REDNews June 2014 -Southeast Texas

June 2014

In this issue:

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

The Economic Outlook for Real Estate Cinco Ranch: Origins of a Top Selling Master-Planned Community in Texas Office Developers Answer in San Antonio Buying and Selling Houston’s Highland Village

Town CenTre one

The

of

Epicenter

West Houston

600 SF to 14,200 SF - FULL FLOOR AVAILABLE 6 % COMMISSION AVAILABLE Parkway Plaza I & II 14110 & 14114 N. Dallas Parkway Dallas, Texas 75254

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• Dallas Platinum Corridor Market • Access to The Tollway, George Bush Turnpike, and LBJ Freeway • Near the Galleria • Free Garage Parking • Walking Distance to Several Restaurants and Shops • Recently Renovated Lobby, Common Areas, Restrooms, and Landscaping • Conference Facility On-Site • Management On-Site • Deli On-Site • Drive Thru Chase Bank in Building • Energy Star Rated • BOMA 360 Award

Mention this Ad for a $500 Gift card at Lease Signing * Lease must be signed before 12/31/14 to receive commission bonus and gift card.

Jessica Myhre-Cyphers 972.788.4988 jcyphers@hi-reit.com

Hartman Income REIT Management, Inc. Corporate Broker License #9002307 www. HI-REIT.com

The information contained herein was obtained from sources deemed reliable; however, Hartman Income REIT Management, Inc. makes no guaranties, warranties or representations to the completeness or accuracy thereof. The presentation of this real estate information is subject to errors; omissions; change of price; prior sale or lease; or withdrawal without notice.

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127,200 SF

Claymoore Business Park KEMPWOOD DRIVE

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TM

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AD

Darryl Noon 713.270.3325 darryl.noon@transwestern.com

Brian Gammill 713.270.3321 brian.gammill@transwestern.com

8 AY LTW

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For Leasing Information:

Jude Filippone 713.270.3318 jude.filippone@transwestern.com

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Table of Contents

Cinco Ranch: Origins of a Top-Selling Master-Planned Texas Community 10 – 12 Office Developers Answers the Call in San Antonio

14, 16

| GROWTH | SAFETY | AMENITIES VISION | BEAUTIFICATION The Economic Outlook for Real Estate Investors & Decision Makers

18, 20

More Bang For Your Buck in Houston Healthcare Properties

24, 25

BUZZ: Buying & Selling Highland Village Helped Me Achieve My Boyhood Dream

26, 28

Last Page: My Last, Last Page - My First Year in CRE

Properties For Sale/Lease

42

1-3, 5, 7-9, 13, 15, 17, 19, 21-23, 27, 41, 44

Commercial Services

Now, you have 3 million new reasons to move to Westchase District Banking/Lending

25

Environmental

30

Moving & Relocation

41

What’s Happening in Texas CRE Calendar of Events

32, 34, 36

Networking Photos

33, 35, 37

Deals & Announcements

4 REDNews.com

38 - 40

Town CenTre one

A 10-Story, 254,452 SF Class A, LeeD-Gold Certified office Building Convenient access to the offices in the Energy Corridor, Westchase Business District, Downtown and The Galleria.

BUILDInG FeATUreS PHASe I - Completion January 2015 • 10 floors - 254,452 square feet • 26,713 - square-foot floor plates • Town Centre will be in the middle of a 2.2 millionsquare foot shopping, restaurant, business and entertainment destination • Dedicated attached parking garage 3.9/1000 • Architectural masonry and glass curtain wall exterior • Two-level stone and wood lobby • Class AAA area finishes • Dual-pane low-E glass TOWN & COUNTRY VILLAGE:

• Four high-speed geared elevators THE BROWNSTONES AT CITYCENTRE

ALLERGY AND ASTHMA ASSOCIATES

QUIZNOS

CITYCENTRE:

RESIDENTIAL APARTMENTS

13 19 5 4

CREME DE LA CREME DAY CARE CENTER

• Covered climate-controlled walkway from garage

THE DOMAIN APARTMENTS

THEATER

TOWN CENTRE EIGHT-LEVEL GARAGE

TOWN CENTRE TWO

THE REBUS AGENCY MEMORIAL SLEEP CENTER

11H 11H2

9

11I

FRONTIER TITLE

11J GARY GREENE REALTOR

11J2

11EK

MEMORIAL HERMANN

THE LOFTS AT CITYCENTRE

CITYCENTRE

HOTEL SORELLA

CITYCENTRE WAY

STUDIO MOVIE GRILL (LEVEL 2)

TOWN CENTRE ONE

QUEENSBURY LANE

LIFESPA SALON

PLAZA WAY

TOWN AND COUNTRY WAY

11A

SMASHBURGER

LIFETIME ATHLETIC

26F 26E 26C 26D 26B 26A

27D

27C

27B

11C

27A

TOWN & CO UNT RY 23L

23J

23F

23A

TA S

NS TE SE

A TI O N

GRAND PLAZA PARK DRAPER AND DAMONS

11D2

11D BAILEY BANKS & BIDDLE

SOFT SURROUNDINGS

MASSAGE HEIGHTS COLDWATER CREEK

RELAX THE BACK

23B

23C HUGO CALIENTE

23D

EVERYTHING BUT WATER

21D 21B

21C

19 C

19 B 19 A

6D

7

6C

5B

5A

4B

6B WELLS FARGO

7B

6A

HOUSTON EAR NOSE & THROAT

3D

4A 3F

3C 3B

JO ANN’S

3G 3H

W SAM HOUSTON N PKWY / BELTWAY 8

For LeASInG InForMATIon:

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11F 11E

2

W SAM HOUSTON N PKWY / BELTWAY 8

713-773-5531

12

BLVD

23E

POST OAK BANK

Kevin nolan

13A

20 23G

SORELLA COURT

knolan@moodyrambinint.com

13B

18

21A

Bob Cromwell

14B

23H

SORELLA MEETINGS AND EVENTS CENTRE

bcromwell@moodyrambinint.com

14A

THE ACCESSORY PLACE

22

23I

EW A N

NORRIS CONFERENCE CENTERS (LEVEL 2)

11B

NORI SUSHI BISTRO

15

23K

16

8 MANAGEMENT OFFICE

CHURCH

KIMBERLEY LAN E

• 24/7 security

WEST BOUGH

retail and specialty stores restaurants and eateries ELEMENTARY SCHOOL services residential

Dan Moody III

dan.moody3@moodyrambin.com

713-773-5540

700 Town & Country Boulevard, Houston, Texas 77024

• TOWNCENTREONE.COM

3A

MEMO RIAL DRIV E

• Dedicated freight elevator

37 retail and specialty stores 20 restaurants and eateries MEDICAL OFFICE BUILDING 31 services

PUBLISHER

Ginger Wheless

Publisher’s Letter

ginger@rednews.com

EDITOR Marjorie Gohmert marjorie@rednews.com ASSISTANT EDITOR Carol Swiantek

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

STAFF WRITER Janis Arnold CONTRIBUTING WRITERS Ray Hankamer rhankamer@gmail.com Austin - Jill Rowe San Antonio - Kim Gatley ART DIRECTOR Connie Marmolejo - connie@rednews.com ACCOUNTING Benton Mahaffey accounting@rednews.com DIGITAL ENGAGEMENT DIRECTOR Chris King chris@rednews.com E-MARKETING Chris King chris@rednews.com SALES Catherine Cagle catherine@rednews.com Ginger Wheless ginger@rednews.com

Print & Digital Distribution

Dear Readers, As I write this, I know many of you are en route to Las Vegas for ICSC. I hope you’ve had great success, arrived home happily exhausted and are getting deals done! Thank you to Boxer Retail and MIMCO for their camaraderie and assistance at the show.

We welcome Catherine Cagle to our REDNews’ team. You’ll be seeing her at events in Austin and San Antonio. Get in front of her camera and tell us about your deals so we can share your picture and let the CRE world know about your latest prospects.

REDNews is directly mailed each month to commercial real estate brokers, investors & developers in the following cities /areas as well as 200+ locations throughout Texas: Texas Brokers 7,650 Texas Leasing / Tenant Rep 6,232 Texas Investors 4,979 Texas Developers 4,710 Outside Texas Investors, Brokers, Developers, etc 81,577 Total REDNews Distribution 105,148

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

We are exploring new marketing channels for our clients. As we roll out more comprehensive campaign style advertising packages, we will give our clients monthly analytical reports that fine tune advertising intelligence, allowing you to react more aggressively to market changes.

The July issue of REDNews will focus on land and investment opportunities. We’ll have more on the Outlook of Texas Land Markets from the San Antonio Conference, articles from our favorite contributors and perhaps a fresh voice, or two.

Tell us your best stories from ICSC. We’d love to hear them. Send an email or go to our website www.rednews.com/icsc . Don’t forget to send pictures.

What happens in Vegas shouldn’t stay in Vegas. It should come back to Texas and make deals happen.

Ginger Wheless

6 REDNews.com

Personalized Service. Proven Results.

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FOR SALE, FOR LEASE | 8313 Southwest Freeway

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

Kris Lilly| klilly@tarantino.com | 713-772-6633

256 N. Sam Houston Pkwy

Airport Office Building | For Sale or Lease

256 N. Sam Houston Pkwy, Houston, TX

8031 Airport Boulevard, Houston, TX

• 1,200 – 18,000 SF Available

• • • •

• Located just 15 Minutes from IAH • Building Signage Available • Gernerous Building Allowance • Competitive Rates & Terms

Eric Ohlson | eohlson@tarantino.com

Excellent Owner/User Purchase Opportunity Full Floor Available Across From Hobby Airport Great Location – Perfect Combination of Local Access and Global Reach • Building Identity Available

Peggy Rougeou | peggy@tarantino.com

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

San Antonio Office:

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

Bingle Village Shopping Center

2305-2339 Bingle Road Houston, TX 77055 • 3,263 – 8,976 SF Retail Space Available • Pylon Signage Available • Extensive Parking • Landlord will Build to Suit for Credit Tenant

Eric Dr ymalla | edr ymalla@tarantino.com

De Zavala

Austin Office:

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

Angleton Four Corners Shopping Center

1804 N Velasco Street Angleton, TX 77515 • • • • •

2,137 – 14,234 SF Retail Space Available Center is Located Across the Street From Wal-Mart Pylon Signage Available Traffic Count Exceeds 13,000 Cars Per Day Retail Center Remodeled in 2014

Peggy Rougeou | peggy@tarantino.com

West Oaks Center

12770 Cimarron Path San Antonio, TX 78249

2838 S Hwy 6 Houston, TX 77082

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

• 1,200 & 1,600 SF Retail Spaces Available

• Climate Controlled Warehouse • Generous Tenant Finish-Out Allowance • Northwest Location with Easy Access to I-10 & 1604

Coni Jenkins| cjenkins@tarantino.com

• Excellent Location- Highway 6 & Richmond • Strong Co-Tenancy- Papa John’s, Subway, Ace Cash Express • Traffic Count Exceeds 244,000 Cars Per Day

Eric Dr ymalla | edr ymalla@tarantino.com Peggy Rougeou | peggy@tarantino.com

Cinco Ranch: Origins of a Top Selling Master-Planned Texas Community REDNews Interviews Bill Wheless III

developed in its current capacity for close to thirty years. But where did it all begin?

There is information on you, your family, and the Blakeleys owning the property in 1937.

It started with the father of the Father of Texas, Moses Austin. The Spanish government gave the blessing for Moses Austin to settle hundreds of families into the area. His son Stephen F. Austin, the Father of Texas, finished this settlement while Texas was still under Mexican government.

