Beaumont, Housone only, gives him a lot of flexibility, ton Medical Center, Laredo, downtown San thanks to his trusty laptop and iPhone. Antonio and Lake Charles, La., with a total of He works on out-of-the-box hotel sitapproximately 800 rooms. These he operated uations, as well as land and site marketing. Then, and sold to hotel REITs and individuals. All there is the consulting for clients and institutions this happened within on hotel related issues. six years, so from 2006 to the present time, Travel will always Ray (as he put it) morplay a big part in phed from being known Ray’s life, and, as he as a “hotel guy” into says, he is able to being known as a “real keep in touch, busiestate guy,” which was nesswise, wherever not a difficult achievehe is, thanks to his ment as he was well electronic devices. acquainted with many So, being on trips of Houston’s finest and with his grandchilbest commercial real Ray with Margie at REDNews dren – three grandestate players as far

daughters that he has taken one at a time to France, and trips with his two grandsons that he spends time with in Peru – doesn’t interfere with his business endeavors. Recent and upcoming cruises include down the St. Lawrence River from Montreal, around to Boston through the Canadian Maritimes and around the tip of South America from Buenos Aires to Santiago, Chili. (P.S. His son is president of Vacations to Go!) To sum up a life well spent and still going strong: Ray’s philosophy is to have lots of friends, stay busy and use your talents in ways that will be beneficial to others, as well as to our community. ●

Some of Ray’s BUZZ

One man is worth no more than another, unless he does more

Above all: Figure out how to be happy and don't get struck in a rut!

Never give up and never stop growing Avoid the trivial Be a hammer in life, not the nail

Offering Properties & Hotel Consulting PROPERTIES AVAILABLE • Hotel, Condo, Retail Site - Cruise Terminal - Galveston, TX • Freeway Sites - I-20 - Monahans, TX • 30 Acres Commercial/Rail Serviced - Tomball, TX • 12 Acres Residential/Commercial - I-45 - Huntsville, TX • Hotels - Statewide • Hotel/Retail/Restaurant/Office Sites - League City, TX • Knights Inn/100 Rooms - Victoria, TX

Contact: Ray Hankamer

HANKAMER & ASSOCIATES BROKERS, L.L.C.

Hospitality Consulting Services

40 Years Experience As Services Hospitality Consulting Developer, Owner & Operator

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Sergio Pineda 40 Years Experience As sergpineda@aol.com Developer | Owner | Operator

(713) 922-8075 • www.hankamer.com 13) 789-7060 www.hankamer.com

H &

ray’s buzz

Bauer College of Business Institute for Regional Forecasting Luncheon-Speaker: Robert W. Gilmer, Ph.D.

Dr. Robert W. Gilmer

Avoiding the sometimes bombastic and politically partisan prognostications one often hears from certain other economists in our region, Dr. Gilmer is professional, measured, and objective. Before a huge crowd at a recent luncheon at the downtown Hyatt Regency he laid out his view on the forces affecting our economy now and for the next year or two. BY RAY HANKAMER

• It’s all about oil, and the price

is down by half • Houston is slowing down, but no recession…so far • No way our slow-down will be as severe as that of the ‘80s, since our banks and commercial real estate industries are healthy and not over-extended this time • Job growth is slowing but is not negative-the boom on the east side in chemical plant construction is good, but those blue collar jobs don’t give us the same boost as the lost white collar jobs on the west side of town • There are many moving parts in the worldwide oil & gas supply and demand puzzle: Iran is bringing huge production online and Saudi Arabia is still an enigma although their government is burning through their cash while keeping oil production at lower prices going at full speed

• On the demand side, it looks

like growth is cooling from earlier forecasts on the China, Brazil, and India economies • [Surprisingly Gilmer made no mention of any effect of 26

December 2015

wind and solar on energy consumption, although these supplies of energy are increasing dramatically around the world] • Many wells in the fracking zone have been drilled but not completed, and 4,000 of them are ready to start producing as soon as prices firm up-this is a “supply overhang” • Texas and North Dakota have become the supply “swing” replacing Saudi Arabia • Houston has numerous other industries which are tied to the national economy and not upstream oil & gas, and they will scarcely be affected by what is going on in the oil patch • As long as the national economy stays strong, Houston’s dip, although it may be longer than originally

thought, may not be too deep

• For those making chemicals

and plastics from oil & gas, low feedstock prices enable them to boost their margins and make big capital expenditures • There are projects valued at over $50 billion now under construction in East Houston • There has been a boom in multi-family projects with many still in the permitting stage, but there remains a

shortage of lots for single family development, and that shortage should continue for at least 2-3 years • In summary, Gilmer said that signs are pointing to a very slow recovery in oil prices, one that may take several years to play out, since supply is abundant, and worldwide demand is weaker than expectations. ●

