REDNews November 2013 SE Texas

November 2013

In this issue: What’s Happening with Texas Retail Nothing “Niche” About Hispanic Buying Power

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

Featured Properties Renovations Complete Early 2014 9219 KATY FREEWAY

David Z. Mafrige Interests SUITE# 122 124 140 202A-1 202A-2 202C 202D 202E 202F 210 222 224 226 232 232 A 234 236A 236B 238A 240 244 246 252 254A 256 258A 258 260 262

9219 Katy Fwy.

RETAIL Office Depot Chuck E. Cheese’s Brick House Tavern & Tap Available SUPERCUTS Available Available Available Bright Now! Dental PETCO Available Anna’s Linens Burke’s Outlet Available Available Available Check n Go Available Available Available Available Available Impress For Less Comedy Driving, Inc Available Fast Signs KOI Productions Pancho’s Mexican Buffet Available

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SQ.FT. 28,547 18,700 8,700 3,200 1,600 1,675 2,315 3,547 3,120 14,984 37,338 14,839 24,725 13,576 10,500 2,813 1,400 1,015 1,068 4,696 1,644 1,065 14,076 803 20,880 1,837 1,110 6,000 3,074

SUITE 291

HOUSTON,

TEXAS

Contact: George W. Harsh • P (713) 468-5005 •

Houston, Texas 77024

1801 SOUTH DAIRY ASHFORD - Briar Forest & Dairy Ashford

DEERBROOK CROSSING - FM 1960 @ HWY 59 North Gross GLA Parking Spaces

) 160,000 VPD (NORTH & SOUTH

196 ET

60,0

PD

RK

A OM MT

FAR

262 KOI Productions

258A 202 E

256

9,400 VPD

202 D 202 C 202 A-1

252

59

246 244

BENDER AVENUE

Office Depot, Petco, Chuck E. Cheese’s, Anna’s Linens, Burke’s Outlet

240 238 A 236 B Check n Go 234

248,847 1,014

232 A 232

122

124

210

222 224

DEERBROOK CROSSING

226

HUMBLE, TEXAS 77338

The information contained herein was obtained from sources believed reliable; however, David Z. Mafrige Interests makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is subject to errors, omissions, change of price, or conditions, prior sale or lease, or withdrawal without notice.

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PROPOSED RETAIL • Over 1,000,000 SF Proposed • Pad-Sites (Sale/Lease) • Pre-Leasing 25,000 SF Now • AGGRESSIVELY SEEKING RESTAURANTS

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The Texas Hill Country is good for business and BURNET is good for YOUR BUSINESS!

Table of Contents

Texas Retail Market Interviews Retail Development Booming in North Texas

12

San Antonio Retail Speeding Up

14

Where is Houston Retail Going

16

Texas Retail Recaps & Reports Recap of ICSC Hispanic Retail Market Conference

10

Largest Available Big Boxes

18

Texas Retail Survey

20,22

H-E-B: How We Came From Zero in 1990

30

Maps Retail/Residential/MPC Development

Properties For Sale/Lease

24-26, 28

1-3, 5, 7 – 9, 13, 15, 17, 19, 21, 23, 27, 29, 31, 43, 44

Commercial Services Environmental Services

33

What’s Happening in Texas CRE Calendar of Events

32, 34, 35

Networking Photos

36, 37

Deals & Announcements

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38 - 40

For Sale

Unique Development Opportunity located near the World-Renowned Texas Medical Center Galleria Rice University

Texas Medical Center

Veterans’ Hospital

Subject

Blvd.

Grand

Old Sp

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Alic e St .

MD Anderson Southeast Campus

5.38

’

Property Highlights ▪ Largest vacant land tract in the Texas vard

▪ All utilities to site ▪ Ideal uses include, medical: office, clinic,

METRORail route

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8’

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±66

0.9

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7’

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UT/MD Anderson Southeast Campus

±66

0.62

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Cor

der

▪ Asking Price: $29.50/PSF

• 45.8 million SF • 1,345 acres • 290 bldgs.

▪

Sub

±23

3.3’

research, hospital, warehouse; residential multi and single family, data center and mixed-use development.

▪ This site is less than one mile from the

±49

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Adjacent to the new MD Anderson Southeast Campus

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For Sale, Joint Venture and or Build-to-Suit

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8’

±23 acres - Will Divide

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21.9

±49

±81

2013 Facts & Figures ▪ Member Institutions: 54 ▪ Annual Patient Visits: 7.2 million ▪ Employees: 106,000 ▪ Full-time Students: 49,000 ▪ Total Hospital Beds: 7,000 ▪ Annual Surgeries: 171,000 ▪ Total Budget (All Institutions): $15 billion ▪ Total Size/Gross Square Footage (All Campuses):

eS

±1.3

6.74

Medical Center area

▪ ▪ ▪

Alic

±23

The Texas Medical Center is the largest medical center in the world. It is an internationally recognized community of patient care, education and research. The Texas Medical Center in Houston is home to many of the nation’s best hospitals, physicians, researchers, educational institutions and health care providers.

Stre e

Texas Medical Center

St. ore m d Ar

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±32

Co rd er

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±73 4

Almeda

TMC

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TMC

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Herman Park/ Houston Zoo

Stre

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Houston

Additional Projected Development is: ±28 million SF

For further information, please contact our exclusive broker:

Sam Sheff, CCIM Managing Director 713.599.5145 ssheff@ngkf.com

www.ngkf.com

Publisher’s Letter

PUBLISHER

Ginger Wheless

ginger@rednews.com

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

EDITOR Marjorie Gohmert marjorie@rednews.com ASSOCIATE EDITOR / E-MARKETING Karisa Connell karisa@rednews.com STAFF WRITER Janis Arnold CONTRIBUTING WRITERS Ray Hankamer rhankamer@gmail.com Austin - Rosalie Keszler San Antonio - Suzanne Scott ART DIRECTOR Connie Marmolejo - connie@rednews.com ACCOUNTING Benton Mahaffey accounting@rednews.com

Dear Readers, To all of our faithful readers who have consistently expressed your opinion regarding bringing the old REDNews logo back, please note that we listened!

Obviously, in some cases, change ISN’T good, so I’m glad you missed our logo.

We also went back to the former format for deals since it was preferred as opposed to more deals in a map format. We’re adding new deals daily to our website along with CRE articles so be sure to log on for a quick and easy daily fix of CRE news, (www.rednews.com).

DATABASE MANAGER Jason Marshall jason@rednews.com SALES Karisa Connell karisa@rednews.com Ginger Wheless ginger@rednews.com

Print & Digital Distribution

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

More feedback was about the editorial and how much you liked the articles and maps. In fact it warranted fresh fish from a loyal REDNews follower in return for additional copies of the October issues, (Thank you, Bob Watson!)

This is our Texas ICSC Retail Focus issue and I enjoyed speaking with several (female) retail brokers around the state. I intentionally chose women to interview since I seem to have been neglecting that gender. In speaking with Cynthia Ellison in San Antonio she remarked that when she entered the CRE market in 1981 it truly was a man’s world and now CREW (Commercial Real Estate Women) National organization boasts 8,000 members and of the ±160 San Antonio CREW members, more than 30% of them are men!

I’m looking forward to seeing a lot of you retail brokers in Dallas November 6 – 8 for Texas ICSC. It will be good to commiserate in person about how much better the market is now that we have come out of the doldrums.

Next month will be the last issue of the year and we’ll be featuring the Texas Industrial/Office & Land markets so give me feedback on what you’re most interested in reading.

Have a wonderful Thanksgiving Holiday!

Best Regards,

Ginger Wheless

6 REDNews.com

c

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

Recap of Panelist Discussions at theOctober ICSC14Hispanic National Conference – 15, 2013 Marketing Fairmont Dallas Dallas, TX in Dallas on October 14-15th - by Amy Sorter Hispanic Shoppers 50 million today - 134 million by 2050 No Such Thing Homogenous Doesas your business plan capitalize on this growing market? If not, it should.

Busting the myth of the homogenous market- ing concept. Panda Express in This exploding demographic is creating never before seen opportunities. Hear from experts with a proven track record the network U.S. focuses onindustry take-out place was the theme of speakers participating on setting the and in an interactive with key players.

“Retailers Showcase” panel at ICSC’s Hispanic Mar- Asian food. In Mexico, the kets National Conference on Oct. 14 in Dallas.

Discussions will include:company discovered that dinWhen Yogurtland of Irvine, CA entered Mexico ers want to spend more time in the restaurants, with its pay-by-the-ounce concept, the company as- information Valuable take home applicableastosit-down your business familyfrom mealtimes are a tradisumed consumers would understand self-serve Howthe to gain the acceptance the community tionyouthroughout the country concept in which yogurt and toppings were What kindspooned of returns can expect as a retailer or investor, and much more into a cup and weighed by the customer. The concept of Mexico. Hunter Stansbury, Don’t miss the opportunity to learn the keys to success Restaurants’ Vicein reaching this lucrative market. had worked extremely well in Venezuela, where the Wingstop tagline of “You Rule” had gone over with the Ven- President of Real Estate afFor information on the Program, Registration, Exhibiting, Sponsorship and the New Project Showcase visit www.icsc.org/2013HMN. ezuelans. In Mexico the concept failed, Yogurtland’s firmed this marketing demodirector of Real Estate Cesar Shih reported. “The graphic. Wingstop locations discussed marketing health clubs and fitness facilities Mexican Consumer found the ‘You Rule’ tagline in the Rio Grande Valley of almost offensive; they didn’t understand the pay-by- Texas, where a high concentration of Hispanics have in different parts of the country. The company’s trathe-ounce concept. Customers felt cheated, and they emigrated from Mexico, are larger than their restau- ditional client has been the white male, however in walked away from our product.” Lesson learned, Shih rants in other parts of the country. “If diners in our locations such as Hialeah, Florida, and Downey, Calisaid. “Businesses have to take a careful, microscopic Rio Grande Valley restaurants are going to eat food fornia, LA Fitness has discovered that their customer that they haven’t prepared, they want to have a sit- base is largely Hispanic, predominantly female, and look at new markets before entering,” he noted.

Arturo Sneider, with Primestone Development down dining experience and they expect to spend somewhat older. Today, LA Fitness operations, once Inc. and panel moderator, noted the need for more time visiting and lingering over those meals,” he ex- the bastion of white males, attracts increasing numbers of Hispanic females. “It’s making us set up things sit-down restaurant concepts for Hispanic diners. Co- plained.

William B. Horner, CFO of Fitness International a little differently,” Horner said. “There is a lot of inlin Crawford, executive director of Real Estate with Panda Restaurant Group Inc., reinforced this market- LLC (which owns and operates LA Fitness facilities), come in that demographic.”

The State of Not-So-Bad Michael P. Kercheval, president and CEO of the International Council of Shopping Centers, and Mark Myers, ICSC trustee and executive vice president/head of commercial real estate with Wells Fargo Bank discussed current conditions impacting the United States’ retail industry on Oct. 14, at the ICSC Hispanic Markets National Conference in Dallas.

There is good news, and not so good news regarding the ‘State of Not So Bad.’ First, the good news: “Consumers are spending again; and they are spending enough to encourage retail property owners to begin thinking once again about development,” Kercheval said. “This is a big change from the days when we were trying to squeeze productivity from our shopping centers.”

Myers noted that the bright spot within the countries economic state is housing, with its increase in prices and new housing starts statistics being good news. “This has a multiplier effect in terms of the economy,” Myers remarked. “When an individual buys a house, he needs furniture, appliances and electronics.” Myers also presented statistics that indicate that consumer net worth is at an all-time high, suggesting additional disposable income for new homebuyers.

Challenges on the horizon do exist. Myers pointed to slower economic growth. He stated, “new regulations and the continued budget deficit has raised the hurdle for new investments.” Furthermore, the GDP growth is still

10 REDNews.com

slow at 2.5 percent, leading Myers to suggest that this slower growth rate has become the ‘new normal.’

Given the fragile state of the economy and consumer spending, Kercheval suggested that retail developers and property owners consider moving away from the traditional shopping center concepts. He suggests taking advantage of infill opportunities and increased awareness of urban opportunities across the United States.” Kercheval also recommends that developers and owners put increased emphasis on mixed-use/multi-use centers. Developers and owners need to convert existing centers and retail property to ‘destination locations’, places where people come to do more that ‘buy stuff’.

Growing diversity among shoppers and e-commerce and technology are changing the retail landscape.

Today’s consumers are more sophisticated and have higher expectations for their shopping experiences. The landscape continues to change. E-commerce is evolving into m-commerce, mobile commerce. Today’s shopper has access to increasingly more information, which factors into purchasing and decision making choices. Furthermore, as consumers move from e-commerce to m-commerce, or “mobile” commerce, they have access to even more information, which plays into their decision-making choices. “Bricks and mortar will play a role in the future, but retail will look increasingly different from how it has looked in the past,” Kercheval observed.

ICSC president and CEO Michael Kercheval discusses the state of the retail industry at the ICSC Hispanic Markets National Conference, which took place in Dallas on Oct. 14-15.

Mark Myers with Wells Fargo Bank discusses economic challenges with some bright spots.

Myers gave his remark before an audience at the ICSC Hispanic Markets National Conference, which took place Oct. 14-15 in Dallas.

October 14 – 15, 2013 Beware the Monocultural Discussion

Fairmont Dallas

Dallas, TX

Nothing “Niche” About Hispanic Buying Power – But Investors May Not See it That Way

Daniel Aizenman, senior designer and ish-speaking, nor do many Hispanics have 50 million - 134 million by 2050 senior associate with Visioning, Brands and allegiance to a home country other than today the Experiences (ViBE), discussed general charUnited States.”

There is a vast difference, he Does your business plan capitalize on this growing market? If not, it should. acteristics of the Hispanic consumer. noted, between someone who is American• Religion and spirituality are impor- demographic ized, versus someone Nuevo Latino Hear from experts Thisan exploding is creating neverwho beforeisseen opportunities. with a the proven track record minority group in Hispanics, largest-growing tant part of life or bi-cultural – with andkey theindustry marketing strategies in an interactive setting and network players. the United States, are demonstrating increasing purchas• Food is the center of family life will vary according to demographic characing power, which is good news for retailers; unfortunateDiscussions will include: • Inter-generational living within famiteristics of the subgroup. ly, institutional capital hasn’t quite internalized this fact. lies is more the norm than the excepIn Oklahoma City, the majority of Primestor Development Inc. managing director Alan Valuable take home applicable toare yourfirst-generation, business tion the information 143,042 Hispanics Araki said, “Stereotypes remain when it comes to getto gain acceptance from thefrom community ting national credit tenants – and investments – in these “You’re likely to find moreHow than onethe having migrated Mexico and Central Obtaining financial resources to develop and/ WhatAizenkind of returns can youAccording expect as ato retailer or investor, and much projects.” more generation shopping together,” said America.