One of those settlers was Randolph Foster who was deeded 4,000 acres in Fort Bend and Waller counties, which at the time were occupied predominantly by Indians and buffalo.

Mr. Wheless: Yes, I’ve seen some of that. My grandfather, William M. Wheless Senior, was head of the Land Department for the Gulf Oil Company.

He did a lot of transactions representing Gulf with Mr. James Abercrombie who was an extremely successful independent oil man.

Foster’s daughter married Thomas Blakeley, cattleman and future sheriff of Fort Bend County.

His son, Bassett Blakeley, followed in his father’s and grandfather’s footsteps and became a cowboy and cattleman. Bassett Blakeley owned 15,000 acres of land, 14,000 head of Brahman cattle, and his grandfather’s land. The cowhands of his Blakeley Ranch annually drove 10,000 head of cattle to the railheads in Kansas.

Bill Wheless III

William (Bill) M. Wheless III grew up with Cinco Ranch. His family and the Abercrombie family bought it in the 40s. It was originally purchased by the Blakely family, who had it parceled to them by Stephen F. Austin himself in a land deal done before Texas joined the Union. Cinco Ranch, now managed and developed by Newland Communities, is the number one top-selling community in Texas and the number three topselling community in the entire United States.

Our interview with Mr. Bill Wheless elicited more history of Cinco Ranch post World War II up to its sale to Newland Homes.

Have you studied the history of Cinco Ranch, in books or online?

Mr. Wheless: Yes.

Ted Nelson from Newland Communities gave a talk in April addressing the dramatic growth Southeast Texas is undergoing because of Eagle Ford and other energy developments and how that growth is affecting the real estate market. Mr. Nelson said that “between the Medical and Energy Sectors, Houston now has the greatest accumulation of intellectual capital the world has ever seen.”

“Cinco Ranch, Telfair, The Woodlands and a number of ‘new’ communities skirting the edges of Houston and along the Grand Parkway are becoming self-contained cities unto themselves and a major source for the housing and retail needs of the booming influx of workers,” he stated.

Cinco Ranch is a mature community, having been

10 REDNews.com

Cinco Ranch Texas Map

“A number of ‘new’ communities skirting the edges of Houston and along the Grand Parkway are becoming self-contained cities unto themselves and a major source for the housing and retail needs of the booming influx of workers.”

Mr. Abercrombie asked my grandfather to quit his job, which at the time was a very good job, to be his partner. Mr. Abercrombie proposed putting up the financing, and he wanted my grandfather to acquire property for their venture.

My grandfather took that step and became partners with Mr. Abercrombie. That was in the 1940s, right around World War II.

an acre. You go buy those other partners out immediately and give them double their money.”

Mr. Abercrombie and my grandfather owned the ranch 50/50 for over forty years. My father operated it, and they grew rice and raised cattle.

When I finished graduate school, my grandfather was in failing health. He decided to sell half the ranch to Robert Mosbacher. I have fond memeories of working with him on that sale.

So now Mosbacher and Abercrombie were partners?

Mr. Wheless: Yes. Mr. Abercrombie’s daughter Josephine owned one half and Robert Mosbacher and a group of his friends owned the other half.

That was in the ‘70s.

Then in 1984 Abercrombie and Mosbacher decided to sell.

Club House Circa 1955

Mr. Abercrombie was on a trip, a grand tour of Europe. My grandfather was here. The head of Texas Commerce, now JP Morgan Chase Bank, came to my grandfather and said, “We foreclosed on a large ranch and we want you to buy it. We want to get it off our books.”

At that time Jesse Jones was the head of the bank. He was also the head of the Reconstruction Finance Committee in Washington for FDR. Mr. Jones told my grandfather, “No, I talked to Jim before he left. He said you can buy anything you want. Here are the papers, and I want you to sign them right now!”

With much trepidation, my grandfather signed the papers without communicating with Mr. Abercrombie, there being no faxes or emails at that time. He then owned 10,000 acres between Westheimer and Katy and Highway 6, formerly the Blakely Ranch.

The more he thought about it, the more uncomfortable he was with what he had done, so he found partners to bring in on the deal before Mr. Abercrombie returned from his vacation in Europe. One was his good friend, the president of Gulf Oil Company, Mr. W. B. Pyron. The others were Mr. H. G. Nelms, a successful oil man and Mr. Lenoir Josey, another good friend of my grandfather.

Now there were five partners, hence the name Cinco Ranch.

William M. Wheless Senior

My grandfather was reluctant to do that because it was such a huge deal, 10,000 acres. “I don’t want to do that because it’s too big a deal,” he said “I have to consult with my partner before taking on such a huge obligation.”

When Mr. Abercrombie got back from his trip, my grandfather met him at the dock in Galveston and said, “I don’t want you to be mad, but I want to tell you what happened…Jesse Jones made me buy this ranch... But, don’t worry…We got three more partners and now there are five of us.” Mr. Abercrombie looked at the deal for a second and said, “I am furious. This is the best deal I’ve ever seen in my life. They purchased it for ten dollars

The first part of the ranch that sold was to Vincent Kickerillo. That was eight or nine hundred acres, now called Kelliwood.

“My grandfather was reluctant to do that because it was such a huge deal, 10,000 acres. ‘I don’t want to do that because it’s too big a deal, he said. I have to consult with my partner before taking on such a huge obligation.’”

That was closer to I-10.

Mr. Wheless: Yes, closer to I-10 off Fry Road.

In 1984 the purchasing group consisted of US Homes, the largest home builder in America, American General, one of the largest insurance companies in the nation, and the Mischer Corporation, one of the largest land developers in Houston. Each one played a role. One was the developer, one was the financier, and one was going to build the houses. That sale was $84M. When you add in the Kickerillo transaction, it was a raw land sale in excess of $100,000,000.

In total?

Mr. Wheless: Total. Which was and still is, to the best of my knowledge, the largest raw land sale in the history of Houston. continued on page 12

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

continued from page 11 all that property, hunting and fishing. My brothers and sisters and I have great memories. It was a Tom Sawyer type of existence. We hated to part with it, but my grandfather was in ill health, and he wanted to get his estate in order before he passed away.

Anyway, it was hard emotionally to part with the ranch. I was privileged to be in a position to help him sell our property as well as to be involved with the subsequent sale in 1984.

I remember reading, years ago, that your grandfather was considered to be one of the largest land owners in Texas Mr. Wheless: He and Mr. Abercrombie were the second largest land owners in Harris County when he died. They also owned the Atascocita Country Club, as well as most of the land on the western shores of Lake Houston. He certainly was a role model for me.

Cinco Ranch Rice Fields

Once they had it, Mischer, US Homes, and American General, developed it through several business cycles, and American General wound up with it.

Their subsidiary was called Newland, who had an affiliation with a company called Newland Homes, and Newland’s is to this day the developer of Cinco.

They added several more tracts to the west toward Fulshear as they ran out of land in Cinco.

It was two years ago, I think, that Cinco was rated the top-selling Master-Planned Community in the United States. I believe it even surpassed the Woodlands.

That is quite remarkable. What do you think made it so successful?

Mr. Wheless: Staying power, the ability to go through two really bad cycles because there were some bleak times. It wasn’t all straight up. They had such a huge land cost, and in addition they had a huge infrastructure cost. They had to channel Buffalo Bayou through Cinco. The headwaters of Buffalo Bayou start just on the northwest corner of Cinco near Katy. As you know, the Bayou goes through the middle of Houston and all the way to the Ship Channel.

When did they start developing?

Mr. Wheless: Kickerillo started in the early 80s.

Cinco started in the late 80s. If you remember, Houston’s economy was horrible in the late 80s.

What was the price of an acre back when you sold it?

Mr. Wheless: Divide 5,200 acres into 84 million. It was an all-cash transaction.

12 REDNews.com

Pavilion Rice Well at Buffalo Bayou Flood Stage

Mr. Wheless: Now we have Bridgeland and the Woodlands. Both are really big deals. Camp Strake will be a very big deal.

Yes, it will be a big deal.

Mr. Wheless: When you develop large tracts, it takes a long time to absorb all the land.

What was the best time and the worst time?

Mr. Wheless: The best time for me personally was growing up as a kid out there and having access to

REDNews would like to thank Mr. Wheless for his travel back in time through one of the nation’s great burgeoning communities.

The history of land and the big power brokers of Texas are fundamentally the history of Texans, from Stephen F. Austin to William M Wheless-big people, big deals. As George W. Bush said, “Some folks look at me and see a certain swagger, which in Texas is called ‘walking.’”

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 77042

• 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

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Office Developers Answer the Call in San Antonio

by Kim Gatley Sr. V.P. & Director of Research REOC San Antonio In August of 2013, less than one year ago, then Chairman of the San Antonio Economic Development Foundation, Henry Cisneros, petitioned the San Antonio real estate community for more office space. Cisneros made the case that the Alamo City would not have successfully lured then Southwestern Bell’s headquarters from St. Louis in the early 1990s or Medtronic, Inc., in 2009 if the market had not been able to immediately offer available vacant space. The same could be said of PetCo, Whataburger, Kohl’s and Becton & Dickinson – all found and filled vacant office space over the past several years.

Sarah Teel, MSL Investments

Not everyone agreed with Cisneros’ position, especially considering that the citywide vacancy rate hovered around 19 percent at the time of that address to the San Antonio Real Estate Council.

Some, however, may not have realized that the number of office properties that could accommodate a large user could be counted on one hand and that the vacancy rate within the top-tier, Class A properties, was steadily nearing 10 percent – a level that typically triggers developers to add new products to the market.

As if right on cue, a parade of announcements for

14 REDNews.com

new projects hit the market. “Like runners lined up at the starting line, office developers were set and waiting in the starting blocks, but no one wanted to jump the gun,” said Brian D. Harris, CCIM, Senior Vice President and Partner with REOC in San Antonio. While some developers subscribe to the adage “Build it and they will come” – most have opted for a more conservative approach in the wake of the Great Recession, especially in San Antonio which has never been known to have a strong speculative market.

More typical to San Antonio’s growth pattern, large corporate users opted to build and occupy new facilities in lieu of leasing office space. In 2012, Nationwide Insurance, for example, relocated out of several office locations to fill the a 300,000-squarefoot regional operations center along Highway 151 in the Far West sector. NuStar Energy relocated out of Heritage Oaks to fill their 300,000-square-foot headquarters facility along Interstate Highway 10 outside Loop 1604, and KCI, a medical technology company, vacated Callaghan Tower upon completion of its 98,000-square-foot headquarters along Interstate Highway 10 inside Loop 1604. Although this generated negative absorption within the multi-tenant office market and caused statistical vacancy to increase, the expansion and resulting job growth were a net positive for the greater San Antonio area.

The next group of projects to enter the development pipeline included expansion phases of existing projects, and most were started only after an anchor tenant had been identified. In 2013 locallybased R.L. Worth & Associates, who has an established history of securing a significant amount of pre-leasing before beginning construction, added Building 2 (103,480 sf ) to The Oaks at University Park project only after pre-leasing roughly 40,000 square feet to Univision. Shortly after completion, Worth inked a lease with WellMed for 24,601 square feet, which took occupancy to 64 percent where it has remained through the end of the first quarter.

Similarly, local home builder, James Japhet, added Building 4 (43,500 sf ) to the Shavano Center project in the Far North sector. The three-story office building came online last year with 8,000 square

feet pre-leased to Armadillo Homes. The building continues to move through the lease-up process and now stands at 34 percent occupied.

