REDNews February 2015 - North Texas by RE Journals

REDNews LOGO

February 2015

February 2015 In this issue: Patrick Jankowski’s Forecast In this2015 issue: Texas Office Market Report 2014 ............................. Texas Leads Industrial Property Stats in 4th Qtr. ............................. FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS TX: One of the Most Important Real Estate Hubs in U.S. ......................

$1 BILLION in Stream Texas Developments NOW UNDER WAY

PLATINUM PARK 166,104 SF I Plano, TX

CONNECTION PARK 304,000 SF I Irving, TX

2100 POST OAK 344,000 SF I Houston, TX

SIERRA PINES PHASE II 154,000 SF I The Woodlands, TX

501 CONGRESS AVENUE 122,747 SF I Austin, TX

LOCKHILL CROSSING 126,626 SF I San Antonio, TX

and many more... SEE PAGE 3 TO LEARN MORE ABOUT STREAM

ATLANTA I AUSTIN I CHARLOTTE I DALLAS / FORT WORTH I DENVER I HOUSTON I SOUTHERN CALIFORNIA I SAN ANTONIO I WASHINGTON, DC WWW.STREAMREALTY.COM

&RQWDFW 5HEHFFD *DUGDSKH

)RU PRUH GHWDLOHG LQIRUPDWLRQ YLVLW ZZZ 3LQHFURIW5HDOW\ FRP

&RQWDFW -RKQ 0RUWRQ

5HEHFFD *DUGDSKH#3LQHFURIW5HDOW\ FRP

-RKQ 0RUWRQ#3LQHFURIW5HDOW\ FRP

0HGLFDO $UWV &HQWHU ,,

3LQHFURIW

.X\NHQGDKO 3URIHVVLRQDO 3OD]D ,,

6L[ 3LQHV ,,

6W /XNHV :D\ 7KH :RRGODQGV 7;

3LQHFURIW 7KH :RRGODQGV 7;

.X\NHQGDKO 5RDG 7KH :RRGODQGV 7;

6L[ 3LQHV 'ULYH 7KH :RRGODQGV 7;

&ORVH SUR[LPLW\ WR 0HPRULDO +HUPDQQ +RVSLWDO 7KH :RRGODQGV %HDXWLIXOO\ GHVLJQHG WKUHH VWRU\ &ODVV $ 02% (DV\ DFFHVV WR , 56) 111

/RFDWHG LQ WKH KHDUW RI 7KH :RRGODQGV 7ZR VWRU\ &ODVV $ 2IILFH 02% WZR UHPDLQLQJ VSDFHV DYDLODEOH IURP 6) 5HQWV IURP 56) 111

5HWDLO VSDFH ORFDWHG DW 6L[ 3LQHV DQG 5HVHDUFK )RUHVW (DV\ DFFHVV WR , &ODVV $ EXLOGLQJ 56) 111

:DONLQJ GLVWDQFH IURP 6W /XNH V 7KH :RRGODQGV +RVSLWDO /RFDWHG ULJKW RII , IRXU VWRU\ PL[HG XVH VSDFHV DYDLODEOH IURP 6) 5HQWV IURP 56)

2DNEHQG 02%

)ULVFR (' 02%

6SULQJ 2IILFH 5HWDLO 3OD]D

0DQVILHOG (' 02%

6RXWKZHVW )UHHZD\ 5LFKPRQG 7;

'DOODV 3DUNZD\ )ULVFR 7;

.X\NHQGDKO 5RDG 6SULQJ 7;

1 86 +Z\ 0DQVILHOG 7;

)URQWDJH RQ 'DOODV 1RUWK 7ROOZD\ &ORVH SUR[LPLW\ WR )ULVFR 0DUNHW &HQWHU &ODVV $ 5HWDLO 02% 56) 111

5HWDLO IURQWDJH ORFDWHG EORFN IURP .X\NHQGDKO DQG )0 (DV\ DFFHVV WR , DQG IXWXUH *UDQG 3DUNZD\ 5HQWV IURP 56) 111

02% IURQWDJH DW +:< 86 0LQXWHV IURP 0HWKRGLVW +RVSLWDO &ODVV $ 02% 56) 111

*UDQG 3DUNZD\ 02%

9LVLRQDU\ +HDOWK ,

9LVLRQDU\ +HDOWK ,,

)RUW :RUWK 02%

: *UDQG 3DUNZD\ 6 5LFKPRQG 7;

+Z\ 1RUWK +XPEOH 7;

6 0DLQ 6W )RUW :RUWK 7;

/RFDWHG DW 2DNEHQG +RVSLWDO &DPSXV ,Q DUHD RI KLJKO\ SURMHFWHG JURZWK (DV\ DFFHVV WR +:< DQG *UDQG 3DUNZD\ &ODVV $ 02% 56) 111

Village V illag ge H Hideaway ideaway

)URQWDJH RQ *UDQG 3DUNZD\ 6XUURXQGHG E\ KLJKO\ UDQNHG PDVWHU SODQQHG FRPPXQLWLHV 7ZR VWRU\ &ODVV $ 02% 56) 111

35( /($6,1* 1HDU .LQJZRRG 0HGLFDO &HQWHU )URQWDJH RQ +Z\ DQG HDV\ DFFHVV WR +DUG\ 7ROO 5G 6LQJOH VWRU\ &ODVV $ 5HWDLO 02% 56) 111

72 %( %8,/7 'LUHFW DFFHVV WR .LQJZRRG 0HGLFDO &HQWHU &ORVH SUR[LPLW\ WR +:< DQG +DUG\ 7ROO 5G 7KUHH VWRU\ &ODVV $ 02% 56) 111

35( /($6,1* 6) 02% ORFDWHG LQ WKH KHDUW RI WKH )RUW :RUWK 0HGLFDO 'LVWUWLFW EORFN DZD\ IURP WKH XSFRPLQJ 9LFWRU\ 0HGLFDO &HQWHU

7RPEDOO 0HGLFDO 3OD]D

2DNULGJH 1RUWK

/DQG

.X\NHQGDKO 3DG 6LWH

*UDKDP 'ULYH 7RPEDOO 7;

6SHFWUXP :D\ 2DNULGJH 1RUWK 7;

/RFDWHG DW )0

.X\NHQGDKO DW )OLQWULGJH

5D\IRUG 3DG 6LWH 5D\IRUG 5G 6SULQJ 7;

.X\NHQGDKO . X\NHQGDKO 3 3DG DG 6 6LWH LWH .X\NHQGDKO . X\NHQGDKO # ) )OLQWULGJH OLQWULGJH

/RFDWHG LQ WKH KHDUW RI 7RPEDOO V 0HGLFDO &HQWHU ZDONLQJ GLVWDQFH IURP 7RPEDOO 5HJLRQDO +RVSLWDO &ODVV $ 02% 56) 111

35( /($6,1* 6) 2IILFH :DUHKRXVH VSDFH QHDU WKH :RRGODQGV (DV\ DFFHVV WR , 56)

35( /($6,1* DSSUR[ $& PL[HG XVH )URQWDJH RQ )0 HDV\ DFFHVV WR , $SSUR[ PL 6RXWK RI WKH ([[RQ &DPSXV

*5281' /($6( $& 3DG 6LWH 5HWDLO IURQWDJH DW .X\NHQGDKO 5G QHLJKERULQJ +(% DQG 7UDGHU -RHV

35( /($6,1* 5HWDLO 0HGLFDO RIILFH IURQWDJH RQ 5D\IRUG 5G $SSUR[ 56) DYDLODEOH &ORVH SUR[LPLW\ WR , 1

P L A T I N U M T H E O N L Y CO R PO R ATE O F F I CE O PPO R TUNIT Y IN L E G A C Y O F F E R I NG THE PLATI NUM PACKAGE: ABUNDANT

T H E BEST DEST INAT ION FOR CO RP O RA TE U SE RS

P A R K I N G , R I CH AM ENI TI ES , PR EM I ER S I GNAGE AND

DESIRING FLOOR PLAT E EFFICIE NC Y & B U IL DING

T H E B E S T CLAS S A V ALUE I N F AR NO R TH DALLAS.

ACCESSIBILIT Y IN A PARK-LIK E SE TTING.

OFFICE I 166,104 SF I PLANO, TX

OFFICE I 304,000 SF I IRVING, TX

P L AT I N U M PA R K @ S T R E A M R E A LT Y. C O M

C O N N E C T I O N PA R K @ S T R E A M R E A LT Y. C O M

Stream Realty Partners, L.P. is a full-service real estate investment, development and services company. Since its formation in 1996, Stream has grown from its two original partners to more than 550 real estate professionals nationwide. Stream Realty leases and/or manages more than 120 million square feet of commercial buildings across the nation; completes over $1.6 billion in real estate transactions annually; and is considered one of the most active investors and developers in the Southwest.

ATLANTA I AUSTIN I CHARLOTTE I DALLAS / FORT WORTH I DENVER I HOUSTON I SOUTHERN CALIFORNIA I SAN ANTONIO I WASHINGTON, DC WWW.STREAMREALTY.COM

REDNews

IN THIS ISSUE

C O N T E N T & F E AT U R E S

PROPERTIES FOR SALE/LEASE

1 -3, 5, 7-9, 11-13, 15-19, 21-25, 27, 1-3, 5, 7 – 12, 14 – 25, 27 – 29, 29, 41, 43, 44 33, 36- 41, 54 – 56

COMMERCIAL SERVICES

Environmental 30 Legal Services 41 Moving & Relocation 41

WHAT’S HAPPENING IN TEXAS CRE

Calendar of Events 32, 34, 36 Networking Photos 33, 35, 37 Deals & Announcements 38-40

ARTICLES Patrick Jankowski’s 2015 Forecast Texas Office Markets Texas Leads Industrial Property Stats Texas: One of the Most Important CRE Hubs

4 | REDNews.com

10 14, 16 20 26, 28

REDNews

FOR

100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

PUBLISHER Ginger Wheless ginger@rednews.com

PUBLISHER’S LETTER Dear Readers,

ere we are headed into 2015 with the big question “How Low Can Oil Prices Go” before Texas CRE is affected?

Texas A&M Real Estate Center Economist, Dr. Mark Dotzour posted an article with the above title on the A&M Real Estate Center’s blog January 8th (http:// blog.recenter.tamu.edu/author/mdotzour/).

EDITOR Marjorie Gohmert info@rednews.com

STAFF WRITER Janis Arnold janisarnold1@gmail.com Matthew Chisari matt@rednews.com Brandi Williams info@rednews.com CONTRIBUTING WRITERS Ray Hankamer rhankamer@gmail.com Jim Wilkie jimwilkie@swbell.net

Mark has been predicting the cycles of CRE for the past 20 years and his opinion is that “the price of oil will bottom out this spring as speculators drive the price to the absolute bottom (whatever that may be).” He expects that marginal US production will slow and the price of oil will stabilize. OPEC countries and Russia will suffer heavy damage with prices at these lowest levels and when the pain of low prices gets too intense, OPEC will “adjust” its production schedule.