LAND FOR SALE

Located next to 18037 W Little York Rd, Katy, TX 77449

3.3 ACRES k a t y ,

Nearby busy intersection of Baker Cypress & W Little York Surrounded with Jack-in-the Box, Family Dollar, Shell & Texaco Gas Stations, RV Storage, Marine, service businesses

t e x a s

Minutes to residential subdivision Utilities area ready per owners

WORLD WIDE REALTY

Ben Huynh

832.607.1679 Voice/Text

SITE

Baker Cypress Rd

Greenhouse Rd

W Little York Rd

BenRealEstate@yahoo.com

9.6 Acres For Sale at Shadow Creek Ranch SE Corner of Broadway (FM 518) & Almeda Road (FM 521), Pearland, TX

- Frontage: 770 Feet on FM 518 and 520 Feet on FM 521 - Utilities to site and off-site detention included - Flexible commercial zoning; allows retail, office, hotels and general commercial uses - Adjacent to 3,500-acre Shadow Creek Ranch and 315-acre Southlake master planned communities - Average Household Incomes within a 3-mile radius: $119,667 (Pitney Bowes, 2013) FM 518

9.6 AC

Perry Homes

FOR MORE INFORMATION CONTACT:

Homes under construction

281.313.3000 Ext. 15 / 713.817.5030 igallagher@rubiconrealty.com www.RubiconRealty.com Disclaimer: The information contained in this file, while supplied by sources deemed reliable, is subject to errors and omissions and is not, in any way, warrantied by Rubicon Realty Group or by an agent, independent associate or employee of Rubicon Realty Group. This information is subject to change without notice.

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events social bulletin

Scoop

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

December 2015

events

CENTRAL SOUTH TEXAS

December 2015 Calendar 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. Dec 16 7:30am–9am.

AWARDS CREW SAN ANTONIO

december luncheon

Dec 8 Holiday and Awards Luncheon - Members Only. Time TBA.

crew-sanantonio.org/Events.aspx RECA AUSTIN

awards luncheon Dec 15 11:15am–1pm.

austin.uli.org/events/2015-12

EDUCATION ULI AUSTIN

product council | housing and community development Dec 3 7:30am–9am.

austin.uli.org/events

reca.org/events

BREAKFAST ULI AUSTIN

monthly breakfastemerging trends

RECA AUSTIN

CCIM CENTRAL

Nov 16 12–1pm.

Dec 9 6pm–9pm.

city of austin policy committee meeting

IREM SAN ANTONIO

CBA AUSTIN

holiday party

Dec 10 11:30am–1pm.

http://cbaaustin.org/events

BOMA AUSTIN

Dec 2 6pm–9pm.

CREW AUSTIN

RECA AUSTIN

Dec 3 5:30pm–8:30pm.

Dec 3 12–1pm.

holiday party at the highball crewaustin.com/web227/ EventsCalendar IREM AUSTIN

holiday party

Dec 8 11:30am–1pm.

iremaustin.org/events

December 2015

ccimtexas.com/web243/events/

SOCIAL/HOLIDAY

MEETING knockout night committee meeting

holiday party joint with ctcar

holiday party

iremsanantonio.org/events

holiday mix 'n mingle luncheon Dec 17 11:30am–1pm.

bomaaustin.org/events/ event_list.asp CREW SAN ANTONIO

holiday party

Dec 17 5:30pm–7:30pm.

December 2015

social

CENTRAL SOUTH TEXAS RECA

2015 CHARITY GOLF CLASSIC From Top: Hannah Gabel, Mark Grobmyer, and Katie Comer. Thanks to all the players and sponsors for coming out and making the 2015 RECA Charity Golf Classic a huge success! Ryan Poulos, Katie Comer, and Hannah Gabel. Shelly Moczygemba Mitchell and Su Kosub with Pape-Dawson Engineers, Inc.

CREW SAN ANTONIO

RECA

From Top: CREW November Luncheon.

A tradition since 1991, RECA selects an organization to receive an early Christmas gift of renovations, repairs or upgrades to its facility. This year, RECA selected the Blackland Community Development Corporation, an affordable housing organization in East Austin. RECA members and friends gathered to re-design and renovate its shared conservatory and play spaces. Led by the 2015 LDC Class, RECA raised over $90,000 for the organization.

NOVEMBER LUNCHEON

Cheryl Pyle, Cynthia Ellison, and Carrie Caesar. John McCarthy, keynote speaker, gives update on Brooks City Base.

CHRISTMAS IN OCTOBER 2015

December 2015

events

NORTH TEXAS

November 2015 Calendar 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.

AWARDS

MEETING

SOCIAL/HOLIDAYS

ULI NORTH TEXAS

NTCAR

CREW DALLAS

Dec 3 Personal Brand & Relationship Building. Find the right mix of personal and professional happiness for increased prosperity. 4:45pm–7pm.

Dec 1 5pm–7pm.

greater dallas planning council 2015 urban design awards Dec 8 6pm–8pm.

northtexas.uli.org/events CREW DALLAS

annual holiday awards luncheon Dec 11 11:30am–1:15pm.

crew-dallas.org/Events.aspx

BREAKFAST

ntcar.org/events

BOMA FORT WORTH

csc meeting

Dec 17 11:30am–1pm.

crew connect networking happy hour CREW FORT WORTH

holiday party Dec 1 6pm–9pm.

NTCAR

young professionals happy hour Dec 2 5:30pm–7:30pm.