Jessica Herrera, manor buy shopping centers that cater to the Hispanic comman, whose company designs shopping cen- ager, retail development and recruitment Don’t miss the opportunity to learn the keys to success in reaching this lucrative market. munity (or even leasing up that center) can be difficult. ters geared toward the Hispanic population. for the Greater Oklahoma City Chamber, “Tovisit some of the investors out there, there is still the “You’re also likely to find that For Hispanics, this population can be found in the southinformationparon the Program, Registration, Exhibiting, Sponsorship and the New Project Showcase www.icsc.org/2013HMN. notion that it doesn’t fit the brand,” commented Joel K. ticularly those from Latin America, want to ern region of Oklahoma City. “Retailers are Mayer, managing director, head of retail with Rockwood shop in plaza types of settings in downtown starting to figure out how to service this marCapital. “A lot of people don’t understand the commuareas,” he added. ket,” she said. Because the majority of the nity, most of them don’t understand the buying power, While common characteristics ex- population is first-generation, the retailers the culture or the speed of growth. But no other ethnic ist among Hispanic consumers, Aizenman are attempting to make the customer experigroup has grown so quickly.” was adamant that the overall population ence more comfortable. Family members are Today, increasing numbers of centers are operating be regarded as a multicultural, versus mo- shopping together, and “the kids are teaching – and being built – in urban infill locations. To many no-cultural, population and demographic the parents to speak English,” Herrera said. investors and tenants, “urban infill” is synonymous with “lower household income.” Kosmont Cos. president group. “Hispanics originate from 21 differ- The greater Denver area boasts a robust Hisand CEO Larry Kosmont pointed out that in Califorent countries,” stated Manuel Ocasio, senior panic population; according to Aizenman, nia, there are only two locations: Coastal and Interior. vice president and Hispanic market director Denver hosts the eighth-largest Hispanic “Coastal is where all the retailers and investors want to with the Bank of Oklahoma. David Mesas, market in the west. “At present there is not go,” he said. But many Hispanic groups reside inland. senior client advisor with research company a single shopping center serving this popu“Until there is an understanding that real estate transacGeoscape discussed the many different cul- lation in downtown Denver,” he observed. tions and operations are safe among these inland comtures within the ‘Hispanic’ audience; includ- After Ocasio pointed to the significant difmunities,” Kosmont said, “we’ll continue to see this bias.” ing individuals from Mexico, Latin America ferences between Australians and Americans Many of the national credit retailers have dipped and South America as well as Hispanic con- – both populations speak English, but are their toes into ethnically diverse markets, but the stesumers who were born in the United States. very different culturally, Aizenman reminded reotypical “Hispanic-driven” tenant remains a smaller, “Understanding acculturation is important,” ICSC attendees that the same holds true for mom-and-pop operation catering to local customers, Mesas pointed out. “Not everyone is Span- the Hispanic population. which tend to be far from investors’ comfort zones.

Mayer and Simon J. Honeybone, Sarafim Realty Advisors’ vice president, pointed out that investors who get out into the community and talk to both customers and tenants learn that the quality of the product being built for the Hispanic markets is better than it was even a decade ago.

David Doupe, international director with Jones Lang LaSalle, sees situations improving as cash flow increases at such centers. “We’re coming out of a five-year recession,” he commented. “As the economy becomes more bullish, sales potential will be recognized.” Once strong sales from Hispanic retailers (and those nonHispanic retailers that are directing product toward Hispanic markets) can be demonstrated, “we can apply some fundamentals and prove success,” Mayer mentioned the need for more visibility and better communication. Honeybone added that developers and investors (l-r) David Mesas, Jessica Herrera and Manuel (l-r) David Doupe, Larry Kosmont and Simon Honeybone discuss investors, tenants and shouldn’t be afraid to build quality product for the tenOcasio, “Emerging Domestic Markets” panelists Hispanic-oriented retail centers during the ants. Quality product means quality tenants, especially at the ICSC Hispanic Markets’ national confer“Institutional Investors-Mainstream or Niche” national credit tenants. “Investors will go in when they ence on Oct. 14. panel at the ICSC Hispanic Markets National see those tenants,” he noted.

Hispanic Shoppers

Conference. The conference took place Oct. 14-15 in Dallas.

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

RETAIL INTERVIEW

Retail Development Booming in North/East Texas Claudia Hutchinson graduated from the University of Texas and taught special education for seven years. Deciding that her strengths were in problem solving and math and because she wanted to control her own destiny she gravitated toward commercial real estate. In 1984 she joined Henry S. Miller (which was later sold to Grubb &Ellis) and formed a partnership with Myles Kelley.

Seven years ago, Claudia & Myles formed their own company, Realty Ventures, which is a retail tenant rep and development company.

RN: From a retailer’s standpoint, is this related to online shopping?

RN: Tell me what you are seeing in North Texas in retail development and trends in the industry.

RN: So size is important. What is a more secure tenant mix from a lender standpoint?

Claudia: The great news is that we are in Texas with an incredibly healthy retail market. There is very little vacancy in Class A shopping centers and Class A spaces, because there hasn’t been anything new built since approximately 2009.

We lost national retailers, such as Linens and Things & Borders Books. Today there is repositioning back into those spaces and I have clients saying, “I’m desperate for 2500-square-foot end cap positions for a restaurant,” and those locations don’t exist unless somebody leaves. Grocery stores are coming in that have never been in our market, and existing stores like H-E-B are entering the Dallas-Fort Worth market. Kroger is expanding with their big Kroger Signature stores. WinCo is expanding, as are Market Streets and Sprouts, among others. Every major highway in the Dallas-Fort Worth area seems to be under construction and that is a factor. I was on a site yesterday with a retailer from the East Coast who said, “Across the United States, we have not seen this much construction anywhere.” A lot of it is roadwork, but a lot of it is people beginning to come in and redevelop properties. There are some inner-city redevelopment opportunities in Dallas, down in the core.

The rents are as high as I have seen in 10 years.

RN: What effect is that having on tenant mix? Are you seeing some of the mom and pops, the smaller retailers falling out?

Claudia: Today it is all about credit. Given a choice between a national retailer and a national tenant on a lease, any developer, landowner, or shopping center owner will go with the big guy first. There is some small shop space that’s coming online in the Walmart and Home Depot centers in different areas because the big users are realizing they don’t need a parking ratio of 5:1.

RN: So parking ratios are going down?

Claudia: Fifteen years ago we’d have to buy more land because of the 5:1 parking ratio. Today the city of Fort Worth doesn’t want all that parking out there. Retailers are saying, “Other than between November 15th and December 31st, we don’t need all that parking. “ In many cases, the larger stores are happy with the 4:1 parking ratio. This doesn’t apply to restaurants, however, which continue to require a ratio of 10:1.

12 REDNews.com

Claudia: Office Depot has gone from 30,000 square feet to a 15,600 square foot prototype and a 10,000-square-foot prototype for their new stores. They can get 90% or more of our SKUs (merchandise) in these buildings. The size of office products has decreased. At one time we purchased computers with huge monitors, printers, and towers. Today, everything is smaller. And with Internet sales, companies don’t need large showrooms with multiple items of the same merchandise.

RN: Where are you seeing going forward with retail development?

Claudia: Retailers are downsizing and repositioning. The 30,000 square foot users are now 15,000 square feet. Construction lenders are still trying to recover, so they are cautious about lending. From a tenant rep standpoint we require a shopping center to be at least 60-70% leased.

Claudia: In any kind of a downturn economy, people are still buying groceries. They are still going to the cleaners and the drug stores. The women are still getting their nails done and families are still going out to eat. The daily need stores create activity in the center.

RN: What about growth patterns?

Claudia: Areas where residential and average incomes have remained stable are attractive. The residential growth in North Fort Worth is booming; the roads are just trying to catch up to it. Retailers are doing huge numbers in sales, even though they whine and cry about road construction and traffic.

The area we call Airport Freeway 183 is problematic. Prospective retailers are saying, “Don’t even show us a site there. Call us back in three years when it’s done. Let’s go bounce out to other areas.” In Forth Worth, with the new tollway going through, we have seen two new big developments recently announced. Keeping an eye on redevelopment and relocation opportunities in today’s market is important. Many of our traditional retailers are hitting their 20-year and 25-year renewal options. I’m hearing a lot of: “We want to reposition this store,” or, “We have 30,000 sf and our new prototype is 15,000 sf. I will stay in your shopping center if we can downsize.” There are also a lot of new retailers coming in looking for +/- 10,000 sf sites in multiple locations.

RN: What happens in that case? Are they open to building as opposed to leasing?

Claudia: In a word, yes. Retailers that would normally have leased are saying, “Just go find us a tract of land with a workable location, and you can build for us.” Many companies that downsized are looking at outsourcing parts of their operations. And there is investment money that has been sitting on the sidelines for the last five years that is ready to go.

RN: Other areas of interest?

Claudia: Tyler and Longview are the strength of East Texas. The mall in Tyler at Broadway and the Loop is doing ground leases with BJ’s out on the pad sites. Tyler with its medical demographic has announced a 600,000700,000 square foot development. I am aware of several pet store groups that want to come into Texas. One way for them to do that is to start in Tyler, Longview, Lubbock, and Amarillo. Our retail clients in Amarillo tell us their sales are wonderful. In Lubbock, we’ve had a lot of success. Midland-Odessa is booming, and all of these areas are doing great numbers.

RETAIL INTERVIEW

San Antonio Retail Speeding Up In 1978, Cynthia Ellison was working for IBM when she was transferred to San Antonio. In 1981, she met two commercial real estate brokers, Tom Sineni and Mike Gribble who became her mentors after enticing her away from the technology business and into commercial brokerage. Being a consummate shopper, she said she naturally gravitated to retail brokerage and joined Grubb & Ellis which has become Newmark Grubb Knight Frank.

RN: So you started your CRE career in the downturn market of the 1980s?

Cynthia: Well, I didn’t know that it was a down market! Perhaps that was a good example of “ignorance is bliss”. Like many other young commercial real estate professionals who started their careers in 2008, 2009, and even later, the down cycle did not curb our enthusiasm for this exciting new field.

RN: So, what is the current state of the retail market in San Antonio? Who are the active retailers?

Cynthia: Retail is finally speeding up after this most recent downturn. The retail recovery has been slow, but we are now seeing positive absorption, especially in the far west and far north central areas of San Antonio. Retail vacancy is slightly down to about 10.5%, about a point lower than one year ago. With lower vacancy rates, landlords are enjoying slightly higher rental rates which are up $0.25¢ to a $15.95 average. Tenants are more active with several new tenants in the San Antonio market, including Gander Mountain, Sam Moon Trading, Burke’s Outlet and Trader Joe’s. Wamart is very active and LA Fitness as well. Additionally, we have several entertainment concepts actively looking at vacant anchor spaces.

RN: Is there a lack of available retail space for those that are leasing?

Cynthia: We no longer have the glut of available anchor space since most of these vacancies have been back-filled. San Antonio has about 46 million square feet of retail space and with our 10.5% vacancy, tenants typically still have choices.

RN: What is in the works, retail related and new development?

RN: Houston and Dallas seem to have an influx of new grocery retailers. Are you seeing the same in San Antonio?

Cynthia: Since the exodus of all our Albertson and Kroger stores, grocers have been hesitant about coming to San Antonio. Walmart is obviously the exception.

H-E-B headquarters are located here and their customers are very loyal. H-E-B has done a great job of covering our market with convenient locations that cater to the demographics in their immediate area. That being said, Whole Foods recently opened their second San Antonio location and Trader Joe’s has announced a second location in the 1604/Stone Oak area.

RN: New organic grocers are showing up in Houston and Dallas. Does Whole Foods have competition in San Antonio?

Cynthia: In addition to the two Whole Foods and the two Trader Joe’s I just mentioned, San Antonio does have three Sprouts stores and a Green Fields Market, which is located in the Stone Oak area. The organic /health food concepts typically locate in areas with higher education levels, which equate to better income areas. I wouldn’t be surprised to see one of these concepts locate farther northwest.

RN: Who is buying and selling retail centers right now?

Cynthia: San Antonio has very few retail centers being actively marketed right now. Larger centers have been purchased by REITs, and we’ve seen smaller centers purchased by local and regional buyers. There is demand from retail investors who want to enjoy higher returns on their capital, but the available supply is very limited.

RN: So owners are holding on to their centers?

Cynthia: Right. For example, I had a retail property listed for sale. We received a good offer. The seller was questioned by his family as to why he wanted to sell when he couldn’t get that high of return anywhere else so he took the property off the market.

RN: Is there one particular area that has changed dramatically in real estate?

Cynthia: Yes. When I began my real estate career in 1981, non-mall national and regional retailers wanted to locate in grocery-anchored, neighborhood retail centers. Now that activity has shifted to the larger, regional centers that tend to be developed along freeways that have regional draw, rather than just a neighborhood draw.

Cynthia: New development of multi-tenant centers is about 250,000 SF, but that figure does not include the announced Walmart stores. If you include their several new locations, our development figure exceeds 800,000 SF. Other developments include a large center at Bulverde and 1604. LA Fitness and possibly an H-E-B will be opening at that intersection. In San Antonio’s high income areas, Quarry Village is under construction on Phase II, and the center across from The Dominion is almost complete.

RN: Do you see anything else that’s different or changed since you got into the business?

RN: Are you seeing redevelopment of older centers?

Cynthia: As I mentioned earlier, rents have been trending up. Our average rent is only $15.95. However, I heard some rates quoted recently that were surprisingly high. For example, a broker just quoted $40 SF plus $13 triple net. That rent is very high for San Antonio.

Cynthia: Yes, we do have redevelopment activity or existing buildings at busy intersections have been demolished to make way for CVS, Walgreens, and small multi-tenant centers. Additionally, some of our older centers are being either partially or totally demolished and redeveloped with Walmart anchored multitenant centers. Wonderland of the Americas, one of our oldest malls, is still in the process of converting some of their former retail spaces into medical offices. LA Fitness recently opened in a beautifully renovated Toys R Us building on Blanco just north of Loop 410.

RN: What is standard for Walmart now?

Cynthia: Walmart is building several new super-centers here. They are in the 185,000 SF range. However, at least one of the new Walmart stores will be their smaller 42,000 SF neighborhood market concept.

14 REDNews.com

Cynthia: Yes, tenants seem to try harder to downsize their square footage. That is partially due to higher rents and higher triple net charges, but also I think the increase in internet sales is a factor.

RN: Are rental rates steady or increasing?

RN: So give me your 3 to 5 year crystal ball view in the retail market.

Cynthia: With our current retail occupancy rate at almost 90%, we will need new retail centers to keep up with the projected demand. We currently have 499 centers totaling 46 million square feet. As our current retailers expand and new retailers and restaurants enter our market, we will need new space to accommodate the demand.

n oW open

de c e m b e r 2013

daLLas no W o pe n

c omin g soon

Oc t Ober 2013

Win t er 2013

daLLas

40,000 Sq. f t . expan Si On

For Leasing inFormation, pLease contact

Michael Hale Matthew Squire

214-691-2303 214-691-2306

mhale@amreit.com msquire@amreit.com

REDNews.com 15

RETAIL INTERVIEW

Where is Houston Retail Going?