ART DIRECTOR Mya Dale mya@rednews.com

What does it all mean for Texas CRE? REDNews posed this question to numerous CRE professionals and the overall consensus was: Yes, we’re going to experience a slower pace this year. Projects that can be delayed may be put on the back burner. However, all sectors of the market are strong and even though the sales/leasing frenzy of 2014 is over, continued “controlled” activity is expected.

ACCOUNTING

According to the Federal Reserve Bank of Dallas’ Senior Economist & Research Officer, Keith Phillips, Texas is projected to add 235,000 to 295,000 jobs this year – less than 2014’s estimated 408,000, but still a healthy number. Hope you’re having a fabulous February and remember that February 14th is Valentine’s Day! Best Regards,

Ginger Wheless

E-MARKETING MANAGER Michelle Ofiwe emarketing@rednews.com

Benton Mahaffey accounting@rednews.com

SALES Bri Martinez bri@rednews.com Ginger Wheless ginger@rednews.com

PRINT & DIGITAL DISTRIBUTION REDNews is directly mailed each month to commercial real estate brokers, investors & developers. Texas Brokers 7,650 Texas Leasing/Tenant Rep 6,232 Texas Investors 4,979 Texas Developers 4,710 Outside Texas Investors, Brokers, Developers, etc 81,577 Total REDNews Distribution: 105,148 REDNews Has Gone Green Using Recycled Paper Thank you, Midway Press To subscribe to REDNews call 713.661.6300 or log on to www.REDNews.com/subscription/ 5909 West Loop South, Suite 135 Bellaire, Texas 77401

6 | REDNews.com

Investment/Leasing Opportunities FOR SALE OR LEASE

Major Price Reduction | Lender Owned 900-1100 BUSINESS HIGHWAY 290 N Hempstead, Texas 77445 • Former Lawrence Marshall Dealerships • 78,304 SF total situated on 26 acres • Property can be subdivided - Parcel 1: ± 20 acres and Parcel 2: ± 6 acres • Flexible zoning • Great exposure on U.S. Highway 290 and Highway 6 • Fully Paved • City Utilities • Seller Financing may be considered CHRISTOPHER S. KLEIN +1 713 830 2141

• Sale Price: $5,500,000 $4,900,000 $4,650,000

chris.klein@colliers.com

Red Oak Professional Building

FOR SALE OR LEASE

40,135 RSF, 2-story office/medical building Site: Up to 4 Acres Free Surface Parking - Ratio up to 9:1000 Marble finishes and wood accents in the lobby Adjacent to the Northwest Surgery Center 1st Floor space: 5,851 RSF - Divisible to 959 RSF 2nd Floor space: 17,618 RSF Contiguous - Divisible Lease Rate: $15/RSF NNN

9777 West Gulf Bank

BETH YOUNG +1 713 830 2166

beth.young@colliers.com

FOR LEASE

9777 W. GULF BANK Houston, Texas 77040

• • • • • • • •

4,105 SF - 30,123 SF Available for Lease Two building industrial property near 290/Beltway 8 18’ - 20’ Clear Height Dock high and semi-dock loading with ramps Tiltwall construction Front park - rear load Located in Harris County - outside of city limits Lease Rate: $0.45 - $0.55 NNN

FOR SALE

7000 EMPIRE CENTRAL Houston, Texas 77040

17320 RED OAK DRIVE Houston, Texas 77090 • • • • • • • •

7000 Empire Central

• • • • • •

95,073 SF Service Center Flex Building 96% Occupied National Credit Anchor Tenant Prime NW Houston Location Tiltwall Construction – Built in 1982 2015 NOI: $452,300

Abilene Doctors Hospital & Surgical Center

JUDD HARRISON +1 713 830 2196

judd.harrison@colliers.com

WALTER MENUET

+1 713 830 2169

walter.menuet@colliers.com

FOR SALE OR LEASE

5602 HEALTH CENTER BLVD Abilene, Texas 79606 JUDD HARRISON +1 832 266 5114

judd.harrison@colliers.com

WALTER MENUET

+1 713 830 2169

walter.menuet@colliers.com

• Investment or User Opportunity • Purchase Price: $4,900,000 or $120.59/SF (building), $11.25/SF (land) • Building Size: 40,633 SF • 14 in-patient beds, 3 operating rooms, diagnostic, imaging, and administrative support areas • Emergency Care Entrance • Investment Far Below Replacement Cost

BETH YOUNG +1 713 830 2166

beth.young@colliers.com

A selection of Colliers International available properties, to view all listings, please visit www.colliers.com/texas

909 Dairy Ashford Rd, Houston, TX 77079 Kris Lilly | Klilly@tarantino.com

Peggy Rougeou| peggy@tarantino.com

ASHFORD PROFESSIONAL

• Two Story Medical Office Building • Renovated in 2008

• 30,999 Rentable Square Feet •S ervices the Memorial & Surrounding Neighborhoods

17030 Nanes Dr, Houston, TX 77090 Eric Ohlson | eohlson@tarantino.com

Peggy Rougeou | peggy@tarantino.com

NANES PROFESSIONAL

• Two Story Medical/Professional Office Building • Up to 4,124 SF Available

• L ocated 2 Miles from the Houston NW Medical Center •1 5 Minutes from IAH & The Woodlands

908 E Southmore Blvd, Pasadena, TX 77502 Eric Ohlson | eohlson@tarantino.com

Peggy Rougeou | peggy@tarantino.com

908 E. SOUTHMORE

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

•R ecently Renovated Lobby • Generous TI Allowance

2305-2339 Bingle Road, Houston, TX 77055 Eric Drymalla | edrymalla@tarantino.com

Peggy Rougeou | peggy@tarantino.com

BINGLE VILLAGE SHOPPING CENTER

• 3,263 – 15,000 SF Retail Space Available • Pylon Signage Available

• Extensive Parking • L andlord will Build-to-Suit for Credit Tenant

Personalized Service. Proven Results.

www.tarantino.com

1150 N. Loop 336 W., Conroe, TX 77301

3315 Burke Rd, Pasadena, TX 77504 Eric Ohlson | eohlson@tarantino.com

Grady Field |gfield@tarantino.com

PASADENA PROFESSIONAL

NOVA MEDICAL CENTER

• 5,650 SF Free-Standing Building •1 00% Occupied with Single-Tenant Triple-Net Lease through 2024

• L ease Guaranteed by Memorial Hermann Medical Group • L ocated in a Major Retail Intersection in North Conroe

12770 Cimarron Path, San Antonio, TX 78249 Coni Jenkins| cjenkins@tarantino.com

• Climate Controlled Warehouse

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

• First Floor Space Available -- Lobby Exposure

•C onveniently Located Across from Bayshore Medical Center • Generous TI Packages

10500 Gulf Freeway, Houston, TX 77034

Peggy Rougeou | peggy@tarantino.com

EDGEBROOK SHOPPING CENTER

•G enerous Tenant Finish-Out Allowance •N orthwest Location with Easy Access to I-10 & 1604

CORPORATE OFFICE:

• Three Story Office Building

Eric Drymalla | edrymalla@tarantino.com

DE ZAVALA

•3 ,000 – 10,000 SF, Flex Office & Biomedical S pace Available

Peggy Rougeou | peggy@tarantino.com

• Big Box- 26,902 SF Now Available

• Pylon Signage Available

• Located on Hard Corner of Gulf Freeway & Edgebrook

• T raffic Count Exceeds 222,000 Cars Per Day

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

AUSTIN OFFICE:

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

REDNews

BUZZ

P A T R I C K J A N K O “W S K I ’ S : 2015 FORECAST” REDNews BY: RAY HANKAMER

pricing should be faster coming than in past recessions.

Jankowski went on to explain that the sudden drop of oil prices from $108 to $49 in just seven months would certainly curtail that robustness-the question is: how much and for how long? This drop is the same as Class A office rent dropping from $36 to $21 in the same time frame, or home prices going into free-fall. Pick your CRE segment and apply the percentages. So adjustments are already under way in the Oil Patch. Companies “in the field” will be the first to lay off workers. Rigs will be stacked. Field services will see dropping prices. But given that fracking has produced the flood of oil largely responsible for the glut, and that fracking wells produce on the average 70% of total production the first year, corrections and stabilization in

10 | REDNews.com

“Prices will be down for a while but not forever”, said Jankowski, “and our downturn will be nothing like the ‘80s, when prices per barrel fell 70%”. NYMEX oil futures are indicating a price range of $48-$57 eighteen months out, according to Jankowski. “Stability is important to the industry for planning purposes”, he said.

Sr., V.P. of Research, GHP

At the CCIM January meeting Patrick said: e are coming off an incredibly robust period of growth: “We have added 480,000 jobs since the bottom in 2010”.

And company headquarters will be slow to lay off skilled workers who were so hard to find, recruit, and hire in the first place. The larger the employee’s skill set, the more job security that employee will have.

Patrick Jankowski

• We built 72 million SF of office space in the ‘80s and much of it was specu-

lative • We have under construction or already delivered 29 million SF, and much of it is pre-leased • We are likely to see the slowdown in Class B &C office in both occupancy and rates, as competition makes Class A “new” more affordable • We have better systems in place now in all Commercial Real Estate (CRE) segments to share information, and this is a brake on willy-nilly overdevelopment • In ten years, regardless of oil price movement up or down, 600,000 more people will live in our region, and in 25 years our regional GDP is set to double. Summary: While we will certainly have to endure a correction in our regional economy, which will be painful for some, it will not be of the same order of magnitude as that of the 1980s, and long term our economy will show vigorous, above-average growth.