APA NORTH CENTRAL

CREW FORT WORTH

new member breakfast Dec 8 7:30am–8:30am.

crewfw.org/meetinginfo.php

EDUCATION CCIM NORTH TEXAS

engineer lunch & learn Nov 3 8am–5pm.

ccimtexas.com/web243/Events BOMA DALLAS

maximize your brokerage income - legal & ethics

Dec 17 Barrier Systems and Design Options: Chamberlin Roofing & Waterproofing will be presenting how to understand air barrier systems and design options available to you. They will also describe how to create an effective air barrier, rain barrier and when appropriate, a vapor barrier. 11:30am–1pm.

bomadallas.org/calendar_month.asp

LUNCHEON BOMA FORT WORTH

luncheon

Dec 11:30am.

bomafortworth.org/events 34

pathways to prosperity w/ mickey ashmore

December 2015

holiday party

Dec 4 5:30pm–7:30pm.

December 2015

social

NORTH TEXAS NORTH TEXAS CCIM

THRIVE CONFERENCE AND PRESIDENT’S INAUGURATION DINNER

October 2015

From Top: CCIMs enjoying the 2015 CCIM Institute Thrive Conference and Business Meetings in Austin TX in October. (Top from left) Tim Veler, David Schnitzer, Joe Garrett (bottom from left) Debi Carter, Saadia Sheikh, and Carole Tam. Congratulations to the 18 new designees who passed their exam in Austin! All smiles, CCIM pins, and cowboy hats! North Texas CCIM Board Members on Congress Avenue in Austin during the 2015 CCIM Institute Thrive Conference and Business Meetings. 2015 CCIM President’s Inauguration Dinner. (From left) Joe Garrett, Brad Crumpecker, Debi Carter, Collin Flynn, Saadia Sheikh, David Schnitzer, and John McClure.

CREW DALLAS

OCTOBER LUNCHEON From Top: Steve Bancroft, Trammell Crow, guest presenter; Sally Longroy, CREW Dallas president, Guida, Slavich & Flores; Karen Owen, Chicago Title; Konrad Kaltenbach, Chicago Title.

TEXAS ICSC 2015

Monica Amaro, Southside on Lamar; Megan Lasch, Pinnacle Housing Group, guest presenter; Katarina Gajic, Matthews Multifamily; Shannon McMahen, Matthews Multifamily. CREW Dallas members hosted college students for a half day of job shadowing and then they attended the October CREW Dallas Luncheon. They all heard Megan Lasch with Pinnacle Housing Group and Steve Bancroft with Trammell Crow Residential speak about “Multi Family...The Best of Both Worlds.”

December 2015

events

SOUTHEAST TEXAS

December 2015 Calendar 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.

BREAKFAST RICH CLUB

breakfast networking with carlos neto Dec 11 7am–8:30am.

richclub.org/Calendar.aspx

on and discuss the challenges and successes you are having. 7pm–8:45pm.

SOCIAL/HOLIDAY ULI HOUSTON

young leaders Holiday party

EDUCATION ULI HOUSTON

developing for millennials: gen y grows up

Dec 16 This year, Millennials, young adults age 18 to 34, surpassed Baby Boomers as the largest living generation in American history. They heavily influenced how and where we work, shop, play and live. They’ve reshaped social media, the sharing economy, and casual, flexible, diverse and collaborative workplaces. But is what we think we know about Gen Y right? 11:30am–1:30pm.

houston.uli.org/events

Dec 1 Young Leaders kick off the holidays with a party at St. Arnold’s Brewery. All members welcome! 6pm–8pm.

HOUSTON CORENET GLOBAL

corenet houston holiday party

Dec 1 5:30pm–8:30pm.

houston.corenetglobal.org/ houston/events CREW HOUSTON

sponsor appreciation and member holiday party Dec 2 4:30pm–7pm.

crewhouston.org/Events.aspx CCIM HOUSTON

holiday party Dec 3 6pm.

LUNCHEON CREN HOUSTON

ccimhouston.org/events

luncheon

BOMA HOUSTON

crengulfcoast.com/calendar.php

Dec 3 11am–2pm.

MEETING

GHBA HOUSTON

Dec 3 11:30am–1:30pm.

RICH CLUB

ira money meetup with scott blair

Dec 2 Learn how to use other people's IRA to fund your investing. 7pm –9pm.

RICH CLUB

w.i.r.e. - women in real estate with yolanda thomas Dec 8 This is a focus group for women only. During the meetings we will talk about current deals that you fabulous women are working 36

December 2015

holiday luncheon houstonboma.org/events.html

5th annual montgomery county golf tournament Dec 3 10am–4pm.

ghba.org/calendar GHBA HOUSTON

remodelers council holiday party 2015 Dec 8 6:30am–9pm.

IREM HOUSTON

holiday party

Dec 9 Join IREM Houston for memorable networking, dancing, food, drinks, photos and surprises as

we ring in the Holidays Speakeasystyle. This party will take you back to the days of the Roaring 20s at a trendy premiere venue in Downtown Houston. 6:30pm–10:30pm.

remhouston.org/calendar ACRP HOUSTON

holiday party

Dec 15 5pm–8pm.

acrp.org/events2015.htm

HOUSTON FORECAST

social

From Top: Joe Watson and Ray Hankamer.