Even brand new projects added last year were not started on a truly speculative basis, including medical projects. Sarah Teel, of MSL Investments, lined up a primary care medical group before starting construction on Westover Hill Medical at Town Center – a three-story, 45,000-square-foot medical office building in the growing far west community of Westover Hills. “We are excited to deliver the first and only multi-tenant, multi-story medical office building in the Westover Hills area that is not directly affiliated with a hospital,” says Teel. Through the course of construction, Teel has successfully led the property through the lease-up process with a variety of modalities including pediatric, urology, physical therapy, a multi-specialty clinic and pharmacy. The building is currently 68 percent pre-leased and negotiations with two additional groups could move the project to 85 percent by the time the building opens in the second quarter.

“Not everyone agreed with Cisneros’ position, especially considering that the citywide vacancy rate hovered around 19 percent at the time of that address to the San Antonio Real Estate Council.”

Two new properties are growing the niche market of Lincoln Heights in North Central San Antonio.

Milam Real Estate Capital is nearing completion on 250 W Nottingham (68,000 sf ) which is reportedly 80 percent pre-leased and Quarry Village II Development, led by Gene Powell, is putting the finishing touches on the Quarry Village II mixeduse project (40,510 sf ).

Bob Worth, founder and president of R.L. Worth & continued on page 16

Investment/Leasing Opportunities A SELECTION OF COLLIERS INTERNATIONAL AVAILABLE PROPERTIES

8901 Gaylord St

FOR SALE

8901 GAYLORD STREET Houston, Texas 77024

• Owner/User 2-story Class A Office Building built in 2009 with 12,505 SF available • Opportunity to purchase and relocate offices to a class A office building and earn 6.5% return • Stable cash flow, no deferred maintenance, quality location in highly sought after Katy Freeway submarket • Asking Price: $8,740,000

150 DIXIE FARM ROAD Houston, Texas 77034 DAVID L. CARTER +1 713 830 2135

david.carter@colliers.com

JOHN S. PARSLEY +1 713 830 2140

john.parsley@colliers.com

4511 Yoakum Blvd

FOR SALE OR LEASE

12,300 SF Office or Medical Office Building

FOR SALE

• • • • • • • •

Class A, One-story Office or Medical Office Building Block construction on 2.5 acres of land Built in 2007 Parking: 62 surface spaces (6:1,000 SF) NASA/Clear Lake submarket Easy access to Interstate 45 and Highway 3 Purchase Price: $2.7 Million ($219/SF) Lease: call for lease options

8425 MEMORIAL BLVD Port Arthur, Texas 77640

• New Construction Class A Inner Loop 610 User Building • +/- 8,100 SF 2-story building situated on 12,250 SF of land • Central location between Houston Central Business District, Greenway Plaza & Galleria submarkets • 3 carrier HVAC units JOHN S. PARSLEY • 19 total parking spaces (10 in a gated area near rear of +1 713 830 2140 building) john.parsley@colliers.com • Asking Price: $2,369,000

• Brand new retail center, 100% leased, located across from the Central Mall in front of the Lowes Improvement Center and Walmart Supercenter • 7,560 RSF on +/- 0.78 acres of land • Parking: 58 spaces or 7.67/1,000 SF • Cap Rate: 7.5% • NOI: $188,628 • Asking Price: $2,500,000

FOR SALE

2224 BAY AREA BLVD Houston, Texas 77058

• • • • • • •

139,115 RSF, Stabilized, Class B Office Building 100% occupied (single tenant) Located in the NASA/Clear Lake submarket Year built: 1981 Site: 5.66 acres Parking: 595 spaces (205 covered) at 4.28/1,000 SF Asking Price: $18,000,000

Rotunda Building

beth.young@colliers.com

MARSHALL CLINKSCALES

+1 713 830 2157

marshall.clinkscales@colliers.com

FOR SALE

Park Central Crossing

4511 YOAKUM BLVD Houston, Texas 77006

2224 Bay Area Blvd

BETH YOUNG +1 713 830 2166

CHRISTOPHER D. WINTERS +1 713 830 2106

chris.winters@colliers.com

FOR SUBLEASE

Life Science Plaza 2130 W HOLCOMBE BLVD Houston, Texas 77030

DAVID L. CARTER +1 713 830 2135

david.carter@colliers.com

JOHN S. PARSLEY +1 713 830 2140

john.parsley@colliers.com

• • • • • • • •

9,363 RSF Class A 12-story Medical Office Building 7 floors of office space on top of 6 levels of garage Reserved Parking: 3 spaces at $250/each Unreserved Parking: 13 spaces at $165/each Awarded Gold LEED certification in 2010 LA Fitness & Murphy’s Deli on first floor Located in the Texas Medical Center submarket Asking Rental Rate: $17.00/SF/NNN

BETH YOUNG +1 713 830 2166

beth.young@colliers.com

ROBERT S. PARSLEY +1 713 830 2121 bob.parsley@colliers.com

FOR LEASE

5819 HIGHWAY 6 Missouri City, Texas 77459

• 3-story quality office space adjacent to the awardwinning Riverstone Master-Planned Community • “Second” generation space available including Medical, Dental and Office • 700 - 2,880 SF available for lease • Highway 6 frontage with close access to FM 1092, Highway 59 & Fort Bend Parkway Toll Road • Building recently updated

BARKLEY PESCHEL +1 281 242 2300

barkley.peschel@colliers.com

To view all listings, please visit www.colliers.com/houston

continued from page 14

Associates, sought out and purchased land in the RidgeWood Business Park. Located in the shadow of the Tesoro Headquarters, situated just outside Loop 1604 at US Highway 281 in the Far North sector, the land was acquired with the intent to develop three value-added office buildings. Before kicking off construction on RidgeWood Business Center Building 1 (67,148 sf ), Worth’s team locked in Pulte Homes as an anchor tenant for more than 15,000 square feet. In the first quarter of this year, RidgeWood landed another tenant, Mortenson Construction, for 11,442 square feet which moved occupancy to 40 percent.

While these select projects provided a little extra elbow room needed for new and expanding companies, they were not near the size or scope that Cisneros had in mind when he called for more space. But who would pull the trigger on a sizeable speculative project in San Antonio?

Early this year, USAA confidently stepped up to the plate with plans to hit a homerun at WestRidge South. USAA broke ground in January on a 128,470-square-foot, Class A office building located at 15900 La Cantera Parkway situated directly adjacent to The Shops at La Cantera on the city’s Northwest side. Construction started prior to any pre-leasing.

“While Houston, Dallas and Austin are all listed among the top markets in the U.S. for office development, developers in San Antonio are answering the call for more space in a much more conservative manner.”

Jason Koehne, Executive Director, Real Estate Investments at USAA Real Estate said, “We continue to be bullish on the San Antonio office market.

San Antonio is comparatively very attractive at this point in the office cycle due to the limited supply currently underway, improving fundamentals, and a lack of modern Class A office space. Citywide vacancy is not that impressive, but if you look at Class A office product built within the last ten years, vacancy is very low. We feel like the timing is right, and when you consider first class amenities nearby, it’s a very compelling proposition.”

16 REDNews.com

Allan Young, Stream Realty ready to move forward with Lockhill Crossing

The 4-story, LEED certified building is the first of four buildings planned and is scheduled to be completed by early 2015. “As we realize success at WestRidge South, we’ll continue with additional phases of the WestRidge office park as the market dictates,” says Koehne. WestRidge can ultimately accommodate over 500,000 square feet of office product.

Allan Young, Managing Partner of the San Antonio office of Stream Realty, believes the timing is also right for his project. Young expects to break ground on Lockhill Crossing (126,626 sf ) by midMay. In 2007 and 2008, Young was involved with the development of two office buildings in the same vicinity, which are now 100 percent occupied. When asked how the new Lockhill Crossing project differs from the earlier projects, Young said, “Those prior projects were “value office” geared toward dense users needing lots of parking and open floor plans, but Lockhill Crossing is a Class A building designed to accommodate professional tenants like law firms, oil and gas companies, CPAs, financial services, real estate and regional sales offices.”

Young reports that the five-story building, located at 4630 N Loop 1604 W between Lockhill Selma and NW Military Hwy., is 16 percent pre-leased but he did not disclose the tenant name. The project is scheduled to reach completion in the second quarter of 2015.

Although these two projects represent a significant increase in local development activity, they combine with a couple of additional smaller projects for a total of less than 350,000 square feet of

multi-tenant office space - a far cry from the 2008 peak performance of 1.4 million square feet and considerably lagging behind the construction levels reported in other major Texas metro areas.

While Houston, Dallas and Austin are all listed among the top markets in the U.S. for office development, developers in San Antonio are answering the call for more space in a much more conservative manner.

Local developer Koontz McCombs Construction, for example, is working to complete a new two-story headquarters facility for Pape-Dawson Engineers, Inc. – just one of many projects in the works for this busy developer. Located at 2000 NW Loop 410 in North Central San Antonio, the 73,000-square-foot office building is expected to be completed in July. Immediately following, construction will begin on a three-story design-build for Bank of San Antonio.

In the Far North sector, Minneapolis-based Ryan Cos. is developing a two-story, 58,000-square-foot office building for Avnet, Inc. – a Fortune 500 company based in Phoenix and leading global technology distributor. The project is scheduled for completion in August.

R.L. Worth & Associates has plans to build on the success and momentum experienced in their projects. Before the end of the year, it is likely that Worth will expand The Oaks at University Park with Building 3, start construction on Building 2 at RidgeWood Business Center and, perhaps, move forward with Building 3 at Heritage Oaks for a total of nearly 250,000 square feet of new space.

VISION | BEAUTIFICATION | GROWTH | SAFETY | AMENITIES

Now, you have 3 million new reasons to move to Westchase District

With three million square feet of new, Class-A office space under construction, there’s never been a better time to relocate your business to Westchase District. We are renowned for our exceptional beauty, mobility, safety, schools and neighborhoods – qualities that are also enticing developers to build new hotels, apartments and amenities. So explore your opportunities in Westchase District today.

Learn more: WestchaseDistrict.com or 713-780-9434

WESTCHASE. WHERE BUSINESS IS MOVING.

The Economic Outlook for Real Estate Investors and Decision Makers Overview of Mark Dotzour’s Presentation

by Janis Arnold REDNews The net worth of many American households has never been greater. This has come about because interest rates have been kept at zero. When that happens, people with property and stockholders get richer and spend money. But those who don’t own a house or have investments are still waiting for the recovery. We can see this in all areas of the economy. Michael Kors sales are good, the expensive car sales are up but the Dollar Stores, Target, and Wal-mart, are facing challenges.

Their customers are running out of money.

Dotzour: “We need fiscal policy. Congress is a complete failure at creating policies that encourage Americans to put people to work.”

Mark Dotzour is the Chief Economist and Director of Research for the Real Estate Center at Texas A&M University in College Station. Mark has been bullish on the economy for the last two years and is having a lot more fun now.

Dotzour: “We are five years into the recovery and I predict that we are going to find out that there is nothing wrong with the U.S. economy. The fed has begun to taper in earnest. The 10-year Treasury Bill was at 2.59 recently; a declining 10-year treasury bill generally will indicate a coming recession OR it can signal unrest in other countries. This has everything to do with other countries such as Venezuela, Russia and China. Money is flowing out of those countries. At this point, Mark reminded his audience that he is certain of these projects with a 50% reliability; however, it is a fact that money is flowing into commercial real estate in the United States from other countries.