REDNews

711 WEST BAY AREA BOULEVARD WEBSTER, TEXAS 77598

19,500 SF Prime Bay Area Office Space Available Tenant Rep Incentives for Any Lease Over 2,000 SF

SITE

• Amenities Include: Manicured Landscaping, Card-key Access, Onsite Management, Ample Covered and Surface-level Parking • Close proximity to Baybrook Mall, Downtown Houston, Galveston, Pasadena, Houston Ship Channel and Easy Access to I-45

Local O w n er s Suppor ti n g Local B rok ers

FOR LEASING INFORMATION, CONTACT MICKEY MEYER-STURGIS

800-368-6707 MSTURGIS@RFS-INC.NET

1110 NORTH POST OAK ROAD SUITE 170, HOUSTON, TEXAS 77055

OWNED AND MANAGED BY THE RICHLAND COMPANIES

REDNews.com | 11

Office/Medical Space For Lease - 7515 S. Main, Houston TX 77030

Greenpark One

FEATURES • Medical Center location with easy access • On-site deli, bank, pharmacy & medical lab • Recent exterior and interior renovations • Valet & reserved garage parking • Covered drop-off area • On-site property management

Call For Pricing For Sale or Lease – 7007 North Freeway, Houston TX 77076

North Houston Medical Plaza

FEATURES • Office/Office Medical • Move-in ready suites • Adjacent to Kindred Hospital North Houston • Pylon/monument signage • On-site pharmacy & Labcorp • Convenient & ample parking that’s covered and gated • Covered drop-off area • Great access to the North Freeway (I-45)

Call For Pricing For more information, contact Blake R. Virgilio, CCIM Office: 281.664.6651 Email: BVirgilio@CaldwellCos.com

Jack A. Russo Office: 281.664.6637 Email: JRusso@CaldwellCos.com

Office Building For Sale

12851 Jones Road, Houston TX 77070

FEATURES • Building and Land Available -19,096 SF Office -40,877 SF Land • Owner occupied, 2-story building • Recent interior renovations • Located at Jones Road and Mills Road • Great access to SH 249, FM 1960 and Beltway 8 • Ample parking • Could be converted to multi-tenant • Brick construction

Price: $1,200,000

For more information, contact Keith P. Grothaus, CCIM, SIOR Office: 281.664.6635 Email: KGrothaus@CaldwellCos.com

For Sale or Lease – Steeplechase Corner Professional Building

11301 Fallbrook Drive, Houston TX 77065 FEATURES • Office/Medical Office • Move-in ready suites • Centrally located between US 290, SH 249, FM 1960 & Beltway 8 • Adjacent to Cypress Fairbanks Medical Center & Kindred Hospital Northwest • On-site property management & Labcorp • Convenient & ample parking with a physician parking area • Deed restricted hospital campus surrounded by abundant retail & restaurants • Vending & break area

Call For Pricing For more information, contact Blake R. Virgilio, CCIM Office: 281.664.6651 Email: BVirgilio@CaldwellCos.com

Jack A. Russo Office: 281.664.6637 Email: JRusso@CaldwellCos.com

REDNews

TEXAS OFFICE MARKET REPORT 2014

HOUSTON OFFICE MARKET 2014 Simone B. Schuppan Regional Director - Central Region, Research By all measures, the office market rolled to a stellar end in 2014. Vacancy fell to 11.9%, and markets such as the Katy Freeway had class A rates below 5.0%. Citywide, asking rental rates increased by more than 10% compared to last year, and absorption totaled an exceptionally strong 4.3 million square feet (msf). New construction reached a milestone, with 3.9 msf completed and another 10.6 msf under construction, of which more than 40% was already pre-leased. Short of an unexpected turnaround in the energy sector, these figures will likely be the peak as 2015 progresses and newly-built construction adds an estimated 6.0 msf of vacant space to the market. 2015 OUTLOOK The likelihood of increasing mergers and acquisitions in the energy sector is high, leading DIRECT RENTAL VS. VACANCY RATES

14 | REDNews.com

to the possibility of associated layoffs and cost cutting. While at year-end more than 8.0 msf of proposed speculative projects remained on the books, it’s likely that many of these will fade away in 2015 as demand for new office space abates due to slowing in the energy sector. Increasing vacancy, flattening rents, and a strong dropoff in new construction are all but certain. This isn’t necessarily as detrimental as it may sound, since some areas, such as the Katy Freeway, have basically had class A vacancy rates below 5.0% for years. Scenarios such as the 1980s with vacancies approaching 30% are highly unlikely, but 2015 will almost certainly see a strong correction in real estate fundamentals no matter where energy prices ultimately land. Job growth is still likely to fuel some space needs, just at levels well below the past several years.

DALLAS/F.W. OFFICE MARKET 2014 Ryan Tharp, Director of Research Direct and overall absorption totals have been strong in 2014. Direct absorption reached 3.0 million square feet (msf) at the end of third quarter, compared to the 2.0 msf this time in 2013. Overall absorption totaled 2.7 msf due in part to the vacant sublease space left by Encana in the second quarter. At 10.3 msf year-to-date, leasing activity (new leases signed) is noticeably less than last year’s total of 12.3 msf, but almost at the 10-year average for third quarter year-to-date total of 10.5 msf. Class A leasing activity accounted for 50.0% of the total compared to 52.4% in 2013. Asking full-service rental rates across classes recorded $21.59 per square foot, an increase of

6.3% over 2013 levels and the highest asking rent on record. Overall class A asking rents rose 6.8% compared to the same period last year, recording $26.39 per square foot (psf) full service gross. Class A rents are now $0.68 psf above below the record high set in the third quarter 2009. Sublease space on the market totaled 1.2 msf, which is at about the same level as in third quarter 2013. Construction completions totaled 2.0 msf. An additional 1.0 msf is expected to finish construction by yearend. INVESTOR FOCUS Year-to-date, 16.2 msf of investment office properties traded hands. The two most prominent transactions were the sale of Chesapeake Plaza to Hines for $84.5 million ($192 psf) and Plaza at Legacy to MetLife for $58.0 million ($269 psf). OUTLOOK • Demand for office space is expected to rise as Texas’ economy continues to improve and Continued on page 16

REDNews

LEVCOR, INC.

PHARR TOWN CENTER NOW OPEN

NOW LEASING PHASE II Dan Smith 713.268-3716 dsmith@levcor.com

Pharr

www.Levcor.com

Great Investment Opportunity in the Major Growth Area SPRING TOMBALL 133 Acres for 21327 Cedar Lane es 17.5 Mil 133 AC Farm Full-time or Weekend Rancher! 1 Mile

M 90

832.860.6066 | blake@blakesellshouston.com

s ile

Blake Hillegeist

($50,000 per acre)

Grand Parkway - HWY

I-45

Close to everything yet a country setting $6,650,000

Beltway 8

Downtown Houston REDNews.com | 15

REDNews

companies look to Dallas/Fort Worth for a competitive edge. Large corporate construction announcements, such as those from Toyota, State Farm and FedEx, send signals throughout the economy that suggest there are significant investment opportunities in North Texas. The many service providers for these large corporate users are also showing interest in the area. This trend is expected to continue coming quarters.

AUSTIN OFFICE MARKET 2014 Cushman & Wakefield/Oxford Commercial Demand for office space in Austin reached record levels during 2014 and is expected to remain high during 2015. Companies currently in the market to lease in 2015 can expect some relief from the falling vacancy rates and increasing rental rates with the tremendous amount of inventory set to deliver in the subsequent quarters. In addition to new buildings, developers have begun to realize the high demand for creative and open-format office space and have begun repurposing former industrial spaces to meet this demand. • Leasing activity in Austin proved to be strong during 2014 as local companies expanded space to support growing workforces and outside companies set Austin as their new corporate headquarters. Significant examples of firms with a local presence expanding include EZCorp (140,000 sf at Rollingwood Center), BazaarVoice (137,000 sf at Quarry Oaks Atrium III), and ARM (120,000 sf at Encino Trace). Significant examples of outside firms leasing space in Austin include Parsley Energy (135,000 sf at Colorado Tower), Athenahealth (115,000 sf at Seaholm Power Plant), Websense (89,000 at Quarry Oaks Atrium A) and Atlassian Software (72,500 sf at Colorado Tower). The trend of outside firms leasing large amounts of office space in Austin is expected to continue as there are many companies currently in the market for office space and many high profile projects are set to deliver soon. • Major office completions during 2014 include Champion Office Park (220,000 sf), IBC Bank Plaza (194,000 sf), and Domain 2 (140,000 sf). Major office completions expected to deliver during 2015 include Colorado Tower (373,334 sf), Domain 7 (221,000 sf), Seaholm (136,000 sf), San Clemente (250,000 sf), Rollingwood Center (215,000 sf), Capital Ridge (207,000 sf), Encino Trace (320,000 SF), and Lamar Central (131,000). 16 | REDNews.com

Continued from page 14

SAN ANTONIO OFFICE MARKET 2014 Cushman & Wakefield/San Antonio Commercial Advisors Office Market 2014 • Overall, the San Antonio office market experienced a decline in vacancy and an increase in rental rates. By class, Class A office product experienced the largest decline in vacancy and increase in rental rates. Class A buildings in the CBD saw a 2.2% decrease in vacancy and ended the year with asking rental rates of $25.38/sf/year (Full Service Gross). • The CBD continues to be a catalyst for San Antonio’s economy. The recent completion of a $203 million world-class performing arts center has improved the quality of life and enhanced the creative economy of the CBD. Other projects adding to the momentum downtown include the $325 million convention center expansion, which continues to move ahead of schedule and under budget, a proposed $30 million park redevelopment, three hotels, over 3,500 housing units, a new Federal Reserve office building, and a proposed 400,000 sf, class A office tower. Developers are continuing to invest millions in private capital in the downtown area. The growth of Southtown, SoFlo and River North as live/work/ play environments, combined with the city’s investment in transportation and cultural infrastructure, bode well for an increasingly healthy CBD office market. • San Antonio experienced a steady growth of positive absorption quarter after quarter. • The CBD is not the only submarket flourishing. In order to meet the demand of San Antonio’s growing workforce, the North Central and Northwest submarkets are expected to deliver over 600,000 sf of new office product within the first half of the year. OUTLOOK With San Antonio’s employment rate growing at a faster pace than most of the country, the city should continue to experience a decrease in vacancy and an increase in rental rates. San Antonio’s construction sector will continue to stay busy as the office market is expected to deliver between 725,000 sf and 1.1 million sf of new inventory over the next 15 months. With the expected delivery of new, high quality product, the city will enhance its ability to attract and retain corporate citizens looking for immediately occupiable space. Overall, with steady economic growth from multiple sectors, San Antonio’s economy and skilled labor force will allow the city to maintain its place among the top enterprising cities in the United States. The outlook for the San Antonio office market appears balanced with new product coming online to satisfy growth in one of the top places in the country to do business, according to Forbes Magazine, without creating a problematic oversupply.

serviNg the ceNtrAl texAs hill cOuNtry ANd surrOuNds

exclusively listed trOphy rANches with prOxiMity tO AustiN, sAN ANtONiO ANd d/Fw

Bowie Mountain Ranch

2,000 wildly rugged and beautiful acres in the sought-after enchanted rock area west of Austin has several miles of live creeks, granite outcrops, mystical vistas and massive hardwood bottoms. Featuring outstanding all-around hunting, other features include granite outcrops, cliffs, water holes with fish and highway frontage near Austin. $3,950/acre = $7.9M

allen cReek Ranch

347 rugged and dramatic acres Nw of san Antonio near boerne features a stunning 4 acre lake in a fine, private mountain setting. The land includes distant vista points, grotto with flowing spring, mucho wildlife, lush valleys populated with large hardwoods and excellent road infrastructure with hunting cabins. $9,950/acre = $3.45M

chiMney hollow Ranch

3,432 acres Nw of san Antonio features marvelous variety, with 50% valleys/50% hills, excellent combo of hardwoods/brush/open land teeming with wildlife and lush tall grasses and turfs. Miles of paved highway frontage allows easy future exit, some minerals are included with the sale. $2,250/acre = $7.72M

SpRing lake Ranch

297 acres near kerrville, less than 2 hours from Austin or san Antonio, features one of the finest constant level lakes in the area, fed by owned springs averaging 50 gpm flow. Typical Hill Country includes views, hardwoods, wildlife and comfortable lodge on the water’s edge, with bulkheads along the shoreline. $10,500/acre = $3.12M

210.422.4676 ̶ 830.997.8616 dec@landtx.com ̶ www.landtx.com Fredericksburg ̶ MAsON 1031 exchANge speciAlist

4 PA REDNews

UP TO ±50.38 ACRES/OWNERS WILL SUBDIVIDE PAD SITES AVAILABLE RANGING FROM ± 1 ACRE & UP

N A S A P A R K W AY & WA T E R S T R E E T

• Edgewater a +/- 538 acre mixedused redevelopment project by Johnson Development and Cherokee Investment Partners • Located along Nasa Rd 1 and the newly constructed NASA Parkway Bypass in Webster, TX. • Home to more than 350 single family & luxury multi-family homes.

