REDNews November 2017 Central South Texas by RE Journals

NOVEMBER 2017

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Emerging Evolution:

How retail is adapting to the changing market

Inside:

Where have all the golf courses gone? A young Texan goes to Moscow

±21-29 ACRES

CLAY RD., WEST OF GRAND PARKWAY KATY, TX

• ±21 to 29-acre land tract on Clay Rd., between Porter Rd. and Katy Hockley Cut Off Rd. • Direct access from Clay Rd. • Property is NOT in the flood plain • Recently annexed into MUD 536 • Price: $5.50 PSF

LAND SERVICES TEAM KRISTEN MCDADE Senior Director 713.469.4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator 346.444.8968 lauren.geary@berkadia.com

MATT DAVIS Analyst 346.444.8961 matt.davis@berkadia.com

© 2017 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx

±49,475 SF

22235 I-45 NORTH SPRING, TX 77389

• ±49,475 SF of land with a ±2,250 SF building located along the west side of I-45 North (southbound side) at the Spring Steubner Loop. • ±275’ I-45 frontage, located just south of The Woodlands and 20 miles north of Downtown Houston. • Property is adjacent to Springwoods Village, a 2,000 acre master planned development featuring corporate campuses, retail, residential developments and parks and trails throughout. • Contact broker for pricing

LAND SERVICES TEAM KRISTEN MCDADE Senior Director T: +1 713 469 4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator T: +1 346 444 8968 lauren.geary@berkadia.com

MATT DAVIS Analyst T: +1 346 444 8961 matt.davis@berkadia.com

IN THIS ISSUE

Market

Sales & Leases 1-3, 5, 7, 9, 12, 13, 17 â&#x20AC;&#x201C; 34

Services

Environmental Services 38, 51 Financial Services 21 Legal Services 49 Photography 31 Signage 52 Surveying 21

Scoop

Events 40, 42, 44, 50 Social 41, 43, 45 Bulletin 46 - 48

Features

Emerging evolution: How retail is adapting to the changing market 14-16 CIVIL FAIR PLAY Where Have All the Golf Courses Gone? 35 - 37 RAY'S BUZZ Houston Housing & Land Forecast 8 A Young Texan Goes to Moscow 10, 11

NOVEMBER 2017

RETAIL DESTINATION

McKINNEY TEXAS

POPULATION

359,241 2017 ESTIMATED RETAIL TRADE AREA POPULATION

POTENTIAL RETAIL SALES

$5,767,014,344 AVERAGE HOUSEHOLD INCOME

$125,712

ACTUAL SALES

$2,697,676,778 RETAIL OPPORTUNITY

$3,069,337,566

McKinney was chosen as Money Magazine’s #1 Best Place to Live in America in 2014, and its historic downtown is a major tourism destination. We’re growing and so are our retail opportunities. MONEY MAGAZINE 2014

RESTAURANTS • COMMERCIAL • SPECIALTY RETAIL • HOTELS

McKinney Community Development Corporation McKinneyCDC.org

Cindy Schneible, President 972.547.7653 • cschneible@mckinneycdc.org Barry Shelton, Assistant City Manager 972.547.7527 • bshelton@mckinneytexas.org

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITERS

Janis Arnold janisarnold1@gmail.com Ray Hankamer rhankamer@gmail.com Brandi Smith info@REDNews.com

CONTRIBUTING WRITER

Reid Wilson rwilson@wcglaw.com

Dear Readers,

This is our 15th annual Texas ICSC Retail Focus issue and we’re looking forward to seeing all of you retail professionals in Dallas this year on November 8th – 10th. You can find us at Booth #350 so please come by and say hello.

Change & adaptation seem to be the recurring themes related to retail. And now everyone is waiting to see where Amazon’s second headquarters will land, as well as continuing to debate the impact online shopping will ultimately have on retail.

Brandi Smith visited with Ronnie Miranda and Jeff Hayes of NewQuest Properties and Marshall Mills of Weitzman about the emerging evolution of retail. Mills paraphrased Mark Twain with the comment “the reports of the death of brick-andmortar retail are greatly exaggerated.” These cutting-edge retail experts pointed out that retail business models are continually being reevaluated to change with the times, and that a storefront is a billboard for the retailer. Their companies target retailers that offer services you can’t get online to fill their retail centers. To read the full story, see Pages 12 - 14. Who would have ever thought emerging evolution could also affect residential golf course communities? Read what Reid Wilson of Wilson Cribbs + Goren has to say about golf courses in his Civil Fair Play column on pages 35 - 37.

I hope you have great success at ICSC and a wonderful holiday filled with thanks-giving. Best Regards,

EMARKETING DIRECTOR

Rahul Samuel emarketing@REDNews.com

CREATIVE DIRECTOR

Steven Smith digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Ginger Wheless ginger@REDNews.com

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5909 West Loop South, Suite 135 Bellaire, TX 77401

ray’s buzz BY RAY HANKAMER rhankamer@gmail.com

HOUSTON LAND AND HOUSING FORECAST 10-11-17 Speakers: Patrick Jankowski- Economist, Greater Houston Partnership; Kirk Laguarta and Duane Heckmann- Land Advisors; Jeff Lindner-Harris County Flood Control

Harvey

Takeaway: Houston’s economy continues to steadily grow, and Harvey will only be a momentary setback in different sectors. A positive from Harvey that was recognized and recorded worldwide was the community solidarity evident here as everyone helped everyone else during this catastrophe.

• Largest recorded rainfall event in the history of North America-nowhere has ever had four feet of rain in four days • Water reached rooftops in Hobby Airport area with no proximity to watercourses-the ‘streams’ were from the sky-thousands of people were on roofs and rescue was difficult since street addresses were under water and night was quickly falling…those rescued were taken to freeway overpasses by small boats and high dump trucks from the City picked them up there and took them to shelters

Our Economy • Rig count fell from 1931 at peak to 1050 now, BUT many rigs are twice as efficient, so drilling rebound is stronger than it looks from this one statistic • Oil should continue to adjust to supply and demand but should stay bracketed in the $50-60 range going forward; this will entail some re-hiring in the Oil Patch but reaching nowhere near the last peak • 2014-2016 we lost about 81,000 higher paying jobs and gained about 83,000 lower paying jobs in hotel, health, education, retail, and financial sectors • Retail sales continue to steadily rise in Greater Houston; the Purchasing Managers’ Index is rising again; employment and job growth are resuming their steady upward trend • Harvey was the second most severe hurricane ever after Katrina; 122,000 people rescued; 35,000 were in shelters; 300,000 flooded vehicles; 587,000 FEMA claims; 2% of apartments damaged; 8% of single family homes damaged; 25% of refining offline for short period; both airports were closed for 3-4 days

Driving Forces Propelling Houston • International city • Energy capital of the world

• City has grown from 2.2 million since 1970 and should reach 9.8 million by 2035 • Spirit of Houston is exemplified by the quick private raising of $350 million for help to Harvey victims

Large Land Transactions • There have been six large transactions this year (more than 300 acres), a predictor of continued residential growth in the far suburbs - a total of 5,000-21,000 acres of transactions predicted for 2017 • More or less same on track for 2018 • Houston is #2 in the US for new home starts-new lot deliveries in 2017 will be in the 27,000-30,000 range • From 1997-2016 Houston has averaged 26,500 suburban home sales per year-think: a Cinco Ranch going in every year in Greater Houston

• Pro-business environment

• Builders are reacting to Harvey with higher slabs and other ‘beefed up’ efforts to mitigate the possibility of rising water entering homes they are building

• Port of Houston-for fourteen years first port in USA for foreign tonnage (mostly bulk oil and petrochemicals)

• Construction material prices will go up for many items due to demand for Harvey repairs

• Large and diverse economy

• World’s largest medical center, first in cancer care

NOVEMBER 2017

• Rain totals for five days: 60” Nederland; 56” Friendswood; 54” Bunker Hill; 52” League City • Harvey covered a very large area with this heavy rain, from Victoria to Port Arthur-unprecedented rainfall • Harvey dumped enough water to supply the entire US water needs for 26 days or to feed Niagara Falls for 15; we had 68% of our annual rainfall in 4 days • No way to build defenses to fully protect against a future Harvey; rain fell so long and so heavily that it “piled up” in slow moving waterways around the region

±4.88 ACRES

SEC FM 2218 & TOWN CENTER BLVD. Approximately 4.88 acres located on the southeast corner of FM 2218 (B.F. Terry Blvd.) and Town Center Blvd. in the rapidly growing Rosenberg, Texas market area. The property is at the hard corner of a fully signalized intersection in Brazos Town Center. Brazos Town Center, a “life essential” 550-acre master-planned development, integrates 100 acres of retail with high-end multi-family units, single family homes, and a medical/professional office park - all connected by parks, trail systems, lakes and fountains.

• Easy access to US 59 and FM 762 • Sidewalks are already in place • Site has full utilities through MUD 167 Brazos Town Center, and off site detention • Price: $7.50 PSF

LAND SERVICES TEAM KRISTEN MCDADE Senior Director 713.469.4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator 346.444.8968 lauren.geary@berkadia.com

MATT DAVIS Analyst 346.444.8961 matt.davis@berkadia.com

ray’s buzz BY RAY HANKAMER rhankamer@gmail.com

A YOUNG TEXAN GOES TO MOSCOW

Christopher Van Riet: A 25 year-old Houstonian who went to Moscow in 1995 in the middle of the chaos resulting from the dissolution of the Soviet Union, and is now owner / developer of a logistics park including the two largest retail distribution centers in Russian history.

After graduating from the University of Pennsylvania’s Wharton School with an economics degree, Chris Van Riet went straight to Wall Street. After two years, in 1995 he took his two-week summer vacation to Moscow, where he interviewed businessmen seeking opportunity in the chaos, as a communist society began its rocky transition toward a free enterprise system. Chris guessed that youth and energy should have a disproportionate payoff in Russia, especially for someone with his training in the capitalist system. He moved to Moscow and immediately began immersing himself in Russian language, history, and culture. He went to work for Menatep, a Russian financial holding which had been amassed by one of the bold businessmen who became known as The Oligarchs. Chris soon transferred over to Transaero as Chief Financial Officer, then Russia’s largest domestic airline, which was buying Boeing planes and offering a more modern, and safer service to air travelers. (At one point Chris had made a list of all the tail numbers on all aircraft manufactured in the Soviet Union, so he could know the age of the plane he was about to board). After five years in Moscow, Chris moved to London due to the lack of a developed legal system (private ownership of property was still an evolving concept) and the political uncertainty following the surprise resignation of President Boris Yeltsin and the election of a new president Vladimir Putin – about whom nothing was known at that time. Putin was to bring stability to Russia, and implemented reforms, including codifying property rights into law, all of which gave business people and investors the certainty required to make substantive investments.

NOVEMBER 2017

The Eureka! moment for Chris in London was when Mikhail Khodorkovsky, one of the most aggressive oligarchs, disclosed to the media that he OWNED his assets. Until this point, the oligarchs CONTROLLED assets but shielded their ownership in opaque holding structure as many accused them of stealing from the State through corrupt arrangements with government officials. With ownership possible, Chris moved right back to Moscow in 2003, and this time he stayed.

RN: Chris, what was your focus when you returned to Russia? CVR: I became interested in businesses that were focued on improving the Russian consumer lifestyle. For example, I invested heavily in Dixy, a supermarket chain. I then saw that the Russian consumer supply chain all the way back to the farmer was non-existent or primitive and inefficient. I considered this area an opportunity to make money by helping improve the system.