SOUTHEAST TEXAS

Jennie Trapolino, Julie Peak, Teri Schoener, and Bunny Heckman. Dan Silvestri and Duane Heckman. Janet Karr, Theresa Quartaro, and Patti Zellers.

CCIM HOUSTON ACRP

GOLF CLASSIC The ACRP Classic Golf Outing attendees enjoyed fantastic weather, delicious food, great prizes, wonderful sponsors and amazing friends!

NOVEMBER LUNCHEON From Top: Event Speaker Coach Rick Kolster, D'Etta Castro DeLeon, and Sandy Benak. Thuy Troung, CCIM, and Coach Rick Kolster

CCIM HOUSTON

October 2015

December 2015

LAND ADVISORS

NOVEMBER LUNCHEON From the Bottom: Joe Loverdi and Bob Watson. Trey Miller, Blake Willeford, D'Etta Castro-DeLeon, and David Swarz III.

CREN

NOVEMBER LUNCHEON From Top: Russell Simmons. CREN crowd. Duane Heckmann, John McKinnerney, and Wayne Landin.

December 2015

bulletin

CENTRAL TEXAS

Austin/San Antonio Areas

AUSTIN HOTEL SALE

Houston-based Moody National REIT II, Inc. purchased the Marriott Residence Inn AustinUniversity at 1200 Barbara Jordan Blvd from Benchmark Development Corporation & Gentry Mills Capital for $25.5 million.

OFFICE CONSTRUCTION

INDUSTRIAL LEASE

Planview, an Austin-based software company, leased 51,624 sq. ft. at Research Park V located at 12301 Research Blvd. Ted Doucet & Spencer Hayes with Cushman & Wakefield/ Oxford Commercial represented the tenant and Rachel Coulter & Kevin Kimbrough with JLL represented the landlord

Oskar Blues, a Colorado-based brewery, leased 51,500 sq. ft. at 10420 Metric Blvd. Michael Tipps ofCushman & Wakefield Oxford Commercial represented the tenant and Russell Todd & Kent McCoy of Centric Commercial represented the landlord, J.A.Billup Company.

MEDICAL MIXED-USE

From Left: Andy Bell, Gayle Berkbigler, Richard Ethridge, and Mr. Lufschanowski

AUSTIN CCIM CENTRAL TEXAS ANNOUNCEMENT

During the CCIM Central Texas luncheon held on September 29, 2015, GAYLE BERKBIGLER, CCIM, Committee Chair of the Gold Tournament presented a check to NICK NELSON, the 2016 Chapter President in the amount of $4,423.16 from the 21nd Annual CCIM Golf Tournament.

Ken Fidje has joined CBRE as managing director of asset services for the Central Texas region.

Central Health officials are proposing to transform the University Medical Center Brackenridge campus into a health-focused, mixed-use development including an open-air market, new office & residential towers, expanded medical facility and a high rise hotel & retail space. The project is located just south of Red Rive & 15th streets on 14.3 acres.

MULTI-FAMILY CONSTRUCTION

Oden Hughes is constructing Lenox Boardwalk, a 339-unit, five-story complex at 1500 S. Pleasant Valley Road. The project is slated to open in 2017.

MULTI-FAMILY CONSTRUCTION

Stratford Land sold approximately 16 acres at Estancia Hill Country to JCI Residential under parent company The Journeyman Group. The land is located in the Estancia Hill Country development which is located at I35 & SH 45 and will be developed into a 312-unit luxury project called Estancia Villas. Carter Breed with CBRE represented the seller and Brent Williamson represented the buyer.

MULTI-FAMILY SALE

Glen Allen, VA-based Weinstein Properties purchased the 342-unit Bexley Tech Ridge at 1200 E. Parmer Lane from Continental Properties. Will Balthrope, Drew Kile, Michael Moffitt & Jordan Featherstone of Marcus & Millichap represented 38

December 2015

the seller. Balthrope & Kile also represented the buyer. Endeavor Real Estate Group has broken ground on a 12-story office project called Domain 8. The building will include 290,983 sq. ft. and is located at 11601 Alterra Parkway.

OFFICE LEASE

Natera, a San Carlos, CA-based life science company, leased 93,000 sq. ft. in PARMER 3.2 in the PARMER Technology & Office Park, located at I35 & Parmer Lane. Scott Miller & Zane Cole of JLL representedthe tenant and Mark Emerick & John Barksdale of CBRE represented the landlord.

SCHOOL LEASE

The Austin School of Film leased 20,000 sq. ft. at 2200 Tillery Street. The school is a non-profit independent film, art & technology center. Brian Rodgers of Rodgers & Reichle Real Estate represented the landlord.

COLLEGE STATION STUDENT HOUSING COMPLEX

HALL Structured Finance (HSq. ft.) has closed a $29.6 million first lien loan for a to-be developed student housing complex on 30 acres approximately 1.5 miles south of the Texas A&M campus. The development will contain 19 three-story buildings offering 432 furnished units with 792 beds, a three-story clubhouse and leasing office, and 1,020 surface parking spaces. Some of the units are projected to be complete for the fall 2016 semester.