COMMERCIAL LAND F • No Detention Required

The available tracts of land are located at the gateway to Edgewater, a ±538

3.50/SF GROSS AQUISITION PRICE OR BY PAD SITE

acre mixed-use redevelopment project by Johnson Development and Cherokee Investment Partners which will soon be home to more than 2,600 residents. The available tracts of land are located along Nasa Rd 1 and the newly constructed NASA Parkway Bypass in Webster, TX.

Simmi Jaggi First Vice President 713.577.1616 simmi.jaggi@cbre.com

Up to ± 4.65 8.01 Acres

PA2

Up to ± 6.56 Acres

PA3

Up to ± 15 Acres

PA4 SITES PAD SITES

Up to ± 21 Acres

$5.00 PSF-$17.00 - $15.00 $7.00 PSF PSFPSF PRICE REDUCED

E D G E WAT E R C O M M E R C I A L R E S E R V E S

FOR MORE INFO. PLEASE CONTACT:

PA1

Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 (2014 Est.) Population Jason Shaw• • 281.546.9237 1 Mile Radius: jshaw@cullenrealtygroup.com 4,271

Elizabeth Clampitt Senior Associate 713.577.1871 elizabeth.clampitt@cbre.com

3 Mile Radius: 5 Mile Radius:

75,921 196,380

Average HHI:

(2014 Est.) 72,132 77,663 97,396

1 Mile Radius: 3 Mile Radius: 5 Mile Radius:

Traffic Counts:

(W NASA RD 1 & HWY 3) Cars per Day:

37,000

Edgewater Master Planned Community | W

 Edgewater is the Bay Area’s newest mixed-use, master-planned com

Pkwy and the newly constructed NASA Pkwy Bypass in Webster, T

 Edgewater is a 530 acre mixed-use redevelopment project that incl

of premium commercial real estate.

 This waterfront community will feature private canals with a newly

acres of nature preserves.

18 | REDNews.com

DEVELOPMENT TRACTS CLOSE TO EXXON MOBIL

Retail/Industrial & Multi-Family Sites

FM 1 1960

Tract 1

• 1,136 FF Kuykendahl Rd • 5.69 Acres NORTH FOREST

Tract 2

• • •

EAGLES AGLES LANDING

I-45

•

529 FF on Kuykendahl Road 9.92 Acres +/- 400’ NW of Ella Blvd. Great visibility on heavily traveled Kuykendahl Rd. GLEN ABBEY Y Located in dense residential area just west of I-45 Zoning: None Utilities: HC MUD #399 Key Map: 372B

. Rd hl da en yk Ku

• • • •

Tract 1 Tract 2 EAGLES EAG AG GLES LANDING BLUE ASH lvd. B a l El A RT XPLAZA P LAZA AT AIRTEX-E AIRTEX-ELLA QUAIL CHASE CHAS WOODS WOOD S OF KUYKENDAHL Grand Parkway (Proposed) yk

WOODFALL WOODFALLS WOOD DFALLS COURT CO OURT

en .

Rd Ella

PRICED TO SELL!

Blv

VAND RB LT VANDERBILT

Tract 1: $4.65 PSF; Tract 2: $4.65 PSF

Brokers Welcome

PARK AT KIRKSTALL RKSTALL KSTALL

FULL 6% COMMISSION PAID

Rachel S. Grant

7887 San Felipe Suite 122,

Houston, TX 77063

(O) 713.789.3133 | (M): 281.686.2993 | RachelGrant@RSHart.com

R. S. Hart

Commercial Brokerage, L.L.P.

REDNews

TEXAS LEADS INDUSTRIAL PROPERTY STATS IN FOURTH QUARTER

BY: ROBERT CARR

“The fourth quarter just caps the amazing run that industrial had been on, with significant absorption in every major market, except for Boston and San Diego,” Bach says. “Barring any significant event or a possible increase in interest rates, we’re optimistic that the run will continue 2015.” Delivery of new space increased in the fourth quarter, totaling about 45 million sq. ft., with almost 12 million sq. ft. completed in the DallasFort Worth market. Houston also had 3.4 million sq. ft. of new construction in the pipeline, meaning that Texas markets alone make up more than onethird of all new industrial construction in the country right now. The state leads in rent growth as well, with the Austin market posting a 14 percent gain 20 | REDNews.com

“It’s just very difficult to find product to buy; there’s more demand than supply,” Lindsey says about the Dallas industrial market. “Rents are up 4.7 percent since fourth quarter 2013, and virtually all available industrial sites are in the hands of investor-builders; sites are just picked over. Values are up as well, as we just had a portfolio of one million square feet of mostly shell space, never occupied, get sold for $60 per square foot.”

Houston has had enormous employment success, with more than 300 percent of jobs recovered since the recession, according to Welcome Wilson Jr., with the locally based Welcome Group, a singletenant industrial owner and developer. During the recent BoyarMiller Real Estate Forum, Wilson noted strong demand for crane-served buildings and no availability, with the industrial market at only 5 percent vacancy. He says the demand should be able to keep up with the 6.3 million sq. ft. of space now under construction. “Low oil prices are temporary, and with the backlog of activity here, we can coast through it,” Wilson said. “Additionally, land costs for development have doubled, which makes our existing properties look really good. The industrial sector in Houston is resilient; we have a lot to be grateful for.”

Welcome Wilson, Jr.

Robert Bach, director of research for the Americas with NGKF, says the company expects the fall in vacancy rates and subsequent rise in rents to continue in 2015, though the pace should begin to level out by year-end as construction starts to catch up with demand.

In Dallas-Fort Worth, landlords have taken over, says Gary Lindsey, a local managing director with NGKF. He says demand has already filled up most available large bulk distribution centers. Lindsey says there’s now strong activity for buildings in the 100,000-sq.-ft. to 200,000-sq.-ft. range, led by building construction, paper and medical device firms.

Gary Lindsey, SIOR

The national industrial vacancy rate fell to 7.2 percent in the fourth quarter 2014, the lowest point since the turn of the 21st century, according to a recent report from Newmark Grubb Knight Frank (NGKF). Demand for new space high, spurring more new construction in 2014, with more than 130 million sq. ft. of industrial space now underway.

year-over-year.

Robert Bach

ourth quarter 2014 industrial data is in and Texas markets still lead in building occupancies, rents and new construction.

B L OC K

±1.43 Acres

REDNews

e i g h t e e n

212 Milam HOUSTON, TX

Full downtown block located at the heart of Houston’s downtown arts and entertainment area

CONGRESS

LO UI SI AN A

MI LA M FRANKLIN

Bill McDade

Peter Mainguy

Kristen McDade

713.577.1876

713.577.1782

713.577.1808

peter.mainguy@cbre.com

kristen.mcdade@cbre.com

bill.mcdade@cbre.com 22 | REDNews.com

Âą2.21 Acres

3 4 03 richmond

REDNews

SWC of Richmond & Buffalo Speedway HOUSTON, TX

A FF

E SP

BUFF

ALO

SPEE

DWA

Hard corner for redevelopment, at the front door of Greenway Plaza

RICH

Nolan Mainguy

RICHMO

AVE

ND AVE NUE

John Fenoglio

713.577.1841

713.787.1911

nolan.mainguy@cbre.com

john.fenoglio@cbre.com REDNews.com | 23

REDNews

24 | REDNews.com

FALL CREEK C o m m e r c ia l Res er ves A v a i l a b l e

• Over 2,000 feet of frontage on the Beltway D E • MUD formed & utility infrastructure in place • No detention required • Ready for development D: 29.16 Acres N. SAM HOUSTON PKWY & BELLOWS FALLS LANE • Excellent SECvisibility E: 12.84 Acres 20 • 10 minutes to IAH; S. SIDE N. SAM HOUSTON PKWY minutes to the Port of a 2300 acre community which is the Houston Fall & Creek, I-10; 15 minutes only major master-planned golf course community within Beltway 8 (Sam Houston Parkway). Home to or less toTheI-45 & Hwy 59 Golf Club of Houston (formerly Redstone Golf location of Shell Houston Open. • 5 minutesClub), away from Generation Park, Houston’s largest new commercial development. • Close to major retailers and medical facilities Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 Jason Shaw• jshaw@cullenrealtygroup.com • 281.546.9237

D: 29.16 AC

SEC N. SAM HOUSTON PKWY & BELLOWS FALLS LANE

E: 3.22 AC Sold - 11.12 AC Remaining S. SIDE N. SAM HOUSTON PKWY

Meredith Cullen • mtcullen@cullenrealtygroup.com • 713.444.7979 Jason Shaw• jshaw@cullenrealtygroup.com • 281.546.9237

REDNews

TEXAS: ONE OF THE MOST IMPORTANT REAL ESTATE HUBS IN THE U.S.