RN: Where did you start? CVR: We launched an IPO for Dixy, to bring in capital to grow and improve the business. This led to contacts with John Deere, who wanted to sell modern farm machinery to Russian farmers, many of whom were still using antiquated methods. This began a long relationship with John Deere, and eventually the company I founded, Radius, was chosen to develop a ~ 800,000ft warehouse for them to house one of their four global strategic spare parts depots, a machinery manufacturing operation, and – eventually - their Russian head office.

RN: But isn’t the John Deere tenancy only one of a much larger project in Moscow? CVR: Yes. We have under development a 650-acre warehouse park 20 minutes south of Moscow and near one of its large airports. Among our current customers are DHL, Auchan, Decathlon, Leroy Merlin, NEXT, GM, Kimberly-Clark, Volvo Trucks, Iron Mountain, and others. We are now strategically moving toward providing large eCommerce fulfillment warehouses, which in Russia, as well as in the rest of the world, are needed. If I may be allowed to brag just a bit, we are gratified by the many recognitions we have received, such as “Business of the Year” from the American Chamber of Commerce; “Best Industrial Warehouse Developer in Central and Eastern Europe” from Euromoney; “Warehouse and Industrial Real Estate Company of the Year” from Green Awards; and certifications from BREEAM for “International Energy Efficiency and Environmental Safety”.

RN: How have you financed your warehouse and logistics projects? CVR: We realized from the outset the importance of avoiding high debt levels and short term borrowing given the scale and time horizons of our development ambitions. In our substantial South Gate project, we have about two thirds equity and one third debt.

RN: Chris, we have lots of readers at RED News who are young professionals, just starting out. Can you give them some advice on the keys to a successful career in commercial real estate, and in business practices in general. CVR: Yes Ray, I can. Maybe it is best to put them as “bullet points”:

• R esilience is key. Believe in what you are doing and move forward despite the inevitable barriers, uncertainties, and complications. • S tick to your core values, and, when in doubt, speak the plain, simple truth. •N ever be afraid to ask for help. There are always people out there ready to lend a helping hand when asked. • I f offered a deal that sounds too good to be true, be aware, it probably isn’t. •U nderstand what value YOU bring, and focus on delivering that value to your endeavor. •D on’t try to do something you really should not be doing. •A nd finally, this thought: diligence and hard work are always pay-off in the long run.

Great Development Site

Calfee Ranch +/- 450 Acres

Great commercial development - investment opportunity with quick and easy access to SH 249 and FM 2920 and located just outside the Tomball City Limits. This 4.04 acres has +/351' frontage on Medical Complex Dr. and +/- 505' frontage on Calvert Road with a new Marriott Hotel at the corner of Medical Complex Dr. and FM 249. planned new extension for Calvert Road leading to a new Harris County Regional facility and other commercial development projects.

Calfee Ranch- 450 acres adjoining Sam Houston National Forest fronting FM 149 near Lake Conroe just North of Montgomery.

HARRIS COUNTY

FM 149 NEAR LAKE CONROE

Development Properties

Great Development Site CROCKETT, TX

Great commercial building site across from Loop 304 across from Walmart with traffic light in Crockett, Tx. Sonic is on southwest side of the property. Subway, Pizza hut, HEB, O'Reilly Auto Parts and Taco Bell are within a mile of the property.

Rare Investment/Development Property BASTROP COUNTY

Diamond G- The Diamond G is a rare investment or development opportunity in Bastrop County. Located on FM 969 inside the City of Bastropâ&#x20AC;&#x2122;s ETJ and less than a half a mile North of Hwy 21/71. (With proposed Hwy 21-Hwy 95 connector going through it.) Great trees and topography.

Chantilly Country - Wedding & Event Venue LAKE CONROE

Chantilly Country- Located on the east side of Lake Conroe, Chantilly County is a 15.86 acre wedding and event venue that boasts a elegant 5400 square foot reception hall complete with bride and groom dressing rooms and a dance floor overlooking water side view.

Call for additional details and pricing

Panoramic Views on 3,900 Acres

2.0 Acre Development Site FM 1488, MONTGOMERY COUNTY

Great commercial building site in Montgomery County. This 2-acre tract is located East of FM 149 at the corner of FM 1488 and Community drive 1 mile east of Magnolia High School. Future HEB coming soon on the corner of FM 1488 and Spur 149. Also located less than a half of a mile from the highly acclaimed development Mostyn Manor Reserve. Utilities available.

Larry Jacobs Jacobs Properties 936-597-3301 larrytxland@gmail.com www.txland.com

NORTHERN HILL COUNTRY

Ideal Truck Stop Location US 59/I69 Feeder & FM 424

El Halcon Ranch lies in the heart of the northern hill country, a scenic two and a half hour drive from Ft Worth or Austin. One of the largest tracts of land in the area, the ranch covers 3,900 acres....and offers panoramic views that span over 20 miles of beautiful Texas hill country.

Great property for development in Shepherd, Tx on Southbound US 59/ Interstate 69 feeder with additional frontage on FM 424. Ideal location for truck stop and/or retail.

SHEPHERD, TX

Emerging evolution: How retail is adapting to the changing market BY BRANDI SMITH

It was the merger that made international headlines: Amazon purchasing Whole Foods, a marriage of e-commerce and brick-and-mortar that acknowledged and leveraged the power of both kinds of retail.

Grocery being the largest category of consumer retail, the move is being viewed by experts as a power play for Amazon, a way for the giant online retailer to tap into a new revenue stream. It was also a public and financial admission by an e-commerce behemoth that it is still worth investing in a physical store to win the war of retail.

As an example, Mills offers up a power center Weitzman leases in San Antonio.

“A couple of years ago, it was 77 percent occupied. Today, it’s Ronnie Miranda, completely full with new tenancy Director of Asset Management, from concepts like F21 RED and Spec’s NewQuest Wine, Spirits, & Finer Foods that joined the project’s existing retailers, such as Barnes & “... retail’s alive and well …” Noble, Marshalls, Old Navy, DSW and ULTA,” he says. It certainly isn’t dead, but modern day retail looks Just as it does with human DNA, evolution is wildly different than it did even a couple decades changing the fundamental makeup of retail, ago. determining what survives and what doesn’t.

Mills points to power centers as an example of retail evolution. Between 1999, at the peak of the “power retail decade,” and 2011, at the depths of the recession, Mills says vacancy in power retail increased from 861,000 square feet to 3.5 million square feet. “Today, power retail statewide reports an occupancy rate of 95 percent or better,” he says. “So what happened between 2011 and 2017 that leased up all of those vacancies created by Circuit City, Linens ‘n Things, Borders and the like? Basically, the market followed the first rule of holes: When you’re in one, stop digging.” NOVEMBER 2017

Mills says that until the market stabilized, power retail construction all but stopped. With few new-space options, strong box stores (such as Burlington, Nordstrom Rack, Ross, etc.) began competing for the existing space.

“To paraphrase Mark Twain, the reports of the death of brick-andmortar retail are greatly exaggerated,” says Marshall Mills, President and CEO of Weitzman.

“It’s changing and adapting. This is not the same shopping center that your grandparents or even your parents used,” says Ronnie Miranda, Director of Asset Management for NewQuest Properties. “Retail's alive and well. It's not going to go anywhere.”

Marshall Mills, President & CEO, Weitzman

Jeff Hayes, Managing Director, NewQuest

“It's forced everyone to reevaluate their business models. It's forced the better to get even better and the weak ones are going to go by the wayside,” says Jeff Hayes, NewQuest’s Managing Director of Tenant Representation Services. “That's just Mother Nature at its finest.”

“... the formula for continued success …” Mother Nature may not have been kind to Texas this year when it comes to weather, but it has delivered for retail. Hayes, who says NewQuest typically turns over 225 to 250 transactions at its owned projects in a normal year already has more than 200 active transactions in the pipeline. “It'll end up being another great year for us,” he adds. Weitzman is also celebrating a strong 2017.

“Our Texas major-metro markets of Dallas-Fort Worth, Austin, Houston and San Antonio are as strong as I’ve ever seen them, though construction has remained conservative,” Mills says. “That drives demand to existing centers. It boosts occupancy and justifies re-developments.” Austin, he points out, has a 96 percent occupancy level for its 48.9 million square feet of retail. Even so, Mills says the city will only add approximately 890,000 sf this year. Boasting its highest retail occupancy in three decades (93 percent), Dallas is only adding 3.2 million sf, according to Mills. “For an inventory of 193 million sf, that’s a rounding error,” he says. In Houston, as 96 percent of retail spaces is leased, the market is only adding 2.7 million sf to its existing 150 million sf of inventory, says Mills. In an extreme example of conservative construction, San Antonio, which has 94 percent occupancy, will only add 360,000 sf of new retail space. “I’ve been in stores with more square footage.” Mills says, adding, “The formula for continued success can be summed up as healthy economy + low construction = healthy retail market.”

“... stores create a billboard ...” A substantial, though difficult to measure, benefit of having a brick-and-mortar location is visibility. “A store front is, from a branding standpoint and recognition, a billboard. Approximately 100 Kroger Stores & more than 60 H-E-B's throughout the Houston MSA can't be replicated on the internet. It's in every neighborhood; it's in every major intersection,” says Hayes. “It's hard to put a value on that kind of good quality real estate.” Mills echoes that, saying, “Stores create a billboard

“ The tenants that are coming in are coming in aggressively” – Ronnie Miranda for the brand, offering a sense of stability and familiarity. Brick-and-mortar locations make shoppers comfortable with brands in a way that an online-only presence can’t match. That’s why we see e-commerce pioneers like Warby Parker and Suit Supply now opening in brick-and-mortar centers.” Traditionally physical stores such as Best Buy, Costco, Home Depot, Nordstrom, Ulta and TJX offer “strong competition” for websites such as Amazon, says Mills. The same can be said for grocery stores, which Mills describes as “resistant to online competition. “That’s why we see Amazon’s recent purchase of Whole Foods as proof that brick-and-mortar is

critically important to a successful retail strategy,” he adds. Additionally, as popular as online retail may appear as e-commerce expands into markets such as grocery, there are still service-based retail needs that can never be fulfilled via the web. “People still need to have their hair cut. They still need to get their nails done. On the grocery side, some people still want to pick their produce by hand and not have someone choose it for them and deliver it. Some people just enjoy shopping. They like that as part of their experience,” says Miranda. “The tenants that are coming in are coming in aggressively. We're seeing a lot of action from service-oriented tenants, ranging from doctors, to dentists, to stylists, to spas, to restaurants.”

“... experiences you can’t get online …” Another element consumers can’t access via e-commerce is an experience, which is the latest part of retail’s evolution. “Our leasing focus for new and existing centers today targets retailers offering services or experiences you can’t get online. In the current market, expanding retail categories are dominated by food, fitness and entertainment. Those concepts are complemented by strong demand from beauty and wellness, as well as medical and dental,” Mills says. Continued on page 16 >

Emerging evolution: How retail is adapting to the changing market < Continued from Page 15

Entertainment and activities are helping to bolster the NewQuest portfolio, according to Hayes, who points to a concept called Pinstack that is growing in popularity.

40 or 50 years old,” Miranda points out. “They also communicate differently, so we’re discussing a lot of marketing efforts internally that go beyond a traditional brokerage community.”

“It includes a restaurant, full-sized bowling lanes and an array of indoor games and attractions, such as laser tag and a ropes course. It’s not meant only for children, but also for adults. They do a lot of corporate events,” Hayes says. “Topgolf is another great example of destination experience-type activities.”