Dotzour: “There’s nobody on earth that can outspend an American, and personal consumption expenditures are definitely up. During the down-

turn, when we stopped buying, we created a real problem for China (the subcontractor for the U.S.) In China, as in America when people aren’t buying goods, the government puts its people to work building infrastructure, but the buildings have no tenants. We’ve done it here and China is doing it now in their country.”

Consumers are paying down debt for the first time in 50 years. There has been supposition that young people aren’t going to buy houses and for this reason, something is wrong with the housing market. “If there’s anything wrong with the housing market, I can’t find it,” Dotzour said. Young people do not plan to spend their lives in apartments.

The labor force participation rate is declining, but it has been declining for the past 30 years.

Women are exiting the labor force, working aged men are exiting the working force. The news media blows up every story. There is only 7 minutes of real news. If you’re watching news for over that amount of time, you’re doing yourself serious emotional damage.”

Household Debt Service Payments: This is a powerful number; it is the percent of our income that goes to paying off debt that we have already incurred. Americans have never been richer as the household net worth is now $81 trillion. Never in the last 35 years have American households had more money available to spend.

“We need fiscal policy. Congress is a complete failure at creating policies that encourage Americans to put people to work. “

Dotzour: “American businessmen are succeeding in spite of our federal government. At the present time, only 10 percent of the family’s income goes to pay off debt. We are also seeing effective demand. People want to buy something and have the ability to buy it, and after five years of pent-up demand, the American consumer is back in the saddle buying.” continued on page 20

18 REDNews.com

15.62 Acres Ready FoR Retail, oFFice Medical oR industRial developMent FM 1 1960

NORTH FOREST

.

Rd hl da en yk Ku

FM 1 1960

EAGLES AGLES LANDING NORTH FOREST

I-45

GLEN ABBEY Y

.

Rd hl da en yk Ku

Tract 1 Tract 2 EAGLES EAG AG GLES LANDING

EAGLES AGLES LANDING

BLUE ASH lvd.

B a Ell A RT XPLAZA P LAZA AT AIRTEX-E AIRTEX-ELLA

Tract 1 Tract 2

I-45

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QUAIL CHASE CHAS EAGLES EAG AG GLES LANDING d.

WOODS WOOD S OF KUYKENDAHL Blv Ella

WOODFALL WOODFALLS WOOD DFALLS COURT CO OURT

BLUE ASH

A RT XPLAZA P LAZA AT AIRTEX-E AIRTEX-ELLA QUAIL CHASE CHAS

WOODS WOOD S OF KUYKENDAHL WOODFALL WOODFALLS WOOD DFALLS COURT CO OURT

VAND RB LT VANDERBILT VAND RB LT VANDERBILT

PARK AT KIRKSTALL RKSTALL KSTALL PARK AT KIRKSTALL RKSTALL KSTALL

Tract 1

• 1,136 FF on Kuykendahl Road | 5.69 Acres

Tract 2

• 529 FF on Kuykendahl Road | 9.92 Acres • Great visibility on heavily traveled Kuykendahl Road • Located in dense residential area just west of I-45 • +/- 400’ Northwest of Ella Boulevard, Houston, Texas • Zoning: None • Utilities: HC MUD #399 • Key Map: 372B Asking Price: A: $5.50 PSF; B: $5.50 PSF

Rachel S. Grant

7887 San Felipe Suite Rachel S. 122, Grant Houston, TX 77063

7887 San Felipe Suite 122,

Phone: 713-789-3133 Houston, TX 77063 Cell: 281-686-2993 Phone: 713-789-3133 RachelGrant@RSHart.com

Cell: 281-686-2993 RachelGrant@RSHart.com

continued from page 18

Corporate Profits: When profits are up, companies are hiring. Profits are up and it appears as if only the uncertainty over health care has kept hiring lower than we would have expected.

Dotzour: “The best thing we can do is cut off all of the money that we are sending to Washington, D.C. Let the mayors and governors who know how to manage the money in their states take over.”

“The best thing we can do is cut off all of the money that we are sending to Washington, D.C. Let the mayors and governors who know how to manage the money in their states take over.”

Manufacturing: Bottom line: we’re competitive in this country! So, even though the 10-year treasury says that something is wrong, it’s not something about the U.S. economy that is wrong. We’re growing in spite of our government, and business hiring is up.

Proprietors’ Income numbers are up. Part of the employers’ problem is that we can’t find workers.

There are people out there waiting for the renewal of America! In Texas our politicians have created a positive environment for business.

Gold is down to $1,300 per ounce because inflation fears are not as high as they once were.

Investors who don’t buy gold, buy other assets.

Farmland is going flat. However, apartments and self-storage units haven’t gone back down.

• Inflation won’t have an impact if wages aren’t going up. A worker whose income is flat will simply buy less when prices increase.

• The actual money supply is growing at a normal rate. Sure, the fed is printing money, but it is buried in the banking system. Europe is starting to go into deflation, and they are talking about negative interest. This means that you will pay the bank to house your savings rather than them paying you interest for the privilege.

• We need more homes built in this state. We start to lose that competitive advantage when we lose our ability to maintain affordable housing. Our statewide inventory of unsold homes is down to an average of 3 to 4 months; this is too low for the number of people who are looking and plan to buy within the next six months.

• The investment market: Sovereign wealth funds from other countries are flowing into the

Dotzour: “We need more people who are willing to work. We need immigrants because right now we’ve got a whole bunch of people in this country who don’t want to work. This is a serious problem.”

At the present time, there are almost 4 million job openings in our country. Our businesses are looking for workers. We need skilled labor. The construction industry posts 156,000 openings; manufacturing has 270,000; trade, transportation, and utilities have 711,000; professional and business services have 656,000 openings; education & health care have 689,000 openings; leisure & hospitality have 633,000 jobs available, and the government currently lists 369,000 openings. For Americans who want a job, the jobs are out there.

Economic Challenges: • Today’s economy is characterized by bifurcated consumers. Some of them are really struggling.

Mark Dotzour

20 REDNews.com

U.S. Investors are fleeing their governments.

Their question isn’t what is the history of sales in this or that area for the past six months.

These foreign investors are asking, “How fast can I dump this suitcase of money and get title to that land?’. It is a well-proven fact that communist and socialist countries take themselves off the dance floor. At least in our country, we still pretend that we observe the rule of law and private property values. Thus we see high net

“We are five years into the recovery and I predict that we are going to find out that there is nothing wrong with the U.S. economy. The Fed has begun to taper in earnest.”

worth foreign investors fleeing their governments and putting their assets into real estate investments, trust funds, private equity funds, and individual investments in this country. Now is a good time to invest in stocks and bonds in Texas Land!

5

N 201 E OP ER

S

M M U

FOR LEASE - 23,000 SF Available

1. If you DO NOT have changes please sign, date and return.

2. If you HAVE CHANGES, indicate changes on proof and return within 24 hours.

3. Proofs not returned within 24 hours will be considered approved to run AS IS. 4. Ads or inserts cancelled after the 10th of the month will be billed 100%.

6400 Southwest Freeway, Houston TX (exit US 59/Hillcroft) July 2012

Send your

e to Deals Donws .com

jonathan@redne

Lila Construction HP CP Ginger Wheless LilaCo_RN_HP_0712_01.indd BC 06.12.12

2 Using the information in this ad, property information will be sent to LoopNet to be added/updated in their listing service (at no cost to you). To opt-out, contact us at jonathan@rednews.com Metro Transit Area

• Easy access to / from US 59 / Westpark (adjacent to Metro Transit Park and Ride) • Playground area and parking spaces (100 to 120) • Recommended facility usage: Education, Medical Office, Engineering, Manufacturing

SITE

wy tF s we th u So

Elizabeth | LilaUSConstruction | lstevens@lilaco.com FORStevens LEASE (near 59 / Hillcroft) || 713.741.9900 6400 Southwest Freeway, Houston, TX

23,000 SF Immediate Move-in Available | 3,500 SF and 2,200 SF Also Available REDNews.com 21 • Easy access to / from US 59 / Westpark, Adjacent to Metro Transit Park & Ride • Prior southwest school location with more than 120 Parking spaces & playground area

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

More Bang For Your Buck

Houston Healthcare Properties Update

by Beth Young, CCIM, LEED AP Senior Vice President Healthcare Investment Services Group Colliers International

There was a short healthcare conference in Houston in May, and speakers ranged from developers and appraisers of medical real estate to the real estate directors of Houston’s major health systems. Much was discussed about the effect of the Affordable Care Act on hospital systems and the trends that are affecting healthcare real estate.

An interesting fact was that 17.6% of the GDP is in Healthcare, and $7 billion was spent in medicaloffice building transactions last year producing an average cap rate of 7.60%.

One panelist remarked that the marketplace will pay a premium for single-tenant medical office buildings (MOBs) in primary markets, with cap rates often between 6% and 7%, and premier properties have even traded at cap rates in the low 6s and high 5s. Good quality multi-tenant medical buildings in secondary markets commonly sell at 7% – 8% cap rates.

A representative of a REIT that owns properties in our market said they evaluate MOBs by comparing tenants, location, and quality of the building.

Buildings with strong-credit hospitals or health systems as tenants will produce the lowest cap rates or highest prices when sold. The location that has traditionally resulted in the highest sale price is on-campus, or adjacent to the hospital.

But now, the location is more about whether it is strategically important to the hospital’s platform and the long-term plan to gain a larger market share. The quality of the building doesn’t mean simply the quality of construction. Buyers are equally concerned with their acquisition being relatively new, functional, flexible, able to handle the newest ways of delivering medical care, and at least 60-70% leased at the time of the purchase.

More technically complex buildings in communities is a growing trend, often seen in sports-medicine facilities where treatment centers are being equipped with advanced imaging such as MRIs. Newer healthcare facilities have an advantage when they are expandable, flexible, and come equipped with medical gases and generators providing mini treatment centers.

24 REDNews.com

Landlords are always concerned about losing major tenants, but when the building is a specialized medical property, the risk for the owner increases.

The question is raised, “What happens at the end of the lease if the tenant used the building for special purposes, like a cancer treatment center?”

Repurposing is difficult, but there are small niches that can work. That is one reason retail formats have become so popular for medical offices. When a medical tenant moves out, it can always be repurposed into typical retail.

“One director of real estate for a health system said they take a proactive position in becoming an anchor tenant in some retail centers.”

There are many additional reasons retail is a leading trend for medical facilities. The most important is fueled by the new regulatory environment, requiring health systems to be more efficient, improve the quality of care and lower costs for patients. Locations in communities provide convenience, and studies show that procedures done in ambulatory surgery centers vs. hospitals can save patients as much as 50 percent while providing a better environment. Although some doctors still find it makes more sense to be located next to a hospital, many prefer the suburban locations because it is more strategic to their business. Good retail locations come with great car counts and visibility, but the lease rates are higher compared to hospital campuses.

One director of real estate for a health system said they take a proactive position in becoming an anchor tenant in some retail centers – an easy win for the systems which are provided with nearby complementary businesses and high visibility.

Hospitals and health systems can provide patients

with more preventative care and engage with them sooner in retail settings. Patients can often get up and recover more quickly when treated in outpatient facilities.

Although it is currently more common in Houston than other cities, the trend of outpatient centers in communities will continue to grow, as the number of in-patient facilities shrink. As more health systems merge or acquire each other, they are focused on capturing market share, so they will provide local emergency care, urgent care, and additional out-patient clinics in off-campus settings.

(Urgent Care centers are set up to assist patients with an illness or injury that does not appear to be life–threatening, but also can’t wait until the next day, or for their primary care doctor to see them.)