CPE: Some industry experts argue that because Dallas has a more diverse economy, the economic growth rate might be more sustainable in this city than in Houston. In a game of one-upmanship, what does Dallas offer over Houston and vice versa? West: Dallas has two things going for it over Houston. First, Dallas is the industrial domestic distribution hub of Texas. Dallas’ location, the Dallas-Fort Worth airport and rail access makes it a more central point to bring in goods from Houston, San Antonio, and Mexico. Secondly, Dallas is a major business center. There are more large corporate headquarters in the Dallas area than anywhere else in Texas than Houston. 26 | REDNews.com

States. I agree with Ernest on the natural gas and our abundant petro chemical processing capabilities. With the expansion of the Panama Canal as well as the ports of Corpus Christi and Houston/Galveston being the most equipped on the entire Gulf and Atlantic Coasts to benefit from the increased shipping traffic from Asia, Europe, and South America, this will no doubt contribute to Texas’ growth. This is not only for receiving, but also for export shipping. Texas’ expansion in manufacturing is gaining by such a degree that its rail and port systems have to adapt to exporting rather than importing. CPE: From an investor’s point of view, Dallas and Houston are some of the strongest contenders in Texas. What are the benefits of investing in a market like Austin and San Antonio over those of Dallas and Houston? West: Austin is a market that is booming, but still small enough to get a handle on your investment. Austin has a very strong urban core, primarily because of the State Capital and the main campus of the University of Texas. The city has a very highly educated work force and is a very desirable place to work and live. Dallas and Houston both are so large. With Austin and San Antonio only two hours away from both Dallas and Houston, these markets have the advantage of being able to capitalize on both Houston and Dallas’ commerce, Butch West

s 2014 has come to a close, it is important to notice that Texas has been doing tremendously well and that it has managed to outpace long-established, traditional markets. Taking into account its three powerhouses, Houston, Dallas/Fort Worth and Austin, Texas is on track for becoming one of the most important real estate hubs in the U.S. Just recently, the Urban Land Institute (ULI) in collaboration with PricewaterhouseCoopers (PwC) revealed Houston as the best performing market across the U.S., with Austin and Dallas following closely by in the second and fifth position, respectively. For a more in-depth analysis of the real estate market in Texas, CPE talked to Charles “Butch” West and Ernest Brown IV, CCIM Managing Directors, with KennedyWilson who offered some insight:

Brown: Houston, as Dallas, is a huge industrial market. The edge Houston has over Dallas is the Ports of Houston and Galveston, which connect Houston to the rest of the world. Once the Panama Canal is opened, these container ports will see significant increases in traffic. In short, Houston is a rail, trucking and shipping port, while Dallas is limited to rail and trucking. CPE: We’ve mentioned job growth, a businessfriendly environment and the resurgence of U.S. manufacturing as possible causes for Texas’ considerable growth. What do you think are other contributing factors? Brown: The abundance of low cost and reliable energy is the biggest driver. Companies like Voestalpine out of Austria are locating in Texas after researching multiple locations around the globe ($1.3 billion dollar investment). These companies chose Corpus Christi due to the supply of low-priced, reliable natural gas from the shale plays. One also needs to consider the large quantity of natural resources, such as wet gas, which Texas used to import, and now has ample quantities at lower costs being put to use in multiple manufacturing processes throughout the state. Just take a look at Corpus Christi and other coastal cities in Texas to see the manufacturing renaissance taking place. West: Texas is a business-friendly state with favorable tax advantages over most of the United Ernest Brown, IV, CCIM

RECAP FROM COMMERCIAL PROPERTY NEWS JANUARY 6, 2015 : EXECUTIVE SPOTLIGHT OF BUTCH WEST & ERNEST BROWN, CCIM

Continued on page 28

REDNews

Offering Properties & Hotel Consulting

For Sale

PROPERTIES AVAILABLE • 12 Acres/Private Beach Resort Hotel Site - Galveston, TX • 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

BROKERS, L.L.C.

Hospitality Consulting Services

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

40 Years Experience As Developer | Owner | Operator

H &

• Up to 4,600 SF Available for Lease

Brokers: Ray Hankamer, Jr. rhankamer@hankamer.com Pablo Szub szub@mail.com Jamie Irvine jirvine@hankamer.com Sergio Ortiz sortiz@hankamer.com

(713) 789-7060 • www.hankamer.com

• Ample on-site, lighted parking; nicely landscaped • Built in 2007

(713) 789-7060 www.hankamer.com Brokers: Ray Hankamer, Jr., Pablo Szub,

Medical Development Acreage Athens, TX +/- Acres 109 $1,600,000

MEDICAL CEntEr

• Convenient to Sugar Land, Cinco Ranch, Fulshear, Katy and Pecan Grove • High end finishes including tile and marble • Great access to Hwy 90,99, downtown Richmond and Ft. Bend County Justice Center

Commercial Real Estate Brokerage Firm

Office/Medical/Retail Properties For Lease 1009 Missouri St. Montrose Blvd. @ Missouri St.

AVAILABLE

9703 Westheimer Westheimer Rd. @ S.Gessner AVAILABLE

Large Acreage with Development Potential at Hwy. 19 and Loop 7 in Athens, TX, directly across from East Texas Medical Center. Owner will subdivide. Three hard corners available. 13 commercial zoned acres lie within the city limits, allowing for retail, medical, office and some light industrial uses. High visibility regional corridor.

Office: 281.762.6880 Cell: 713.269.4908 Seth@FirstWarrantyRealty.com www.FirstWarrantyRealty.com

Greenberg & Company

Well Designed Office Space

AVAILABLE

leaSe

• Class A two story building located on four lane divided highway

Contact: Ray Hankamer

HANKAMER & ASSOCIATES

1117 FM 359, R ichmond, Tex as 7 7 4 0 6

Major Thoroughfare

421 Fannin St. Fannin St. @ Prairie St. Premier Office Space

5900 Memorial Dr. Memorial Dr. @ Westcott St. Major Intersection

- Building Size: 3,436 SF - Land Size: 8,300 SF - NET - NET - NET

Between Downtown & Uptown

- Building Size: 4,433 SF - Land Size: 0.35 Acres - Single Tenant Only Great Signage & Visibility

ATASCOCITA - Building Size: 20,000 SF

- Land Size: .295 Acres - Three Level Parking Garage Great Location Downtown - Building Size: 31,662 SF - Land Size: .87 Acres - Min. Term: 5 Years Prestigious Neighborhoods

Contact Broker: David Greenberg - David@greenbergcompany.com Phone: 713-778-0900 Fax: 713-782-7445 5959 Richmond Ave., Houston TX 77057

REDNews.com | 27 GMason_RedNew_3.9x4.7_1214.indd 1

12/8/14 4:51:28 PM

REDNews

offering a higher quality of life. Brown: San Antonio is a very stable city and generally avoids the big swings that Houston, Dallas or Austin can experience. The city has diversified its economy so not to be too reliant on one segment, such as oil and gas in Houston or technology companies in Austin. Growth in San Antonio is taking place in all sectors with the medical field being among the strongest of those. At over 2 million people, close proximity to the Eagle Ford play and a central Texas location, San Antonio is well poised for the future. CPE: What sector made the most significant impact in 2014, and what sector has been overlooked by investors across the state? Brown: The industrial sector was one of the most active sectors of the economy as existing space filled quickly with oil and gas operators continuing expansion throughout the state. This resulted in very high occupancy rates, which in turn has led to a large amount of industrial development. This has been true in the office warehouse, bulk and manufacturing arenas. The revival of the industrial manufacturing sector is likely one of the most overlooked aspects of our economy in 2014. While most people saw growth in the industrial market, they were not aware of the manufacturing concerns that were slowly taking hold. In part this is because it took place slowly over time as more raw product (gas, oil and in particular wet gas) was drawn out of the ground and manufacturers realized the benefit and value of a locally obtained, reliable and less expensive source of raw materials for use in multiple 28 | REDNews.com

Continued from page 26

manufacturing processes. This is also more focused along the Texas coast, where it is â&#x20AC;&#x153;out of sight and hence out of mindâ&#x20AC;? for many professionals not venturing into those areas. West: This is a very interesting question and one that is difficult to answer. As brokers we are always looking for the next best opportunity for our investors. First again, I agree with Ernest on Corpus Christi and South Texas, but the Waco (home of Baylor University) and the Temple/Belton areas are also some of the most overlooked by investors across the state. However, where we see the most opportunity is in the suburbs along the I-35 Corridor between Austin and San Antonio. We regularly meet with the economic development groups from the corridor cities. The biggest need is for industrial/service and flex properties built on a spec basis. What is slowing growth in this area is the lack of spec space for business to move in. There is a lot of money out there and a willingness to develop on a build-to-suit, but the time lag for permitting and construction is causing users to seek secondary locations or bypassing these suburban locations. These cities are willing to fast track development projects and will aid in getting them leased.

a mobility issue. This is why I commented on the financial opportunities smaller cities have along the I-35 Corridor. We see large-scale developments coming up in the surrounding communities. People want to be part of the Austin culture, but will increasingly live and work on the outskirts. Brown: For San Antonio, one of the most interesting trends is the focus of inner city housing around The Pearl and South Town. There seems to be a real shift in desires to live closer to downtown and the lifestyle association thereto. For Houston, it has been the amazing growth in the office market as oil and gas companies have experienced significant growth. CPE: Considering all we have seen this past year in Houston, Dallas/Fort Worth, Austin and San Antonio, what are your expectations for 2015?

CPE: What are the major trends for each city that have come out of 2014?

West: We see no slowdown in the expansive growth within the major metropolitan area of Texas. Texas has such a favorable business and living climate that keeps us at the forefront of business relocations. On top of this is Texasâ&#x20AC;&#x2122; proximity to Mexico. This is one area that we have not touched on yet, but the symbiotic relationship between Texas and Mexico for oil and gas, and rail distribution coming in through El Paso, Laredo and the Rio Grande Valley will be huge for 2015.

West: Dallas and Houston are monsters in growth. Houston is growing because of the petro chemical arena and the port. Dallas is now spread into multiple counties and continues to dominate in corporate expansions. My main focus for the moment is Austin. It continues to expand its hotel and multi-family inventory to the point of creating

Brown: 2015 should be a good overall year. The impact of lower oil prices will dampen, but not stop, development in the shale plays. The benefit of lower gas prices, lower unemployment (positive job growth) combined with central time zone and a southern climate will continue to be positive impacts to the overall economy of Texas.

SAFETY | AMENITIES | VALUE | VISION | BEAUTIFICATION

REDNews

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.