Joan Collum started her CRE career in 1984 as a real estate rep for WNS and expanded the Wallpapers To Go concept throughout the southeastern portion of the US. From there she moved to Pier 1 Imports and over a four-year period opened over 100 new locations for Pier 1 throughout the US. Over the course of 20 years, she represented numerous retailers and in 2012 launched her own company, Collum Commercial, as a tenant rep as well as commercial development firm.

RN: What is going on in the Retail Market in Houston?

Joan: The grocery operations are all out there trying to fill in the holes that they have. Kroger just opened a new store on Studemont and Wal-Mart recently announced their first two inner loop locations.

Many of the 20,000 to 30,000 square foot box retailers such as TJ Maxx, Marshall’s, Bed, Bath and Beyond, Michael’s, Petsmart, etc., are looking for developments. Unfortunately, new box developments are not happening at the present time.

I’m seeing the retailers using this time to pull in their horns. They are reevaluating their marketing strategies as they seek to increase their profit levels within the space of their existing stores. It is a difficult time in that, for publicly traded companies, Wall Street wants to see growth. In the past, we saw new developments coming online to fuel the store count growth, but that’s not happening at the present time.

Houston does have several projects that are being marketed for 2014/2015 delivery; however, until those deals break ground, it’s going to be a struggle to find new locations for these retailers.

RN: What retailers are moving into this area?

Joan: We are seeing new grocery concepts coming into the market: Fresh Market, Sprout, Trader Joe’s and Aldi. These are smaller niche grocers that are serving a specialized customer need. This is helping drive development, although on a much smaller scale, as these stores range from 15,000 – 25,000/sf.

RN: Last month REDNews featured master-planned communities; it appears to take a minimum of two years out to get them off the ground. So is that a factor for new retail locations?

Joan: It all starts with jobs, and Houston is leading the nation in job growth.

Construction of single-family developments is on the rise as home inventories are tightening up; this spurs the multi-family developments. The interesting part is that, for the first time, we are beginning to see multi-family developers adding a retail component to their projects. This is a great marketing strategy that adds an added amenity to their projects.

We’re seeing projects that were announced pre-recession that are finally coming out of the ground. Leasing appears to be very strong. Rental rates are increasing expotentially. In some cases, landlords are quoting $70+ per square foot. When you factor in triple net charges, gross rent could reach $100/per sq ft. This price can effectively eliminate a large segment of retailers who cannot compete at that price point. Landlords realize that they can’t be all things to all people.

RN: Does this mean that we’re going to see fewer retailers entering our market?

Joan: Everything’s gone up. Land prices have increased, taxes are increasing and construction costs have definitely increased. We had a stagnant market 16 REDNews.com

for several years. Landowners were typically only interested in ground leasing properties. Now that the market has come back strong, it is not unusual for a landowner to receive multiple offers on well-located properties. The tide has turned and landowners are now in the driver’s seat. Prices have really gone up to the point that it is going to eliminate some developers from being able to make the numbers work and still get a decent return on their money.

RN: So what’s your retail crystal ball predict for the next three to five years?

Joan: During the last three years, national retailers have tried to figure out how to do more with less. Our client, Office Depot, has spent the last five years downsizing their large 25,000 to 30,000 square feet into 15,000 to 16,000 square feet operations. Office Depot has 48 stores in the Houston metropolitan area and we have identified 15 to 20 of those stores that we would like to downsize. This will allow Office Depot to remain in that market and continue to produce strong sales volumes at the same time they are able to reduce their overall occupancy cost. Again, this is about doing more with less. For each store that we downsize, we are able to identify three or four retailers that could occupy the surplus space.

This fact alone confirms how low the vacancy rates are in our markets.

When I started representing Michaels 21 years ago, their prototype store size was 25,000 square feet and now our typical store size is 20,000-21,000 square feet. Office Depot originally occupied 25,000 to 30,000 square feet and currently occupies approximately 16,000/square feet. The key for today’s retailers is waiting for the development domino to fall into place. With a commitment from a major anchor such as a Target, Wal-Mart or a large grocer, we can almost guarantee our ability to deliver a project that has all the core retail categories, i.e., soft goods, office products, crafts, electronics and pet products. Unfortunately we are not seeing many new developments of that caliber at the present time.

RN: Where’s the opportunity today?

Joan: It’s all about jobs. Here in Houston we are fortunate enough to have a very large job sector in the oil industry. North Houston will get a huge boost with the completion of the new Exxon campus, which will have a 386-acre campus with over 10,000 employees. This will spur growth in all sections: housing, commercial, retail, and industrial. This should be a win-win for that area. We have the I-10 corridor that has seen tremendous growth in the last few years. The Texas Medical Center-West Campus is anchored by Texas Children’s Hospital. Methodist Hospital, when all phases are completed, will encompass over 170 acres and employ 3,200 people. In addition to the major oil-related employers (BP, Shell, ConocoPhillips, Shell, Exxon/Mobil, Citco and Dow Chemical) growth is very strong in this corridor and is not showing signs of slowing down any time soon. We are seeing buyers get creative with their acquisitions. They are looking at existing properties and figuring out how to repurpose these properties for higher and more effective use of the land.

RN: What sort of future do you see for the smaller retailers?

Joan: The mom and pops won’t go away; today they have to be smarter about how they grow their businesses and the locations they pick. We represent a concept called Fix Your Gadgets who just signed a lease for a 4th store at San Felipe and Voss. This is a company that repairs iPhones, iPads and all types of PDA. Think about this: if you drop your phone and crack the face you can spend $65 to $100 to have your face replaced or spend $400 -$500 for a new phone. Most of us are going to get our phone fixed. Fix Your Gadgets is a good example of a small retailer who has identified a consumer need and has filled it. They’ll be able to grow their business with this concept.

KAUFMAN, TX

New Kings Fort Market Center

New Kings Fort Market Center • • • •

Bulletpoint 1 goes here Bulletpoint 2 goes here Bulletpoint 3 goes here Bulletpoint 4 goes here

Kaufman, Texas

• • • •

Bulletpoint 5 goes here Bulletpoint 6 goes here Bulletpoint 7 goes here Bulletpoint 8 goes here

THE SHOPS AT KINGS FORT SPRING 2014

FOR SALE

FOR SALE 55K SF

Dallas

Kaufman

FOR LEASE 12,776 SF

FOR LEASE ±14,224 SF

25 Minutes To Dallas, TX

FO ±1 R SA .20 LE 5A C

BTS DENTAL OFFICE

WHATABURGER SPRING 2014

UNDER CONSTRUCTION SPRING 2014 GRAND OPENING

FO R ±2 SALE AC

FO R ±3 SALE AC FO R ±3 SALE AC

FOR SALE ±25 AC

FO R ±5 SALE AC

FO R ±2 SALE AC

FOR SALE

PROPOSED 200 UNITS OF SINGLE FAMILY HOMES

Pad Sites & Leasing Information: Jim Meara, The Meara Co. | 214.692.7066

Pad Sites & Leasing Information: Jim Meara, The Meara Co. | 214.692.7066 Jim@Meara.net

Demographics & Community Information: Lee Ayres, Kaufman EDC | 972.932.5332

Demographics & Community Information: Lee Ayres, Kaufman EDC | 972.932.5332 KEDC@KaufmanChamber.com

Far North

2208-2224 W. FM 1960

Far Southeast

9669 W. FM 1960 Former

Leased Big Boxes

100-200 Cypresswood Dr

Walmart

40

Kmart

N/A 60

Steve N Barrys

80

Target

100

N/A

100,889 82,918 80,397 80,000

130,000

1,502,190 113,000 233,297

351,330 222,624 125,884

Dallas/Fort Worth Retail | MarketView

Largest Available Big Box Space Submarket

Address

Former

West Dallas North Central Dallas Central Fort Worth Far North Dallas Far North Dallas Mid-Cities Southwest Dallas Southwest Dallas Far North Dallas Far North Dallas Central Fort Worth Central Fort Worth North Central Dallas Far North Dallas 8800 Southwest Dallas Southwest Fort Worth Far North Dallas Central Fort Worth Southwest Dallas

1625 N Story Rd 5000 Alpha Road 4812 South Fwy 1122 W Centerville 4 3161 Broadway Blvd 2538-2542 E Abram St 845 N Beckley Ave 7401 S Westmoreland Rd 3265 Broadway Blvd 3046-3048 Lavon Dr 7915-7921 W Camp Bowie West Blvd 3304-3328 Denton Hwy 279 Main St Lakeview Pky 4101 W Wheatland Rd 8510 S Highway 377 1004-1040 W Centerville Rd 6479 Camp Bowie Blvd 112 W. Beltline

Fazios The Great Indoors N/A Target Steve N Barrys N/A Kmart Home Depot Rainbow Foods Albertson’s N/A Kmart Albertson’s Super 1 Foods Albertson’s Albertson’s Kroger Kroger Minyards

18 REDNews.com

845 N Beckley Ave

JC Penny

Far Northwest

108,000

236,736

Sq. Ft. Available 200,000 141,690 104,000 100,000 100,000 99,20 87,964 71,842 66,940 66,817 66,810 65,733 65,207 60,000 58,720 55,785 54,000 53,368 51,721

Southwest Dallas

10000 Emmett F Lowry Expy

410-426 Plantation Dr

2538-2542 E Abram St

South

Near Southeast

122,212

370,000

Mid-Cities

Macy’s

3161 Broadway Blvd

2000 Willowbrook Mall

Far Southeast

130,000

180,000

Far North Dallas

Home Depot

Far Northwest

156,736

1122 W Centerville

20251 Gulf Fwy

Armadillo Mktplace

Total RBA

Far North Dallas

431 E Airtex Dr

4812 South Fwy

Near Southeast

167,500

Central Fort Worth

Macy’s

5000 Alpha Road

7500 Bellaire Blvd

North Central Dallas

Near Southwest

180,000

1625 N Story Rd

Auchan Supermarket

Available Sq. Ft.

West Dallas

6059 S Loop E

Class C 81 Properties 3.4 million Sq. Ft.

Innerloop

Address

Former

Submarket

Address

Largest Available Big Box Space

Submarket

Q3 2013

10 The Great Indoor

Former Big Box Fazios

Q 0

50

Houston Retail | MarketView

Largest Available Big Box Space

MARKETVIEW

Class B 83 Properties 3.1 million Sq. Ft.

Class A 48 Properties 1.7 million Sq. Ft.

Q3 2013

RETAIL THIRD QUARTER

100

150

200

250

Housto

MARKE

RETAIL

EXCERPTS FROM RETAIL THIRD QUARTER MARKETVIEW

Multi-use or Corporate Campus Site +/-69.763 Acres Kingwood Master-Planned Community

Southwest corner of US 59 (Future I-69) and Northpark

$6.25 PSF or $18,992,856

Carlos P. Bujosa 713.272.1289 carlos.bujosa@transwestern.net

John Beckworth 713.272.1201 johnbeckworth@transwestern.net

A. David Schwarz III, SIOR 713.270.3371 david.schwarz@transwestern.net

Rio Grande Valley-Brownsville Opportunity Major Exterior Renovation for Entire Plaza y 77 Hw

Price Rd .

Brownsville

RESACA VILLAGE • BROWNSVILLE, TEXAS • 13-20,000 SF Junior Anchor • 1,560-12,400 SF In Line

• New Univ Tx Continuing Education Center • Price Road at Expressway 77/83 • 75,000cpd/120,000 3 mi Population • Central Brownsville location

RAMMRATH REALTY VENTURES 713-681-9705

•

erammrath@rammrathrealty.com REDNews.com 19

Texas Retail Survey 2013 Edition Published Annually by The Eureka Group COUNTY MARKET HIGHLIGHTS GROWTH PERSISTENCE TOP TEN 1 2 3 4 5 6 7 8 9 10

RELATIVE STRENGTH

BOTTOM TEN

FRIO UPTON COMAL DENTON GOLIAD KINNEY MCMULLEN WILLIAMSON ATASCOSA GLASSCOCK

10 9 8 7 6 5 4 3 2 1

POTTER KAUFMAN DALLAS BAILEY STARR LAMPASAS HIDALGO BAYLOR WICHITA TITUS

TOP TEN 1 2 3 4 5 6 7 8 9 10

MCMULLEN GLASSCOCK DIMMIT DUVAL LIVE OAK FRIO KARNES HALL MEDINA SWISHER

RETAIL SALES RANK TOP TEN 1 2 3 4 5 6 7 8 9 10

10 9 8 7 6 5 4 3 2 1

BORDEN KENT ROBERTS TERRELL ARMSTRONG IRION FOARD MOTLEY COTTLE BRISCOE

CROSBY BRISCOE WALLER BORDEN FREESTONE GRAY IRION BAYLOR STEPHENS BAILEY

POPULATION SIZE

BOTTOM TEN

HARRIS DALLAS TARRANT BEXAR TRAVIS COLLIN EL PASO HIDALGO DENTON WILLIAMSON

BOTTOM TEN 10 9 8 7 6 5 4 3 2 1

TOP TEN 1 2 3 4 5 6 7 8 9 10

HARRIS DALLAS TARRANT BEXAR TRAVIS COLLIN EL PASO HIDALGO DENTON FORT BEND

BOTTOM TEN 10 9 8 7 6 5 4 3 2 1

LOVING KING KENEDY BORDEN MCMULLEN KENT ROBERTS TERRELL STERLING MOTLEY

CITY MARKET HIGHLIGHTS GROWTH PERSISTENCE TOP TEN 1 2 3 4 5 6 7 8 9 10

RELATIVE STRENGTH

BOTTOM TEN

Beeville Corpus Christi Kyle Pflugerville San Juan Atlanta Little Elm Pearsall Pleasanton Rockwall

10 9 8 7 6 5 4 3 2 1

Pittsburg Pantego No. Richland Hills Mesquite Marshall Mabank Liberty Lewisville Humble Coppell

TOP TEN 1 2 3 4 5 6 7 8 9 10

Murphy San Juan Little Elm Pflugerville Crowley Leander Carrizo Springs Highland Village Pearsall Pecos

RETAIL SALES RANK TOP TEN 1 2 3 4 5 6 7 8 9 10

10

San Antonio Dallas Austin Fort Worth El Paso Plano Arlington Lubbock Corpus Christi

9 8 7 6 5 4 3 2 1

Slaton Royse City Bandera Early Pinehurst Cameron Hewitt Port Neches Burkburnett Sachse

Hempstead Burkburnett Slaton Pantego Gatesville Alvin Hidalgo Bedford Gonzales Kennedale

POPULATION SIZE

BOTTOM TEN

Houston

BOTTOM TEN 10 9 8 7 6 5 4 3 2 1

TOP TEN 1 2 3 4 5 6 7 8 9 10

Houston San Antonio Dallas Austin Fort Worth El Paso Arlington Corpus Christi Plano Laredo

BOTTOM TEN 10 9 8 7 6 5 4 3 2 1

Sunset Valley Bandera Clear Lake Shores Kemah Beverly Hills Shenandoah Pinehurst Waller Pantego Woodville

Note: A market rank of #1 in Top Ten column represents the highest ranking. A market ranking of #10 in the Bottom Ten Column represents the lowest ranking.