SAN ANTONIO DATA CENTER CONSTRUCTION

Microsoft Corporation will

be spending an estimated $34 million on the companyâ&#x20AC;&#x2122;s Westover Hills data center to finish out 54,424 sq. ft. of computer server & electrical rooms. The work is part of Microsoftâ&#x20AC;&#x2122;s 256,000 sq. ft. data center and is next door to its 427,000 sq. ft. facility. Microsoft also reportedly continues to show interest in 75 to 100 acres at the Texas Research Park, which could be utilized for an additional San Antonio data center.

HOTEL CONSTRUCTION

A four-story Mariott TownePlace Suites is coming to Westover Hills Blvd. on the northwest side of San Antonio. It is being constructed by Westover Hotel Group LLC.

INDUSTRIAL CONSTRUCTION

Indo-MIM plans to invest approximately $24 million for Port San Antonio. The Indian firm produces precision component parts for multiple industries and is establishing its first US manufacturing facility in a 58,000 sq. ft. structure at the Port San Antonio in 2016.

INDUSTRIAL SALE

Canadian Pension Plan Investment Board has acquired a 10.6% ownership interest in a nationwide portfolio of 722 warehouse, business park and light industrial assets. The properties total approximately 115 million sq. ft. and approximately 2.5 million are located in San Antonio.

OFFICE LEASE

Lennar Homes of Texas Land & Construction is relocating to 15,409 sq. ft. located in RidgeWood Business Center at 1922 Dry Creek Way. The new office is a consolidation of the company's affiliations including North American Title Company & Universal American Mortgage Company. Jerry Frey and Carl Salvato of CBRE represented the tenant and Shawn Gulley with R.L. Worth Company represented the landlord.

RETAIL SALE

Chicago-based Investment Property Exchange Services (IPX) purchased the 33,450 sq. ft. Blanco Marketplace at 18630 Blanco Road from locally based LOQ Blanco Marketplace LLC.

ADDISON/IRVING OFFICE SALE

Klabzuba Realty sold The Meridian and The Belvedere, two class A office buildings totaling 241,539 sq. ft. located at 1425 Greenway Drive in Las Colinas and 14881 Quorum Drive in Addison. The buyer was CREA Investments and the transaction was closed by HFF who also arranged the financing.

ARLINGTON MULTI-FAMILY SALE

Harbor Group International sold Forest Ridge Apartments, a 660-unit community located at 258 Forest Point Drive, to S2 Capital. Taylor Snoddy, Philip Wiegand and James Roberts of Transwestern represented the seller.

CARROLLTON DATA CENTER CONSTRUCTION

Global colocation solutions provider CyrusOne is building its fifth data hall which includes approximately 60,000 sq. ft. at its Carrollton data center. The 670,000 sq. ft. data center is one of the most energy-efficient data centers in the US and houses infrastructure and 911-dispatch centers for Carrollton, Coppell, Farmers Branch and Addison.

COPPELL MULTI-FAMILY SALE

CA-based Steadfast Apartment REIT purchased the Lakeside at Coppell located at 620 N. Coppell Road for $60.5 million or approximately $192,000 per unit from Wood Partners & Ares Commercial Real Estate Management. CBRE brokered the sale.

DALLAS OFFICE SALE

The Plaza of the Americas, a 1.2 million sq. ft. class A office complex located at Pearl & San Jacinto streets in downtown Dallas is expected to close this month. The property is owned by Houston based M-M Properties and Dallas-based Invesco and the buyer is Dallas-based Pillar Commercial.

OFFICE SALE

Dallas real estate investment firm Buchanan Street Partners purchased Tollway Plaza, a class AA, 370,073 sq. ft. office complex at 15950 & 16000 North Dallas Parkway. Along with this complex, Buchanan Street Partners also recently purchased Richardson Office Center and Granite Tower

FLOWER MOUND RETAIL SALE

Dunhill Partners purchased Robertson’s Creek, a 336,402 sq. ft. power center located at 5801-5861 Long Point Road from TFG Crown Partners LP and Ball Ventures LLC. Doug Hazelbaker and Ryan Shore of HFF represented the seller.

FORNEY HOTEL CONSTRUCTION

Forney Innkeepers, Ltd purchased 3 acres for the construction of a 72-unit Holiday Inn Express. Lisa Hankamer of NAI Partners represented the seller.

FORT WORTH CORPORATE CAMPUS CONSTRUCTION

Farmers Brothers Coffee is relocating its California headquarters temporarily to 32,000 sq. ft. at 13601 North Freeway near Alliance Airport. The temporary office will give Farmer Brothers the ability to strategically prepare for operations to get underway of its new $65 million, 500,000 sq. ft. corporate headquarters on 28+ acres in Northlake. Construction is slated for completion by the end of 2016.

INDUSTRIAL LEASE

Chain Link Services LP leased approximately 310,000 sq. ft. at 1000 Terminal Road The tenant was represented by Jeff Givens of Transwestern and George Curry, Jamie Galati and Chris Stout represented BH Properties, the landlord.