REDNews.com | 29

EPA Adopts New ASTM Standard Environmental Risk Alert: risks! Confused? Don’t take unnecessary As of December 30,Environmental 2013, the Environmental Protection Risk Alert: We the can help you! Adopts New ASTM Standard AgencyEPA (EPA) approved new Phase I Environmental Site EPA Adopts New ASTM Standard

Assessment (ESA) ASTM E 1527-13 standard for All It has As been few months since, the the Environmental Protection Protection of a December 30, 2013 of December 2013, theEnvironmental Environmental Protection AppropriateAsInquiries (AAI)30,Landowner Liability Protections. Agency (EPA) approved thethe new Phase I Environmental SiteSite Agency (EPA) approved new Agency (EPA) approved the newPhase PhaseIIEnvironmental Environmental Site (ESA) ASTM E 1527-13 standard All Assessment (ESA) ASTM E 1527-13 standard for All Assessment (ESA) ASTM E 1527-13 standard All PhaseAssessment Engineering’s Phase I reports comply with for thefor EPA’s Appropriate Inquiries (AAI) Landowner Liability Protections. Appropriate Inquiries (AAI) Landowner Liability Protections. Appropriate Inquiries (AAI) Landowner Liability Protections. ESA requirements. Phase Engineering’s Phase I reportscomply comply with with the Phase Engineering’s Phase I reports theEPA’s EPA’s Full range of nationwide the EPA’s ESA requirements. ESA requirements. professional environmental Licensed & Certified Lender Approved

services including:

Phase I and Phase II ESAs Full range of nationwide Full range of nationwide Full range ofenvironmental nationwide professional Asbestos • Mold• Lead Licensed & Certified professional environmental professional environmental services including: Licensed & Lender Certified Approved Licensed & Certified Stormwater Compliance services including: Lender Approved services Phase I and including: Phase II ESAs Lender Approved Wetlands• PCAs Phase I and Phase II ESAs Phase I and• Phase II ESAs Asbestos Mold• Lead Asbestos • Mold• Lead Stormwater Compliance Asbestos • Mold• Lead Wetlands• PCAs Stormwater Compliance Stormwater Compliance For details on how your due diligence Wetlands• PCAs Wetlands• PCAs can affect your transaction, call us at Melanie Edmundson, P.G., Principal Mobile 713 826 3342 Melanie@PhaseEngineering.com Melanie Edmundson, P.G., Principal Mobile 713 826 3342 Melanie@PhaseEngineering.com Melanie Edmundson, P.G., Principal Melanie Edmundson, P.G., Principal

Mobile 713 826 Mobile 7133342 826 3342 Melanie@PhaseEngineering.com Melanie@PhaseEngineering.com

800 419 8881

For details on howor your due diligence visit can affect your transaction, call us at

Forwww.PhaseEngineering.com. details on how your duedue diligence For details on how your diligence 800 419 8881 or visit cancan affect your transaction, callcall us at affect your transaction, us at www.PhaseEngineering.com. 800 419419 8881 or visit Proud Sponsor 800 8881 or visit www.PhaseEngineering.com. www.PhaseEngineering.com. Proud Sponsor Proud Sponsor Proud Sponsor

Morgan Moliver, Client Services Manager Mobile 817 821 2565 Morgan Moliver, Client Services Manager Morgan@PhaseEngineering.com Mobile 817 821 2565 Morgan@PhaseEngineering.com

Morgan Moliver, Client Services Manager Morgan Moliver, Client Services Manager Mobile 817 821 Mobile 8172565 821 2565 Morgan@PhaseEngineering.com Morgan@PhaseEngineering.com

C A N C A L E N D A R

A N N O U N C E

W H AT â&#x20AC;&#x2122; S HAPPENING i n C R E Te x a s

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!

N E T W O R K

CENTRAL/SOUTH TEXAS

2 0 1 5 Februar y Sunday

Monday 1

TAR, CTCAR 2015 Winter Meeting

Tuesday

TAR, CTCAR 2015 Winter Meeting

Wednesday 3

RECA February Executive Committee Meeting 7:30am-9:00am IREM Austin Board & Committee Chair Luncheon 11:30am-1:00pm RECA Committee KnockOut Night 12:00pm-1:00 pm

10 TAR, CTCAR 2015 Winter Meeting IREM Austin Chapter Luncheon at Westwood Country Club 11:30am-1:00pm

11 IREM San Antonio Candidate and Future Candidate Meeting 11:30am-12:30pm

RECA February Board Meeting 4:30pm-6:00pm

24 Texas BOMA Texas BOMA Advocacy Day at Austin, TX CCIM Central Texas Networking Luncheon & Presentation 11:30am-1:00pm

Friday

Saturday 6

5 IREM San Antonio Board & Committee Chair Luncheon 11:30am-1:00pm

CTCAR MCE COURSE “Advance Income Property Analysis” 8:00am-6:00pm

Thursday

TAR, CTCAR 2015 Winter Meeting

12 CREW Network Winter Leadership Summit in San Diego, CA CTCAR Property Information Exchange 7:30am-9:00am

TAR, CTCAR 2015 Winter Meeting

CREW Network Winter Leadership Summit in San Diego, CA

RECA KnockOut Night 6:00pm-11:00pm IREM Austin Candidate and Future Candidate Meeting 11:30am-12:30pm

Texas BOMA Texas BOMA Advocacy Day at Austin, TX ULI Austin February Breakfast 7:30am-9:00am

FOR MORE INFORMATION VISIT REDNEWS.COM

NETWORKING BOMA San Antonio Holiday & Awards Luncheon

1. David Malley, Patty May, Mandy Jones, President Christine Krueger; Bob Cherniss Achievement Award Winners 2. Vendor of the Year Winner: Brett Nichols with President Christine Krueger 3. 2015 President Adrienne Cox, 2014 President Christine Krueger

CREW Austin Holiday Party

1. CREW members pose with Santa Claus 2. CREW Austin President, Sarah Scott of S3 Creative Solutions with Santa Claus

RECA Ideas Forum

1. RECA guests at the organizationâ&#x20AC;&#x2122;s first Ideas Forum Luncheon of 2015 2. RECA guests attend the forum to hear policy makers and outside business leaders present information on various topics 3. RECA members pose happily after another successful networking event

FOR MORE EVENT PHOTOS VISIT http://www.REDNews.com/category/networking-photos/ IF YOU WOULD LIKE TO SUBMIT YOUR PHOTOS TO BE FEATURED IN THIS SECTION CONTACT: BRISEHYDA MARTINEZ | BRI@REDNEWS.COM | 713.661.6300

NORTH TEXAS

2 0 1 5 Februar y Sunday

Monday 1

Tuesday 3

2 NT CCIM CCIM 101 at Addison Conference Center 8:30am BOMA Fort Worth Monthly Luncheon at Petroleum Club 11:30am-1:00pm CREW Dallas Networking Lunch 12:00pm-1:30pm

NT CCIM CCIM 101 at Addison Conference Center 8:30am

Wednesday

4 NT CCIM CCIM 101 at Addison Conference Center 8:30am CREW Fort Worth New Projects at Edwards Ranch 11:30am-1:00pm NT CCIM Class Happy Hour TBD

11 IREM Fort Worth Luncheon at Colonial Country Club 11:30am-1:00pm

CREW Dallas Breakfast Group 8:00am-9:00am

BOMA Texas Texas BOMA Advocacy Day at Austin, TX

Friday

Saturday 6

5 NT CCIM CCIM 101 at Addison Conference Center 8:30am ULI North Texas WLI Learning Forum 5:30pm-7:30pm

12 CREW Network Winter Leadership Summit in San Diego, CA ULI North Texas Breakfast Forum 7:30am-9:30am

CREW Network Winter Leadership Summit in San Diego, CA

TREC Young Guns Casino Night 7:00pm-9:00pm NT CCIM Luncheon at Park City Club 11:30am-1:00pm

BOMA Fort Worth Board of Directors Meeting 12:00pm-1:00pm

Thursday

BOMA Texas Texas BOMA Advocacy Day at Austin, TX

FOR MORE INFORMATION VISIT REDNEWS.COM 2014 Sponsorship Packages now available! Is your company looking for exposure and recognition in the commercial real estate industry? SPONSORSHIP OPPORTUNITIES START AT $750.

Visit the CREW-Dallas.org website

commercial real estate women

NETWORKING BOMA Dallas Principal Member Event

CREW Dallas Holiday Award Luncheon

1. BOMA guests at the Belo Mansion & Pavilion 2. BOMA members pose happily at the successful networking event 3. Robert Miller, BOMA Texas legislative consultant, provided very interesting information about recent elections and how it will impact the commercial real estate industry 1. Receiving the MOST VALUABLE PLAYER AWARD was Kari Walker-Higgins, with walker+miranda 2. Receiving the OUTSTANDING NEW MEMBER AWARD was Lynn Davis, Bradford Commercial Real Estate 3. Receiving the CREW IN THE COMMUNITY AWARD was Sandra Wilson with Newstone Capital

IREM Dallas Chairs Orientation 1. IREM 2015 hosts a successful Chairs Orientation at Spectrum Center 2. IREM leaders conduct a great 2015 planning session 3. IREM chairs brainstorm innovative goals and ideas for 2015

SOUTHEAST TEXAS

2 0 1 5 Februar y Sunday

Monday 1

Tuesday

Wednesday 3

Thursday

Friday

CREW Network Winter Leadership Summit in San Diego, CA

24 IREM Houston ED Course - Managing the Physical Asset 8:00am-5:00pm Texas BOMA Texas BOMA Advocacy Day at Austin, TX ACRP Cocktails/Networking 5:00pm-7:00pm

IREM Houston ED Course - Managing the Physical Asset 8:00am-5:00pm Texas BOMA Texas BOMA Advocacy Day at Austin, TX

IREM Houston ED Course - Investment Real Estate: Financial Tools 8:00am-5:00pm CREN Houston Happy Hour

HOLBA Landlord Rep of the Year at Maggiano’s 5:30PM-7:30PM

CREW Network Winter Leadership Summit in San Diego, CA GHP State of the County 10:30am-1:30pm CCIM Houston CRE Forecast Competition 8:00am-12:00pm

19 BACREN February Luncheon 10:30am-1:00pm GHP Member Engagement Meeting 9:00am-10:30am

CREW Houston Dine Around - Saks Fashion Show FBSCR February Meeting 8:00am-9:00am

7 HOLBA 30th Anniversary and Landlord Appreciation Party 5:30PM-7:30PM

CREN Houston February Luncheon 11:00am-1:00pm

GHP Greater Houston Day Reception 6:00pm-7:30pm

CREW Houston February Luncheon 11:30am-1:00pm

Saturday

CREN Houston Marketing Session 7:30am-9:00am

AAREA Spring Gala 2015 6:30pm-11:30pm

27 IREM Houston ED Course - Investment Real Estate: Financial Tools 8:00am-5:00pm CREW Houston Career Day at Barbara Jordan High School 7:45am-1:00pm

Your real estate de

Count on a CPM® professio

CPM® To find a CPM® in your area, visit www.irem-dallas.org

FOR MORE INFORMATION VISIT Networking

Educat ion

Technology

CCIM Course Scholarships

For o turn

A CP z De z Ple REDNEWS.COM z sta Pro

NETWORKING ACRP Holiday Party 1. George Purvis, Charity Mayo, Perry Seeberger, Alison Jarvis 2. Leland Smith, Charity Mayo, Michael Kopecky 3. Amy Nicholson, Cynthia Brown, Jason Atkinson, Beccy Whyte

CREW Houston Luncheon

1. 2015 CREW Houston Committee Chairs and Co-Chairs 2. Debra Gilbreath, CREW Houston President, Jeffrey Gerber, CEO of PGAL, Michael Scheurich, President and CEO of Arch-Con Construction, Michelle Wogan, CREW Houston moderator

IREM Houston January Luncheon 1. IREM members pose for a picture prior to the start of the event 2. IREM members pose happily after another successful networking event 3. IREM members ready to enjoy the organizationâ&#x20AC;&#x2122;s first luncheon of the year

REDNews

Carrie Caesar

ANNOUNCEMENTS Central/South Texas

Carrie Caesar has been elected as the new president of the Commercial Real Estate Women (CREW) Network, in San Antonio. She works for CBRE San Antonio.