Growth Persistence

COPYRIGHT 2013 BY EUREKA GROUP An evaluation of a county/city’s

ability to consistently out-perform statewide growth trends.

TEXAS RETAIL SURVEY

Relative Strength Ratio A measurement of the five-year sales growth (2007-2012) trend in a city or county compared to the sales growth trend statewide.

Retail Sales Rank A ranking based on the total retail sales in the county or city, as of the most recent year in which actual data are available.

For more information log on to www.texasretailsurvey.com or contact The Eureka Group to order the full 160 page report on 580 Texas Real Markets http://texasretailsurvey.com/order.htm

20 REDNews.com

Investment Sales Division | Central Texas

Brad Bailey SVP & Logan Reichle 512.482.0094 13 Acres IH 35 | For Sale

S. Lamar $5.1 m | For Sale

Visit Us at ICSC Texas Booth 1112 8% cap | Austin MSA

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REDNews.com 21

Texas’ Top City Retail Markets Ranking of top 50 city retail markets The Texas Retail Survey announced the rankings of the top 50 city retail markets in Texas, based on 2012 retail sales.

Houston ranked as the largest market, with retail sales exceeding $39 billion, followed by San Antonio, Dallas, Austin, and Fort Worth.

Of the 50 top markets, 49 recorded sales in excess of $1 billion. Current analysis and rankings on city and county retail markets in Texas can be found in the 2013 Edition of the Texas Retail Survey.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Houston San Antonio Dallas Austin Fort Worth El Paso Plano Arlington Lubbock Corpus Christi Amarillo McAllen Irving Odessa Laredo Midland Grapevine

$39,636,919,999 $19,069,037,361 $15,295,549,221 $11,869,948,649 $7,775,406,924 $6,758,131,039 $5,470,753,261 $4,588,792,637 $4,076,297,892 $3,911,395,884 $3,151,023,404 $2,743,541,610 $2,740,032,612 $2,438,597,631 $2,435,728,779 $2,426,580,373 $2,381,878,528

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Frisco Tyler McKinney Killeen Round Rock Beaumont Garland Lewisville Denton Longview Waco Conroe Brownsville Abilene Grand Prairie Richardson San Angelo

$2,181,252,204 $2,093,295,718 $1,997,477,644 $1,967,982,386 $1,952,806,086 $1,819,237,353 $1,732,069,407 $1,731,652,717 $1,715,406,601 $1,653,957,295 $1,653,676,270 $1,601,362,491 $1,590,521,758 $1,586,287,240 $1,580,053,047 $1,474,208,795 $1,466,122,935

35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Mesquite Carrollton Pasadena San Marcos Victoria Wichita Falls Sugar Land New Braunfels Hurst College Station Georgetown Baytown Sherman Pearland Temple Rockwall

$1,434,634,327 $1,390,679,438 $1,381,320,909 $1,364,446,113 $1,304,767,476 $1,281,927,198 $1,259,270,493 $1,204,110,115 $1,150,579,188 $1,131,163,352 $1,112,300,312 $1,065,080,347 $1,065,080,347 $1,059,818,263 $1,045,043,161 $996,059,557

Retail Performance - Fastest Growing City Markets The following table provides a ranking of the fastest growing retail markets in Texas. Rankings are based on the annual compound rate of growth for each city during the years 2007 through 2012. All data are taken from the Texas Retail Survey.

For additional data & analysis on local retail markets, please refer to the 2013 Edition of the Texas Retail Survey.

CITY Annual Sales Growth 2007-2012 City 1 2 3 4 5 6 7 8 9 10 11 12 13

* Annuals

Murphy 29.8% San Juan 20.7% Little Elm 19.9% Pflugerville 19.3% Crowley 18.7% Leander 15.7% Carrizo Springs 15.3% Highland Village 15.2% Pearsall 14.8% Pecos 14.7% The Colony 14.4% Kyle 14.1% Midlothian 13.9%

City 14 15 16 17 18 19 20 21 22 23 24 25 26

Richmond Cuero Willis Red Oak Buda Allen League City Cedar Park Luling Atlanta Rockwall Harker Heights Port Aransas

*Annuals 13.1% 13.0% 12.9% 12.8% 12.5% 12.1% 11.0% 11.0% 10.8% 10.2% 10.1% 10.0% 9.6%

City 27 28 29 30 31 32 33 34 35 36 37 38 39

Andrews Boerne Odessa Pharr Pleasanton Robstown Midland Bee Cave Sherman Wylie Benbrook Seminole Pearland

*Annuals 9.3% 8.9% 8.8% 8.7% 8.7% 8.6% 8.6% 8.6% 8.5% 8.2% 8.0% 7.9% 7.8%

City 40 41 42 43 44 45 46 47 48 49 50

Frisco Gladewater Edinburg Beeville Cleveland South Houston Hutto Childress Giddings Hudson Oaks Clute

*Annuals 7.7% 7.7% 7.1% 7.1% 7.0% 6.9% 6.9% 6.9% 6.7% 6.5% 6.5%

For more information log on to www.texasretailsurvey.com or contact The Eureka Group to order the full 160 page report on 580 Texas Real Markets http://texasretailsurvey.com/order.htm

22 REDNews.com

For all your commercial real estate needs, we’re here to point you in the right direction.

LANDLORD & TENANT REPRESENTATION • SITE ACQUISITION • SALES & LEASING • REAL ESTATE CONSULTING • PROPERTY MANAGEMENT Bridgeland – Lakeland Village Center Multi-Use Development Lease & Pad Sites Available

Fry Rd., Cypress

Lakeside Commons For Lease

Retail Center For Sale

7506 FM 1960 E, Atascocita

13731 FM 1097 W, Willis

College Park Plaza For Lease

3091 College Park Dr., The Woodlands

• Located at the signalized main entrance to the Bridgeland MPC, with frontage on highly trafficked Fry Rd

• 56,172 SF GRA on 5.49 ac w/ ff on West Lake Houston Pkwy & FM 1960 East • Covered walk full length of center w/ columns/towers & featured elevations • Glass storefront, stone, brick, ornamental steelwork, ornamental lighting

• 1,300 SF – 14,530 SF • SWC FM 1097 & Longstreet Rd. W. Great access & visibility in expanding NW Lake Conroe • Anchored by Bing’s Asian Bistro; Good for Dry Cleaning, Dental, Chiropractic, Liquor, Insurance, etc

• Up to 3,200 SF of 2nd generation restaurant space available • Adjacent to St. Luke’s Hospital, The Woodlands College Park HS & across from Sam Houston University & Lone Star College.

Londonderry Retail Center For Sale

Portofino Plaza For Sale

Pinewood Plaza For Lease

Town Center Plaza For Lease

• 11,600 ac MPC by Howard Hughes Corp.

• 70,000+SF Retail / Office Space for Lease & Pad Sites for Ground Lease/BTS

24914 Kuykendahl 7506 FM 1960, ATASCOCITA, TX Rd, Tomball

19073 North Fwy, Shenandoah

6318 FM 1488, Magnolia

9400 Grogans Mill Rd, The Woodlands

• 11,964 SF retail center completed in 2006; 100% leased • Located between FM 2920 & Woodlands Parkway on recently-widened Kuykendahl Road, the N/S Woodlands Corridor • Approximately 1.5 miles south of The Woodlands Village of Creekside Park.

• Located on I-45 in the City of Shenandoah, TX, adjacent to 450,000 SF, lifestyle power center.

• 37,444 SF building situated on 2.87 acres • Walking distance to new, 60-acre, Woodforest Bank Stadium & Natatorium (10,000+ seats)

• Two spaces with 5,264 contiguous SF available • Located just ½ mi east of FM 2978, +/- 6 miles west of I-45 • Area retailer’s include Target, Kroger, Home Depot, Ross, TJ Maxx, PetsMart, Famous Footwear, OfficeMax and Gold’s Gym, etc

• Class A Office Building in heart of Town Center, minutes from Woodlands Mall, Market Street & the Waterway • Surface & garage parking available, granite finishes & double glazed ‘E’ glass, back-up generator, energy management system & onsite storage area.

Lake Windcrest Center For Lease

Woodforest Plaza For Lease

Research Forest Plaza For Lease

Powell Center For Lease

9201 FMATASCOCITA, 1488, TX Magnolia 7506 FM 1960, • Up to 6,280 SF of contiguous space available.

• Located +/- 2-1/4 mi west of FM 2978 & FM 1488 intersection • 2nd generation space available, including fully equipped, 1,500 SF former nail salon

6875 FM 1488, Magnolia • 1625 sf 2nd generation sandwich shop Available • Great visibility on FM1488, just west of FM2978 intersection • Adjacent to NW quadrant of The Woodlands in high growth area with Super Target, Kroger, Home Depot and Walmart centers nearby.

1500 Research Dr., The Woodlands • Located on one of three main arteries in & out of The Woodlands,1/2 mi west of I-45 • Perfect position for daily commuters that use I-45.

• 60’ bay depths, Glass storefronts, Covered walk along full length of center

6315 FM 1488, Magnolia • Located just east of FM 2978, +/- 6 miles west of I-45.

• Great visibility & easily accessible from FM 1488.

• Extensive commercial & residential growth makes this intersection one of the fastest growing areas in South Montgomery County.

10077 Grogan’s Mill Road, Suite 135 The Woodlands, TX 77380

281.367.2220 jbeardcompany.com

Visit us at ICSC Te xas & Deal M Conference aking D allas

Booth 6

04

This information contained herein has been obtained from reliable sources; however, The J. Beard Company, LLC and The J. Beard Real Estate Company, L.P. makes no guarantees, warranties or representations to the completeness or accuracy of the data. Property submitted is subject to errors, omissions, change of price, prior sale or withdrawal without notice.

Houston Area

Residential Lot Status Provided by

Retail/Residential/ MPC Developments

5

FAR NORTH 2,608 STARTS 4,530 VDL

THE WOODLANDS

7 NORTHWEST 4,162 STARTS 6,749 VDL

37

38 26 8

19 35 WEST NORTHWEST 2,840 STARTS 2,943 VDL

11

The information contained herein has been obtained through reliable sources but some of the map points have been moved to a new map template and therefore may be slightly changed from original location. Any information of special interest should be obtained through independent verification.

27

13

NORTHEAST 2,774 STARTS 5,678 VDL

3

20

25

CENTRAL 3,485 STARTS 4,994 STARTS

10

24 4 22 36 31 28

WEST SOUTHWEST 4,629 STARTS 4,859 VDL

CONROE

23 30

41 34 18 15 43 44 29 21 HOUSTON 39 40 33 17 16 42

1

SOUTH 1,826 STARTS 3,738 VDL

14 SOUTHWEST 2,874 STARTS 3,316 VDL

12

2

9

SOUTHEAST 879 STARTS 2,466 VDL

32

6

RECENT COMPLETIONS

Project Name & Location Submarket(s) Size Description Completed 1-13.........Aldi ............................................................................................................................... Multiple Locations...................................+/-17,000......................................................................2013 14............Fiesta Mart - 13833 Southwest Freeway ...................................................................... Sugar Land.............................................N/A..................... Former Gerland’s...............................2013 15-18.......Fresh Market - Memorial; W. Holcombe; Westheimer; San Felipe............................... Memorial/Inner Loop/Galleria.................+/-20,000......................................................................2013 19-20.......H-E-B - 24224 Northwest Fwy; 9503 Jones Road........................................................ North/Northwest...........................................................................................................................2013 21............Kroger - 1440 Studemont Street................................................................................... Heights...................................................79,000...........................................................................2013 22............Palladium AVX-Westpark Tollway near Long Meadow Farms...................................... Fort Bend................................................180,000.............. Movie theatre;16 lane bowling alley...2013 23............Sam’s Club - 13331 Westheimer Road......................................................................... Westchase..............................................136,000.........................................................................2013 24-26.......Sprouts - 23105 Cinco Ranch; 7055 Highway 6; 22506 Tomball Parkway................... Katy/Northwest/Cypress..............................................................................................................2013 27............Top Golf - 560 Spring Park Blvd.................................................................................... Spring.....................................................65,000...........................................................................2013 28............Trader Joe’s - 2643 Commercial Center Blvd............................................................... Katy........................................................12,500...........................................................................2013 29............Walmart - 111 Yale Street............................................................................................. Heights...................................................N/A................................................................................2013 30............Welfresh Market - 4635 Highway 6............................................................................... Sugar Land.............................................+/-20,000......................................................................2013 31............Whole Foods - 6601 Fry Road...................................................................................... Katy........................................................N/A................................................................................2013

UNDER CONSTRUCTION/PLANNED

Project Name & Location Submarket(s) Size Description Est. Completion 32............Fresh Market - 1507 W. Bay Area Blvd............................................................................................... Webster.....................................+/-20,000.................................................................. 2014 33............Galleria Mall - Westheimer/Sage/Hidalgo........................................................................................... Galleria......................................100,000..... Facelift adding 100k SF of retail............ 1Q14 34............Heights Baptist Church Redevelopment - Rutland and 20th............................................................... Heights......................................N/A........................................................................... TBD 35-38.......Kroger - Kuykendahl/W. Rayford; US 59/Northpark; Barker Cypress/Tuckerton; FM 1093/FM 273............... Kingwood/Spring/Cypress/Katy........N/A........................................................................... TBD 39............Mid Main Project - Main and Berry Street........................................................................................... Midtown.....................................N/A........................................................................... 4Q15 40............River Oaks District - Westheimer and Westcreek............................................................................... River Oaks................................252,000..... 14 Acres of Retail/Office/Res. ............... 2Q15 41............Torchy’s Tacos and Heights General Store - 305 19th Street............................................................. Heights......................................N/A........................................................................... 2014 42............University Place Redevelopment - Scott Street and Reeves Street.................................................... South Central............................60,000....... Grocery store + 103k SF mixed use...... TBD 43-44.......Whole Foods - 6401 Woodway; San Felipe and Post Oak Blvd......................................................... Memorial/Galleria......................40,000...................................................................... TBD Note: Dunkin’ Donuts entered the Houston market and recently opened its 11th and largest store in Humble.

24 REDNews.com

Dallas/Fort Worth Area

Retail/Residential/ MPC Developments The information contained herein has been obtained through reliable sources but some of the map points have been moved to a new map template and therefore may be slightly changed from original location. Any information of special interest should be obtained through independent verification.