Texas allows groups that are not affiliated with a hospital to build surgery centers and outpatient clinics also. In addition, insurance companies are buying operators, hospitals, and ensuring that their place is confirmed in the care of patients.

Health systems are also pursuing relationships with senior-living, memory-care and long-term care companies. Although residents of these types of facilities do not want to be located next to hospitals to remind them of their conditions, they do need to be near an acute-care facility/hospital, and it is becoming more common for post-acutecare facilities (such as LTACHs or long-term-acutecare hospitals) to be located next to senior-living facilities.

Sustainability is also having an effect on new medical developments. SRI, or socially-responsible-investing, is being watched by Wall Street. A company’s sustainability score correlates with the overall management score of a healthcare organization, like any other company. It quantifies the overall quality of a company. Many healthcare property owners who are developing projects choose to self-certify their buildings to mimic Energy Star requirements. Health Care REIT has a Green Arrow program that equips tenants with tools to reduce their energy use, recycle, and be more sustainable.

LEED certifications come with a premium, but the

development experts and owners of the buildings say you get a real “bang for your buck”. One panelist said it is not as cost prohibitive as people who are not in the industry think, and the savings on operating expenses are significant.

When the Affordable Care Act was introduced, many health systems and hospital developers put the brakes on their master plans. But there are numerous examples of how the master plans are now moving forward including Memorial Hermann’s 1.4 million square foot expansion in the Texas Medical Center (TMC) and a new campus coming to Pearland; CHI St. Luke’s Health’s future medical complex on 23 acres in Springwoods Village, and Texas Children’s Hospital’s recent purchase of land in The Woodlands where construction starts in June. In addition, Medistar’s Bay Area Regional Medical Center, a 104bed acute care facility, is scheduled to open on July 21st in Webster.

Health systems are split in their views about monetizing their MOB portfolios. Some see selling as a good way to make money off of the real estate and have already sold properties that were not considered “on-campus.” Others don’t plan to sell properties because of a lack of control. One panelist said if they could sell their properties to a landlord who would take

Memorial Hermann Sugar Land Hospital

The expansion of the Sugar Land Hospital will include a six-story patient tower and a second professional office building to create an additional 220,000 square feet of space. - Courtesy Memorial Hermann Health System

the lease payments and let the systems operate the facilities as they want, they would sell more properties. Control and flexibility is important.

Future goals for the Texas Medical Center in-

clude creating opportunities that attract life-sciences research and clinical trials, development of residential living, a new hotel, and convenient live/work/play environments for the TMC’s employees.

REDNews.com 25

HOUSTON

COMMERCIAL BUZZ

RAY HANKAMER Hankamer & Assoc, Broker, Houston Contributing Writer

Buying and Selling Highland Village Helped Me Achieve My Boyhood Dream of Owning Old Masters Art An Interview with William Morris, III

by Ray Hankamer How did that translate into real estate investing in Houston?

both sides of Westheimer right through the middle of the development.

Morris: I knew there were only two Interstate Highways in Houston. So I chose I-10 west from downtown. I also liked Westheimer, even when it was only a two-lane road. I always looked for corners, since they were in limited supply. In the early days I owned an interest in three of the four corners at I-10 and Highway 6 and contracted for First Baptist Church a prime corner at I-10 and Loop 610, which I gave to the church. We still own acreage tracts on I-10 in the city of Katy.

What attracted me about Highland Village was the opportunity to have eight corners on Westheimer, near River Oaks and other upscale neighborhoods.

I met with the sellers’ representative at five o’clock one afternoon, reached preliminary agreement; then I went home to dinner. I returned to the negotiations, and we hammered out a hand-written contract and signed it about 11PM. I wrote a $50,000 earnest money check, which was about all I had in the bank at the time. The next day an offer came in to the sellers for $1 million over what I had agreed to pay, but my deal held firm.

Did you only invest in land, or did you ever have operating businesses?

William Morris, III

William, to begin with, I guess it could be said that you were born into a real estate family.

Morris: My great-grandfather Maco Stewart started Stewart Title in Galveston, and my father Carloss and his brother Stewart Morris, Sr., built the company, which went public when I was a young man. My brother Malcolm and Stewart Morris, Jr., are Co-Chairmen and Malcom’s son Matt is CEO of Stewart Information Services. I worked at Houston Title Company while in law school, and at the same time I began brokering real estate. Then the sale of Houston Title Company by Malcolm, Stewart, Jr., and myself provided me with some working capital to begin investing on my own. My early instincts told me to always go for the best quality in whatever I bought.

26 REDNews.com

Morris: At one time I had approximately eight Jack in the Boxes and a couple of filling stations, but they were leased out triple net. I put together numerous land syndications when I found good buys, and many of my were friends I had met playing tennis, investors who began trusting my instincts on tracts of land which had appreciation potential.

That brings us to Highland Village, obviously an operating retail business. How did it come to your attention, when, and what happened next?

Morris: Brokers bought me Highland Village, which I knew well growing up. Before the Galleria, it is where people on the west side of Houston shopped. There was a mixture of mostly small, local tenants. Each storefront had a different color awning, and there were massive power lines down

“What attracted me about Highland Village was the opportunity to have eight corners on Westheimer, near River Oaks and other upscale neighborhoods.”

That next day I immediately called the office of the two friends I thought would partner up with me, Charlie Swain and Harvey Houck. Houck and Swain were big in multi-family units (The Allen House, The Georgian, Westcreek, Savannah Club, etc.), and Houck had retail all over the west side continued on page 28

LAND/CHURCHES FOR SALE

Eastex Church

11255 Eastex Frwy - 15,500 SF........................ ....................... ... $950,000

LEASE SPACE - St Paul Presbyterian Church

7200 Bellaire Blvd. - 5,600 SF........................... ....................... $5,000/mo.

Multi-Purpose Facility w/housing

15402 Sellers Rd. - 7,000 SF........................... REDUCED.............. $225,000

NW Houston Church

10225 Woodedge - 20,000 SF........................... .................... ... $1,100,000

Miracle Life Church International

9930 Aldine Westfield - 3,200 SF................................ ........... ..... $275,000

Multi-Purpose Bldg

710 College St. - 7,200 SF........................SALE PENDING.............. $650,000

Religious Facility in South Houston

Beaumont St. @ Illinois - 11,800 SF.........SALE PENDING.............. $799,000

Baytown Campus/Training Center Facility (Income producing property)

301 Ilfrey ..................................................SALE PENDING........... $3,400,000

Aldine Christian Church

2233 Aldine Mail Rte. - 10,500 SF..........................SOLD.............. $499,000

.

International Church Realty (713) 541-4005

www.internationalchurchrealty.com

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theREDvault.com

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

(713) 40 Years789-7060 Experience As • www.hankamer.com

Developer | Owner | Operator

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

H &

BR

REDNews.com 27

continued from page 26

of Houston. They had an organization, so they were ideal partners for me.

Their secretary said, “Mr. Morris, you cannot speak with them…they are off hunting pheasants in England.” I knew I had a big problem, since I did not have the funds to close the deal alone. I immediately went to see Charles Crady, their attorney. He knew how to reach them, and we concluded a deal over the transatlantic phone to each put $150,000 down, with each owning one-third. The balance of the sale price of about $4.5 million was to be seller financed, involving a note at around 2.5% interest to Rice University.

Highland Village Bank loaned me my $100,000 when I requested it, and I did ask the banker if his bank wanted to remain in our development.

(Grin) So we bought this somewhat depreciated development – with eight corners on Westheimer, including all the improvements,for about $4.50 per SF. Houck & Swain allowed me to make a $60,000 commission for assembling the deal and putting it under contract and this, along with the bank loan, allowed me to post my share of the equity and walk away from the closing with $10,000 in my pocket.

One of the first things we did was to invest approximately $2 million in burying those ugly power lines on both sides of Westheimer. This, along with requiring our tenants to have coordinated green awnings, improved the visual aesthetics immensely. We turned the management over to Swain and Houck’s organization, and we started upgrading tenants to higher quality ones, and some national ones. We brought in two Tony Vallone restaurants, Grotto and Anthony’s. We slowly started raising rents, which were at rock bottom lows when we purchased the center. Today, under the current owner, some of Highland Village rents are higher than those in The Galleria.

Some of the original tenants which were wellknown to older Houstonians were Weiner’s department store, Moses Melody Shop, Athas Florist, Nielsen’s Delicatessen, Highland Village Drugstore (complete with soda fountain / lunch counter), Evan Brooke Shoe Store, and Eaton’s Children’s shop.

How long did you own Highland Village, and how did your sale come about? How did you personally come out financially, and where did the proceeds get reinvested?

28 REDNews.com

Morris: Before I answer this, please know that all dates and numbers I am giving you are more or less accurate, since this all happened long ago!

We owned Highland Village about fifteen years.

We sold for a handsome profit over what we had paid about $4.5 million for, and in addition we had profits from operations.

So with this handsome profit in your bank account, did you re-invest in real estate, or something entirely different?

Morris: I had taken a college tour to Europe and one day in Cannes, I encountered Pablo Picasso painting out on the beach. I am not sure why he was there, and he passed away about ten years later. But it triggered something deep inside me to one day be able to own fine art by world famous artists like Picasso. After the sale of Highland Village, I was in a good position financially to begin collecting. Over the years I have profited by buying, owning and enjoying, and selling art.

considered of the highest quality, and when you decide to sell it after owning and enjoying it yourself, you have a compelling reason that the next buyer should have the piece.

What are some of the art pieces you have collected, and what type of art do you lean toward? Where do you purchase your pieces?

You gave us your secrets in real estate investing-buy corners and buy quality- but what can you tell us about what guided you in your new world as a fine art collector/investor?

Morris: I first collected paintings and bronzes in the Western Art category, but over the last twenty years I have evolved into being a more passionate collector of Old Masters and Impressionist artists.

Morris: Two guidelines: buy the best quality paintings and artists even if it does seem expensive at the time and pay a close eye to “provenance”, which is an art world term meaning what is the history of the painting…i.e. under what circumstances was it painted, for whom, and who has owned it since.

Sometimes I make my purchases through private sales of a single piece of art, which I hear about through my contacts in the art world, and sometimes via auction at one of the big houses like Sotheby’s or Christie’s.

The quality of the chain of ownership tells subsequent owners that a given piece has long been

To summarize collecting, whether it be art or real estate: my instinct has always been to go for quality. Over time you cannot go wrong doing that.

• • •

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EVENTS • NETWORKING • DEALS • ANNOUNCEMENTS

What’s Happening in CRE Texas 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 every day!

Comparison & Lease vs Own”

Central / South Texas

9 hours of MCE - Course #09-00-035-25248 - Provider #0287

Instructor Cliff Bogart, CCIM

Austin | San Antonio | Rio Grande Valley

Visit www.ctcaronline.com for pricing & registration info

C TC A R

w w w.c tc aron l in e.com Sunday 1

Monday 2

Tuesday

Wednesday

3

4

Thursday

Friday

Saturday 7

6

5

CCIM Central Texas Luncheon – Healthcare Real Estate – A Changing Market 11:30am – 1:00pm

SABOR Smart Growth for the 21st Century 10:00am – 3:00pm

ULI Austin Mentorship Forum Kick-off 5:00pm – 7:00pm

8

15

9

10

11

12

Real Estate Council of Austin Signature LDC Program 12:00pm – 1:00pm

CREW San Antonio Luncheon – Lisa Hill, VP Buxton 11:30am – 12:55pm

IREM Austin Memorial Stadium Lunch & Tour 11:30am – 1:00pm

CTCAR Property Information Exchange 7:30am – 9:00am

16

17

18

19

Real Estate Council of Austin June Ideas Forum 11:15am – 1:00pm

Real Estate Council of San Antonio Breakfast – Downtown Development 7:30am – 9:00am CREW Austin Networking Luncheon & Presentation – ‘Why Co-Working Matters?’