Austin/San Antonia Areas

DEALS I

Austin, TX: (CONSTRUCTION) Trammell Crow Company in joint venture with Clarion Partners is constructing a 239,205 SF warehouse, flex & manufacturing project in two buildings at the Expo Business Park between I-35 & Austin-Bergstrom IAH. Laredo, TX: (LEASE) Two tenants will house distribution operations in Majestic Realty’s 240,837 SF facility at 301

Vallecillo Road and an 88,8828 SF property at 8402 West Bob Bullock Loop. A third tenant will occupy a 7,000 SF location at 12512 Mercury Drive for truck maintenance & leasing. Austin, TX: (LEASE) Doug Rauls and Jeff Henley of Kucero Cos leased 11,000 SF to the Tech Ranch business incubator at

8920 Business Park Drive.

Austin, TX : (LEASE) Mattress Firm signed a lease for 99,200

SF at 401-B Parker Drive, Building 9 in Northeast Austin’s Corridor Park Corporate Center. The tenant was represented by Damian Rivera of E Smith Realty Partners. Scott Studzinski of Live Oak-Gottesman represented the landlord, Prologis. Austin, TX:

(SALE) Randy Guzinsky of KW Commercial

sold a 4,700 SF warehouse at 1417 West Anderson Lane to a local commercial investment group. The seller was represented by Randy Beaman of Capella Commercial.

Austin, TX: (SALE) Eastbourne Crossing, LP sold 385.684

acres located at the SWC of SH-71 & SH-130. An adjoining 4.886 acres at the corner of FM 973 & SH-71 was sold by 973 Retail, LLC. Both tracts were sold to a local investment group. The sellers were represented by Joyce Jane Weedman, Josh Hubka, CCIM, and Kurt VanderMeulen, all of REOC Austin. The buyer was represented by Karl Koeble, CCIM and Doug Launius with Marketplace Real Estate Group.

L T

F A

L Y

Medical Center I & II. The buildings total 166,167 SF and are located at 9150 Huebner Road in the South Texas Medical Center. Austin, TX: (SALE) Ogle Properties purchased a 56,100

SF office building at 8920 Business Park Drive and Hyridge Plaza, a 30,300 SF building at 8716 N. Mopac Expressway. Doug Rauls of Kucero Cos handled the transaction for the buyer.

O F F I C E / R E T A I L

Lakeway, TX: (SALE) Lise Wineland and Butch West of Kennedy Wilson represented the sell-

er of the 36, 332 SF office/retail project located at 107 Ranch Road 620 in Lakeway, Texas.

Georgetown, TX:

(CONSTRUCTION)

Del Webb, a

national homebuilder, will develop an additional 1,100 acres at its Sun City Texas active adult community in Georgetown. Infrastructure work is scheduled to begin early 2015 with home construction this summer.

Lakeway, TX:

(SALE)

Ashford Hospitality Trust, a

Dallas-based REIT is purchasing the Lakeway Resort & Spa, 101 Lakeway Drive, for $33.5 million. The sale includes a 168 room hotel with 24,000 SF of meeting space.

Round Rock, TX: (LEASE) Verde’s Parrilla & Tequila

signed a three year lease for 10,998 SF at Sky Ridge Plaza, 2000 I-35 just outside of Austin. Andrew Perkel and Jerel Choate of Retail Solutions represented the landlord, Aramcor.

San Antonio, TX: (SALE) Price Development Group sold

Broadstone Colonnade, a 282- unit project located at 4330 Spectrum One to an undisclosed buyer. Charles Cirar, Ryan Epstein and Michael Wardlaw with CBRE represented the seller.

S E N I O R - L I V I N G

O F F I C E / M E D I C A L

Oak, a Class-A assisted living and memory-care facility. This project has 99 units and the buyer plans to construct a second phase with an additional 63 units. CBRE negotiated the transaction.

San Antonio, TX: (SALE) Equity Inc., Equity Velocity Fund I LLC and 2GR Equity LLC formed a joint venture to buy Huebner

38 | REDNews.com

San Antonio, TX: (SALE) A joint venture between Franklin Development Properties and Harrison Street Real Estate Capital has purchased Franklin Park Stone

For more deals go to: www.REDNews.com/category/deals-and-announcements/

REDNews

John Brewer

ANNOUNCEMENTS North Texas

John Brewer has joined Transwestern’s Industial Team. With more than 21 years of experience, Brewer will focus on industrial tenant and landlord representation. Brewer was formerly with CBRE.

Dallas/Ft. Worth Areas

DEALS H

Irving, TX: (SALE) Wilmington, DE based The Buccini Pollin Group (BPG) acquired the DoubleTree by Hilton DFW Airport

North at 4441 W. John Carpenter Fwy. “BPG continues to execute its strategic plan of acquiring full-service, stabilized hotels in primary and secondary markets and selecatively developing new hotels in high barrier-to-entry urban locations” according to Dave Pollin. Cofounder of the company.

(CONSTRUCTION) Global manufacturing company Center, Texas-based Portacool, LLC plans to build

Dallas,

TX:

a new North American distribution hub totaling more than 200,000 SF off I45 near I 20 at the Dalport Trade Center. CFO Rob Kennedy indicated they plan to consolidate their operations at this facility. Allen, TX: (SALE) Austin-based investment firm, Davis/ Parmer Investments LP purchased Cornerstone Crossing, at 1300 N. Central Expressway. Susan Singer and Leigh Richter

with Bradford Commercial Real Estate Services co-brokered the transaction

Fort Worth, TX: (SALE)

Rainier Realty Investments

purchased an 18-acre site at 7100 Oakmont Blvd for redevelopment for a mixed-use project including restaurant, retail and other office, medical and specialty uses. Bob Scully and Nanci Johnson-Plump with CBRE will lead the marketing team for Rainier.

Dallas, TX: (SALE) John Bielamowicz of Biel Partners LLC handled the sale of the 25 acre property located at 1000

Singleton Boulevard from Austin International to Stonelake Capital Partners. Ben Beaird of HFF represented to buyer.

Dallas, TX: (DEVELOPMENT) Trammell Crow Co & MetLife Inc are developing Park District, a mixed-use development that

will bring 916,000 SF of office, residential & retail space to Uptown Dallas. The project is located between Pearl & Olive streets.

M U L T I - F A M I L Y Dallas, TX: (SALE) Rockstreet Partners, a real estate

private equity firm, has acquired Brazos Apartments, a 286-unit project located near Plano, Texas. The project was acquired in a joint venture with B/K Real Estate Funds LP, a Dallas based real estate investment and advisory firm. Dallas, TX: (SALE) Dallas-based real estate investment & management firm Presidium Group LLC has purchased more than 1000 apartments in Dallas-Fort Worth including Spring Hill Apartments in Richardson and the Plaza on Harvest Hill in North Dallas. Dallas, TX: (SALE) CBRE Capital Markets’ Multifamily team in Dallas sold The Villas on Fair Oaks for California-

based CCC&R Investment Group. Vizao TTH Partners II, LP purchased the project. The project is located at 7222 Fair Oaks Avenue. Chris Deuillet, First Vice President with CBRE represented the seller.

TopGolf has signed a lease for 36,221 SF at Northpark Central Building at 8750 N. Central Expressway. Steve Zimmerman of The Retail Connection represented TopGolf and Duane Henley and Fletcher Cordell of Transwestern represented the landlord, The Cornerstone Group. Dallas, TX:

(LEASE)

Dallas, TX: (CONSTRUCTION) Dallas-based Prescott Group is developing 2727 Turtle Creek, a 380,000 SF

office tower. The project will be located on 5 acres close to Uptown. Dallas, TX: (SALE) A real estate investment division of Hoque Global led by downtown Dallas restaurateur Mike Hogue has purchased the Adolphus Tower at 1412 Main Street from Henry S. Miller Cos. Darrell Hurmis of Henry S. Miller Brokerage and Jonathan Diamond of United Commercial Realty brokered the transaction. Fort Worth, TX: (SALE) Cousins Properties, the Atlanta-

based real estate investment trust, sold 777 Main Street to an unnamed buyer. The Fort Worth tower is located in the CBD and includes +/- 1million sf.

For more deals go to: www.REDNews.com/category/deals-and-announcements/

REDNews.com | 39

REDNews

Southeast Texas

Bart Barrett

David Littwitz

ANNOUNCEMENTS

Atlanta-based real estate company Wood Partners named Bart Barrett as a director of its Houston office. Prior to joining Wood Partners, Bart was the managing director at Alliance Residential Company since 2011.

EDGE Realty Partners has announced that David Littwitz has joined the company as Vice President. Prior to EDGE, David was with Chodrow Realty Advisors for 5 years where he focused on restaurant site selection for clients.

Houston Area

Houston, TX: (BUILD-TO-SUIT) Swedish-based Alfa Laval AB’s US subsidiary, Alfa Laval, signed a long term build-to-suit lease for 105,000 SF within the Pinto Business Park. They will be consolidating their Houston based employees in one location. Hines, along with Pinto Real Estate Development, Inc and KKR represented Pinto Business Park. Jeff Venghaus and Jarret Venghaus of JLL represented Alfa Laval. Houston, TX: (SALE) NAI Houston represented Ashley-Jordyn

Properties, LLC in the purchase of a 45,000 SF warehouse located at 5633 Old Clinton Drive. Clay Pritchett, SIOR of NAI Houston represented the buyer and Bill Locher & Wes Williamson of The Locher Group presented the seller, Amtech International, Inc.

project. David Marshall of ARA represented Watermark in the purchase and Johnson Development Company was the seller. (SALE) Dallas-based Presidium Group has acquired two apartment projects in the Galleria area including the 381-unit Hillcroft Apartments and the 112unit Colonial Woods at 6333 Windswept. Presidium Group owns and operates more than 11,000 apartment units throughout Texas. Houston, TX:

The Woodlands, TX: (CONSTRUCTION) The J. Beard Real Estate Company is constructing Havenwood Office

Park at 25700 I045 North between Woodlands Parkway and Sawdust Road. The project will be a four-story, 250,000 SF Class”A” office project.

Fuller 59/36 Ltd., an affiliate of Fuller Realty Partners sold 65.64 acres fronting I-69/SH59 near Highway 36. Bill Smith, Steve Darnall & Stewart Smith of Fuller Realty Partners represented the seller. The purchaser was GMC Land Company LLC and was represented by Jim Shaw of JPR Commercial.

Houston, TX: (SALE) FG Asset Management has purchased 3000 Post Oak, a 441,523 SF office building within the Lakes on Post Oak. The sale was a joint venture between an affiliate of Five Mills Capital Partners LLC and Crocker Partners. HFF presented the seller and arranged acquisition financing.