“... space just isn’t there …” Though evidence shows brick-and-mortar retail is thriving, that’s not to say online retail poses no competition. The best and most successful retailers learn how to fuse the two to their advantage.

“ It's forced the better

to get even better and the weak ones are going to go by the wayside. That’s just Mother Nature at its finest” – Jeff Hayes

“It’s a pretty good adaptive use for some of these second generation boxes,” says Miranda. Obviously in Houston, sports are important, as are kids’ activities. A lot of these retailers and sports services are focused on off-season training too.”

“Walmart and other box retailers are creating amazing omnichannel options designed to make shopping easier whether you’re in the store, at your desk or on your phone,” Mills says. “All things considered, I think technology will be a positive. Take Walmart. DFW is their number one market for customers who order online and pick up at the store. Many stores here each see more than 900 online orders a week!”

Experiential retail is not only geared toward the needs of more sophisticated and demanding consumers, but also toward a new generation of the spending public: millennials.

Looking ahead, Texas retail experts foresee few obstacles, though there is one issue hampering growth: the lack of considerable new construction in the state’s largest markets.

“They have a different shopping approach and expectation of the experience than somebody who's

“From my perspective as tenant broker, I think the challenge is finding quality space. There are very

Miranda adds that “action sports” are filling up what used to be traditional retail spaces as well. Those activities can include indoor rock climbing, ropes courses, bounce houses and more, offering an airconditioned venue for exercise.

NOVEMBER 2017

few quality spaces available in the class A and class B centers where our clients want to be,” Hayes says. Even from the opposite perspective, that limitation poses problems for retailers. “There are centers I have where I wish I had another 50,000 square feet to lease. The problem is that space just isn’t there. If I had it, I know I could lease it tomorrow,” says Miranda.

“... strategic partnerships …” As for how the retail landscape keeps up its growth in Texas, experts say it’s as simple as continuing to evolve as needed. “I think you'll continue to see more of the strategic partnerships between brick-and-mortar retailers and web retailers, i.e. acquisitions that benefit both companies,” Hayes says. Don’t expect to see those retail centers disappear any time soon, no matter how much traffic gets redirected online. “Despite years of e-commerce competition, neighborhood centers as a category are posting their healthiest occupancy numbers in years. These centers act as ‘town squares’ for their neighborhoods, with a mix of restaurants, services, fitness, medical and dental and other categories where e-commerce does not or cannot compete successfully,” Mills says. Just as any species needs to adapt to survive, so too does retail as the landscape changes and consumers’ tastes and needs evolve.

With this much highway frontage, your business belongs in Seabrook. <<HIGHWAY EXPANSION

Available Real Estate for Sale or Lease Seabrook Town Center

› Retail and dining pad sites › Seeking grocery anchor

NORTH PLANNING AREA THE

COMMONS

TOWN CENTER

GALVESTON BAY

The Commons

LAKE MIJA

› Borders a new 416 unit luxury apartment complex › 30,000 square feet of retail space

TAYLOR LAKE

North Planning Area › 90 +/- acres of prime site adjacent to the Bayport Container Terminal

›

and Residential

Old Seabrook District

OLD SEABROOK DISTRICT

› Beautiful and Historic Main Street Area › Mixed commercial and residential lots Waterfront District

CLEAR LAKE

GALVESTON BAY

› › Prime for dining and entertainment use

WATERFRONT DISTRICT

DISTANCE

30to minutes Houston ECONOMIC DEVELOPMENT CORPORATION

v v v

pchavez@seabrooktx.gov 281.291.5730 seabrookedc.com

Primary Retail Trade Area

RETAIL SPECIAL FOCUS

NORTHEAST HOUSTON'S PREMIER RETAIL EXPERIENCE

SHOPPING

DINING

ENTERTAINMENT

HOSPITALITY

OFFICE

MULTI-FAMILY

15 MINUTE DRIVE TIME $83,017

164,531

1.5+ M sf

120K

Average Household Income

Population

Retail & Mixed-Use

Daily Traﬀic Count

COMING SOON MULTI-FAMILY 552 units VALLEY RANCH RESIDENTIAL COMPONENT BUILT OUT

FUTURE AMPHITHEATER 12.5 ACRES NAILS OF AMERICA

NCISD TEXAN DRIVE STADIUM

NATATORIUM

ED RINEHART SPORTS COMPLEX

LIN’S CHINA DINER

10 MINUTES TO THE WOODLANDS

Now Leasing Phase 3

15 MINUTES TO BUSH INTERCONTINENTAL AIRPORT 336

Y WA RK PA 99

New Caney Porter Spring

AY W RK

Y TOLL HARD

R A

Valley Ranch Town Center

69/59

ROAD

Kingwood

Bush Intercontinental Airport

D PA GRAN

The Woodlands

290

90 8

610 10

Join the line-up of leading national tenants in this 240-acre mixed-use project strategically designed and located to enhance the experience of shopping and dining. Regional entertainment and civic destinations, including multiple sports complexes, a planned world-class amphitheater and 100 arces of public lakes and parks add to the project’s competitive advantage. Great retail is not just a power center. Great retail is location, it’s an experience, it’s Valley Ranch Town Center.

SCHEDULE TO MEET WITH US AT ICSC IN DALLAS!

Downtown Houston

Kevin Layne

A D E V E LO P M E N T BY

Vice President

713-452-1720 klayne@signorellicompany.com

Jay Young Associate

SignorelliCompany.com

713-452-1721 jyoung@signorellicompany.com

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SOUTH TEXAS SURVEYING ASSOCIATES, INC. Fred Lawton, RPLS (281) 556-6918 www.stsurvey.com Firm No. 10045400

PAD SITES & RETAIL SPACE AVAILABLE SPENCER AT ALLEN GENOA – PAD SITE & 4000 SF END CAP

FRY AT CLAY - PAD SITE & 3750 SF

1111 Spencer Highway, South Houston, TX

3820 N Fry Rd, Katy, TX

•Pad site available at Spencer Tiendas Phase 2 •4000 SF end cap available at Spencer Tiendas Phase 1

•1-acre pad site available at Fry Road Mercado Phase 2 •3750 SF available at Fry Road Mercado Phase 1

AREA RETAILERS

TENANT ROSTER

ALDINE PLAZA PH 3 - UP TO 10,000 SF

TENANT ROSTER

DEVELOPMENT NEXT TO LA MICHOACANA COMING SOON SWQ of Fry Rd and FM 529 - Cypress, TX 77433

12900 Aldine Westfield Rd, Houston, TX •SEQ Aldine Mail Route & Aldine Westfield •Up to 10,000 SF available near Aldine Town Center (can be divided) TENANT ROSTER

DANNY KUPERMAN danny@arg-properties.com 713-439-0101

BRI MARTINEZ bri@arg-properties.com 713-439-0101

NEWQUEST PROPERTIES SPECIAL FOCUS N E WQ U E ST P R O P E R T I E S S P E C I A L F O C U S

EXPERIENCE

KNOWLEDGE

75+ 10.3

NATIONAL, REGIONAL AND LOCAL TENANT

REPRESENTATION ACCOUNTS

MILLION SF MANAGED

FULL SERVICE PROPERTY

RESULTS

12.1

MILLION SF LEASED

10 MILLION SF OWNED 2.0 BILLION IN ASSETS

NEWQUEST OWNED RETAIL CENTERS AND OFFICE BUILDINGS

MANAGEMENT DEPARTMENT

NEW WEST HOUSTON DEVELOPMENTS NOW LEASING

STABLESIDE AT FALCON LANDING Gaston Road and Falcon Landing Boulevard | Katy, Texas

GRAND MORTON TOWN CENTER Grand Parkway & Morton Ranch Rd. | Katy, Texas

SHOPS AT KATY RESERVE FM 1463 at Spring Green Blvd. | Katy, Texas

CROSS CREEK COMMONS FM 1463 & S. Fry Road | Fulshear, Texas

KATY GRAND II (Fall 2018) I-10 & Grand Parkway/99 | Katy, Texas

CANE ISLAND CROSSING (Late 2018) FM 1463 and S. Cane Island Pkwy | Katy, Texas

THE GRAND AT ALIANA (Early 2019) W Grand Pkwy S & W Airport Blvd. | Richmond, Texas

TEXAS HERITAGE MARKETPLACE (2019) I-10 & Pederson Rd. | Katy, Texas

CYPRESS 290 8 99

KATY 8

3 4

HOUSTON

5 I-10

I-10

BAYTOWN

WWW.NEWQUEST.COM

1 610

SUGAR LAND

281.477.4300

CAMP FORBING TOWN CENTER S H R E V E P O R T, L O U I S I A N A

Northwest corner of Flournoy Lucas Road and Ellerbe Road

KROGER MARKETPLACE

30,000 SF APPROX. RETAIL SPACE

44,000 SF YMCA FAMILY FITNESS FACILITY IN THE DESIGN AND PLANNING PHASE ADJACENT TO KROGER

New Kroger Marketplace Anchored Center

CURRENT TENANTS INCLUDE:

Silver Star Grille CC’s Coffee House Mr. Thrifty Liquor Paciugo’s Pita Pit Lickin’ Good Donuts Wonderful Nails & Spa Sports Clips Sprint Willis-Knighton Urgent Care

EXPERIENCE 281.47 7.4300

KNOWLEDGE

RESULTS

WWW.NEWQUEST.COM

GReenberg & Company Commercial Real Estate Brokerage Firm

RETAIL/OFFICE/RESTAURANT SPACE AVAILABLE | HIGH VISIBILITY | HIGH TRAFFIC 9703 Westheimer Rd. Houston TX 77063

5800 Richmond Ave. Houston TX 77057

11681 Westheimer Rd. Houston TX 77077

Office/Retail Building

Retail Building in The Galleria Area

Freestanding Retail/Restaurant

Prime Hard Corner | Westheimer @ S. Gessner Building Size: 4,480 SF | Land Size: 0.35 Acres

Great Visibility on Richmond Ave. Building Size: 41,351 SF | Land Size: 2.75 Acres

Great Location Along Westheimer Rd. Building Size: 11,320 SF | Land Size: 1.54 Acres

Space Available: 4,480 SF Price: Call For Details

Space Available: 1st Floor - 10,555 SF 2nd Floor: 16,518 SF Price: Call For Details

Space Available: 11,320 SF Price: Call For Details

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

A Premiere 100 Ac Mixed-Use Development In West Houston With Available Retail, Office, Restaurant Pad, & Medical Sites

Kristen Barker 713-621-1700 kbarker@WULFE.com www.district-west.com

Visit us at Booth #1213

DECEMBER

JANUARY

Land/Mixed-Use

Retail/Land

Space Reservation Deadline

ISSUE

November 13th

ISSUE

December 12th

7 BER 201 SEPTEM

YOUR

ERCIAL

COMM

REAL

e: Also Insidht. Right now.way of rig Doing itldwell Companies

ealth Commonw Lingerfelt n Young and Aviso on’s Sweet Spot Hit Houst est Loop South at 1700 W

The Ca siness doing bu Texas "loopy"hyinperloop in the Getting ely is a How lik r State? ors Lone Sta Land Adgevisst markets nds with Land treat Texas’ three lar A look

G SOUR

RKETIN

MA ESTATE

VATED RENO

713.661-6300

www.info@rednews.com www.rednews.com www.rednewsonline.com hotel er s cent s fitnes on room comm