11:30am – 1:00pm

22

23

24

CTCAR MCE Course – “1031 Tax Deferred Exchange – Beyond the Basics” 9:00am – 11:00am

13

14

20

21

BOMA Austin Membership Luncheon 11:30am – 1:00pm

IREM Austin IREM Beach Bowl 12:30pm – 4:00pm

CBA Austin Luncheon 11:30am – 1:00pm

25

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ULI Austin Breakfast - Seaholm Development 7:30am – 9:00am

28

27 BOMA San Antonio Luncheon 11:30am – 1:15pm IREM Austin IYP Icebreaker 5:30pm – 7:30pm

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June 2014 Commercial Organization Contacts - Dallas | Fort Worth Austin BOMA................................................................................. www.bomaaustin.org CBA Austin............................................................................www.cbaaustin.com CCIM..................................................................................... www.ccimtexas.com CREW..................................................................................www.crewaustin.com CTCAR................................................................................. www.ctcaronline.com IREM.................................................................................... www.iremaustin.org RECA................................................................................... www.recaonline.com ULI......................................................................................... www.austin.uli.org

32 REDNews.com

San Antonio BOMA San Antonio......................................................www.bomasanantonio.org CCIM .........................................www.chapters.ccim.com/sanantoniosouthtexas CREW..........................................................................www.crew-sanantonio.org IREM.............................................................................www.iremsanantonio.org IREP........................................................................................... www.irepsa.com RECSA.............................................................................www.recsanantonio.com SABOR......................................................................................... www.sabor.com SIOR (South Texas Chapter)............................................................ www.sior.com

For a complete list of monthly events, visit their website

For more information on

CALENDAR OF EVENTS log on to

Email your events to: Chris@REDNews.com Event dates are based on each organization’s typical monthly schedule which is subject to change. Please verify each event with the related organization.

Networking For more networking photos, log on to www.REDNews.com | Send your networking photos to info@REDNews.com BOMA Austin’s 40th Anniversary Party

Sheila McHargue, current BOMA Austin Dorothy Binder and Bert Schnoebelen president and Paul Noetzel, past president

Amy Ables, Sheila McHargue and Crystal Green

CREW San Antonio’s May Luncheon

CTCAR Bat Boat Party

Deborah Bauer, Martha Hardy and Helena Hauk

Steve Presti and Janice Landers

Dena Welch and Brad Radick

Terry Bray, Tom Martine and Ray Head

Catherine Cagel and Keith Goodman

24th Annual Outlook for Texas Land Markets – San Antonio

James Gaines, Speaker

James Gaines speaking to attendees at Stage view of attendees at the conferthe conference ence

Attendees at the conference

REDNews.com 33

North Texas Calendar of Events Sunday 1

Dallas | For t Wor th

2014 Sponsorship Packages now available!

Monday

Is your company looking for exposure and recognition in the commercial real estate industry?

commercial real estate women

SPONSORSHIP OPPORTUNITIES START AT $750.

Tuesday

Wednesday

Visit the CREW-Dallas.org website for more information or call the CREW office at 214.890.6490

2

3 NTCAR Golf Tournament 11:00am – 5:00pm

4 BOMA Ft. Worth Membership Luncheon 11:30am – 1:00pm

5

CREW Ft. Worth Luncheon – Retail Trends in Tarrant Co. 11:30am – 1:00pm BOMA Ft. Worth Bowling Tournament 5:00pm – 8:00pm

8

9

10

Thursday

11 North Texas CCIM Happy Hour 5:30pm – 7:00pm

Saturday

6

7

13

14

20

21

27

28

ULI North Texas Breakfast Forum Recent Developments in “P3” Financing 7:30am – 9:30am Southwest CoreNet Global Dallas: The Emerging Corporate Capital 11:30am – 1:00pm

12

IREM Dallas Insurance/Legal Update Seminar 11:00am – 1:00pm

Friday

The Real Estate Council of Dallas Speaker Series – John Rossant and Max Anderson 7:30am – 9:00am

BOMA Dallas Top Golf Bay Sponsor + Team 5:00pm – 9:00pm

15

16

17

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BOMA Dallas Allied Panel: Future of Property Management 11:30am – 1:00pm

BOMA Dallas Engineer Lunch & Learn 11:30am – 1:00pm North Texas CCIM Luncheon – Capital Markets Panel 12:00pm – 3:00pm Southwest CoreNet Global NBC Studio Tour 3:00pm – 5:00pm

CREW Dallas Luncheon and Meeting 11:30am – 1:00pm

22

23

BOMA Ft. Worth Every Building Conference & Expo 8:00am – 5:00pm

BOMA Ft. Worth Every Building Conference & Expo 8:00am – 5:00pm

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24

25

26 NTCAR YPF 2nd Quarter Event 5:30pm – 7:30pm

BOMA Ft. Worth Every Building Conference & Expo 8:00am – 5:00pm

IREM Dallas ACoM Exam All Day

June 2014 Commercial Organization Contacts - Dallas | Fort Worth BOMA Dallas....................www.bomadallas.org

IREM Dallas .....................www.irem-dallas.org

TREC................................... www.recouncil.com

BOMA Fort Worth...... www.bomafortworth.org

NAIOP.....................www.northtexasnaiop.com

ULI...............................www.northtexas.uli.org

CCIM..................................... www.NTCCIM.com

NTCAR........................................ www.ntcar.org

CREW Dallas.....................www.crew-dallas.org

SCR........................................... www.scr-fw.org

CREW Fort Worth....................www.fwcrew.org

SIOR............................................www.sior.com

GFWREC.................................www.gfwrec.com

SW Corenet ........www.southwest.corenetglobal.net

34 REDNews.com

For a complete list of monthly events, visit their website

For more information on

CALENDAR OF EVENTS log on to

Email your events to: Chris@REDNews.com Event dates are based on each organization’s typical monthly schedule which is subject to change. Please verify each event with the related organization.

Networking For more networking photos, log on to www.REDNews.com | Send your networking photos to info@REDNews.com 2014 Nashville Designation Pinning and Business Meetings

President’s Cup Awards Luncheon

John McClure, CCIM, Saadia Sheikh, CCIM, Joe Garrett, CCIM, Susan McClure, CCIM, Brad Crumpecker, CCIM, David Schnitzer, CCIM and Wayne D’Amico, CCIM, the 2013 CCIM National President.

Attendees at the President’s Cup Luncheon

28th annual CREW Dallas Golf Classic

Mac McClure, CCIM, Susan McClure, CCIM, David Schnitzer, CCIM, Brad Crumpecker, CCIM, Saadia Sheikh, CCIM, Joe Garrett, CCIM, and John McClure, CCIM

Butler Burgher team-Daniel Stickane, Chris Roach, Justin Teel, Chase Addington

Kari Walker-Higgins

April CREW Dallas Luncheon and Meeting

Candidates from North Texas receiving their pinning in Nashville.

Lisa Novotny Price, Clay Gilbert, Celeste Fowden, Katrina Keyes, speaker, Melayne Packer, Michelle Hudson, CREW Dallas President

Suzanne Brasuell, Kimberly Kramer, Susan Sherman, Emily Trevino, Rachel Koster

REDNews.com 35

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

Southeast Texas Calendar of Events Sunday 1

Networking

Monday 2

Houston and Vicinity |

Educat ion

Technology

CCIM Course Scholarships

Tuesday

Wednesday

3

4

CREW Houston Luncheon – Christine Spray, President Strategic Catalyst, Inc. 11:00am – 1:00pm

Thursday

CI 101, CI 102, CI 103, CI 104 or CCR & Exam

5

Available to current Houston/Gulf Coast HOLBA NAIOP Houston Sponsor Appreciation Cocktail Party CCIM Members Luncheon – A.J.Chapter Teague 5:30pm – 7:30pm

11:00am – 1:00pm Contact Ginger Coleman at 713.783.0297 or ginger@amchouston.com /www.ccimhouston.org

8

9

15

16

22

29

CREAMTX Luncheon – David Gornet, Grand Parkway Association 11:00am – 1:00pm

23

10

11

12

CCIM Houston Luncheon – Bob Ethington, Uptown Houston 11:30am – 1:00pm

17

FBSCR 18 19 MonthlyHRBC Monthly Meeting Breakfast 8:00am – 9:00am 7:00am – 8:30am O’Connor & Associates Greater Houston Partnership Luncheon – Hotel/Lodging Forecast BACREN Coffee with the Consuls – Andrew Millar Monthly Luncheon – Barbara Hayley 11:30am – 1:00pm 8:00am – 10:00am 10:30am – 1:00pm Houston BOMA IREM Houston Broker Panel Luncheon Young Professionals Happy Hour 11:30am – 1:00pm 5:00pm – 7:30pm

24

25

A CP z De z Ple Galveston sta z Pro

26

ACRP Breakfast Meeting 7:00am – 8:30am CREN Gulf Coast Happy Hour 5:00pm – 7:00pm CCIM Houston Skeeters Ballgame Social 6:30pm – 9:00pm

Friday 6

Saturday

IREM7 AUSTIN PRESEN

ETH800-Ethics for the Real Estate M

CREN Gulf Coast Monthly Luncheon – Doug Goff, The Johnson Development Co. 11:00am – 1:00pm

September 10th, 2013, 8:00am – 5:0 For more information and registrati visit iremaustin.org

13

14

www.iremaustin.org • 512-301-3

IREM Houston IREM Ethics Course 8:00am – 4:30am

20

21

CREN Gulf Coast Breakfast – Marketing Session 7:30am – 9:00am

28

27 IREM Houston IREM Real Estate 101: Brunch and Learn, Insurance Edition 8:30am – 11:00am

30

June 2014 Commercial Organization Contacts - Houston and Vicinity | Galveston ACRP...................................................www.acrp.org BACREN........................................www.bacren.com BOMA.................................www.houstonboma.org CCIM ....................................www.ccimhouston.org CoreNet................www.houston.corenetglobal.org CREAM........................................www.creamtx.com CRE.......................................................www.cre.org CREN..................................www.crengulfcoast.com

36 REDNews.com

CREW................................... www.crewhouston.org FBSCR...............................................www.fbscr.com Greater Houston Partnership......www.houston.org HOLBA............................................. www.holba.org HRBC..................................www.houstonrealty.org IREM.....................................www.iremhouston.org NAIOP.................................www.naiophouston.org O’Connor & Associates.............www.poconnor.com

HREC................ www.houstonrealestatecouncil.org SIOR......................................www.siorhouston.com ULI..........................................www.houston.uli.org For a complete list of monthly events, visit their website

For more information on

CALENDAR OF EVENTS log on to

Email your events to: Chris@REDNews.com Event dates are based on each organization’s typical monthly schedule which is subject to change. Please verify each event with the related organization.