NAI Houston represented Steadfast Development Company LLC in the purchase of 5.0886 acres of industrial land at Willow Place N & Willow Place W from Revo II, LP. The buyer will construct new spec industrial buildings on the property. Travis Land, SIOR and John Ferruzzo, SIOR of NAI Houston represented the buyer and Keith Grothaus of Caldwell Companies represented the seller.

Houston, TX: (SALE) SH Crossing I LP, a joint venture between Fuller Realty Partners and Independencia bought the three-story, 159,175 SF Sam Houston Crossing I building at 10343 Sam Houston Park Drive. HFF represented the seller, Duke Realty Corp and Chambers Street Properties.

Rosenberg, TX:

(SALE)

Houston, TX: (Sale)

ASI Investments LLC purchased 10 acres at the SWC of W. Fuqua & Hillcroft at the Fort Bend Toll Road. Jake Wilkinson of NAI Houston represented the buyer and Tom Carter of Greater Houston Commercial Properties represented the seller, CG Reserve 164, Inc. Houston,TX:

Houston, TX: (DEVELOPMENT) Midway Development is

building Memorial Green, a mixed-use & residential community on about 14 acres at 12601 Memorial Drive across the street from Lantern Lane Shopping Center. The back portion of the property will include 57 single-family homes.

(RE-DEVELOPMENT) Archstone Memorial Heights was sold to Midway Company and The Lionstone Group. The older apartment project is situated on 23 acres on S. Heights Blvd between Memorial Drive and Washington Avenue. Matthew Rotan with ARA brokered the transaction and anticipates that a mixed-use development will be developed on the site. Houston, TX:

L T

F A

L Y

Watermark Residential purchased 21.5 acres of land at Sienna Parkway and Fort Bend Parkway for the construction of an apartment Ft. Bend County, TX:

40 | REDNews.com

(CONSTRUCTION)

DEALS

Houston, TX: (SALE) Unilev Capital Corporation has purchased 1500 CityWest, a 192,313 SF, 10-story office building in Westchase. The building is located at CityWest Blvd & Briar Forest Drive. JLL Capital Markets reprsented the seller, Metro National. (SALE) Whitestone REIT sold three Clear Lake office buildings for $10.3 million or a 7.7% cap rate. The portfolio consists of 37,740 SF Zeta Building at 1020 Bay Area Blvd, 24,900 SF Royal Crest Townhome Offices at 16815 Royal Crest Drive and 49,7560 SF Featherwood at 12727 Featherwood Drive. The two story properties were sold because they did not fit Whitestone’s business model.

Clear Lake, TX:

Sugar Land, TX: (SALE) Whitestone REIT paid a total

of $40.7 million for two Sugar Land retail properties including Williams Trace Plaza, a 129,222 SF center and Shops at Williams Trace, a 132,991 SF center located at 2200 – 2400 State Highway 6 near the Sugar Land Town Square. The seller was a partnership formed by Henry S. Miller Cos and Dome Equities LLC. Henry S. Miller representatives included Greg Miller, Chance Johnson and John Downs. HFF’s Rusty Tamlyn, Ryan West, Matt Berry and Robbie Kilcrease with HFF arranged the sale.

For more deals go to: www.REDNews.com/category/deals-and-announcements/

REDNews

CLASSIFIEDS Protecting Property Owner’s Rights

Eminent Domain Compensation for Roads • Pipelines • Power Lines

“During our move, Move Resource Group was able to set us up in our new office with zero downtime for our company, which saved us from losing revenue that would have resulted from fewer working days. Move Resource Group is worth every penny!” - Jenette W., Cinco Energy Services

www.ShowalterLaw.com

281-341-5577 • Info@ShowalterLaw.com

EMAIL BLAST PACK AGES

EMAIL BLAST PACK Standard email blast packages (regularly pricedAGES at $245 per email blast): 4 Blast Package - $880

Standard email blast packages (regularly priced at $245 per email blast): 6 Blast Package - $1,188 Blast Package Package -- $1,500 $880 104 Blast 6 Blast Package - $1,188 10 Blast Package - $1,500

Priority Schedule email blast packages (same time every week): 20 Blast Package (60 day duration) – $2,800 - $140 per blast 40 Blast Package (120 day duration) – $5,200 - $130 per blast 20 Blast Package (60 day duration) – $2,800 - $140 per blast 40 Blast Package (120 day duration) – $5,200 - $130 per blast

Priority Schedule email blast packages (same time every week):

281-205-7956 Moverg.com

For more information contact: Bri@rednews.com Priority Schedule email blast packages with Priority Schedule Social Media bonus email blast packages with 4Social Blast Package $1,080 Media –bonus 6 4 Blast Blast Package Package –– $1,488 $1,080 10 Blast Package––$1,488 $1,900 6 Blast Package 20 10 Blast Blast Package Package –– $3,300 $1,900 40 Blast Blast Package Package –– $3,300 $5,800 20

ADVERTISER INDEX

40 BlastTwitter, PackageLinkedIn, – $5,800Website, Newsletter) (Facebook,

A. A. Realty Company

First Warranty Realty

(Facebook, Twitter, LinkedIn, Website, Newsletter)

For more information contact: JP@rednews.com or Bri@rednews.com For more information contact: JP@rednews.com or Bri@rednews.com

ACRP

Fuller Realty Partners, L.L.C.

1- SE Texas, 5

BACREN

Greenberg & Co.

Bearden Development Inc.

Greg Mason Landman

Blake Hillegeist Real Estate

Hankamer Commercial Brokers, LLC

Caldwell Companies

12, 13

IREM Houston

CBRE

22, 23, 25

Levcor, Inc.

CCIM Central Texas

McAlister Real Estate

21, 24

CCIM Houston

36, 42

MOVE Resources

CCIM North Texas

Newmark Grubb Knight Frank

Colliers International

Phase Engineering, Inc.

C.R.E.A.M.

Pinecroft Realty

2, 44

CREN

R. S. Hart Commercial Brokerage, L.L.P.

CREW Dallas

Richland Investments, Inc.

CREW San Antonio

Showalter Law Firm

CTCAR

Stream Realty Partners, LP

1 - North Texas, 3

Cullen Realty Group

18, 25

Tarantino Properties, Inc.

8, 9

Culver/LANDTX Inc.

Westchase

29 REDNews.com | 41

2015 Economic Update by

Keynote Speaker: Mark Dotzour, PhD. Texas A&M Real Estate Center

February 13, 2015

●

8:00 AM

●

Westchase Marriott

Forecast Competitors Include Speakers From Five Markets Office Market: Scott Martin, Granite Properties vs Steve Burkett, CCIM, JLL Multi-Family Market: Ryan Epstein, CBRE vs Brian Dinerstein, The Dinerstein Companies Retail Market: Jeff Read, Read King vs Jason Baker, CCIM, Baker Katz Industrial Market: Tom Lynch, SIOR, CBRE vs John Ferruzzo, NAI Houston Land Market: Carlos Bujosa, Transwestern vs Kirk Laguarta, Land Advisors

Moderators

Office Market: Brad Marnitz, NAI Houston Multi-Family Market: Greg Austin, Berkadia Retail Market: Lilly Golden, CCIM, Evergreen Commercial Realty Industrial Market: David Boyd, CCIM, SIOR, Boyd Commercial Land Market: David Hightower, CCIM, Wolff Companies

Sponsors:

Includes 4 Hrs MCE (pending)

FOR LEASE

OFFICE/RETAIL SPACE 1. Woodland Park Shopping Center 11380 Westheimer, Houston 77077

• 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

2. Kaleidoscope

10612-10692 Westheimer, Houston, TX

• 2 blocks west of Beltway 8 • 2,952 SF - 2nd floor • Excellent for retail, office or professional use

3. Park West Plaza

8989 Westheimer, Houston 77063

• 20,000+ SF Available • Up to 6,000+ SF Contiguous Space • Aggressive lease terms - $13.00/SF Gross • Generous surface parking at no charge for open, non-reserved spaces • Card-key controlled access • Pylon signange available • On-site management • Parking ratio - 3.4/1000

Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108

A A Realty Co

eleung8888@aol.com

www.aarealtytx.com A A Realty Co

Accredited Management Organization

Beltway 8 West

For more information

3 Westheimer Rd

a Westpark Tollw

POSTMASTER: PLEASE EXPEDITE TIME SENSITIVE MATERIAL 5909 West Loop South, Suite 135, Bellaire, Tx 77401 Return Service Requested

PRSRT STD U.S. POSTAGE PAID Permit No. 2436 DALLAS, TX

Address Service Requested If this person is no longer with your company, please notify subscriptions@rednews.com or call 713-661-6300

Medical, Office, Retail & Industrial V i s i t U s a t w w w. P i n e C r o f t R e a l t y. c o m

Medical Arts Center II - 17350 St. Luke's Way - The Woodlands, TX Spaces available from 1500 SF - Rents from $23.00 RSF

9303 Pinecroft - The Woodlands, TX Two (2) spaces available - $23.00 RSF NNN

Kuykendahl Professional Plaza II - 10857 Kuykendahl Rd. - The Woodlands, TX Two (2) spaces available - Rents from $21.50 RSF NNN

Six Pines at Research Plaza II - 8845 Six Pine Dr. - The Woodlands, TX Retail lease space available from 1500 SF - $30.00 NNN

17191 St. Luke's Way - The Woodlands, TX One (1) space remaining - approximately 3094 SF - $23.00 RSF NNN

.818 ac. Pad Site on Kuykendahl - The Woodlands, TX Ground Lease - Call for more details

27309 Spectrums Way - Oakridge North, TX Pre-Leasing 15,840 SF office/warehouse space - $8.40 RSF NNN

Spring Medical-Retail Plaza - 20631 & 20635 Kuykendahl Rd. - Spring, Tx Retail/Office space available from 1500 SF - Rents from $15.00 RSF NNN

FM 2920 Plaza I Development - 2950 FM 2920 - Spring, TX Pre-Leasing medical/retail - $22.00 RSF NNN

10.

2828 FM 2920 Development - Spring, TX Pre-Leasing approximately 31 ac mixed-use - 1 mi. south of Exxon Campus

11. 12.

Rayford Road MOB/Retail - 440 Rayford Rd. - Spring TX Pre-Leasing - one space available - $23.00 RSF NNN

13.

Grand Parkway MOB - 7830 W. Grand Parkway S. - Richmond, TX Spaces available from 1500 SF - $21.00 RSF NNN

14.

Visionary Health I - 22659 Hwy 59 N. - Kingwood, TX Pre-Leasing single story MOB/Retail space - $23.00 RSF NNN

15.

Visionary Health II - 22659 Hwy 59 N. - Kingwood, TX Pre-Leasing three-story MOB - $21.00 RSF NNN

Oakbend MOB - 22001 SW Fwy - Richmond, TX Spaces available from 1500 SF - $21.00 RSF NNN

For more proper ties see page 2