Explore RETAIL SITES ACROSS

Southeastern

Oklahoma

INSIGHT | KNOWLEDGE | EXPERTISE

ICSC Booth #1619

LANDLORD & TENANT REPRESENTATION • SITE ACQUISITION • SALES & LEASING • REAL ESTATE CONSULTING • PROPERTY MANAGEMENT

THE WOODLANDS

LEAGUE CITY

WOODLANDS SUBMARKET

Research Forest Dr. & Egypt Lane, The Woodlands

I-45 near FM 646

25201 Kuykendahl Rd., Tomball

• 60,000 SF Retail & Professional Office • Restaurant & Retail Pad Sites Available • Located on main corridor adjacent to regional power center with national retailers

• Build to Suit • 223’ Frontage along I-45 Service Road across freeway from Cabela’s

• 7,950 SF of End Cap Space Available in Early 2018

THE WOODLANDS

CONROE

WOODLANDS SUBMARKET

3091 College Park Drive, The Woodlands

2615 FM 1488, Conroe

6875 FM 1488, Magnolia

• Adjacent to St. Luke’s, Texas Children’s Hospital & TW College Park HS

• Just West of I-45, near SH 242

• Great Visibility on FM1488 near FM 2978 on NW edge of The Woodlands

MIXED-USE DEVELOPMENT - For Lease

RETAIL SPACE - For Lease

RETAIL PAD SITE - 2 Acres For Sale/For Lease

PAD SITES - For Sale/For Lease

• Up to 8,742 SF available - Ideal Uses include Medical, Fitness, Entertainment

• Near Grocery Anchored and New Retail Development

RETAIL SPACE - For Lease

• Direct frontage on main corridor from Grand Pkwy into The Woodlands

2ND GEN RETAIL - For Lease

• 1,885 SF and 2,400 SF available

MONTGOMERY

WILLIS

SPRING

SH 105 & FM 149, Montgomery

I-45 & NEC Longstreet

Grand Pkwy @ Discovery Creek Blvd, Spring

• Grocery Anchored Center in the Heart of Montgomery

• 2,274’ Frontage on I-45

• On main thoroughfare close to exclusive lakeside communities

• 1 mile North of New Development by Howard Hughes - Woodland Hills

• 20,000 +/- SF Retail Shopping Center -New Construction

RETAIL SPACE - For Lease

DEVELOPMENT SITE - 46 Acres For Sale

281.367.2220

jbeardcompany.com |

HARMONY COMMONS RETAIL - For Lease

• Frontage on Grand Parkway 99 and Discovery Creek Blvd.

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

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.

DAIRY ASHFORD / MEMORIAL

PASADENA

CHAMPIONS AREA

3315 BURKE ROAD Pasadena, TX 77504

909 DAIRY ASHFORD RD Houston, TX 77079

908 E. SOUTHMORE BLVD. Pasadena, TX 77502

17030 NANES HOUSTON, TX 77090

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

• Up to 11,929 NRA Available • Two Story MOB • On Site Pharmacy • Located 2 miles from the NW Medical Center

GREENSPOINT

CHAMPIONS AREA

GALLERIA

550 GREENS PARKWAY Houston, TX 77067

14505 TORREY CHASE BLVD Houston, TX 77014

7660 WOODWAY Houston, TX 77063

7887 SAN FELIPE Houston, TX 77063

• 5,011 - 72,050 SF Available • 72,050 SF, Two Story Class B Office Building • Beautiful Atrium Lobby, High End Finishes & Lush Landscaping • Secured Covered Parking

• 580-3,475 SF Available • 67,119 SF, Four Story, Class B Office Building • Private Corner Balconies on Upper Floors • Located near FM 1960 & I-45 in Champions Forest

• 1,081 - 19,622 SF Available • 110,504 SF, Five Story, Class B Office Building • Renovated in 2014 • Property Secured by Security Gate & Card Key Access

• 586 SF Available • Located in the Suburbs of the Galleria – San Felipe/Voss Submarket • Free Covered Parking

ANGLETON

TEXAS CITY

BROWNSVILLE

EAST HOUSTON CENTER

1800 N. VELASCO Angleton, TX 77515

8030 FM 1765 Texas City, TX 77591

3000 PABLO KISEL BLVD Brownsville, TX 78526

10907-11095 I-10 EAST Houston, TX 77029

• 6,700 SF End Cap Available • Kroger Anchored Center • Center is Located Across from Wal-Mart • Renovated in 2014

CORPORATE OFFICE: 7887 San Felipe Houston, TX 77063 (713) 974-4292

• 1,200 - 1,621 SF Available • Located in the NASA/Clear Lake Submarket • Parking Ratio 7.07/1,000

AUSTIN:

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

• 1,200-6,460 SF Available • Strong National Tenant Mix • Located Adjacent to Sunrise Mall • Strong Demographics

DALLAS:

6060 N. Central Expy Suite 560 Dallas, Texas 76206 (972) 234-9901

• 1,200 - 11,017 SF Available • Located at NWC I-10 E Frontage @ John Ralston • Traffic Count Exceeds 189,000 CPD

SAN ANTONIO:

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

OFFICE

• Up to 2,392 SF Available • 30,956 SF, Two Story MOB • Renovated in 2008 • Services the Memorial & Surrounding Neighborhoods

RETAIL

• 885-3,596 NRA Available • 31,747 SF, Three Story Office Building • Fully Remodeled Lobby & Common Areas • Conveniently Located Across Bayshore Medical Center

MEDICAL

PASADENA

retail | restaurant | medical | space for lease 2,340 SF available on second floor. Base rent $15.00 PSF & NNN $4.20 PSF

Excellent for retail, office or professional use

2,671 SF end cap on first floor, one lane drive through attach; Base rent $24.00 PSF & NNN $4.20 PSF

2 blocks west of Beltway 8

Kaleidoscope 10612 Westheimer Houston, 77042

WoodlanD Park Shopping Center

800 -7,350 SF available on first floor. 12,992 SF available on second floor with patio. Excellent for medical office. Base rent $15.00-$18.00 PSF & NNN $3.60 PSF

+/- 592â&#x20AC;&#x2122; of frontage on Westheimer

372 surface parking spaces available

11380 Westheimer Houston, 77077

Restaurant Space

A A Realty Realty Co AA Co

Accredited Management Management Organization Accredited Organization

For more information call : Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108 eleung8888@aol.com www.aarealtytx.com

4,800 sf available second generation restaurant space 80â&#x20AC;&#x2122; of frontage at Westheimer rental rate $24.00 psf and NNN $4.80

Traffic counts - 82,880 CPD (Westheimer)

Pylon signage available

Aggressive lease terms

Where Have All the Golf Courses Gone?

BY REID WILSON, CHAIRMAN

America's love affair with golf is waning. There are too many golf courses and not enough golfers. The average age of the active golfer is increasingâ&#x20AC;Śand the cost to maintain the courses is increasing as well.

Few people realize the golf courses periodically require significant capital infusion to upgrade their facilities in order to successfully compete with newer courses. Physical amenities age and must be remodeled. New high quality residential communities use lakes and other passive greenspace, and even urban farms, as amenities instead of the traditional golf course. Buyers of golf course lots should be wary and conduct careful due diligence before purchase, so they accept the risk of the adjacent golf course terminating operation and changing use.

What happens to Tired Golf Courses? Because golf courses are often located in desirable areas, they have become an object of interest for redevelopment for other uses. See the following former Houston Area Golf Courses and their new use: Clear Lake City

Exploration Green Conservancy

Evergreen

Frisbee Golf/Houses

Goose Creek

Houses

Inwood Forest

Detention

Willowisp

Business Park

Glennbrook

Houston Botanical Garden

This same pattern has played out throughout the country.

Who owns Golf Courses?

Most golf courses are owned by independent golf course operators who own multiple facilities. For example, Club Corp of America owns over 3,400 holes of golf in courses across the country. Other golf courses are owned by private country clubs or homeowners associations. Still others are owned by developers, who installed them as amenities to adjacent residential neighborhoods created by the same developers. Most developers, sooner or later, sell their golf courses to an independent golf course operator.

civil fair play

How are Golf Courses set up Legally?

Some golf courses, often called Core Courses, are physically separate from residential neighborhoods, even if adjacent. They are typically developed by independent golf course operators/developers. On occasion, excess land might be sold to an independent, 3rd party residential neighborhood developer. As separate, standalone facilities, they are separate operating businesses, often set up with a separate legal entity. There is no relationship with any 3rd parties, so no legal connections. These golf courses, like any other business, are independent from their consumers and neighbors. The golf courses are separately platted and not subject to any restrictive covenants benefitting 3rd parties. Zoning, if applicable, requires the use to be permitted. Golf courses installed by residential neighborhood developers may be owned by the same entity which develops and sells residential lots to the public or 3rd party builders, or, as is more frequent today, under separate legal ownership, but controlled by the residential developer. Usually, these golf courses are imbedded in the residential neighborhood so to maximize the return from golf course frontage lots, and called Integrated or Imbedded Courses. Some golf courses are platted together with the surrounding residential lots, but could be platted separately and without reference to the residential lots. Adjacent residential lots are often limited by recorded restrictive covenants so that the backyards maintain a more pleasing appearance from the golf course. Prohibition of solid fences and structures are examples of these types of restrictions. Usually, these restrictive covenants terminate if the adjacent golf course use terminates. Most golf courses were not restricted as to use, either by plat or separately recorded restrictive covenants. Zoning, if applicable, must permit the golf course use and can be a residential use category (if golf course or other recreational use is permitted in that use), recreational or open space. Although the advertising for lots and homes built on those lots, directly adjacent to or in the vicinity of a golf course often tout the benefit of that proximity, there are often caveats, disclaimers and waivers Continued on page 36 >

civil fair play

Where Have All the Golf Courses Gone? < Continued from page 35

notifying buyers that the golf courses are not a guaranteed amenity and their operation may terminate. Often, the original developer/builder requires the buyer sign a notice/disclaimer acknowledging that the golf course may terminate. In rare circumstances, the original golf course developer intended a legally binding restrictive covenant for the adjacent residential homeowners to enforce the obligation of the golf course owner to operate it as a golf course for the benefit of those homeowners. This is done by clear, recorded restrictive covenants recorded against both the golf course and the benefitted lots. When granted, those restrictions are rarely permanent, but usually have a term of years, sometimes with an extension period subject to homeowner vote. Tied with some of these restrictions is the obligation of each benefitted homeowner to belong to the golf club and pay dues. This is a logical requirement and balances the benefit to the homeowner and the burden on the golf course owners. This is the situation in the April Sound neighborhood on Lake Conroe. However, the intention of most golf course developers, even when integral to a residential neighborhood, is for the golf course to be legally separate without any enforceable covenant limiting use and certainly not to be obligated to operate. In almost every instance, the developer intends to sell the golf course to an independent operator when the residential lots are sold, and the developer moves on to the next project.