INDUSTRIAL SALE TCRG Properties LLC , a real estate investment company, recently formed by Bobby Patton from Fort Worth, purchased

1400 Everman Parkway, a 351,600 sq. ft. facility from Conti Warehouses. TCRG also recently purchased an off-market property of approximately 300,000 sq. ft..

FRISCO

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NORTH TEXAS

Dallas/Fort Worth Areas

VACANT LAND SALE

Thomas Land Development purchased 175 acres from Jim Newman of Newman Real Estate. The property is located adjacent to the Thomas Land Development’s $1.6 billion mixed-used development at the Dallas North Tollway near Lebanon Road.

GRAND PRAIRIE RETAIL CONSTRUCTION

IKEA has submitted plans for a 293,000 sq. ft. store with 1,250 parking spaces on the east side of SH 161 and Mayfield Road. The store is expected to open fall 2017.

GRAPEVINE INDUSTRIAL CONSTRUCTION

Kubota Tractor Corp has broken ground on its new 193,000 sq. ft. corporate headquarter & research/development center. The project is located at SH 121 & Grapevine Mills Blvd.

PLANO MULTI-FAMILY CONSTRUCTION

Abid Abedi is constructing a 182 single-family townhouses/ condos project at the NWC of Plano Parkway & Independence Parkway. Chris Callicutt & Robert Grunnah of Novus Realty Advisors represented the seller

IRVING OFFICE SALE

APOLLO GLOBAL REAL ESTATE OF NEW YORK & VANDERBILT PARTNERS OF CHICO purchased The Towers at Williams Square, a four-building, 1.4 million sq. ft. office tower complex which sold for $330 million. The project fronts on Lake Carolyn in Las Colinas. The buyers purchased the project from THE BROOKDALE GROUP OF ATLANTA.

Venture Commercial Real Estate has named Jonathan Cooper as a new partner in their retail brokerage firm.

ROWLETT MIXED-USE DEVELOPMENT

The Integral Group of Atlanta & Catalyst Urban Development of Dallas is constructing the Village of Rowlett, a $34 million mixed-use development . The venture is developing the project in partnership with the city of Rowlett.

December 2015

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SOUTHEAST TEXAS Houston Area

ATASCOCITA RETAIL SALE

The J. Beard Real Estate Company sold the 56,172 sq. ft. Atascocita Shopping Center located at 7506 F.M. 1960 East. John Ernest of The J. Beard Real Estate Company represented the seller.

HOUSTON

CONROE

OFFICE/INDUSTRIAL SALE

RETAIL SALE

Houston-based HPI HOLDINGS purchased 34 building totaling nearly 865,000 sq. ft. along West Hardy Road near the North Sam Houston Tollway. The property will be renovated & repositioned as Hardy Properties at Intercontinental. CALDWELL BROKERAGE COMPANY will assist in the renovation and will handle leasing and property management of the buildings.

VACANT LAND FOR SALE

Kimco Realty Corp, a New Yorkbased real estate investment trust company, bought out JV partner Crow Holdings Capital – Real Estate’s 85% ownership interest in the Conroe Marketplace, a 288,576 sq. ft. retail central at I45 & Loop 336W.

HOUSTON INDUSTRIAL LEASE

Motion Industries, Inc. leased 23.760 sq. ft. at 1915 Turning Basin #514 from Centerpoint Properties Trust. Conrad Bernard, of Boyd Commercial represented the tenant and Kelly Landwermeyer of Holt Lundsford Commercial represented the landlord.

MEDICAL LEASE 110-acre prime site at SH 146 & Red Bluff Road, which sits just north of Kemah, is the largest tract available for development in the City of Seabrook. With the planned TxDOT SH 146 12-lane expansion in the works, this 110-acre tract offers a prime location with significant opportunities for business, residential and retail development. CUSHMAN & WAKEFIELD and GIRARD INTERESTS.

(Left to right) Eric Siegrist, [Roger Staubach], J.P. Hutcheson, Jessica Ochoa, & John Pruitt, have joined JLL’s Houston Agency Leasing Group. Richard Dagnall has joined Butler Burgher Group as a senior managing director.

December 2015

Memorial Hermann Convenient Care Center has leased space at Studemont Junction, located at I10 & Studemont Street. The project is being developed by Capcor Partners & Kaplan Management and is the former site of Grocers Supply, who had occupied the site for 42 years.

MIXED-USE CONSTRUCTION

The Kirby Collection, a 551,287 sq. ft. mixed-use project located at 3200 Kirby has commenced construction. The project is slated for completion Q4 2017 with a 25-story, 199-unit multifamily high-rise; a 13-story, 210,840 sq. ft. office building and 61,000 sq. ft. of retail & restaurant space.

MULTI-FAMILY SALE

Edgewood Properties, a real estate developer & owner based in North Carolina, sold the 376unit Summer Cove complex at 725 FM 1959 to Dallas-based Westmount Realty Capital. Todd Stewart, Todd Marix, Chris Curry & JC Clements of HFF represented the seller.