7 DENTON

6 8 15

13 12 136 STARTS 568 VDL

197 STARTS 859 VDL

465 STARTS 2,133VDL

11 14

1,754 STARTS 3,675 VDL

19 1,189 STARTS 1,844 VDL

780 STARTS 1,243 VDL

9

FORT WORTH

1

104 STARTS 987 VDL

197 STARTS 859 VDL

10 780 STARTS 1,243 VDL

3

4

18

2 5

6,621 STARTS 3,236 VDL

482 STARTS 789 VDL

17 DALLAS 1,089 STARTS 2,524 VDL

710 STARTS 1,510 VDL

1,208 STARTS 4,635 VDL

Retail Development Provided by

265 STARTS 544 VDL 667 STARTS 1,992 VDL

16

954 STARTS 5,669 VDL

Residential Lot Status Provided by

RECENT COMPLETIONS

Project Name & Location Submarket(s) Size Description Completed 1.... The Shops at Renaissance Square-US 287 near Berry Street .................Fort Worth.............. 180,000 ...............Walmart................................................................................ 2013 2.... Alliance Town Center-I-35 at Heritage Trace Parkway...............................Fort Worth.............. 50,000 .................Dick’s Expansion.................................................................. 2013 3.... Walmart Neighborhood Market-717 W. Berry Street..................................Fort Worth.............. 40,500 .............................................................................................................. 2013 4.... Walmart Supercenter at 115 W. FM 544.....................................................Murphy................... 180,000 ............................................................................................................ 2013 5.... Walmart Supercenter at 1401 N. Saginaw Blvd..........................................Haslet..................... 180,000 ............................................................................................................ 2013 6.... Walmart Supercenter at Highway 380 and FM 424....................................Denton.................... 186,000 ...............Cross Roads........................................................................ 2013 7.... Rayzor Ranch.............................................................................................Denton.................... 80,000 .................Kohl’s................................................................................... 2013 8.... Sprouts - Custer Road at Virginia Parkway................................................McKinney................ 65,000 .................65,000 SF retail anchored by 26,043 SF............................. 2013 9.... Woodbridge Centre - FM 544 and Woodbridge Parkway...........................Wylie....................... 123,000 ...............Kroger Marketplace + B&B 12 screen Cinema.................... 2013 10.. Trader Joe’s - 2001 Greenville Avenue.......................................................Dallas..................... 14,000 .............................................................................................................. 2013 11... West Plano Village - North Tollway and Parker Road.................................Plano...................... 10,500 .................eatZi’s anchor, remainder set for 2014................................. 2013

UNDER CONSTRUCTION/PLANNED

Project Name - Location Submarket Size Description Est. Completion 12...Market Street Flower Mound-FM 1171 and FM 2499.................................. Flower Mound......... 70,000 ............ Grocery anchored with retail and restaurants...........................4Q13 13...Highland Plaza - SEC Chinn Chapel Road and FM 407............................. Flower Mound......... 75,000 ............ Academy Sports & Outdoors....................................................4Q13 14...Flower Mound Town Center - FM 1171 and FM 2499................................. Flower Mound......... 20,000 ............ Kroger expansion & center re-development.............................2014 15...Westside Market - FM 423 and Lebanon Road........................................... Frisco...................... 90,000 ............ Tom Thumb grocery, Small Shop Space ..................................4Q13 16...Sam’s Club - SEC US 287 and FM 157 ..................................................... Mansfield................. 128,000 ............................................................................................................4Q13 17...Sylvan I Thirty - I-30 and Sylvan Avenue.................................................... Dallas...................... 50,000 ............ Specialty grocery anchored......................................................4Q13 18...Trader Joe’s................................................................................................Southlake................ 13,500 ..............................................................................................................2014 19...Westlake Entrada - Davis and Solana Boulevards...................................... Westlake................. TBD ................ MUD with 3,000-seat amphitheater..........................................TBD

REDNews.com 25

Westover Marketplace - Hwy 151 & NW Loop 410

FW

60,000 Expansion; Toys/Babies"R"Us (50,646 sf) + Dollar Tree

3Q 2013

UNDER CONSTRUCTION / PLANNED

Austin

Project Name - Location Dominion Ridge - 22193 IH-10 West Helotes Town Centre - SEC Bandera & Hausman H-E-B Stone Oak - Hardy Oak & Wilderness Oak Sam's Club - 2560 Marshall Rd. Walmart Supercenter - Bandera & Woodlawn Walmart Supercenter - IH-35 & Palo Alto Walmart - Culebra & Tezel Walmart Supercenter - Loop 410 & Ray Ellison Walmart Supercenter - Wurzbach Pkwy & Blanco Rd. Walmart Supercenter - Walzem Rd & Parkcrest Walmart Supercenter - Cibolo Valley Dr & Borgfeld Rd Walmart - Thousand Oaks & Nacogdoches Rd.

Submkt NW NW FN FN NW S NW S NC NC NE NC

Retail/Residential/ MPC Developments

Submarkets: FN=Far North NC=Core Retail Development Provided

by North Central

NW=Northwest

Size 56,747 27,000 70,000 200,000 200,000 200,000 200,000 180,000 165,000 165,000 185,000 150,000

NE=Northeast

Description Est Completion Situated adjacent to CVS & Chase Bank 1Q 2014 Adjacent to new Walmart Late 2013 Specialty HEB for Stone Oak 2014 Under construction Early 2014 Groundwork started Early 2014 Groundwork started Early 2014 Groundwork started Early 2014 Planned 1Q 2014 Planned 2014 NORTH Planned 2014 3,121 STARTS Planned 2014 Infill development; existing centers demolished 4,081 VDL 4Q 2013 S=South

FW=Far West

CBD=Central Business District

NORTHWEST 2,015 STARTS 3,330 VDL

Residential Lot Status Provided by

TRAVISSO

5

1826 N Loop 1604 W, Suite 250 San Antonio, Antonio Texas 78248 P: 210 524 4000 F: 210 524 4029

kgatley@reocsanantonio.com

4 1

ROUND ROCK

12

7

3 10

CENTRAL 638 START 474 VDL

6 WEST 824 STARTS 2,321 VDL

11 2

8

AUSTIN

EAST 499 STARTS 922 VDL

9

SOUTHWEST 1,140 STARTS 2,292 VDL

SOUTHEAST 582 STARTS 1,135 VDL

The information contained herein has been obtained through reliable sources but some of the map points have been moved to a new map template and therefore may be slightly changed from original location. Any information of special interest should be obtained through independent verification.

SOUTH 1,007 STARTS 1,310 VDL

14 13

RECENT COMPLETIONS

Project Name & Location Submarket Size Description Completed 1......Lakeline Market - SWC US Hwy. 183 and Lakeline Road................ FW.................... 253,000 .........H-E-B Plus! (118,200 SF) SteinMart, Alamo Drafthouse..................... 3Q13 2......H-E-B Mueller Market - 51st and Berkman...................................... NE..................... 107,000 .........H-E-B (81,000 SF) + 26,0000 SF Small Shop Space......................... 2Q13 3......The Domain - TopGolf - 11301 Burnet.............................................. N....................... 64,000 ...........3-levels; 3 Sports Bar-Type Restaurants............................................. 2Q13

UNDER CONSTRUCTION/PLANNED

Project Name & Location Submarket Size Description Est. Completion 4......Costco - Toll 183A & FM 1431, Cedar Park ..................................... NW.................... 153,700 .........Groundwork started 2Q13................................................................... 1Q14 5......H-E-B Plus! Round Rock - University Ave........................................ RR..................... 120,000 .........$16.5 Million Project............................................................................ 4Q13 6......Lakeway Town Center - RM 620 and Glen Heather Drive............... NW.................... 114,000 .........H-E-B (90,000 SF) + 24,000 SF Small Shop Space........................... 2Q15 7......Whole Foods at The Domain - 9607 Research ............................... N....................... 55,000 ...........Construction compete; interior finish work underway.......................... 4Q13 8......Fourth and Lamar - 3rd Street and Lamar....................................... CBD.................. 25,000 ...........2-story; Retail (16,000 SF) + Office (8,500 SF)................................... Planned 9......7th and Lamar - 7th and Lamar........................................................ CBD.................. 15,000 ...........Demolished Former KASE/KVET........................................................ Planned 10....Walmart - US 290 and Saratoga Farms Blvd., Elgin........................ Elgin.................. 150,000 .........Supercenter......................................................................................... 1Q14 11.....Walmart - SWC US 290 and FM 973, Manor................................... Manor................ 150,000 .........Supercenter......................................................................................... 1Q14 12....Walmart - FM 1431 and Ronald Reagan, Cedar Park..................... FW.................... 150,000 .........Supercenter......................................................................................... Planned 13....Walmart - SEC I-35 and Kyle Parkway, Kyle.................................... Kyle................... 150,000 .........Supercenter......................................................................................... Planned 14....Entertainment Complex - SWC I-35 and FM 1626........................... Kyle...........................................Expansion of Kyle Crossing Retail Center.......................................... Planned

26 REDNews.com

Baceline Investments is looking to buy $20mm in Texas retail properties by year end.

Do you have the property for us?

PROPERTY CRITERIA

Baceline Investments, a Denver-based owner of retail centers across the Heartland, is an all cash purchaser paying buyer agency commissions.

• Retail only • Occupancy level less than 80% • Secondary markets preferred

For more information please contact: Troy Smith, Director of Acquisitions 303.995.8910 | Direct tsmith@bacelineinvestments.com

www.bacelineinvestments.com

± 66.72 Acres of Land

E. Sam Houston Pkwy & S. Lake Houston Pkwy

For Sale

Land Size: • ± 66.72 acres of land

Location: • • • • • • • •

± 2,010’ of frontage on Sam Houston Parkway ± 2,316’ of frontage on S Lake Houston Parkway Key Map 417N High growth area Outside flood plain Excellent access and visibility Located just south of Generation Park’s 3,900-acre Development Traffic count - 45,410 cpd on the Beltway north of S Lake Houston Parkway • Traffic count - 33,211 cpd on the Beltway south of S Lake Houston Parkway • 2012 Tax Rate - 2.332199%

Sale Price: • $3.75/SF

John Ferruzzo, SIOR

Chris Kugle

713 985 4608

713 985 4609

jferruzzo@naihouston.com

ckugle@naihouston.com

NAI Houston

1900 West Loop South, Ste. 500 Houston, TX 77027 713 629 0500 www.naihouston.com

REDNews.com 27

San Antonio

SAN MARCOS

Retail/Residential/ MPC Developments BOERNE - KENDALL 20 STARTS 527 VDL

BULVERDE - COMAL 109 STARTS 386 VDL

FAR NORTH 1,218 STARTS 1,954 VDL

NEW BRAUNFELS

7 6

FAR NORTHWEST 657 STARTS 1,995 VDL

5

NEW BRAUNFELS 986 STARTS 1,894 VDL

4 1 12

CENTRAL 42 STARTS 329 VDL

8

WEST 2,752 STARTS 4,538 VDL

2

UNDER CONSTRUCTION / PLANNED

Project Name - Location Dominion Ridge - 22193 IH-10 West Helotes Town Centre - SEC Bandera & Hausman H-E-B Stone Oak - Hardy Oak & Wilderness Oak Sam's Club - 2560 Marshall Rd. Walmart Supercenter - Bandera & Woodlawn Walmart Supercenter - IH-35 & Palo Alto Walmart - Culebra & Tezel Walmart Supercenter - Loop 410 & Ray Ellison Walmart Supercenter - Wurzbach Pkwy & Blanco R Walmart Supercenter - Walzem Rd & Parkcrest Walmart Supercenter - Cibolo Valley Dr & Borgfeld Walmart - Thousand Oaks & Nacogdoches Rd.

3

SAN ANTONIO EAST 262 STARTS 743 VDL

11

Project Name - Location Walmart-Helotes Town Center - Bandera & Leslie R Walmart - Foster & Binz Engleman Westover Marketplace - Hwy 151 & NW Loop 410

SEGUIN

NORTHEAST 1,575 STARTS 2,965 VDL

13 10

RECENT COMPLETIONS

14

15

San

Submarkets: FN=Far North NC=Core Retail Development Provided

by North Central

9 Residential Lot Status Provided by

SOUTHWEST 254 STARTS 479 VDL SOUTH 178 STARTS 800 VDL

The information contained herein has been obtained through reliable sources but some of the map points have been moved to a new map template and therefore may be slightly changed from original location. Any information of special interest should be obtained through independent verification.

RECENT COMPLETIONS

Project Name & Location Submarket Size Description Completed 1......Walmart-Helotes Town Center - Bandera and Leslie Road................. NW.................... 147,700 ..............Supercenter; anchor Helotes Town Centre Project....................... 1Q13 2......Walmart - Foster and Binz, Engleman................................................ NE..................... 150,000 ..............Supercenter................................................................................... 2Q13 3......Westover Marketplace - Hwy 151 amd NW Loop 410........................ FW.................... 60,000 ................Expansion; Toys/Babies R Us (50,646 SF) + Dollar Tree............. 3Q13

UNDER CONSTRUCTION/PLANNED

Project Name & Location Submarket Size Description Est. Completion 4......Dominion Ridge - 22193 IH-10 West.................................................... NW.................... 56,747 ...............Situated adjacent to CVS and Chase Bank...........................1Q14 5......Helotes Town Centre - SEC Bandera and Hausman........................... NW.................... 27,000 ...............Adjacent to new Walmart.......................................................Late 2013 6......H-E-B Stone Oak - Hardy Oak and Wilderness Oak............................ FN..................... 70,000 ...............Specialty H-E-B for Stone Oak...............................................2014 7......Sam’s Club - 2560 Marshall Road........................................................ FN..................... 200,000 .............Under Construction................................................................Early 2014 8......Walmart Supercenter - Bandera and Woodlawn.................................. NW.................... 200,000 .............Groundwork started................................................................Early 2014 9......Walmart Supercenter - IH-35 and Palo Alto......................................... S....................... 200,000 .............Groundwork started................................................................Early 2014 10....Walmart - Culebra and Tezel................................................................ NW.................... 200,000 .............Groundwork started................................................................Early 2014 11.....Walmart Supercenter - Loop 410 and Ray Ellison............................... S....................... 180,000 .............Planned..................................................................................1Q14 12....Walmart Supercenter - Wurzbach Pkwy. And Blanco Road................. NC..................... 165,000 .............Planned..................................................................................2014 13....Walmart Supercenter - Walzem Road and Parkcrest........................... NC..................... 165,000 .............Planned..................................................................................2014 14....Walmart Supercenter - Cibolo Valley Drive and Borgfield Road.......... NE..................... 185,000 .............Planned..................................................................................2014 15....Walmart - Thousand Oaks and Nacogdoches Road............................ NC..................... 150,000 .............Infill Development; existing centers demolished....................4Q13

28 REDNews.com

NW=N

Greenberg & Company

OFFERING PROPERTIES HOTEL CONSULTING Property Description

Listing Broker

Commercial Real Estate Brokerage Firm

RETAIL SPACE FOR LEASE - GREAT LOCATIONS - HIGH VISIBILITY

Location

Highway 6 @ Richmond 2808 Highway 6 Houston, TX 77082

• Hotel, Condo, Retail Site - Cruise Terminal ......... Hankamer ...........Galveston • Freeway Sites - I-20 ............................................... Hankamer ...........Monahans

Space Available: 1,200 - 2,900 SF

• Seawall Hotel.......................................................... Hankamer ...........Galveston • 30 Acres - Commercial/Rail Serviced................... Hankamer............Tomball • Hotels...................................................................... Ortiz .....................Statewide

Bldg Size: 9,600 SF Land Size: 0.86 Acres

• I -45 Huntsville 12 Acres - Residential/Commercial...................... Hankamer............Huntsville

Dunkin’ Donuts Coming Soon!