Why are Golf Courses Closed? Simply supply/demand imbalance and operational costs make many older golf courses not economically viable. Water for irrigation is a major cost. Increasing limitations on use of water wells has forced operators to adopt more expensive options. Some operators have the opportunity to purchase “gray water” from sewage treatment plant operators, but logistics limit this option. Further, like other capital assets, golf courses require constant maintenance and periodic upgrades. Without significant capital reinvestment and strong maintenance, a golf course becomes

less desirable, with lower fees and lower usage. An old, tired golf course is not a profitable business. Ultimately, operational costs and debt service turn the business to the red, and most businesses cannot sustain negative cash flow for long. If a golf course is closed, unless there is a certain level of base maintenance, then nature takes its course. At some point, sooner than many may think, it is no longer economical to simply reopen the golf course. Instead, it must be rebuilt. The only limit on the former golf course is nuisance type government regulations which may require periodic mowing, as with other vacant land. An example is the former Pharaoh Golf Course in Corpus Christi, which closed several years ago and is in the process of being redeveloped as a mixed-use community. Some golf courses simply have a higher and best use due to market demand for housing or other uses in the area. Golf course operators are capitalists and will sell to a real estate developer, then move on to other golf course opportunities. Some golf course redevelopments are partial, such as reducing the number of holes from 27 to 18, selling off any well located holes which are adjacent to major

thoroughfares, or otherwise are located and sized well for redevelopment.

Why are Neighbors Upset? Every homeowner assumes the golf course will remain forever. Those with a "golf course lot" enjoy the view from the home of the golf course greenspace. Golf course lots are generally considered to be more desirable and valuable. Brokers selling homes probably over-emphasize the benefit of the golf course and use it as a differentiator in pushing the sale of those homes. Even those living off the golf course, but in what they consider a “golf course community” may like the cachet of having this amenity, or may be a regular golfer. This expectation that the golf course will continue forever is dashed when the golf course closes. Unfortunately for the homeowner, this expectation is usually not supported by explicit legal rights, but only by the non-legal unsupported assumption of the area owners. This expectation may be shared by owner-supported organizations like homeowners associations, or even local governments. Once the public records are reviewed, only rarely is there any documentation limiting use of the golf course to a golf course. This further upsets the neighbors.

civil fair play

Buyer Due Diligence When buying a golf course lot, a buyer should perform the following due diligence: • Review carefully all recorded documents referenced in the title commitment: • Plat • Restrictive Covenants (commonly called deed restrictions) • Any notice documents These should be reviewed to see if there is any mention of the golf course If no - Then, assume the golf course can terminate operation and change uses If yes- Review further if there is a restriction on the use of the golf course

If yes

• Term- How long? If a defined period, is there an extension, and how extended? After this period, assume the golf course can terminate and change uses. • Enforcement- Who can enforce the restrictions? Individual owners or the Owner’s Association or a named 3rd party? A restriction benefiting a 3rd party may not be enforced by a homeowner. • Amendment- Can the provision be changed? How? If the provision is modified using the amendment provision in the restrictions, then the old provision is not longer valid.

If no Is termination of the golf course contemplated, whether explicitly or implicitly? Then, assume the golf course can terminate operation and change uses • Review local zoning regulation:

• What is the use classification? • Is it limited to golf, recreational or green space uses? Note: Zoning ordinances do not require operation, just limit use.

• What other uses are permitted without a rezoning? Note: If zoned residential, then the golf course could be developed for residential uses of the density and type permitted in the zoning code, without a rezoning.

• What does the City’s Comprehensive Plan say? • Does it reference the golf course use? • What does the Future Land Use Map show? • Is redevelopment of the golf course contemplated? Note: Rezonings must be consistent with the City’s Comprehensive Plan, so what it says about future use is important.

• Ask the seller, particularly if a residential development entity, about the golf course: • How is the golf course referenced in written materials? • Is any verbal representation made about the golf course and its continuation? • Did the seller receive any Notice or Disclaimer about the golf course when it purchased? • Is the seller an agent of the residential developer? • Are you dealing only with a real estate agent, not the actual seller/ developer? • If an established golf course, do the following: • Visit the golf course and talk to the operator

• Ask about the economics of the golf course • Number of members • Fees • Number of rounds played • Maintenance program • Any planned capital improvements • Inquire about the future of the golf course

• What type of Golf Course: Core or Interwoven? • A Core course is perfect for redevelopment, with the golf course holes next to each other without intervening homes. • An Interwoven course might be redeveloped, but is more likely to be limited, practically, to residential uses. Any holes without good road access or frontage will be less developable. Conversely, holes on a major thoroughfare would be prime redevelopment parcels.

Summary - Buyer Beware! B uying a residential lot on a golf course is risky. Any premium paid should be balanced with the risk that, sometime in the future (perhaps near, perhaps far), the golf course could cease operation and a different land use pop up in replacement. Understanding the risk and proper due diligence will make a difference in making the right choice. NOVEMBER 2017

Stop Spinning Your Wheels!

Let Us, Your TEXAS Environmental Consulting Firm, Help You Navigate Through Your Environmental Risks.

Melanie Edmundson, P.G., Principal 832 485 2247 Melanie@PhaseEngineering.com

Full range of nationwide professional environmental services including: Phase I and Phase II ESAs • USTs • Asbestos • Mold • Lead • NEPA Reports Vapor Assessments • Wetlands • Property Condition Assessments

www.PhaseEngineering.com

SCOOP The following pages contain a calendar of Texas CRE events, networking photos, and deals/announcements. For more updates, log on to REDNews.com

NOVEMBER CRE ACTIVITIES

CENTRAL SOUTH TEXAS

November MONDAY

TUESDAY

BOMA AUSTIN: bomaaustin.org/ BOMA SAN ANTONIO: bomasanantonio.org CBA: cbaaustin.org/ CCIM CENTRAL TEXAS: ccimtexas.com CREW AUSTIN: crewaustin.org CREW SAN ANTONIO: crew-sanantonio.org CTCAR: ctcaronline.com IREM AUSTIN: iremaustin.org IREM SAN ANTONIO: iremsanantonio.org

WEDNESDAY

RECA reca.org RECSA: recsanantonio.com/ RETAIL LIVE: retaillive.com TABB AUSTIN: tabb.org/austin_chapter.php TABB SAN ANTONIO: tabb.org/san_ antonio_chapter.php ULI AUSTIN: austin.uli.org ULI SAN ANTONIO: sanantonio.uli.org

THURSDAY 1

* CREW Austin Communications Committee [8am - 9am]

C REW Austin - Kendra Scott Community Outreach Event

FRIDAY 2

* CREW Austin - Special Events Committee [11:30am]

* RECA - City of Austin Policy & CodeNEXT Committee Meeting [12:00pm - 1:00pm]

*U LI San Antonio Young Leaders Steering Committee Meeting [11:45am - 1:00pm]

* CREW San Antonio - Membership Mixer [4:30pm - 6:30pm] I REM San Antonio - 2017 Leadership Orientation Meeting [8:30am - 2:00pm] U LI San Antonio - Insider's Weston Urban Development Update & Tour [5:30pm - 7:30pm]

CCIM Central Texas CI 101 [8:30am 5:30pm]

CCIM CENTRAL TEXAS Social [5:30pm - 7:30pm]

* CREW Austin - Programs Committee [11:45am 1:00pm]

* RECA - Regional Issues Committee [12:00pm 1:00pm]

CCIM Central Texas CI 101 [8:30am - 5:30pm]

C CIM Central Texas Networking Social and Happy Hour - [5:30pm] * CREW Austin - Membership Committee

*C REW Austin - Learn & Lunch [11:45am - 1:00pm]

* CREW Austin - Programs Committee [5:00pm - 7:00pm] IREM Austin - Luncheon [11:30am - 1:00pm]

RECA San Antonio - Speaker Service Luncheon [11:30am}

November 2017

CCIM CENTRAL TEXAS Luncheon [11:30am]

* BOMA San Antonio - Luncheon [11:30am - 1:00pm]

CBA - Luncheon [11:30am - 1:00pm] * CTCAR - Communications Committee [4:00pm - 6:00pm] * RECA - KnockOut Night Committee Meeting [12:00pm - 1:00pm]

RECA - Luncheon [11:15am 1:00pm]

C CIM Central Texas CI 101 [8:30am - 5:30pm]

*B OMA Austin - Membership Luncheon [11:30am - 1:15pm] C CIM Central Texas - CI 101 [8:30am - 5:30pm]

B OMA Austin - Seminar: COI [8:00am - 9:30am]

* CREW Austin - Community Outreach Committee [11:30am] * CREW Austin - Careers Committee [12:00pm - 1:00pm]

LI San Antonio - Luncheon U [11:15 - 1:15pm]

T ABB Austin - Chapter Meeting [11:30am - 1:00pm]

*Members Only

I REM Austin - 2018 Leadership Meeting [1:00pm - 5:00pm]

C REW Austin - Luncheon [11:30am - 1:00pm]

IREM Austin - 2018 Leadership Meeting [1:00pm - 5:00pm]

C TCAR - Property Information Exchange [7:30am - 9:00am]

ULI Austin - Breakfast [7:30am - 9:00am]

TABB San Antonio Chapter Meeting [11:30am - 1:00pm]

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

CENTRAL SOUTH TEXAS

BOMA SAN ANTONIO

NETWORKING/SOCIAL CREW AUSTIN -

Members Dine Around

Christy Rhone, Cram Roofing moderating our discussion with speakers - William Mc Manus, Chief of Police San Antonio Police Department and Willie Ng, Chief Investigator Bexar County Criminal District Attorney’s Office.

Melissa Finch with BATNET

L to R: Jennie Branch, Keith Ziegelman, Jennifer Seay, Miranda Reinhard, Amy Martorano, Stephanie Bernard, Bruce Raney, Christi Tennison, Julianne Shively, Becky Hopkins, Kelly Cloud, Peggy King. L to R: New Members - Linda Rael, Plant Interscapes, Inc. – Peggy Hinson, Transwestern – Christina De Luna, Port San Antonio- Roy Chism, The Chism Company – Sara Cartagena, Mechanical Maintenance of Texas

ULI AUSTIN - YL Mentorship Kick-Off

Wyatt Stevenson, Facilities Solution Group (FSG)

BOMA DALLAS: bomadallas.org BOMA FORT WORTH: bomafortworth.org CCIM NORTH TEXAS: ccimconnect.com/ccimnorthtexas CORENET NORTH TEXAS: northtexas.corenetglobal.org CREW DALLAS: crew-dallas.org CREW FORT WORTH: crewfw.org GFW AR: gfwar.org IREM DALLAS: irem-dallas.org IREM FORT WORTH: fortworthirem.org

NORTH TEXAS

November MONDAY

TUESDAY

WEDNESDAY

THURSDAY 1

C REW Fort Worth Luncheon [11:30am 1:00pm]

* CREW Fort Worth - Treasury Committee Meeting [1:00pm - 1:30pm] T REC Dallas - Industry Insights: Office & Industrial [7:00am]

* BOMA Fort Worth Luncheon [11:30am 1:00pm]

C REW Dallas - 2nd Annnual Fall Into CREW [6:00pm 8:00pm]

* BOMA Fort Worth - Allied Town Hall Meeting [1:30pm - 2:30pm]

U LI North Texas - Breakfast [7:30am - 9:15pm]

* BOMA Fort Worth - SAC Meeting [3:00pm - 4:30pm]

I CSC -Texas Conference & Deal Making [11:00am 7:30pm]

* CREW Fort Worth Communications/PR Committee Meeting [10:00am - 10:30am]

NTCAR - Retail Development Showcase [4:30pm - 6:30pm]

ULI North Texas - Top Golf Extravaganza! [5:00pm 7:00pm]

November 2017

* BOMA Dallas Luncheon [11:00am - 1:00pm]

* Members Only

* BOMA Dallas - Texas BOMA Board Meeting ULI North Texas - Young Leader Mobile Workshop [ 3:30pm - 6:30pm]