OFFICE LEASE

Rockwater Energy Solutions Inc has leased 32,000 sq. ft. at 515 Post Oak Blvd. Trey Strake & Jim Bailey of Cushman & Wakefield represented the tenant and Brad Fricks & Paul Coonrod of Stream Realty Partners represented the landlord.

OFFICE SALE

Nabors Industries purchased the building they had been leasing, One Commerce Green, located at 515 W. Greens Road for $47.5 million from Parkway Properties.

RETAIL LEASE

Whitestone REIT has redeveloped Lion Square center using the principles of feng shui in the process. Sam’s Spa Nail Supply leased 12,260 sq. ft. and the center is now at 94% occupancy.

KINGWOOD RETAIL CONSTRUCTION

Lovett Commercial is constructing a 240,000 sq. ft. retail center at the NEC of W. Lake Houston Parkway & Kingwood Drive. The development will be anchored by an H-E-B supermarket and is also set to feature an additional 45,000 sq. ft. for the Memorial Hermann Convenient Care Center. The project is scheduled to deliver in late 2016.

MISSOURI CITY MULTI-FAMILY SALE

Sun Holdings Group, a real estate investment & management company, purchased Villas at Sienna Plantation, a 190- unit complex located at 8585 Sienna Spring Blvd from Watermark Residential & Murphy O’Brien. Todd Marix, Todd Stewart, Christopher Curry & JC Clemens of HFF represented the seller.

PASADENA RETAIL LEASE

Burlington, a national off-price retailer, recently opened a 55,000 sq. ft. store in the new Market at Crenshaw shopping center at 4589 East Sam Houston Parkway South.

RICHMOND RETAIL LEASE

Town & County Leather leased 7675 sq. ft. in the Meadows III Shopping Center at the Grand Parkway & Long Meadow Farms. Hannah Smith & Josh Jacobs of Edge Realty Partners represented the landlord, Satya. Tom Pagel of Reliance Commercial Realty represented the tenant.

SOUTHSIDE PLACE MULTI-FAMILY CONSTRUCTION

Dallas-based Trammell Crow Residential & New York-based Bluerock Residential Growth REIT Inc have announced plans to construct a new Class A apartment community at 4139 Bellaire Blvd in Southside Place. The site is currently occupied by Blair House apartments and the new project is expected to be complete in September 2017.

SPRING RETAIL LEASE

Boot Barn leased 12,000 sq. ft. in the Spring Park Village Shopping Center at I45 & Cypresswood Drive. Hannah Smith & Josh Jacobs of Edge Realty Partners represented the landlord, Satya. Rachel Farris & Brian Ashby of CBRE represented the tenant.

SUGAR LAND OFFICE CONSTRUCITON

Energy services provider Schlumberger plans to consolidate the company’s US headquarter to its existing 200acre Sugar Land campus located northeast of the intersection of US Hwy 90A & Gillingham Lane & west of Industrial Blvd. They propose to build more than 250,000 sq. ft. of additional office space & construct a new 100,000+ sq. ft. amenities building.

classifieds & index

ADVERTISER INDEX A. A. Realty Company 3 Anderson Realty Advisors, LLC 41 Berkshire Hathaway 22, 23 Blake Hillegeist 17 CBRE 1, 2, 11, 17 CCIM Houston 21 Charles Meek 21 City of Converse 28, 29 Freedom Crossing 44 Greenberg & Co. 13 Hankamer & Associates 25 Hartman Income REIT 41

Mall of the Mainland 7 Phase Engineering, Inc. 30 Pollan Hausman Real Estate Services 5 Rubicon Realty 27 Showalter Law 41 Tarantino Properties Inc. 8, 9 TNRG 21 Waller County EDC 25 Westchase District 15 Wolverine Management 13 World Wide Realty 27

Civil Play Fair Are Affordable Housing Projects Being Taxed Out of Existence? In January, REDNews will take an in depth look at the appraisal process as it relates to commercial real estate in general and affordable housing projects, specifically, with comments from valuation experts and real estate attorneys and the appraisal districts.

Richard G. Anderson

cell 713.444.9796 RAnderson@AndersonRA.com

Commercial Brokerage & Advisory Services AndersonRA.com | 713.335.9580 HARTMAN is hiring for the following positions: Commercial Leasing Agents for Houston, Dallas and San Antonio, Texas Pre Sales Leasing Agents for Houston, Dallas and San Antonio, Texas The Commercial Leasing Agents must have previous commercial experience and have successful proven relationships within the brokerage communities of their cities. Hartman Income REIT 2909 Hillcroft, Suite 420 Houston, Texas 77057 www.hi-reit.com

E-mail careers@hi-REIT.com for more information

Protecting Property Owner’s Rights

Eminent Domain Compensation for Roads • Pipelines • Power Lines

www.ShowalterLaw.com

281-341-5577 • Info@ShowalterLaw.com December 2015

ray’s buzz

O’Connor & Associates Apartment Forecast

Clint Roberts

J.C. Clemens

Speakers: Clint Roberts, Marcus & Millichap; J.C. Clemens, HFF; Joey Rippel, HFF. TAKEAWAY: The multifamily business is currently very strong in Houston, with outside investors wanting a piece of the action. Occupancy is up, rates are up, and transactions are strong-it is a seller’s market, especially in Class B & C units (generally speaking, those built before 1990)