Networking For more networking photos, log on to www.REDNews.com | Send your networking photos to info@REDNews.com ACRP May Networking Event

Marty McAdams, Ginger Wheless, Dave Gilkeson

BACREN’s Happy Hour Cruise

Beccy White, Theresa Quartaro Smith, Wendy Ghormley, Marlene Hay

CCIM May Luncheon

Mike Wyatt, speaker and Sandy Benak, CCIM Houston President

C.R.E.A.M. TX May Luncheon

Mike Wyatt and Arlis Brodie

CREW Houston May Luncheon

Panelists Susan Ansel and Brandt Bowden

BACREN’s Happy Hour Cruise

Dan Nguyen and Jim Autenreith

Attendees at C.R.E.A.M. Haves/Wants Session

IREM Houston May Happy Hour

CREW Houston President Laurie Baker with panelists: Brandt Bowden, Alan Patton, Susan Ansel, Paul Forbes

Ananesia Ware, Laura Le, CPM, Sheryl Green, Tanya Anderson and Melissa Walling

Park Carter, IREM Houston VP of Membership, Matthew Townley, CPM, ARM and IREM Houston President Janie Snider, CPM

REDNews.com 37

ANNOUNCEMENTS & DEALS DONE

CENTRAL/SOUTH TEXAS

(AUSTIN/SAN ANTONIO AREAS)

ANNOUNCEMENTS

OFFICE Austin (DEVELOPMENT) – Riverside Resources has started construction on Capital Ridge, a 215,000 SF office building which will be part of a 38-acre office/hotel campus near Loop 360 and Bee Cave Road.

The seven-story, Class A office space is expected to be completed in April 2015.

Doug Opalka of HFF arranged construction financing for the project.

Commercial Texas has been acquired by Avison Young; the new office will be the 3rd location in Texas and the 40th in the United States for the Canadian company. Eleven employees from Commercial Texas will join the new office.

Michael Kennedy, Carl Condon, Chrissy Cornelius and Burke Kennedy have been named principals. Kennedy will be the managing director of the Austin location.

INDUSTRIAL Round Rock (SALE) – Stoltz Cos. purchased a three-building portfolio in Crystal Park industrial campus totaling 275,499 SF of distribution and manufacturing space at 110, 116 and 120 East Old Settlers Boulevard. Randy Baird, Jud Clements and Robby Rieke of HFF represented the seller.

Log on to REDNews.com for daily updates

San Antonio (SALE) – A subsidiary of Senior Housing Property Trust (SNH) purchased Texas Center for Athletes, a 128,347 SF state-of-the-art medical office building in San Antonio’s South Texas Medical Center at 21 Spurs Lane. Alan Grilliette and Russell T. Noll represented the seller, Sports SA Holdings. Transwestern will be retained for leasing and management of the four-story, Class A building.

San Antonio (SALE) – Ramiro Ceja and Jose Ramiro Cantu purchased a multibuilding portfolio including a multi-family complex and warehouse complex at 511 N. Teel in Devine, southwest of San Antonio. Patsy Garcia of Tri County Realty represented the buyer, and John Cannon of DH Realty Partners, Inc. represented the seller, Jose Rodriguez.

Austin (LEASE) – Bazaarvoice leased 7,510 SF at 3900 N Capital of TX Highway. John Gump and Nate Stricklen of CBRE Austin represented the tenant, and HPI Real Estate Services represented itself.

El Paso (LEASE) – Zf Electronics Corp leased 52,800 SF at 12420 Mercantile.

Anthony Mash of CBRE El Paso represented the landlord, 10/375 Industrial Portfolio Lp.

San Antonio (SALE) – Inland American purchased Westover Marketplace Shopping Center, a 242,664 SF retail center located at the intersection of Loop 410 and Highway 151. The Class A power center is 93.4% occupied and tenants include Target, Lowe’s and Toys R Us/Babies R Us. Chris Cozby and Chris Gerard of CBRE Dallas and Kevin Holland of CBRE Houston represented the seller, Coventry Real Estate Advisors, and Graham Ketchum, Gene Williams and John Wright of CBRE San Antonio represented the seller in leasing Westover Marketplace.

San Antonio (SALE) – JDT Investments purchased a 6,072 SF office/warehouse property at 718 N. Cherry Street. Charles L. Jeffers of DH Realty Partners Inc. represented the seller, Roland J. Ramirez.

LAND Cedar Park (SALE) – HEB Grocery Co. purchased a 46-acre tract at FM 1431 and Lakeline Blvd. Aquila Commercial LLC represented the buyer, and Retail Connection represented the seller, Acme Brick Co. Austin (SALE) – An Austin Investment Group purchased a 2.2 acre tract near downtown. The site, which is under development, is expected to be a mixed-use multifamily/retail site. Jim Young and Nick Nelson, CCIM, ASC of KW Commercial represented the buyer.

San Antonio (LEASE) – NGL Water Solutions Eagle Ford leased a .50 acre pad site at the SEQ of Highway 97 and Walton Ave in Jourdanton. Charlie Roof of Retail Solutions represented the landlord.

San Antonio (SALE) – Lloyd S. Moody purchased 10.35 acres on Cagnon Road. Steves Rosser of DH Realty Partners represented the seller, Rual and Inez Arias.

MULTI-FAMILY Austin (SALE) – An international investor purchased Trails of Walnut Creek, a 156 multi-family unit property at 11511 Metric Boulevard. Jim Young and Nick Nelson, CCIM, ASC of KW Commercial represented the buyer.

San Antonio (SALE) – The PPA Group will break ground on The Lookout at Comanche Hill, a 150-unit multi-family project on Nacogdoches Road. The class A multifamily project is expected to be completed in 2015. B&A Architects, Big Red Dog and Galaxy Builders all will collaborate on the project.

38 REDNews.com

RETAIL/RESTAURANT

Austin (DEVELOPMENT) – Highland Resources will build a 163,000 SF, four-story, mixed-use project at the NWC of 38th Street and North Lamar Bouelvard. The project will include office, restaurant and retail space. Architects, landscape architects and engineers including STG Design, Studio dwg, Chioco Design, Consort Inc. and construction company Rogers-O’Brien Construction are all working together on the project.

Austin (LEASE) – A restaurant leased 8,532 SF in Windsor Village at 5811 Berkman. Matt Holm of Team West Real Estate represented the tenant, and Tucker Francis of Retail Solutions and Lance Tindall of Tribeca represented the landlord.

Brownsville (LEASE) – DaVita Dialysis leased 6,200 SF at 2000 Boca Chica Boulevard. USI Real Estate Brokerage Services represented the tenant, and Horacio Gallegos of Retail Solutions represented the landlord.

San Antonio (LEASE) – Pollo Tropical leased space at 13442 San Pedro Avenue as part of San Antonio rollout for Pollo Tropic, a part of Fiesta Restaurant Group who also owns Taco Cabana. SIGA International represented the tenant, and Evan Ketabchi of CBRE San Antonio represented the landlord, M2G Development Properties, Ltd.

NORTH TEXAS

ANNOUNCEMENTS & DEALS DONE (DALLAS/FT. WORTH AREAS)

ANNOUNCEMENTS Carissa Brown has joined SRS as a senior associate in the Dallas/Fort Worth office. In her new role, Brown will specialize on tenant representation, landlord representation and SRS Urban services.

Campbell B. Henry has joined Spire Real Estate Brokers Inc. as a director and will be responsible for leasing in Dallas and Fort Worth. Formerly of CNL Commercial Real Estate and JLL, Henry has 10 years of experience in the industry.

Johnny Johnson and Lauren Napper of Cassidy Turley represented the owner of Fountain Place, J.P. Morgan.

Dallas (SALE) – An undisclosed buyer purchased a 22,220 SF building at 2701 & 2707 S Hampton Road. Scott Jackson, CCIM and Debi Carter, CCIM of Hudson Peters Commercial represented the seller.

Plano (LEASE) – EGistics leased 12,410 SF in Tollway North Office Park at 5208 Tennyson Parkway. Nathan Rylander of Transwestern Dallas represented the tenant, and Justin Miller of Transwestern Dallas represented the landlord, KBS Realty Advisors.

Richmond Collingsworth has joined Bradford Commercial Real Estate Services as vice president in the office division. Collingsworth, who was recently a vice president at TIG, has earned numerous awards as a rising star in commercial real estate.

Carissa Brown

Log on to REDNews.com for daily updates

Dallas (LEASE) – U.S. Capital Advisors LLC leased 9,656 SF on the 11th floor at The Crescent in Uptown. Matt Heidelbaugh of Cushman & Wakefield represented the tenant, and Tony Click of Crescent Real Estate Equities LLC represented the owner of the building.

Richmond Collingsworth

Campbell B. Henry

INDUSTRIAL McKinney (SALE) – Hisun Motors Corp. purchased a 172,108 SF industrial facility at 310 E. University. Bob Kent of Structure Commercial negotiated the sale.

Dallas (LEASE) – FleetPride, Inc. leased 60,000 SF in the Royal Commerce Center at 2007 Royal Lane. Frank McCafferty, Blake Anderson, Craig Wilson, Randy Cooper, Kris Knapstein and David Eseke of Cassidy Turley represented the tenant, and Ken Wesson, Adam Graham and Scott Alexander of Lee & Associates represented the landlord.

Dallas (SALE) – FL Shih Investment Corp. purchased a 37,530 SF building at 9136 Viscount Row. Alfred Goh of KCC Realty represented the buyer, and Jeremy Mercer of Mercer Company represented the seller, Eric Hohn.

Richardson (LEASE) – RW Sales and Marketing leased 16,092 SF at 307-317 Hilltop. Matt Spellman of Mercer Company represented the tenant, and Josh Barnes of Holt Lunsford represented the landlord, Cobalt.

MULTI-FAMILY Dallas (SALE) – Black Forest Ventures purchased DoubleTree Dallas – Campbell Centre, a 300-room, full-service hotel at 8250 North Central Expressway. The HFF investment sales team led by Bill Stadler and John Bourret represented the seller, a joint venture between GTIS Partners and Aimbridge Hospitality.

Plano (LEASE) – Texas Child Neurology, PLLC leased 8,064 SF at 4032 McDermott, Suite 100. Debi Carter, CCIM of Hudson Peters Commercial represented the landlord.

Dallas (LEASE) – Southwest Bank leased 5,886 SF in Park Place on Turtle Creek at 2911 Turtle Creek Boulevard.

Theron Bryant and Casey Tounget of Coldwell Banker Commercial Alliance DFW represented the tenant, and James Esquivel of Jones Lang LaSalle represented the landlord, TRT Park Place LLC.

RETAIL/RESTAURANT Mansfield (SALE) – Inland Real Estate Acquisitions Inc. purchased Mansfield Pointe, a 148,529 SF shopping center at Highway 287 and Debbie Lane. David Disney brokered the sale, Matthew Tice of Inland Real Estate Acquisitions represented itself and Alan Shor and Chad Bradshaw of The Retail Connection and Paul Bennett of Granite Properties represented the seller, a group controlled by The Retail Connection and Granite Properties.

Mansfield (SALE) – Walnut Creek Plaza, LLC. purchased a 59,297 SF former Albertsons building in the Walnut Creek Village Shopping Center at 989 North Walnut Creek Drive. Randall Stepp of Lincoln Property Company and Nick Ibarra of Clear Fork Properties represented the buyer, and John Zikos and Chris Booras of Venture Commercial Real Estate represented the seller, Dallas Retail Associates, LP. Irving (SALE) – Carlisle Interests purchased Market Square Shopping Center, a 46,979 SF retail strip mall within the master-planned community of Las Colinas at 5401-5465 North MacArthur Boulevard. Jennifer Pierson of CBRE Dallas arranged the sale.

Richardson (DEVELOPMENT) – Whole Foods plans to open a 45,000 SF store in the new CityLine development at NEC of Renner Road and N. Plano Road.