B OMA Fort Worth - Dine & Dash [5:30pm - 9:00pm] T REC Dallas - Shark Tank: GrowSouth [6:00pm]

* CREW Fort Worth Membership Committee Meeting [12pm] IREM Dallas - Industry Awards Gala [11:30am] * NTCAR - 4th Quarter Membership Meeting [7:30am - 9:00am]

* BOMA Dallas - Real Estate Principal Member Event [6:00pm - 8:00pm]

* BOMA Dallas Hollywood Gala [7:00pm - 11:00pm] * BOMA Fort Worth Education Committee Meeting [10:00am 11:00am] ICSC -Texas Conference & Deal Making [8:30am 12:00pm]

* BOMA Fort Worth - CSC Meeting [3:00pm - 4:00pm]

CREW Dallas - Luncheon [11:30am - 1:00pm]

* CREW Fort Worth - Programs Committee Meeting [11:45am - 1:00pm]

* BOMA Dallas Committee Chair Orientation

I CSC -Texas Conference & Deal Making [7:30am - 4:00pm]

BOMA Fort Worth Lunch & Learn [11:00am - 1:00pm]

FRIDAY

R EC of GFW - 2017 Cowtown Poker Run [ 5:00pm 8:00pm]

*B OMA Fort Worth GAC Meeting [1:30pm - 2:30pm]

LADIES IN CRE: ladiesincre.com NAIOP: northtexasnaiop.com NTCAR: ntcar.org SCR GFW: gfwar.org/home-top-commercial.html TABB DALLAS/FORT WORTH: tabb.org/dallas_ ft_worth_chapter.php TREC DALLAS: recouncil.com REC GFW: recouncilgfw.com ULI NORTH TEXAS: northtexas.uli.org

CCIM North Texas - Luncheon [11:30am - 1:00pm] CORENET North Texas Toyota's North Texas American Headquarters Tour [4:30pm - 7:30pm]

CREW Fort Worth & RECGFW - 2017 Holiday Shindig [5:30pm - 8:00pm]

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

NORTH TEXAS

CREW DALLAS

SEPTEMBER 2017 INDUSTRY LUNCHEON

NETWORKING/SOCIAL CREW DALLAS

AN EVENING OF OUTSTANDING ACHIEVEMENT L to R: Sherry Stallone-DeMent, Wells Fargo; Melinda Valentine, BNY Mellon; Lindsay Lutz, KDC; Kelcie Brown, Amegy Bank

L to R: Jenn Cooley, Vinson & Elkins; Victoria Short, Vinson & Elkins; Julie Monier, Vinson & Elkins

CREW OAA and Rising Star finalists

Stacey Magee, Clarion Partners, keynote speaker

Stacey Magee (center), Clarion Partners, with Amegy Bank event sponsors

LADIES IN CRE BUILD YOUR BRAND

L to R: Kimberly Hopkins, Susanne Brasuell, Brenda Blake and Michelle Hudson

L to R: Rachel Boelter, Allison Johnston, Allison Rice, Natalie Morin, Alicia Baum, Brettany Schovanec, Skyler Baty & Natalie Westbrook

Guests at Build Your Brand

CREW OAA 2017 finalists

Guests at Build Your Brand

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

SOUTHEAST TEXAS

November MONDAY

TUESDAY

WEDNESDAY

THURSDAY 1

*B OMA Houston Membership Luncheon [11:00am]

REW Houston - Luncheon C [11:30am - 1:15pm]

ACRP - 2017 Golf Classic [10:00am - 6:00pm] IREM Houston - Course: Financing & Loan Analysis for Investment Real Estate [8:30am - 5:00pm]

IREM Houston - Course: Financing & Loan Analysis for Investment Real Estate [8:30am - 5:00pm]

C.R.E.A.M - Luncheon [11:00am]

FRIDAY 2

ULI Houston - Fall Meeting Follow Up & Reception [5:00pm - 6:30pm]

CCIM Houston - Luncheon [11:30am - 1:00pm]

GREATER HOUSTON PARTNERSHIP - HYPE Impact Awards Social [5:30pm 7:30pm]

IREM Houston - Course: Preformace & Valuation of Investment Real Estate [8:30am - 5:00pm]

CORENET Houston - Charity Golf Tournament [11:00am]

GREATER HOUSTON PARTNERSHIP: houston.org HAA HOUSTON: haaonline.org HRBC: houstonrealty.org HREC: houstonrealestatecouncil.org IREM HOUSTON: iremhouston.org NAIOP: naiophouston.org O'CONNOR & ASSOCIATES: poconnor.com SIOR: sior.com TABB HOUSTON: tabb.org/houston_chapter.php ULI HOUSTON: houston.uli.org

IREM Houston Course:Preformace & Valuation of Investment Real Estate [8:30am - 5:00pm]

CORENET Houston - 15th Annual Charity Golf Tournament [11:00am] IREM Houston - Luncheon [11:30am - 1:00pm] ULI Houston - ULI Next [5:30pm - 7:30pm]

CREN Houston Luncheon [11am]

CCIM Houston - Real Estate & the Chinese [9:00am - 4:00pm]

FBSCR - Breakfast [8:00am - 9:00am]

ULI Houston Luncheon [11:30am - 1:30pm]

* IREM Houston - 2018 Planning Meeting [12:30pm]

CORENET Houston - Emerging Leaders Speed Mentoring [5:30pm - 8:30pm] HAA Houston - 2017 Annual Businness Meeting [6:00pm - 8:30pm] BACREN - Luncheon [10:30am - 1:00pm] Real Estate Center - Commercial RE Course [7:30am - 5:55pm]

IREM Houston - Young Professionals Building Tour: Restaurant Row [5:00pm - 7:30pm]

IREM Houston - Course: Assest Analysis of Investment Real Estate [8:30am - 5:00pm]

CREN Houston - Marketing Session [7:30am]

GREATER HOUSTON PARTNERSHIP - Business Development Meeting [8:30am 10:00am]

Real Estate Center - Commercial RE Course [7:30am 5:55pm]

TABB Houston - Chapter Meeting [11:30am - 1:30pm] ULI Houston - Women's Leadership Initiative [ 5:00pm - 7:00pm] CREN Houston - Happy Hour [4:30pm]

November 2017

* Members Only

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

ACRP - Food Bank Day

SOUTHEAST TEXAS NETWORKING/SOCIAL

RIVERWAY TITLE

14th ANNUAL HOUSTON COMERCIAL REAL ESTATE TEXAS HOLDâ&#x20AC;&#x2122;EM TOURNAMENT

L to R: John Hammond, Riverway Title (President/CEO) and Justin Miller, Marcus & Millichap

L to R: John Hammond, Riverway Title, Abe Goren, Wilson, Cribbs, & Goren, and Gary Dunkum, Grandbridge Real Estate Capital

MARK YOUR CALENDARS

L to R: Joey Rippel, HFF, Connor Phillips- HFF, Sean Jamea, Loftech Homes, and Chris Young, HFF

CETA promotes the economic and community development efforts of the cities, counties

Breakfast Meetings are held on the 3rd Tuesday each month 7:45 - 9:00 a.m.

One Fluor Daniel Dr. Sugar Land, TX 77478 (281) 242-0000

Meetings are targeted to commercial realtors and include networking, lead sharing, haves/wants, and regular speakers covering real estate related topics pertinent to the greater southwest Houston area including communities of Sugar Land, Missouri City, Stafford, Richmond, Rosenberg and Fulshear. Come join us!

and economic development organizations located with a ten-county region located along the I45 Corridor between the Dallas and Houston Metro Area.

For more information: cetalliance.com Follow Us on Facebook: facebook.com/cetalliance/

www.fbscr.com If you have any questions, please contact: Jackie Wilcox (281) 275-4448

CENTRAL SOUTH TEXAS bulletin

AUSTIN, TX

HIGH –RISE DEVELOPMENT Future Land US Capital Partners Ltd. purchased about 26,483 sf of land located at 504 E. Fifth Street from Carmelo & Hilary Mauro. Tim Mooney & Perry Horton with Lead Commercial represented the seller. It was announced that a high-rise would be built on the site MULTI-FAMILY DEVELOPMENT Catellus Development Corp. is developing Austin Modern Lofts, a for-sale residential condo project that will include a high-rise & townhome-style units which will be built at the northwest corner of Berkman Drive & Tom Miller Street. MULTI-FAMILY DEVELOPMENT A 312-unit multifamily apartment complex called Lynd at Lake Travis is under development located at 2208 RM 620 near Hudson Bend. The development incorporates six residential buildings on the campus as well as a negative-edge swimming pool, outdoor kitchen & fire pit. Additionally, more than 15 acres of the 37acre tract will be dedicated green space.

AUSTIN, TX OFFICE CONSTRUCTION Trammell Crow Co. plans to develop a 36-story office tower that will have 665,000 sf of office space making it the city’s largest office skyscraper, plus restaurant & retail space. The 1.75 acre site is surrounded by Colorado, West Sixth, and Lavaca & West Seventh Streets & is owned by the University of Texas Systems.

OFFICE LEASE Facebook leased more that 230,000 sf at Third+Shoal, the 29-story tower being built at 208 Nueces St. which sits on the former Austin Music Hall & is being developed by Cielo Property Group, Dallas-based TIER REIT Inc. & Invesco Real Estate. Leasing is being handled by CBRE Group Inc. Facebook is leasing 10 floors & also has “the right of first offer” to buy the entire 345,000 sf building. OFFICE SALE New York – based investor Somera Road Inc., purchased the 421,000 sf, 9-story Southfield Office Building located at the northwest corner of I-35 & Ben White Boulevard from Southfield Office Holding LLC. Kevin Granger & Matt Frizzell with Peloton Commercial Real Estate represented the buyer.

BOERNE / HELOTES, TX

Zack Jamail has joined Savills Studley as Associate Director.

Sage Briggs has joined Savills Studley as Associate Director.

SELF STORAGE SALE Two self-storage facilities totaling 1,223 units & 186,859 sf of rentable space, including Ten Oaks Self Storage -Boerne, a 756-unit, Class A property on 7.5 acres located at 131 Old San Antonio Rd & Ten Oak Self Storage- Helotes, a 467-unit facility located at 16304 Bandera Rd. Bellomy & Company represented the seller.

CEDAR PARK, TX

Paulette Gibbins has joined ULI Austin as Executive Director.

Lucio J. Cantu, CCIM has joined Turcotte Real Estate Services, Inc.

NOVEMBER 2017

CORPORATE HQ DEVELOPMENT Vandelay Education, which operates dental & medical assistant training schools, purchased 1.3 acres of land located at 1890 Ranch, a development at 1335 E. Whitestone Blvd. The company will build its corporate headquarters at the site. Dan Frey with Endeavor Real Estate Group represented the seller & Kristiana Beck & Josh Cook with Cook Commercial Real Estate represented the buyer. MIXED-USE DEVELOPMENT Riverside Resources & American Constructors are planning to develop

Presidio, a 100-acre mixed use community near West Parmer Lane & Brushy Creek Road. American Constructors would be an anchor tenant in a 25,000 sf office building located at 11900 W. Parmer Lane. The NRP Group, LLC, a Cleveland-based apartment development company will develop a 337 unit multifamily community & Austinbased Cordova Real Estate Venture will develop 23,000 sf of retail space which will be delivered in Phase 1 early next year. Travis Robertson with Retail Connection will handle the leasing.