Joey Rippel

BY RAY HANKAMER

costs, renting is a necessity for Millenials-home ownership rates have declined from 66% to 58% • B&C units have only 5% vacancy here • There is strong investor demand for B&C since they see room to raise rates upwards toward very high A rates-current gap in rates between A and B&C is $400600 per month • Investor/buyers are domestic and increasingly international, and over 60% of investor capital is going to older B&C units, which have good upside after a little upgrading by the new owners • Cautious institutional lenders such as REITs with conservative loan committees who equate Houston’s economy only with oil are missing the boat, and private money and more flexible buyers are taking up the slack • Building of new A units may be slowing now • 2015 is seeing no let up from ‘13 & ’14 in leasing and investor activity in spite of oil price correction 42

December 2015

• Pasadena and South Houston

are seeing some of the strongest growth with big chemical plant construction, but bear in mind plants that require a lot of workers to build require very few to operate once finished and online • Houston has been the #1 UHaul destination city for six years • Over the last few years we have seen an average 6% rental rate growth, pushing values up, up, up • Houston has absorbed over 100,000 apartment units over last five years and vacancies remain at historic lows • Millenials need affordable rents near their workplace“Live-WorkPlay” is their motto, and they seek apartment projects which are an easy transition from the fancy Credit: Paul Takahashi / HBJ

• Due to high homeownership

student housing projects they enjoyed while in school • There is competition for apartments coming from baby-boomers who are retiring nationwide at the rate of 10,000 per day (!) and half of those are choosing multifamily instead of smaller homes • Some softness in cap rates for A but tightening for B&C • Predicted rent growth: 5-6% in 2015; 4% in 2016 • Houston is projected to lead the nation for the next five

years in population growth, a statistic which is not lost on investors jostling to get into our market • Well-maintained stick-built units will last many decades but if the land values soar above the as-improved value, the unit will be razed and redeveloped • Some investors buying inside the Loop units just to warehouse land for its expected future value, with income from the unit paying taxes and carrying costs ● New apartment construction, The Belvedere

2016

EDITORIAL CALENDAR REDNews Magazine

50,000+ Print Digital/Distibution + Over 200 Newsstands Throughout Texas REDNews will have additional magazines at these events

MONTH

MAIN FOCUS

SUB FOCUS

CRE SERVICES

AD DEADLINE

BONUS DISTRIBUTION

JANUARY

Vacant Land/Texas Development Opportunities

Texas Economic Development

Financial/Lenders

December 11th

FEBRUARY

Office/Office Medical/ Industrial

Trends & Hot Spots

Space Planners & Property Management Firms

January 12th

MARCH

Retail/Vacant Land/Mixed Use Development

Texas Economic Development

Environmental/ Engineering

February 12th

APRIL

Vacant Land/Industrial

Industrial Hot Spots

Appraisal/Property Tax

March 11th

Texas Land Markets Conference

MAY

Retail/EDCs/Vacant Land

Texas Economic Development

Financial/Lenders

April 12th

RECon Las Vegas

JUNE

Office / Office Medical Trends

Medical Hot Spots

Title Companies

May 12th

JULY

Retail/ Texas Development Opportunities

Texas Economic Development

Environmental/ Engineering

June 10th

AUGUST

Office/ Office Medical

Office/Medical Trends & Hot Spots

Architectural/Space Planners

July 12th

SEPTEMBER

Retail/Vacant Land

Texas Economic Development

Financial/Lenders

August 12th

OCTOBER

Industrial/Office/ Office-Medical

Industrial Hot Spots

Legal

September 12th

A&M MCE

NOVEMBER

Retail/EDCs

Texas Economic Development

Top Retail Specialists

October 12th

ICSC Texas

DECEMBER

Vacant Land/Retail ICSC Recap

Texas Economic Development

Financial/Lenders

November 11th

CCIM Forecast Competition

NTCAR Expo

December 2015

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Think you know

GI JOE? YOU MAY BE SURPRISED. Today's Army includes 48% females. Over 58% of the Army family is married and military families have an average of 2 children. Army Strong is economy strong. The average active-duty Soldier's compensation package is valued at $99,000 per year.

Freedom Crossing at Fort Bliss

Freedom Crossing at Fort Bliss is the ﬁrst opportunity for retailers to operate in a shopping center on a U.S. military installation. Featuring a 10-screen theater and existing, successful department store and supermarket anchors, the post Exchange and Commissary, sales at the open-air center are more than $250 million annually. This new, non-traditional market is quickly becoming a bright-spot in the shopping center industry, prompting the expansion of the concept, starting with Freedom Crossing at Fort Bragg. Fort Bragg will feature approx. 80,000 SF of shopping and entertainment options including the market’s ﬁrst full service dine-in movie theater. Exchange-only sales at Fort Bragg have already reached approx. $230 million annually.

visit freedomcrossingatftbragg.com Dan Frey • 512.682.5507 Freedom Crossing at Fort Bragg

MOVIE TAVERN is coming to our Fort Bragg property! Learn more at movietavern.com/fortbragg.