CityLine is a new mixed-use development developed by Dallas-based KDC. Fort Worth (LEASE) – The State of Texas leased 25,743 SF in the Ridgmar Village Shopping Center at Interstate 30 and Mall Circle. Sean Sunby of CBRE Dallas represented the tenant, and Clint Montgomery of Sperry Van Ness / Visions Commercial represented Ridgmar Village Shopping Center.

OFFICE

Flower Mound (SALE) – An undisclosed private West-coast buyer purchased Cross Timbers Village, a 19,333 SF shopping center at FM 1171 and Bruton Orand Boulevard. David Disney and Adam Crockett of DIG secured the buyer, and represented the seller, Direct Development and Thackeray Partners.

Dallas (LEASE) – Tenet Healthcare Corp. will expand its space to 242,000 SF at Fountain Place, the 60-story skyscraper at 1445 Ross Avenue. Phil Puckett, Harlan Davis and Chris Hermann of CBRE Dallas represented the tenant, and

Plano (LEASE) – The Holiday Warehouse leased 15,240 SF of retail space at 2819 W. 15th Street. Jeremy Cummings and Eric Deuillet of Structure Commercial negotiated the lease.

REDNews.com 39

ANNOUNCEMENTS & DEALS DONE

SOUTHEAST TEXAS

(HOUSTON AREA)

ANNOUNCEMENTS Chad Beck has joined Cushman & Wakefield’s Houston office as Senior Director specializing in office tenant representation. Beck, formerly Senior Vice President for tenant representation group at JLL, brings almost 20 years of commercial real estate experience to Cushman & Wakefield’s office tenant representation group.

Log on to REDNews.com for daily updates

Houston (DEVELOPMENT) –Midway is developing Avenue Grove, a 270-unit apartment complex in their current project, Kirby Grove at Levy Park between Richmond and the Southwest Freeway.

The complex, which is being designed by Houston-based Munoz Albin – HOUSE + partner, will be in the shape of an E to increase the number of units.

OFFICE Chad Beck

Houston (DEVELOPMENT) – Houston-based food distributor Grocers Supply Co will build a 1.7 million SF warehouse and distribution facility on 159 acres at Pinto Business Park in North Houston. Hines, Pinto Realty Partners and Kohlberg Kravis Roberts & Company LP are currently developing Pinto Business Park.

Phase 1 is expected to be completed by the end of 2015.

Robin Black has joined Colvill Office Properties as marketing director. Black brings over 20 years of experience in marketing and communications, with knowledge in many disciplines including media relations, advertising, graphic design, business development and social media.

Robin Black

INDUSTRIAL Houston (DEVELOPMENT) – Copeland Commercial and Hillwood Investment Properties will break ground in June on Interstate Commerce Center, a 717,706 SF master-planned office and logistics park in North Houston. Phase I will consist of two buildings: a 284,170 SF cross-dock building and a 129,936 SF frontload building and are both expected to be completed by Q4 2014. Phase II is on a 20.64-acre site ready for development of more than 299,070 SF or build-to-suit opportunities. Matteson Hamilton and Jeremy Lumbreras of Stream Realty will handle leasing.

Houston (LEASE) – Harbert United States Real Estate Fund V, LP and Fuller Realty Partners purchased a 211,125 SF, Class A building at 9801 Westheimer Road. Marty Hogan and Dan Miller of HFF represented the seller, Younan Properties. Fuller will handle the leasing and management.

Houston (SALE) – A private 1031 investor purchased Arbor Square, a 55,521 SF business park at 17000 El Camino Real. Derek Hargrove of Marcus & Millichap’s Houston office represented the buyer, and Justin Miller of Marcus & Millichap’s Houston office represented the seller, a Houston-based partnership.

Houston (LEASE) – Houston-based Blinds.com has doubled its lease to 55,470 SF at 10255 Richmond Avenue in Houston’s Westchase District. Doug Freedman of United Equities represented the tenant, and Steve Rocher, Kristen Rabel and Parker Duffie of CBRE Houston represented the landlord, BMS Management.

Houston (LEASE) – Niavo Gulf Industries leased 102,000 SF at 12300 Amelia Drive. LeDon Wissner of Smith Raines Co. Realtors represented the tenant, and Clay Pritchett of NAI Houston represented the landlord.

Houston (SALE) – Richland Financial Services of Texas purchased a 66,654 SF industrial property at 11810 Fairmont & 13501 Bay Area. Tom Lynch of CBRE Houston represented the seller, Kelley Fairmont, Inc. Houston (SALE) – Poroo Baker Investments, LLC purchased a 58,000 SF building at 5721 Harvey Wilson Drive. Steven O’ Conor and Marc Drumwright of Southwest Realty Advisors represented the buyer, and John Ferruzzo, SIOR and Chris Kugle of NAI Houston represented the seller, NIFF, LLC. La Porte (SALE) – The Richland Cos. purchased Fairmont PH Business Park, a 66,654 SF, two-building complex on 4.94 acres at Fairmont Parkway and Bay Area Boulevard, parallel to the Port of Houston. The complex is 100% leased to four tenants, including Worley Parsons and GSA.

MULTI-FAMILY Houston (DEVELOPMENT) – Houston-based real estate developer Morgan Group Inc broke ground on Pearl CityCentre and Pearl Residences at CityCentre and both are expected to be completed in the fall of 2015. One complex will be an eight-story building with 148 units and the other a seven-story building with 312 units.

40 REDNews.com

Houston (LEASE) – Premier Millwork leased 20,000 SF on 1 acre of land at 3409 Garrow. David Gerber of Gerber Realty represented the tenant, and James E. Foreman and Louis “Beau” Kaleel, SIOR of Cushman and Wakefield of Texas Inc.’s Houston office represented the landlord, Dulles Cartwright, Ltd. Houston (LEASE) – Sinopec Usa, Inc. expanded to 19,799 SF at 3050 Post Oak Blvd. Shirley Mei Qing of KW Commercial represented the tenant, and Cody Armbrister and Dave Hanusa of CBRE Houston represented the landlord, 5718 Westheimer Road Investors.

Houston (LEASE) – Ebanks Horne Rota Moos leased 12,352 SF at 2777 Allen Parkway. Keith Lloyd of Newmark Grubb Knight Frank represented the tenant, and Kristen Rabel of CBRE Houston represented the landlord, American General Life Insurance Company.

RETAIL/RESTAURANT Houston (SALE) – Consolidated-Tomoka Land Co. purchased a 131,644 SF Lowe’s at 19935 Katy Freeway. Ian Schroeder of CBRE Houston represented the buyer, and Ian Schroeder and Christy Ingle of CBRE Houston represented the seller, DDR Corp.

The Woodlands (LEASE) – The Republic Grille leased 3,800 SF in The Panther Creek Shopping Center at Woodlands Parkway. Rob Banzhaf of Newcor Commercial Real Estate and Terry McBurney of The Republic Grille represented the tenant, and the landlord, Regency Centers, was represented in-house.

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INDEX

A. A. Realty Company......................................13

Hartman Income REIT........................................2

ACRP..............................................................36

International Church Realty..............................27

Allegiance Bank Texas.....................................25 Avison Young 1- Central/South Texas, ............44 BACREN. . ........................................................36 Caldwell Companies .. ............................... 22, 23 CCIM Central Texas .......................................32

IREM Houston.. ................................................36 LandPark Commercial ...................................... 7 Levcor, Inc. ....................................................21 Lila Construction ............................................21

CCIM Houston Gulf Coast................................36

Moody Rambin Interests . . . 1- Southeast Texas, 5

CCIM North Texas. . ..........................................34

Move Resource Group ...................................41

Colliers International........................................15

Phase Engineering, Inc. .................................30

C.R.E.A.M... .....................................................36 CREN..............................................................36 CREW Dallas...................................................34 CREW San Antonio..........................................32 CTCAR............................................................32

R. S. Hart Commercial Brokerage, L.L.P. ........19 TAO Interests, Inc. .........................................41 Tarantino Properties, Inc. .............................8, 9 The REDVault..................................................27

Greenberg & Co.. . ............................................27

Transwestern Commercial Services .................3

Hankamer Commercial Brokers, LLC................27

Westchase District .........................................17 REDNews.com 41

LAST

PAGE

My Last, Last Page My First Year in CRE

by Jason Marshall REDNews I hope this article doesn’t turn into an award reception speech. It seems like it was just yesterday, one year out of college, I saw a job posting for an E-Marketing /Database Manager at REDNews. The job itself seemed great. I would be managing online marketing,, handling social media, managing website content, all the fun stuff marketing professionals like to do. However, I would be working with commercial real estate professionals, something with which I had very little experience.

“Eventually, the no-zoning laws of Houston could blur the lines of once recognizable districts into a mass of mixed-use developments and office towers.”

The first few months were a feeling out process. feeling my way through the dark, more specifically, working with brokers, trying to understand the industry jargon they wanted on their promotional materials. Fortunately, I was surrounded by a good team and very patient brokers. I will definitely miss working with companies like Tarantino Properties, Transwestern, Cushman & Wakefield, EXP Realty Advisors, NGKF, McAlister Real Estate, among many others. My primary goal was to address their marketing needs, but I also became knowledgeable about the industry. It was not only knowing what a sale leaseback was, but being able to understand it as a practice.

This is my last article for REDNews Magazine, as I will be leaving for Stan Johnson Company to continue to grow my career as a marketing professional. SJC has become a net lease authority and is regarded as one of the top investment real estate brokerage firms in the country. As a result, the company is growing at an incredible rate, opening the door for me.

42 REDNews.com

Initially, this last page article was intended for marketing and advertising on LinkedIn for commercial real estate professionals, continuing my unofficial series on social media and digital marketing. My article on LinkedIn marketing would have hopefully been useful; however, (channeling my inner Kanye West here), “an article on my experience at REDNews would be the best back page article of all-time!” Still I would like to reiterate the importance of digital marketing in CRE, an industry that is catching up to others.

My prediction – CRE deal making will become completely mobile: your property is listed online; you send the digitally created OM via Dropbox or iCloud from your iPad to their tablet, post the completed transaction on Twitter and then connect with them on LinkedIn for future deals. If you attended ICSC Vegas, ask yourself, how much of an impact did social media and digital market play on your deal making?

In the (roughly) year I have been here, I have learned quite a few things, not only about commercial real estate, but about some of the people I work with: • 99.7% of brokers in commercial real estate have Type ‘A’ personalities.

Pulling a Kanye at the VMA’s, Mr. Marshall steals the spotlight in his last article for REDNews

• The food spread at CRE organization breakfast events is better than the lunch spread.

concern. One advantage Houston has over other large cities is that it’s less dense. Eventually, the no-zoning laws of Houston could blur the lines, of once recognizable districts, into a mass of mixeduse developments and office towers intertwined with even more traffic congestion. Even if Texas is resilient enough to quickly recover from an economic downturn, a few years from now, we could be looking at a new Houston.

• Happy Hour usually turns into, “Wait, I did what last night?”

Although I had little interest in CRE before this job, I believe my future is in this industry. Seeing the new developments is exciting and I look forward to see the fruition of what is happening in The Woodlands (and in Katy), how that will affect Sugar Land and Pearland’s development plans. I would not want to remain in CRE if I wasn’t optimistic about the future; however that does not mean I do not have concerns. Having my finger on the pulse of the news in this industry for a year, it begs the question, ‘can there be too much development?’ The continued growth in the oil & energy sector gives me pause for

I am forever grateful for the opportunity I have had here at REDNews. It helped me grow, not only as a professional, but also as person. Even if my articles have become nothing more than lining for your birdcage it has been an honor to write them for you, the loyal REDNews reader.

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