SAN ANTONIO/ CYPRESS, TX

GEORGETOWN, TX

HOTEL DEVELOPMENT Samuel Panchevre, a local developer and owner of the Aztec Theatre building, plans to redevelop the site into a hotel by converting four floors of underused office space into 55 hotel rooms. The project is still in the design phase & renovations are expected to begin in spring 2018. The developer plans to add a restaurant & terrace on the building’s roof as part of the renovation. The theatre building was bought in 2014 & converted into a live music venue.

MIXED-USE DEVELOPMENT The Summit at Rivery Park is a $225 million mixed-use development located on 32 acres overlooking the North San Gabriel River, just off the I-35 access road between Williams Drive & SH-29. The first phase included 114 single-family urban homes in the Texas Brownstones & the 223-unit Rivery Park Luxury Apartment Homes, which are now 94% occupied. The second phase, encompassing 60,000 sf of ground-floor retail development plus some offices & four restaurants sites is now open for business & construction is about to begin on the third & final phase just south of the second phase with more ground-floor retail plus urban lofts.

KILLEEN, TX RETAIL LEASE Conn’s Home Plus leased 45,000 sf at Wendland Plaza, a 192,322 sf retail center located at 1101 S. Fort Hood Street. Wendland Plaza is adjacent to the Fort Hood Military base’s main housing community. The center is currently 75 % leased to several key tenants including Altitude Trampoline Park, Starbucks & UPS Store. Grant Gary & Dan Rebensdorf with The Woodmont Company represented the landlord.

KYLE, TX

MIXED-USE DEVELOPMENT California-based PGI Investments will develop a mixed-use property on 47 acres located at Yarrington Rd. & I-35. The 300,000 sf projects will include offices, retail space, restaurants, a hotel & gas stations. The development should create about 200 jobs. RETAIL SALE InvenTrust Properties Corp. purchased Kyle Marketplace, a 226,000 sf retail center located at 5401 FM 1626 for $59 million. The property is anchored by H-E-B Plus & nationally know tenants such as Chase, Starbucks, Subway & Whataburger and was 98% leased at the time of the sale.

ROUND ROCK, TX VACANT LAND SALE Trine Chander 107 LLC purchased 48 acres along Chandler Road near State Highway 130 east from Chandler Oxford 130 Ltd. Marshall Durrett with Cushman & Wakefield represented the seller & Josh Cook with Cook Commercial Real Estate represented the buyer.

MEDICAL OFFICE BUILDING / OFFICE SALE Houston-based NAI Partners’ investment fund purchased a 61,165 sf medical office building located at 11301 Fallbrook Dr. in Cypress that is currently 60.8% leased. The firm also purchased an 88,368 sf office building at Marymount Office Park located in San Antonio which is 87% leased.

SAN ANTONIO, TX

MIXED-USE DEVELOPMENT Developers plan to break ground November 2017 on a $320 million, 114-acre masterplanned community called University Village which is located at Loop 1604 & I-10. The development is expected to include three upscale office buildings with 330,000 sf, 995 multi-family units & 112 townhomes & more than 20 acres of retail & parkland. Phase 1 is a $51 million multi-family development with 348 units. The entire project should take about 5 years to complete. MIXED-USE DEVELOPMENT Hixon Properties Inc., in partnership with the Cavender family, announced plans for the first phase of a sustainable mixed-use project on Broadway. It will be a walkable urban neighborhood project on the site of the former Cavender Cadillac dealership on Broadway St. & 8th St. Tentatively called the Cavender Office Project, plans include a 140,000 sf mixed-use commercial building with approximately 125,000 sf of office space & 15,000 sf of ground-level retail space. OFFICE REDEVELOPMENT GrayStreet Partners, the owner of the city block that includes the 1931 Spanish Colonial Revival building, located at 420 Broadway St. plans to redevelop the site into 76,000 sf of upscale office space. OFFICE SALE Radler Enterprises purchased a recently constructed, 100,260 sf, Class A office building located at 3302 North Ellison Drive from SRP Office Holdings I, LLC. The property was constructed in 2017 & has an on-site parking ratio well above market standards. On-site amenities include a full service cafeteria, outdoor patio with cooking station, multiple conference rooms, fitness center, wellness clinic & a wooded walking/running trail. RETAIL SALE MIMCO, Inc. purchased City Base Landing, a 200,000 sf shopping center, located at the intersection of I-37 & SE Military Drive. City Base Landing is home to over 40 tenants including Best Buy, Office Depot, JoAnn, Starbucks, Chick-Fil-A, AT&T & Chili’s. The property is shadow anchored by Walmart & Sam’s Club.

ADDISON, TX

INDUSTRIAL SALE Humanetics, a sheet metal fabricator, purchased the 420,000 sf Mary Kay Inc. manufacturing facility located on Regal Row from the Addison-based cosmetics maker. Officials say the acquisition will locate Humanities’ corporate headquarters in early 2020 & will help the company grow its manufacturing operation. Mary Kay is investing $125 million in a new facility.

ALLEN, TX

OFFICE CONSTRUCTION Allen-based WatchGuard Video is developing a two-story 140,000 sf office building near Exchange Parkway & Andrews Parkway. The $465 million corporate campus facility will include offices, break rooms, conference rooms, a training center, a high-tech engineering laboratory & a fitness center with a racquetball court. OFFICE SALE Florida-based Accesso Partners LLC has purchased the 150,506 sf Class A office building called One Allen Center from New-York based Investcorp. The building is adjacent to Allen’s soon-to be built $91 million conference center hotel & is located at 700 Central Expressway South. Andrew Levy & Todd Savage with HFF brokered the sale & Avison Young was named to lease the office building.

BURLESON, TX

INDUSTRIAL DEVELOPMENT McLane Classic Foods, a subsidiary of Temple-based McLane Group, is developing a new 150,000 sf $30 million facility which is located in HighPoint Business Park East, along Interstate 35W. Construction on the build-to-suit facility is expected to begin in early 2018, with work slated for completion about a year after.

CARROLLTON, TX

RETAIL SALE Henry S. Miller Brokerage Co. purchased Mills Pointe, a 126,000 sf shopping center which consists of two buildings on 11.47 acres of land located at the southwest corner of Trinity Mills Road & March Lane from an undisclosed seller. The center is 80% leased and anchored by Fitness Connection, which took over the space vacated by Tom Thumb. Darrell Hurmis with Henry S. Miller represented both parties in the transaction.

DALLAS, TX

MULTI-FAMILY CONSTRUCTION Construction has started on a 324unit rental project called Alta Trinity Green, in the 25-acre Trinity Green development on Singleton Blvd. just west of Sylvan Ave. The $400 million development already has 370 apartments that were built in the first phase. Texas Capital Bank is financing the new apartments which will open in fall 2018. OFFICE SALE AIA Dallas & the Dallas Center for Architecture has leased 13,708 sf of office, exhibition & meeting space on the first two floors of Republic Center located at 325 N. St. Paul

St. Eliza Solender with Solender/ Hall represented the buyer & Kathy Permenter, Tray Anderson & Sarah Savage with Younger Partners represented the undisclosed seller. OFFICE SALE Boston-based Albany Road Real Estate Partners purchased the 169,189 sf Class A office tower located at 12720 Hillcrest Rd. Eric Mackey, Gary Carr, John Alvarado, Evan Stone, Jared Chua & Robert Hill represented the seller. OFFICE SALE Crescent Real Estate LLC & Long Wharf Capital LLC purchased Corgans’ headquarter which is located at 401 N Houston St. The building, as well as the property’s planned expansion, has been renamed The Luminary. Corgan plans to lease back 58,591 sf located at 401 N. Houston as well as 21,862 sf at the new 102,315 sf building being developed at the adjacent building. OFFICE SALE Frontier Equity purchased On Ridgmar Center, which is a 10-story, 177,199 sf office building located at 6500 W. Freeway from Navistar Commercial for an undisclosed sum. The building was 89% occupied at the time. Steve Simon & Steve Rowland of Transwestern represented the seller. RETAIL SALE EMD Group, LLC purchased Parkway Corner, a 67-4865 sf multi-tenant retail asset located at the northwest corner of Dallas North Tollway & Trinity Mills Road from Greenway-Parkway Corners, LP. Brandon Beeson & Brandon Crow with EDGE Realty Capital Markets represented the seller.

FARMERS BRANCH, TX INDUSTRIAL SALE Stonelake Capital Holdings IV, LLC purchased a 24,080 sf warehouse located at 3225 Garden Brook Drive from DRA Advisors for an undisclosed price. Lizzy Blake & Brad Balke of Colliers International represented the seller.

FRISCO, TX

RETAIL SALE Miami-based investment firm Antegrade Holdings purchased Frisco Market Center, a 20,823 sf, three-building retail center located at the corner of Main Street & the Dallas North Tollway from Hermansen Land Development Inc. The property is shadow-anchored by LA Fitness & Main Event Entertainment. Taylor LeMaster of Inroads Realty represented the buyer & Tommy Tucker & Tim Axilrod with Shop Cos. represented the seller. VACANT LAND SALE Gene McCutchin purchased a 9.9 acre tract located on the corner of U.S 380 & Teel Parkway from Boilermaker Investments LLC. With this acreage, McCutchin plans to market nearly 20 acres at that corner. Ben McCutchin with Dallas-based Younger Partners represented the buyer & Whisenhant Properties represented the seller.

FORT WORTH, TX

DATA CENTER DEVELOPMENT Atlanta-based T5 Data Centers & Fort Worth-based Hillwood are planning to co-develop a data center campus in AllianceTexas which is a 18,000

acre master-planned community. The proposed data center campus, called T5@Alliance is being backed financially by IPI Data Center Partners Management LLC. A construction timeline has yet to be set. OFFICE SALE Addison-based Frontier Equity purchased One Ridgmar Center, a 10-story Classs A office building located at 6500 W. Freeway from Navstar Commercial. The 177,199 sf office building was 89% occupied at the time of sale. Steve Simon & Steve Rowland with Transwestern represented the seller.

NORTH TEXAS

bulletin

GARLAND, TX

INDUSTRIAL DEVELOPMENT Colorado-based real estate investment & development firm, Huntington Industrial Partners is developing a two building, $16 million Business Park which is located at 1601 S. Shiloh Road. The 132,000 sf & 116,700 sf buildings will sit on 16 acres & is expected to be completed early next year.

IRVING, TX

OFFICE SALE California –based KBS Strategic Opportunity REIT, purchased two office buildings, one an 18-story located at 125 E. John Carpenter Freeway & the second, a 6-story located at 5100 N.O’Connor Blvd. for a combined total of 442,039 sf. The buildings are 84 percent leased.

MANSFIELD, TX

VACANT LAND SALE Steadfast Heritage LLC purchased a 5.4 acre tract along U.S. 287 located at 1700 Commerce Drive for an undisclosed price. The buyer plans to divide the acreage into three tracts. Two of the tracts are being marketed by Edge Realty Partners LLC & the third parcel totaling 2.2 acres has been sold to an undisclosed commercial user. Wayne Burgdorf of Coldwell Banker Commercial Advisor DFW represented the seller, Herman Smith & Co.

MCKINNEY, TX

APARTMENT CONSTRUCTION ZOM Living is developing Kinstead, a 376-unit apartment community which will include six 3-story buildings. The first units will open in fourth quarter 2018 with preleasing starting in summer 2018. INDUSTRIAL DEVELOPMENT Construction has started on a new 130,000 sf PACCAR truck manufacturing facility which is located at the northwest corner of Wilmeth Rd. & Redbud Blvd. The facility is expected to be complete in 2018.