ATASCOCITA

HANKAMER & ASSOCIATES BROKERS, L.L.C.

Hospitality Consulting Services 30 Years Experience As Developer | Owner | Operator

4001 Richmond Avenue 3620 Katy Freeway Galleria Area Heights Area Space Available: Space Available: Bldg Size: 7,096 SF Bldg Size: 7,026 SF Space E: 1,509 SF Space E: 2,223 SF Land Size: .05 Acres Land Size: 25,000 SF

(713) 789-7060 www.hankamer.com Brokers: Ray Hankamer, Jr., Pablo Szub, Sergio Ortiz, Jaime Irvine e-mail: rhankamer@hankamer.com • sortiz@hankamer.com szub@mail.com • jirvine@hankamer.com

Contact Broker: David Greenberg - David@greenbergcompany.com Phone: 713-778-0900 Fax: 713-782-7445

Visit our website at: www.greenbergcompany.com 5959 Richmond Ave., Houston TX 77057

GREAT User or Development

6

Tracts with Flexible Owner Financing 1

3

5

1

HOUSTON

CT

T R A Road O NClay 20.12 acres Brittmoore U N D E R C&

$10/sf

8.025 acres Red Bluff & Preston Road 3 1.08 acres Blalock & Clay 4 3.1 acres Hilcroft near Orem Road 5 41 unit mini-storage or 8,000+ sf Building 6 20 acres Beautiful Grimes County Ranch Retreat 2

4

2

(up to 140 acres available)

$1.25/sf $9/sf $2.25/sf $425,000 $1.5 m

A+ PERFORMING REAL ESTATE NOTES FOR SALE Payout

Rate

Remaining

Security

Price

$292,071

5-7%

48 months

$200,000

$1,250,000

10%

145 months

Commercial Historic Bldg.

Commercial Bldg.

$2,975 , 616. 00

5-8%

236 mo n t h s

2 8 8 a cres - R ecrea t i o n a l C o mp l ex

$1,580,000

$700,000

M I T C H Z A R S K Y | 7 1 3 . 8 2 5 . 0 7 2 8 | m i t c h z a r s k y @ y a h o o . c o m | BROKERS PROTECTED REDNews.com 29

ray’s

HOUSTONCOMMERCIALBUZZ

R AY H A N K A M E R Hankamer & Assoc, Broker, Houston Contributing Writer

H-E-B’s Houston President Scott McClelland / CCIM October Meeting:

“How We Came From Zero Houston Stores in 1990 To Where We Are Today” From no stores in 1990 to third place today behind Kroger and WalMart-and nipping at their heels-is an interesting business case study. How did they do it?

Nationwide H-E-B is the 9th largest grocery chain in sales, with stores mainly in Texas (plus a few in northern Mexico). What are some of H-E-B’s secrets behind this phenomenal growth against well-entrenched national competitors?

Vertical integration: H-E-B manufactures or processes much of what it sells, from tortillas to milk to salsa, giving it a price advantage over stores which sell only nationally advertised brand name products. It has fourteen plants processing these store brand items. In-house products account for 7% of store sales but 25% of profit.

Profits from H-E-B labeled foods enable the chain to sell national brands at lower mark-ups, thus keeping up or underselling Kroger and WalMart.

Slicing and dicing the customer base/adjusting the product mix from city to city and store to store: H-E-B realized long ago that there is no “average Houstonian and no average Texan.” Instead, every customer in every neighborhood has a different food budget and different taste. Each H-E-B store prides itself in focusing on their individual customers’ buying habits. Stores blocks apart on the same street have different brands and different merchandise and different pricing.

When Safeway bought Randall’s, according to McClelland, Randall’s newspaper ads were suddenly being written in northern California, and Houston customers began seeing cuts of meat which were little known in this market, such as “London Broil” instead of brisket and ribs and T-bone steaks, which Houstonians were used to buying. This caused a disconnect with Randall’s customers, and H-E-B added those disenchanted customers to its base. “Houston is a microcosm ethnically for the country as a whole”, said Mc30 REDNews.com

Clelland, “and we are working on serving those individual customers, giving them what they want at the price they want to pay.”

People in Beaumont eat differently than people in Houston. The same holds true between the cities of Austin and San Antonio. This is partly driven by income, which is a result of different levels of education of the shopper base. Austin does a better job of educating its children, and therefore attracts high-tech growth. San Antonio attracts call centers and truck factories, which are drawn there by the availability of less educated and cheaper workers, thus purchasing power in a given city drives what H-E-B stores in these diverse markets must offer.

Erosion of middle class affected marketing strategies: H-E-B has opened Joe V’s, a chain similar to Sam’s Club or Costco, with sales by the case or by the pallet. To compete with WalMart and these warehouse stores, H-E-B has materially reduced the number of items and brands to choose from, and has streamlined the check-out process by accepting cash or debit cards only. This is to accommodate the food budgets of low income families or of households with multiple generations living together and sharing food expenses.

H-E-B executives visit homes of their customers in these low income markets and actually look into the fridge to see what customers are buying.

In low income market H-E-B or Joe V’s stores, two hundred baskets of food a day must be restocked from the check-out lines from people who put more in their carts than they can pay for.

In higher end stores there may be only three such baskets at the end of the day.

Anticipate ‘the next trend’ and discontinue the last trend in a timely fashion: At one time most H-E-B stores had take-out Chinese food kitchens; now, all are gone except one. All H-EB stores now have freshly made sushi, which has

Jessica Quintanilla, H-E-B; Brent Casto, H-E-B; D’etta Casto-DeLeon, Grandbridge; Scott McClelland, President of H-E-B and CCIM Luncheon Speaker at the Junior League.

gone from being an exotic ethnic food to being part of the regular diet of many Houstonians. HE-B execs are always meeting to ask themselves “what is the next new thing?”

Keeping pricing in the “sweet spot” to attract shoppers is a must: H-E-B checks pricing on 55,000 popular food items each week at competing chains’ stores and compares that pricing with their own, in order to maintain focus on pricing its merchandise.

Stocking items that lower priced competitors do not stock is also a must: Many of the bare bones competitors keep their prices low by only selling relatively few items. H-E-B tries to sell items these competitors do not, to keep customers from having to make two stops when shopping for groceries. H-E-B execs noticed people stuffing ketchup packets into their pockets at Whataburger stores, so H-E-B made a deal to package and be the exclusive supermarket seller of Whataburger brand ketchup, which now accounts for 47% of its ketchup sales. Higher profits from this local Texas ketchup enable H-E-B to sell the national brands of Hunt and Heinz for much less now than its competitors can, thus satisfying all ketchup shoppers. This same formula is used on all the other items made or processed in H-E-B’s fourteen plants.

Land/Churches

For Sale or Lease

2500 Texas Avenue

FOR SALE

Land Area:

Two Freestanding Buildings ±20,602 Total SF

• ±15,602 SF mostly office/ assembly area • ±5,000 SF warehouse

Miracle Life Church International - 9930 Aldine Westfield - 3,200 SF.............................. ......... $299,500 Alief Church of Christ - 7130 Cook Road - 7,700 SF................................SALE PENDING............... $735,000

Land Area:

Baytown Spanish SDA - 704 + 750 E Texas Ave - 4,200 SF........................................................ $150,000

• ±32,500 SF of land

Majestic Christian Center - 3512 McLean Rd - 19,500 SF.......................................................$1,500,000

Location:

Dome Church - South Acres at Scott Street - 57,000 SF........................SALE PENDING...........$3,740,000

• Ideal location for office/ showroom/retail user • Redevelopment potential • Located directly on the new Metro Rail Line

2500 Texas Avenue Houston, Texas 77002

3.9 Acres - 7225 Bellfort Avenue....................................................................REDUCED.............. $174,500 Channelview Area Church - 1100 Dell Dale....................................................... REDUCED ..........$1,995,000 League City UMC - 1411 West Main Street - 34,000 SF.........................................................$3,950,000 Land in Tomball, TX - Holderrieth & S. Cherry - 2.03 Acres....................SALE PENDING................ 230,000

Lease Rate:

Miracle Christian Fellowship - 16310 Chimney Rock - 15,000 SF..........SALE PENDING.............. $855,000

• $0.50/SF NNN

Multipurpose Bldg - 710 College St. - 7,200 SF........................................................................ $650,000

Sale Price:

Religious Facility in South Houston - Beaumont St. @ Illinois - 11,800 SF................................. $799,000

• $1,787,500

Baytown Campus/Training Center Facility (Income producing property) - 301 Ilfrey.................................$3,400,000 SE Area Church - 10050 Fuqua - 9,995 SF..............................................SALE PENDING...........$1,100,000

John Ferruzzo, SIOR

NAI Houston 0 mi

713 985 4608 jferruzzo@naihouston.com

0.2

0.4

0.6

Trinity Fellowship Church - 9321 Edgebrook St. - 67,000 SF............................. SOLD ..........$1,300,000 0.8

1

Chris Kugle 713 985 4609 ckugle@naihouston.com

1.2

1900 West Loop South, Ste. 500 Houston, TX 77027 713 629 0500 www.naihouston.com

P) 1988–2012 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/mappoint/ nd direction data © 2012 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2012 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2012 by Applied Geographic Solutions. All rtions © Copyright 2012 by Woodall Publications Corp. All rights reserved.

Pasadena Church - 4444 Vista Rd. - 46,000 SF.......................................................................$1,200,000

talent

Aldine Christian Church - 2233 Aldine Mail Rte. - 10,500 SF..................SALE PENDING.............. $499,000

International Church Realty (713) 541-4005

Skilled, Reliable Workforce

The center of a well-trained available workforce, New Braunfels touts a strong work ethic among its population. The diverse industry sector employs workers in a variety of professions including: aerospace, automotive, construction, engineering, finance, healthcare and manufacturing.

In the last nine years, the workforce has increased 37% and new primary jobs doubled since 2003, averaging 741 primary jobs per year.

waGE RaTES

AMARILLO

New Braunfels

56,181

29,496

CLF Employed

52,384

Unemployed

LUBBOCK

3,797

Rate

FORT WORTH

DALLAS

6.8

Texas Unemployment Rate TWC, June 2012

EL PASO AUSTIN NEW BRAUNFELS

New Braunfels

Comal County

HOUSTON

27,768

1,727 5.9

7.6

SAN ANTONIO

20 19 18 $ 17 $ 16 $ 15 $ 14 $ 13 $ 12 $ • O11 ver 2 Million square feet in new retail space in the last 3 years $ 10 $ $

Average Hourly Wage Rate

aVaIlaBlE wORkFORCE

$

2011 County 2nd QTR 2011ranked 3nd QTR 2011 4th QTR • Comal #2 in Texas for new annual retail sales growth $16.15/hour $17.24/hour $18.06/hour

CORPUS CHRISTI

Texas

Tri-county (Comal, Guadalupe and Hays)

• LAverage argeWeekly tourism industry – more than 3-million visitors drive to New Wage is $17.15/hr Braunfels to shop and experience recreational activities Source: Texas LMCI Tracer, 2011

• Half of population lives within 2-mile radius of city and over 41,000 live2011 within a 3-mile coMMuTe To WoRkradius • Median Household income is over $53,000 – a 62% increase Car, Truck, or Van – Carpooled 9.7% Walked 2003 2.8% since Car, Truck, or Van – Drove Alone

76.3%

Over 2-million sq. ft. in new retail space in the last 3 years. $600 million in retail leakage.

Westpointe Village

Other Means

1.2%

Worked at Home

4.3%

Mean Travel Time to Work (minutes)

Towncenter at Creekside 450,000+

22.7

Interstate Plaza

Source: Census.gov, 2011 ACS

wORkFORCE wITHIN a 30-MINUTE COMMUTE

Source: Buildnb.org

5

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390 S. Seguin Ave • New Braunfels, TX 78130 • 866.927.0905 • info@buildnb.org • BuildNB.org REDNews.com 31

Specializing in tenant representation on both the national and local levels, as well as commercial development.

www.collumcommercial.com ‘THANK YOU’ REDNews for building our website. Not only were you prompt, understanding, and thorough throughout the web design process, but you were patient with me and all my questions no matter how big, silly, or downright crazy they where. Even though it took awhile longer to get ‘live’ than was anticipated, I appreciate the fact you worked on it until it was perfect – And didn’t make it live until I was 100% happy with it.

We have received wonderful feedback for our peers as to ease and efficiency the information is presented. We couldn’t have built the site without you!

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Latest Website Development by

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WHAT’S HAPPENING IN CRE TEXAS

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

Events Calendar Networking Deals& Anouncements

Sponsored By:

REDNews.com 33

events

CALENDAR

SOUTHEAST TEXAS

( H O U STO N A RE A )

November 1 – Friday CREN Houston Luncheon 11:00a – 1:00p www.crengulfcoast.com

November 14 – Thursday CCIM Houston November Luncheon 11:30a – 1:00p www.ccimhouston.org

November 19 – Tuesday Houston BOMA Engineer Appreciation Luncheon 11:30a – 1:00p www.houstonboma.org

November 6 – Wednesday CREW Houston Luncheon: Harris County Judge Ed Emmett 11:30a – 1:30p www.crewhouston.org

November 14 – Thursday Institute for Regional Forecasting Bauer College of Business – University of Houston A New Economic Backdrop for Houston in 2014 11:00a – 1:30p www.bauer.uh.edu/centers/irf

November 19 – Tuesday FBSCR – Sugar Land Monthly Meeting 8:00a – 9:00a www.fbscr.com

Your real estate deserves real ma

November 11 – Monday Greater Houston Partnership Luncheon: State of the Senate – Ted Cruz 11:30a – 1:30p www.houston.org

November 14 – Thursday ® Houston Partnership Greater State of the Port Luncheon 11:30a – 1:30p www.houston.org

November 21 – Thursday IREM Houston Young Professionals Happy Hour 5:00p – 7:00p www.iremhouston.org

Count on a CPM professional to deliver real res

November 11 – Monday ACRP – Houston 2013 Commercial Real Estate Golf Classic 11:30a Shotgun Start 4:30p Networking and Awards Party www.acrp.org; www.siorhouston.com

CPM

®

November 11 – Monday CREAM Houston Luncheon – Speaker Gil Staley 11:00a – 1:00p www.creamtx.com

November 14 – Thursday HRBC – Houston Junior League 7:30a – 8:30a www.houstonrealty.org

Networking

34 REDNews.com

Educat ion

November 28 – Thursday CREN Houston Happy Hour 4:30p – 7:00p www.crengulfcoast.com

For optimal returns on your re turn to a CERTIFIED PROPERTY M

November 15 – Friday IREM Houston IREM November Awards Luncheon 11:30a – 1:00p www.iremhouston.org

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

® November 13 – Wednesday CREW Houston Dine Around – Saks Fall Fashion Show (Members Only Event) 5:30p – 9:00p www.crewhouston.org

November 21 – Thursday BACREN – Houston November Luncheon 10:30a – 1:00p www.bacren.com

A CPM® has: Demonstrated experience i Pledged commitment to th standards z Proven expertise in maximiz

November 15 – Friday CREN Houston Breakfast – Marketingz Session 7:15a – 9:00a www.crengulfcoast.com z

Technology

CCIM Course Scholarships CI 101, CI 102, CI 103, CI 104 or CCR & Exam

NORTH TEXAS

( DAL L A S/ F T. WO RTH A RE A )

November 1 – Friday NTCAR – Dallas DFW Airport Market Industrial Bus Tour DFW Airport, Texas 11:30a – 4:00p www.ntcar.org November 5 – Tuesday BOMA Ft. Worth Membership Monthly Luncheon 11:30a – 1:00p www.bomafortworth.org November 6 – Wednesday CREW Ft. Worth Trademark Waterside Development 11:30a – 1:00p www.crewfw.org November 6 -8 –Wed – Friday Texas ICSC Fairmont Hotel 9:00a www.icsc.org

November 9 – Saturday BOMA Dallas 2013 “Dallas” Gala Registration 6:00p – 11:00p www.bomadallas.org November 13 – Wednesday IREM Dallas IREM Industry Awards Lunch 11:30a – 1:00p www.irem-dallas.org November 14 – Thursday NTCAR – Dallas Membership Meeting 7:30a – 9:00a www.ntcar.org November 19 – Tuesday BOMA Dallas November Membership Meeting 11:30a – 1:00p www.bomadallas.org

CENTR AL/SOUTH TEXAS

CALENDAR

November 20 – Wednesday NTCAR – Dallas 121 Tees Off – TopGolf The Colony, Texas 3:00p – 6:30p www.ntcar.org November 21 – Thursday CCIM North Texas – Dallas Monthly Luncheon 11:30a – 1:00p www.ntccim.com November 21 – Thursday NAIOP – Dallas Monthly Breakfast 7:30a – 9:00a www.northtexasnaiop.com

( AU STIN / SA N A N TO N I O AR EA)

November 4 – Monday CCIM San Antonio 2013 CCIM Symposium 10:30a – 4:30p chapters.ccim.com/sanantoniosouthtexas

November 14 – Thursday CTCAR – Austin Property Information Exchange 7:30a – 9:00a www.ctcaronline.com

November 6 – Wednesday CCIM Austin – Luncheon “Austin Technology Incubator: Economic Engine for Central Texas” 11:30a – 1:00p www.ccimtexas.com

November 14 – Thursday IREM San Antonio Lunch & Tour of the Pearl Brewery 11:30a – 1:00p www.iremsanantonio.org

November 6 – Wednesday RECA Austin Membership Luncheon Featuring Speaker Senator Kirk Watson 11:30a – 1:00p www.recaonline.com

events

November 18 – Monday CCIM Austin Advanced Marketing Analysis for Commercial Real Estate 8:30a – 6:00p www.ccimtexas.com

COMMERCIAL November 19 – Tuesday Real Estate Council – San Antonio Healthcare & Real Estate 7:30a – 9:00a www.recsanantonio.com

“Commercial Lease Analysi Comparison & Lease vs Own

November 15 – Friday IREM Austin Forecast Forum 8:00a – 10:45a www.iremaustin.org

November 20 – Wednesday ULI Austin Monthly Breakfast 7:30a – 9:00a #09-00-035-25248 www.austin.uli.org

9 hours of MCE - Course

- Provide

November 21 – Thursday Instructor Cliff Bogart, CCIM CTCAR – Austin Luncheon 11:30a – 1:00p www.ctcaronline.com

Visit www.ctcaronline.com for pricing & registrati 2014 Sponsorship Packages now available!

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

SPONSORSHIP OPPORTUNITIES START AT $750.

Visit the CREW-Dallas.org website

C TC A R

w w w. c tc aro nl ine.co m

commercial real estate women

REDNews.com 35

Out and About – Texas CRE Networking It was another busy month of networking – golf outings, charity events, happy hours, grand openings, great speakers! Thank you to all of the CRE organizations and companies who shared their photos with us. Remember to watch out for Karisa Connell at your next event to get your picture in REDNews!

To view more photos go to: http://www.rednews.com/networking-event-photos

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n e t w o r k i n g 2

N E T W O R K I N G

S o u t h E a s t T E X A S 3

CCIM/CREW Top Golf Event 1. Jackie Wilcox, Stewart Title; Jan Sparks, Transwestern 2. Morgan Moliver, Phase Engineering; Diana Gaines, The J. Beard Real Estate Co.; Becky Meyer-Meacham, Next Level Fitness; Lindsey McKean, The J. Beard Real Estate Co.; Donna Coussons, i.e.Smart Systems 3. Chris Underwood, Redstone Golf Club; Gill Dolan, David Schwarz, IV and Blake Willeford of Grandbridge 4. Amythyst Manning, Harper & Manning; Shannon Meek, CRG 5. Cynthia Foteh, Ward, Getz & Associates; Emily Zarcaro, UofH MBA Candidate 2014

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ACRP Breakfast at Houston Country Club 6. Jim Murphy, House of Representatives District 133 and General Manager of Westchase District; Alyse Makarewicz, AIA, AMB Architects; Perry Seeberger, Seeberger Architecture

CREN Happy Hour at Benjy’s 7. Shelly Baker, Veritas Title; Morgan Moliver, Phase Engineering; Greg Bergeron, Whitney Bank; Wanda Sheffield, Connect Realty; Erwin Wilbanks, Independence Title

6 36 REDNews.com

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N E T W O R K I N G

C e n t r a l S o u t h T E X A S CBRE’s Par-tee Day at Éilan Hotel Resort & Spa 1. CBRE Cares Committee: Gene Williams, Dalia Tribble, Sherri Fesperman, Renee Tate, Rob Burlingame, Susan Gendolfe, Emily Fraser, Deena Paccione, Jennifer Bohannon 2. Scott Senese, CBRE Senior Managing Director; Gene Williams, CBRE; Chuck Ellenwood, PJS; Rob Roy, CBRE Senior Managing Director – Asset Services

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CREW Event at Iron Chef Kent Rathbun’s Home 3. Brandey Orsag, Dena Welch, Marilyn Hartmann, Susie Wallis, Jackie Browning, Carrie Caesar, Kim Ghez, Cherie Short, Carolyn Fletcher, Cheryl Pyle, Laura Gilliland, Connie Gannon CREW SA at CREW Network Convention in Dallas 4. Attendees of CREW SA at CREW Network Convention in Dallas

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N E T W O R K I N G

N o r t h T E X A S CREW Luncheon/Meeting Park City Club 1. Cincha Kostman, Hudson Peters Commercial; Sanober Syed, Hudson Peters Commercial; Kaye McCallum, Interprise Design

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2. Janice Peters, Hudson Peters Commercial; Sally Longroy, Guida, Slavich & Flores; Karen Hart, Bell Nunnally Martin; D’Ann Petersen, First Federal Reserve Bank; Elissa Plotsky, North American Title; Ann Murray, Trammell Crow 3. Sadie Fitzpatrick and Kassie McLaughlin are featured with D’Ann Petersen, guest speaker from First Federal Reserve Bank.

To her right are Irene Hosford and Laura Rebbe also with Husch Blackwell 4. Sarah Hipp, Compatriot Capital; Lynn Drummond, KeyBank; Sandy Watson, Strong Group, Inc

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SOUTHEAST TEXAS

DEALS DONE

Log on to REDNews.com for daily updates

INDUSTRIAL Houston (LEASE) – Goodman Manufacturing leased space at Rampart Corporate Center, located along Highway 290 between the 610 Loop and Beltway 8 in Houston, Texas. Andy Iverson and Jim Cooksey of Jackson & Cooksey represented the tenant, and Faron Wiley and Billy Gold of CBRE represented the landlord, Avera.

Houston (LEASE) – Sunbelt Marketing leased a space at Rampart Corporate Center, located along Highway 290 between the 610 Loop and Beltway 8 in Houston, Texas. John Nicholson of Cassidy Turley and Bill de la Chappelle of Transwestern represented the tenant, and Faron Wiley and Billy Gold of CBRE represented the landlord, Avera.

Houston (SALE) – Deepwater Corrosion Services purchased a 75,000 SF building in the West Outer Loop Industrial Market in Houston, Texas. John Ferruzzo and Chris Kugle of NAI Houston represented the buyer, and the seller, Mac Process, was self-represented in the deal.

LAND Houston (SALE) – Moon Rentals LLC has purchased a .5529 acre pad site at W. Baker Road in Baytown, Texas. Claire Sinclair Gavrel of Claire Sinclair Properties, LLC represented the buyer and the seller, Kevin Horn Investments, Ltd.

MULTIFAMILY Houston (SALE) – CBRE Global Investors (on behalf of CBRE Strategic Partners Value 6 Fund) purchased Old Farm, a 734-unit, Class A multi-housing community at 2500 Old Farm Road in Houston, Texas. Todd Marix, Craig LaFollette, Todd Stewart, Tre Banks and Chris Curry of HFF represented the seller, a client of L&B Realty Advisors.

Houston (SALE) – MC Realty Advisors purchased a 122,482 SF property on 4.658 acres at 15116 Mesa Drive in Houston, Texas. Ryan Epstein of CBRE Houston represented the buyer and the seller, Park at Stone Creek LP. Houston (DEVELOPMENT) – Hines purchased a 46-acre tract of land inside Houston’s 610 Loop at Interstate 10 to develop Somerset Green, a high-end planned community with detached townhome sites. Hines will develop the community, as well as Coventry Homes, Pelican Builders and Toll Brothers.

OFFICE Houston (LEASE) – Statoil Gulf Services leased 581,000 square feet in CityWestPlace in Houston, Texas. Mark O’Donnell of Studley represented the tenant, and Chip Colvill, Clark Thompson, Win Haggard Jr. and Michael Anderson of Colvill Office Properties represented the landlord, Thomas Properties Group.

Houston (LEASE) – Waldemar S. Nelson & Co. leased 18,628 SF in the Millennium Tower at 10375 Richmond Avenue in Houston, Texas. William Wolff of DTZ represented the tenant, and Kristen Rabel of CBRE represented the owner, Millennium-Windfall Partners, Inc. Houston (LEASE) – Driggs Title Agency Inc. leased a 4,652 SF space at 3050 Post Oak Blvd. in Houston, Texas. Jay Kyle of Colliers International represented the tenant, and Cody Armbrister and Rima Soroka of CBRE Houston represented the landlord, Lopo Llc.

38 REDNews.com

Houston (LEASE) – The Fusselman Law Firm, P.C. leased a space at 1616 South Voss in Houston, Texas. Steve Rocher, Kristen Rabel and Parker Duffie of CBRE Houston represented the landlord, Unilev Management Corp. The tenant representative was not disclosed.

Houston (LEASE) – Hunter Moody Architects leased a space at 9800 Richmond Avenue in Houston, Texas. Drew Morris of Studley represented the tenant, and Steve Rocher, Kristen Rabel and Parker Duffie of CBRE Houston represented the landlord, BMS Management.

Houston (LEASE) – CompleteRX, Ltd. leased a space at 3100 South Gessner in Houston, Texas. Keith Lloyd with Newmark Grubb Knight Frank represented the tenant, and Steve Rocher, Kristen Rabel and Parker Duffie of CBRE Houston represented the landlord, BMS Management.

Houston (SALE) – The Lionstone Group purchased 712 Main Street in Houston, Texas. Dan Miller and Trent Agnew represented the seller, Brookfield Asset Management, Inc. Transwestern was retained by Lionstone to manage and lease the property.

Houston (DEVELOPMENT) – Radler Enterprises Inc, launched construction on phases three and four in the business park, Beltway Lakes in northwest Houston. The two office buildings will total 540,000 SF and next to the first two phases, located at 58255875 N. Sam Houston Parkway West. Radler Enterprises began developing Beltway Lakes in 2007 and the 325,00 SF property’s leading tenants include FMC Technologies, GSA, Trican Well Services and GE Oil & Gas. Houston (DEVELOPMENT) – TIAA-CREF and Transwestern began construction on a 30-story, 600,000 SF Class AA office tower in Houston’s Galleria submarket. The tower will be designed by Pickard Chilton Associations of New Haven, Connecticut, and the architect of record is Kendall Heaton Associates of Houston. BHP Billiton will be leasing the building from the owner, TIAA-CREF.

RETAIL Houston (LEASE) – H&R Block leased a 1,295 SF space at Greenway Commons, located at 3651 Weslayan Street in Houston, Texas. Bill Wong of Orange Commercial represented the tenant, and Jazz Hamilton & Alex Makris of CBRE Houston represented the landlord.

Houston (LEASE) – Best Friends Veterinary Services, Inc. leased a 12,000 SF space at The Shops at Cardiff Ranch, located at FM 1463 and Cardiff Ranch Drive in Katy, Texas. Steven Stone of KM Realty Advisors represented the landlord, The Shops at Cardiff Ranch. The tenant representative was not disclosed.

Houston (SALE) – Excalibur Property Holdings, LLC leased a 52,148 SF building at 1905 El Mar Lane in Seabrook, Texas. Stroud Arthur and Ryan Byrne of CBRE Dallas represented the seller, Winthrop Realty Trust. The buyer representative was not disclosed.

Pasadena (SALE) – Kormex Foods, a franchise of Taco Bell, purchased a 32, 897 SF property at Fairmont Center, located at 5118 Fairmont Parkway in Pasadena, Texas. Chris Campion represented the buyer, and Jazz Hamilton and Alex Makris of CBRE Houston represented the seller, who was not disclosed.

NORTH TEXAS

DEALS DONE

Log on to REDNews.com for daily updates

INDUSTRIAL Dallas (LEASE) - Cherry Man Industries, Inc. leased 173,873 SF at 1421 Cockrell Hill Road in Dallas, Texas. Dave Anderson of CBRE represented the tenant, and Kacy Jones, John Hendricks and Steve Koldyke of CBRE represented the landlord, IndCor. Dallas (LEASE) – Maniscalco Stone, LLC leased 38,492 SF at 2330 Alberta Drive in Dallas, Texas. Nathan Lawrence of CBRE Dallas represented the tenant, and Prologis represented the landlord, CF Capital LLC. Dallas (LEASE) – Arlington Champs Restaurant Supply leased 12,600 SF at 825 Avenue H East in Arlington, Texas. Brian Gilchrist and John Brewer of CBRE Arlington represented the tenant, and Kacy Jones and Steve Koldyke of CBRE represented the landlord, First Industrial Texas, LP. Dallas (LEASE) – Bonheur West Holdings, LLC leased 11,031 SF at 11031 Grissom Lane in Dallas, Texas. George Tanghongs and Brett Lewis of Lee & Associates represented the tenant, and Nathan Denton of Lee & Associates represented the landlord, McGray Group II, LLC. Garland (LEASE) – Packaging Corp. of America leased 53,635 SF of space at 2525 S. Shiloh Road in Garland, Texas. Stuart Smith of DTZ represented the tenant, and Ken Wesson, Adam Graham and Scott Alexander of Lee & Associates represented the landlord, Cobalt Capital Partners.