NORTHLAKE, TX

INDUSTRIAL LEASE reLogistics leased 60,408 sf at Northport 35 Business Center located at 4251 Dale Earnhardt Dr. from Stream Realty Partners. The Houston-based provider of warehouse & pallet management services will occupy most of Building C, which contains approximately 83,886 sf & will also utilize a 45-trailer storage lot. Cannon Green, Bob Hagewood & Forrest Cook with Stream Realty Partners served as leasing agents for the project & worked closely with Matt Elliott of NAI Robert Lynn.

LANCASTER, TX INDUSTRIAL DEVELOPMENT / LEASE Seattle-based Amazon leased a 920,000 sf warehouse building located off Dallas Ave. south of I-20. The building is the first phase of a 164-acre logistics park which is being developed by Van Trust Real Estate. The project is planned to have more than 2.5 million sf.

Jim Berry has been promoted to Vice Chairman, U.S Real Estate & Construction Leader at Deloitte LLP.

Lon Lloyd has joined Champions DFW Commercial Realty, LLC as Director of Investment Sales.

Matt Fahey has joined Champions DFW Commercial Realty, LLC as Sales & Leasing Associate.

Ruth Griggs has joined JLL as Vice President of the Leasing Team.

Adam Hammack has joined has joined JLL as Vice President of the Leasing Team.

SOUTHEAST TEXAS bulletin

BEAUMONT, TX MULTI-FAMILY SALE Winslow Asset Management purchased Pindo Pointe, a 164-unit multifamily property located at 7390 Pindo Circle from Parkdale Pindo. Ed Cummins & Ryan Mendez with Transwestern Investment Services represented the seller while Jan Sparks & Michael Snodgrass arranged the financing.

HOUSTON, TX APARTMENT CONSTRUCTION Houston-based developer Allen Harrison Co. has started to build a 5-story multimillion-dollar apartment complex in the Heights called the Citadel, located at 2220 Pinegate Drive.

HOUSTON, TX OFFICE SALE The Texas A&M University System Board of Regents purchased an 18-story building on 5.52 acres across the street from the Texas Medical Center located at 1020 Holcombe Blvd. Texas A&M & Houston Methodist Hospital have formed a partnership for EnMED. Davis Adams & Colby Mueck with HFF represented the unknown seller.

Peter Mainguy has joined CBRE Houston as managing director.

M.Boone Smith has joined The Richland Companies as director of leasing.

Steve Biegel has joined Newmark Knight Frank as executive managing director.

Mark Russell joined Newmark Knight Frank as vice chairman

John Frazier has joined Baker Katz as a tenant & project leasing representative.

Matt Reese has joined Barker Katz as a tenant & project leasing representative.

INDUSTRIAL DEVELOPMENT / LEASE Emser Tile, A Los Angeles-based tile designer & manufacturer leased 600,000 sf at Pinto Business Park which is located at I-45 North & Texas 8 Beltway. The project is scheduled to be completed fall of 2018. Jarrett & Jeff Venghaus with JLL represented the tenant & Beau Kaleel of Cushman & Wakefield represented the landlord. INDUSTRIAL DEVELOPEMENT Atlanta-based UPS Inc. is building a 260,000 sf industrial facility located at 11770 N. Gessner Rd., which will cost $17 million. Houston-based Alston Construction is listed as the facility’s general contractor & Houston’s Method Architecture will design the facility. INDUSTRIAL LEASE Israel-based plastics manufacturer Starplast leased 181,540 sf at Point North, 8111 FM 1960 which will serve as the base of their manufacturing operations in the U.S. Ryan Fuselier & Travis Secor with JLL represented the tenant & David Hudson of Duke Realty represented the landlord. INDUSTRIAL SALE / LEASEBACK Denver-based Industrial Property Trust purchased a 133,480 sf industrial distribution facility located at 7350 Langfield Road. T&L Distributing, a floor company will lease back 100 percent of the property which includes 34 dock high doors, 30-foot clear heights, outside storage & access to U.S Highway 290 & Beltway 8. Dustin Volz, Kevin McConn, Zane Marcell & Grant Matthews with JLL handled the transaction.

MULTI-FAMILY DEVELOPMENT The Woodlands-based Signorelli Co. plans to develop The Pointe, a multifamily project within Valley Ranch Town Center which is a 240-acre mixed-use development located at the intersection of the Grand Parkway & Interstate 69/U.S. Highway 59. The first phase which will break ground early next year will have 550 units, including 330 within the first phase. MULTI-FAMILY DEVELOPMENT Transwestern Development Co. is developing a 246-unit multi-family project called the Hayworth which is located at 1414 Wood Hollow Drive near the intersection of Voss Road & Woodway. Greystar Management Services will manage the community which was designed by 5G Studio architects. MULTI-FAMILY SALE 3000 NASA Parkway purchased the Edgelake apartment complex which is a 216-unit, garden-style multifamily asset located at 3010 East NASA Parkway from Omaha, Nebraska-based SEC Edgelake, LLC for an undisclosed price. It was 95 percent occupied at closing. Clint Duncan & Matt Phillips with CBRE represented the seller. OFFICE SALE Boxer Property purchased the 18-story St. Joseph Professional Building located at 2000 Crawford St., from a partnership led by Houston-based Mission Cos. The 135,586 sf building is currently 55% occupied. Andre Pereira with Boxer Property represented the buyer & Rudy Hubbard, Kevin McConn & Rick Goings with JLL represented the seller. OFFICE SALE Houston-based Elite Street Capital purchased a 162,336 sf office building located at 2100 West Loop South from Buchanan Street Partners & CarVal Investors. The 16-story office building is 88.7 percent leased. Dan Miller & Martin Hogan with HFF represented the seller. RETAIL SALE An unknown Texas-based institutional fund purchased the new 31,500 sf Rayford Harmony shopping center located at Grand Parkway & Rayford Road in the Harmony master-planned community from R1 Rayford Road. Matt Berry with CBRE represented the seller.

KATY, TX INDUSTRIAL DEVELOPMENT Atlanta-based Oakmont Industrials Group broke ground on a 673,785 sf distribution facility which sits

on a 42-acre parcel in Houstonbased Parkside Capital’s West Ten Business Park. John Simons & Holden Rushing with NAI partners brokered the sale & will lease the facility on behalf of Oakmont. The project is set to be completed July 2018. OFFICE DEVELOPMENT / RETAIL SALE Brandon Poynter, president of Mac Haik Management & representing Mac Haik Realty, has sold 4.7 acres at the Southeast corner of Kingsland Drive & the Grand Parkway in Kingsplace Park to the Hennessey Companies, Inc. The properties will be developed into professional & commercial office buildings. Poynter also represented MHR is the sale of the 13,650 sf, 100% occupied, retail center located at 23225 Kingsland Blvd. to an out of state buyer. RESTAURANT DEVELOPMENT Brandon Poynter, President of Mac Haik Management represented MHR in the closing of a 2 acre tract of land at the Grand Parkway & Kingsland Blvd. in Kingsplace Park. The property will be developed by Randy Dishongh as the new location for Mason Jar restaurant which should be open by mid 2018. Poynter also sold a 1.7 acre site to Johnny Carrabba, who will open another Mia’s restaurant at the new location & should open by mid 2018.

MISSOURI, TX HOTEL / WAREHOUSE DEVELOPMENT MAA Hospitality purchased 1.4 acres for the development of a Crystal Inn Hotel & Granite Vicentia Realty LLC purchased 8.3 acres for warehouse development. The property is located near Sam Houston Parkway & McClain Blvd. Tom Condon, Jr. with Colliers International represented the seller & Claude Angelo with Belt International represented both buyers.

THE WOODLANDS, TX HOTEL DEVELOPMENT Cathedral Lakes, a mixed-use development project by Grace Community Church announced the development of Hotel Indigo, a boutique brand within InterContinental Hotel Group. The midrise hotel, which is operated by Suryan Hospitality, is expected to be completed by the first quarter of 2019. Scott Covington with S.E Covington represented Cathedral Lakes.

ADVERTISER INDEX A. A. Realty Company 34 Al Ross Sign Group 52 American Realty Group 24 Berkadia 1 - SE Texas, 2, 3, 9 Caldwell Companies 7 CETA 45 Choctaw Nation of Oklahoma 31 City of McKinney 5 City of Seabrook 18 Converse EDC 1 - C/So Texas Equity Secured Capital, LP 21 FBSCR 45 Garver Real Estate 17 Greenberg & Co. 29 Hankamer Commercial Brokers, LLC 17 Homeland Properties, Inc. 21

classifieds & index Houston Partners Realty 22, 23 Levcor, Inc. 29 National Environmental Services, LLC 51 NewQuest Properties 25 - 28 Phase Engineering 38 PlusCorp 31 RE:VIVE Development 19 South Texas Surveying Associates, Inc. 21 Stream Realty Partners 17 Tarantino 33 Texas A&M Real Estate Center 50 The J. Beard Real Estate Company 32 The Meara Company 1 - North Texas The Signorelli Company 20 Wulfe & Company/District West 30

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For more information contact: JP@rednews.com or Bri@rednews.com Compensation for Roads • Pipelines • Power Lines For more information contact: JP@rednews.com or Bri@rednews.com

www.ShowalterLaw.com

281-341-5577 • Info@ShowalterLaw.com

North Texas CCIM Chapter

21st Annual

Commercial Course

www.recenter.tamu.edu/register November 16 - 17, 2017 . Norris Conference Center - CityCentre . Houston, Texas Planned with commercial real estate practitioners in mind, this course provides vital information including current developments, important legal issues, and the economic setting with trends and projections for the Houston area. Course offered in cooperation with Commercial Gateway CCIM Gulf Coast Chapter Wilson, Cribbs & Goren, PC Real Estate Center at Texas A&M University

NATIONAL ENVIRONMENTAL SERVICES Houston, Texas GABRIEL ENVIRONMENTAL GROUP San Bernardino, California National Environmental Services, based in Houston, Texas and Gabriel Environmental Group, based in San Bernardino, California, are sister environmental consulting companies, first established in 1995, that conduct a full range of reliable and cost-effective environmental assessment and corrective services, with competitive pricing and convenient turnaround. Licensed, certified and qualified to perform a wide range of services, including: • Phase I Environmental Site Assessments (AAIs-ASTM E 1527-13) • Transaction Screens (ASTM E 1528-06) • Asbestos & Lead-Based Paint Inspections (Licensed Texas Asbestos Consulting Agency) • RSRAs (Records Search with Risk Assessments) • Phase II Subsurface Investigations* • Remediation and Corrective Activities* • Soil, Water, and Air Testing Services • Indoor Air Quality/Mold Surveys (Licensed Mold Consulting Agency) • Underground Ground Storage Tank Testing Services* *Performed in Texas in partnership with Terrain Solutions, Inc., Texas Geoscience Firm Registration # 50018

SERVICES ARE PROVIDED NATIONWIDE National Environmental Services Houston, Texas Tel: 281.888.5266 hgabriel@nationalenv.com www.nationalenv.com

Gabriel Environmental Group San Bernardino, California Tel: 909.790.4371 hgabriel@gabrielenv.com www.gabrielenv.com

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5909 West Loop South, Suite 135, Bellaire, TX 77401 Address Service Requested If this person is no longer with your company, please notify subscriptions@ rednews.com or call 713-661-6300

YOUR BUSINESS BELONGS IN PASADENA, TX AL ROSS SIGN GROUP SET TO MAKE ITS MARK ON HOUSTON

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