Dallas (SALE) – KTR Property Trust III purchased a 543,007 SF building on 1.50 acres at 600 109th Street in Arlington, Texas. Michelle Hudson of Hudson-Peters Commercial represented the buyer, and John Brewer and Brian Gilchrist of CBRE Arlington represented the seller, BHP Sale Builders Hardware.

LAND Ft. Worth (SALE/GROUND LEASE) – A partnership purchased a 45,346 SF netleased property located in Fort Worth, Texas. Alex Bouchard and Gus Lagos of Marcus & Millichap’s Ft. Worth office represented the buyer, and Vincent Knipp of Marcus & Millichap’s Ft. Worth office represented the seller, a partnership.

MULTIFAMILY Ft. Worth (SALE) – A Ft. Worth-based LLC purchased a 50 unit complex, Lowden Terrace, located at 2200 West Lowden Street in Ft. Worth, Texas. Boyan Radic, Mason Green and Dough Banerjee of Marcus & Millichap’s Ft. Worth office represented the buyer and the seller, Clarus Investment 4 LLC. The Colony (DEVELOPMENT) – Jackson Shaw announced plans to develop Phase II of Cascades at The Colony, a 100-acre, 600,000-square-foot, master-planned community in The Colony, Texas. The master-planned community near Dallas offers commercial, residential, hospitality and retail space in The Colony, a suburb of Dallas. Jackson-Shaw and GID Investment Advisor, LLC, a Boston-based, real estate investment company, will develop the commercial phases. Texas Capital Bank served as the lender for Phase II. Burson Holman and Adam Hammack of CBRE Group, Inc. will continue managing leasing for the commercial development.

OFFICE

Jennifer Bently of Colliers International represented the tenant, and Chris Lipscomb and Michael Carmichael of Colliers International represented the landlord, Denley Investment & Management.

Dallas (LEASE) – American Arbitration Association, Inc. leased 8,452 SF at 13727 Noel Road in Dallas, Texas. Steve Jarvie of Jones Lang LaSalle represented the tenant, and Dennis Barnes, Celeste Fowden and Hunter Lee with CBRE Dallas represented the landlord, MUSFEF 13727 Noel, LP. Dallas (LEASE) – Inside the Loop, LP leased 2,277 SF at 5910 N Central Expressway in Dallas, Texas. Sarah Erickson and Luke Davis of Stream Realty Partners represented the tenant, and Dennis Barnes and Clay Gilbert of CBRE Dallas represented the landlord, CPUS Premier Place, LP. Irving (LEASE) – Bio Care Home Health Services, Inc. leased 9,760 SF at 7501 Esters Road in Irving, Texas. Chris Stout of Transwestern Commercial Services represented the tenant, and Dennis Barnes and Rick Rensi of CBRE Dallas represented the landlord, Operating Engineers Funds Inc. Irving (LEASE) – Northgate Constructors leased 37,571 SF at 7651 Esters Road in Irving, Texas. Josh White and Chelby Sanders of CBRE represented the tenant, and Dennis Barnes and Rick Rensi of CBRE Dallas represented the landlord, Operating Engineers Funds Inc. Plano (LEASE) – Catapult Staffing, LLC leased 3,022 SF at 1820 Preston Park Blvd in Plano, Texas. Chris Schupp of NAI Robert Lynn represented the tenant, and Dennis Barnes and Rick Rensi with CBRE Dallas represented the landlord, A&B Properties, Inc.

RETAIL/RESTAURANT Arlington (LEASE) – Serenity Dental has leased approximately 3,000 SF at North Cooper Street and Lamar Boulevard in Arlington, Texas. George Michael Lambert of The Lambert Company represented the tenant, and Cynthia Bailey of WindStar Properties represented the landlord, Lamar Land Partners I, Ltd. Garland (LEASE) – Fitness Connection leased 51,796 SF at 2234 W. Buckingham in Garland, Texas. Wyatt Russo of Retail Connection represented the tenant, and Amy Nott and Bob Ginsburg of CBRE Dallas represented the landlord, SW Buckingham, LLC. Plano (LEASE) – Dillas Quesadillas, LLC leased 2,668 SF more at 2008 Midway Road in Plano, Texas. Sean Alkek with Weitzman Group represented the tenant, and Michael Meaden with CBRE Dallas represented the landlord, Jack in the Box Eastern Division, LP. Ft. Worth (SALE) – A private trust purchased SoHIgh Village, a 7,900 SF retail property located at 5200 North Tarrant Parkway in Ft. Worth, Texas. Philip Levy of Marcus & Millichap’s Ft. Worth office represented the buyer and the seller, Tarrant Vista Partners, LLC. Ft. Worth/Frisco (SALE) - Series C LLC (Cole Real Estate) purchased retail properties at 7000 N. Freeway in Ft. Worth, Texas and 7808 Preston Road in Frisco, Texas. Stroud Arthur and Ryan Byrne of CBRE Dallas represented the seller, JMT Tampa Real Estate Partnership, LLP. The buyer representative was not disclosed.

Ft. Worth (SALE) - Store Capital Acquisitions, LLC purchased a retail property at 5609 Southwest Loop 820 in Fort Worth, Texas. Stroud Arthur and Ryan Byrne of CBRE Dallas represented the seller, The Philip H & Ruth Ann Ingber Trust. The buyer representative was not disclosed.

Carrollton (LEASE) – Interphase Corporation leased a 43,374 SF space at International Tech Center in Carrollton, Texas. Daniel Rudd, Bill Vahrenkamp and

REDNews.com 39

CENTRAL/SOUTH TEXAS

DEALS DONE

Log on to REDNews.com for daily updates

INDUSTRIAL San Antonio (LEASE) – Sino Source leased a 4,900 space located at 6800 Alamo Downs Parkway in San Antonio, Texas. Rick Stagers of Newmark Grubb Knight Frank represented the tenant, and Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord, Interwest Business Park.

San Antonio (LEASE) – GPO Display, LLC leased a 3,000 SF space located at 12700 O’Connor Road, The O’Connor Road Business Park in San Antonio, Texas.

Jorge Rodriguez of Newmark Grubb Knight Frank represented the tenant, and Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord, G&I VII O’Connor Road, L.P. San Antonio (LEASE) – First Shred leased a 6,000 SF space located at 12700 O’Connor Road, The O’Connor Road Business Park in San Antonio, Texas.

Dane Thompson of Search Commercial represented the tenant, and Jason Schnittger of Stream Realty Partners’ San Antonio office represented the landlord, G&I VII O’Connor Road, L.P. San Antonio (SALE) – Emerson/Rosemont purchased a 5,000 SF industrial building located in Calliham, Texas. Jason Schnittger of Stream Realty Partners’ San Antonio office represented the buyer, and Chris Dupree of DHR Realty represented the seller.

LAND Jourdanton (SALE) – An undisclosed buyer purchased 5.094 acres in Jourdanton, Texas. Janice Landers of Retail Solutions and Mark Olguin of Realm Group represented the buyer, and Clifton Shearrer of Brohill Realty represented the seller.

MULTIFAMILY San Antonio (SALE) – Houston Street Townhomes Lllp purchased 266,160 SF of property at 4611 East Houston Street in San Antonio, Texas. Michael Wardlaw, Charles Cirar and Ryan Epstein of CBRE represented the buyer and seller.

OFFICE

Austin (LEASE) – Lennar Homes of TX Land & Construction and Universal American Mortgage Company (Lennar subsidiary) leased 16,583 SF at 12401 Research Blvd in Austin, Texas. Jerry Frey and Frank Hartmann of CBRE Austin represented the tenant, and Richard Paddock and Adri Baker with HPI represented the landlord, RPP Austin LP C/O Spear Street Capital.

RETAIL

Austin (LEASE) – Tint World leased a 3,200 SF building at 8605 Burnet Road in Austin, Texas. Cole Brodhead and Brian Harris of Retail Solutions represented the tenant, and John Heffington of CBRE represented the landlord.

Austin (LEASE) – Hill Country European Automotive Repair leased 5,500 SF at Biz Park 290 at 11190 Circle Drive in Austin, Texas. Boyd Harris of ECR represented the tenant, and Andrew Perkel of Retail Solutions represented the landlord.

Austin (LEASE) – The Austin City Ballet leased 2,250 SF at Springwoods Plaza at 13201 Pond Springs Road in Austin, Texas. Lance Morris of The Retail Connection represented the landlord, and Andrew Perkel of Retail Solutions represented the tenant.

Belton (LEASE) - Advance Auto Parts has leased 11,000 SF at 525 N Main Street in Belton, Texas. David Simmonds of Retail Solutions represented the landlord, and Daren Nix of Edge Realty represented the tenant.

Leander (LEASE) – Subway leased 1,834 SF in the Leander Shopping Center at 1395 Highway 183 in Leander, Texas. Brian Harris, Tucker Francis and Herman Tjahja of Retail Solutions represented the landlord.

San Antonio (LEASE) – Venture Point leased a 3,502 SF building at 19298 Stone Oak Parkway in San Antonio, Texas. Austin Devoto of ReQuest Investments and Realty represented the tenant and Ryan Harrison, and Seth Prescott of Stream Realty Partners represented the landlord, Stone Oak Centre at Knights Cross.

Austin (LEASE) – Texas School Photography, LLC leased 4,407 SF at 6500 River Place Blvd 205 in Austin, Texas. Troy Holme and Casey Ford of CBRE Austin represented the landlord, Metropolitan Life Insurance Company. The tenant representative was not disclosed.

San Antonio (LEASE) – Molina Clyde Dentistry leased a 2,455 SF building at 19298 Stone Oak Parkway in San Antonio, Texas. Sean Regan of Phelps Commercial Realty represented the tenant and Ryan Harrison and Seth Prescott of Stream Realty Partners represented the landlord, Stone Oak Centre at Knights Cross.

Austin (LEASE) – Lightspeed System Corporation leased 3,651 SF at 106 East 6th Street in Austin, Texas. Jeff Leggio of ASU & Associates represented the tenant, and Troy Holme, Katie Ekstrom and Jayme Knight of CBRE Austin represented the landlord, DWF III Littlefield, LP.

Austin (SALE) - A Texas-based private real estate fund advised by Crow Holdings Capital Partners purchased the 122,349 SF retail center, The Market at Parmer Lane in Austin, Texas. Crow Holdings represented themselves, and Chris Cozby, Chris Gerard and Kevin Holland represented the seller, LPC Retail, a division of Dallas-based Lincoln Property Company.

Austin (LEASE) – BBVA Compass has leased 3,160 SF at 3520 Executive Center Drive in Austin, Texas. Jayme Knight of CBRE Austin represented the tenant, and Riverside Resources represented the landlord, 2011 Austin Oaks Ltd.

40 REDNews.com

San Antonio (SALE) – ARC NTSNTTX001, LLC, purchased an 11,176-SF building located at 4560 Walzem Road in San Antonio, Texas. Dan Yozwiak and Antoine L. Matthews of Marcus & Millichap in Columbus represented the buyer, and Philip Levy and Chris Gainey of Marcus & Millichap in Ft. Worth represented the seller, a private investor.

classifieds ATTENTION DEVELOPERS AND ENGINEERS! 541 Service Units of Water Capacity

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iNDEX

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KeyMap 331D

TAO Interests, Inc. - Broker Tim Opatrny (713) 621-9841

www.taointerests.com email: tim@taointerests.com

advertiser

iNDEX

A. A. Realty Company............................................ 43

Hankamer Commercial Brokers, LLC...................... 29

ACRP....................................................................34

ICSC Texas. . .......................................................... 35

AmREIT........................................................... 15, 44

International Church Realty.................................... 31

BACREN. . .............................................................. 34

IREM..................................................................... 34

Baceline Investments............................................. 27

Kaufman Economic Dev. Corp..... Cover-North, TX, 17

CCIM - Central Texas............................................. 35

MIMCO Inc............................................................ 13

CCIM - Houston..................................................... 34

NAI Houston.................................................... 27, 31

CCIM - North Texas. . .............................................. 35

Newmark Grubb Knight Frank . . .................................5

CHC Investments, LLC. . ...........................................7

Phase Engineering, Inc.......................................... 33

City of Burnet. . ................. Cover-Central/South, TX, 3

Raintree Commercial, LLC.......................................2

C.R.E.A.M... ...........................................................34

Rammrath Realty Ventures, Inc.............................. 19

CREN.................................................................... 34

Simon International Inc. ........................................ 41

CREW - Dallas. . ..................................................... 35

TAO Interests, Inc..................................................41

CREW - San Antonio..............................................35

Tarantino Properties, Inc.......................................8-9

CTCAR.................................................................. 35

The J. Beard Real Estate Company, L.P... ............... 23

David Z. Mafrige Interests.......... Cover-Southeast, TX

The Weitzman Group............................................. 21

Greater New Braunfels Chamber of Commerce. . ..... 31

Transwestern Commercial Services........................ 19

Greenberg & Co.. . ..................................................29

Zarsky Industries................................................... 29 REDNews.com 41

2014 Editorial Calendar 100,000+ Print / Digital Distribution + Over 200 Newsstands Throughout Texas * REDNews will have additional magazines at these events

Month

Focus

*Bonus Distribution

Retail / Vacant Land / EDCs

Technology & Innovation in Commercial Real Estate

Office / Office-Medical

Sustainability Trends

Retail / Vacant Land / EDCs

Retail / Vacant Land & Development Opportunities

Industrial / Vacant Land

Guide to Commercial Services

Texas Land Markets Conference

Retail / Vacant Land / EDCs

Broker Retail Sales/Leasing Trends; Supplement - Special Retail Focus

ICSC Las Vegas

Office / Office-Medical

Office / Office Medical Trends

S

Y O

June

R

May

U

April

PA C

E

March

Industrial / Vacant Land / EDCs

E

July

Office/Medical

State of the 2014 CRE Market

E

R V

Broker Opinions & Surveys

Texas Land

Fall Festivals; Weekend Getaways; Hunting & Fishing

Retail / Retail Land / EDCs

Retail Interviews; Supplement - Special Retail Focus

R

September

November

December

Broker Industrial Sales/Leasing Trends; Guide to Commercial Services

Commreical Properties

E S

August

October

CCIM Forecast Competition

N

February

O W

!

January

Added Features

ICSC Texas

Industrial / Office / Land

for updates visit: for more info: info@rednews.com | Houston: 713.661.6300 | Outside Houston: 800.836.2191

42 REDNews.com

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