Houston Deals

Tai Nguyen, a real estate broker, bought a 2,500-sf office building at 3700 Milam in the Midtown area of Houston for his company's office. A number Vietnamese-speaking business people have offices in the area. The seller of the building was American Industries Life Insurance Co., which was represented by Gloria Parrino of Betz Commercial Brokerage.

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Heights Armature Works

Heights Armature Works has purchased a 15,000-sf warehouse on 1.47 acres at 12250 Taylor Road in Houston. Gloria Parrino of Betz Commercial Brokerage represented the sellers, Bryan Huddleson and Michael Budworth. Walker Barnett of Colliers International represented the buyer.

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FM 1960

Tim Warren represented Cypressbrook Development Company in the purchase of the Interchange Business Center, a three building, 102,278 sf office and industrial property located on a 7.71 acre tract at 301-305 Wells Fargo Drive, near the southwest corner of I-45 and FM 1960. The seller K.B. Fund was represented by Brian Gammill and Darryl Noon of Transwestern Commercial Services.

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Live Oak

Jim Kirkpatrick of Live Oak Capital, Ltd. has arranged a construction loan for the development of Corinthian Pointe on behalf of George E. Johnson Development, a Houston-based owner and manager of commercial real estate assets and Kingdom Builders Center, LLC, a local non-profit. Corinthian Pointe will be constructed near the intersection of West Orem and South Post Oak in southern Houston.

Corinthian Pointe, located at 5505 West Orem, is a single story, 14,000 sf retail center. Tenants include Texas Children’s Associates, a local boutique, a child care center and the George E. Johnson Development Real Estate Office. Amegy Bank provided the 2-year interest only loan at a floating rate of 1% over prime. The construction loan represents 75% of cost.

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New Master-Planned Community

Woodforest, a new master-planned community by The Johnson Development Corp. under way in Montgomery County, has announced its custom homebuilders, with the first homes slated for construction in December. The Woodforest custom builders include George Weaver, Inc., J.M. Wendell, Inc., Jeff Paul Custom Homes, Meadowlark Custom Homes, T.D. Cox Homes, Tommy Bailey Homes and Wedgewood Homes, Inc., all of whom have reserved multiple homesites for homes priced from the $750,000s to $1.5 million.

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Montgomery County

Tim Warren of Cypressbrook Company represented Charter Supply Co. in the purchase a 5 acre tract located in the 65 acre East Montgomery County Industrial Park. Charter Supply is a retail and distribution services company focused on the offshore drilling industry. The land was purchased from The East Montgomery County Improvement District (EMCID) which provides incentives to businesses who locate or expand within the boundaries of the EMCID.

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Re-Fi

John Fenoglio and Tip Strickland of Live Oak Capital, Ltd. have arranged permanent refinancing on behalf of Nephron Properties II. Delaware Lincoln Life Insurance Company structured the $2,300,000 loan with a fifteen year term amortized over 15 years at 6.25% interest.

Mathis Church Road Dialysis Center , completed in 2008, is a 1-story, 14,000 sf medical office building used for kidney dialysis. It is located at the corner of Mathis Church Road and Romano Park Lane, one block south of FM-1960.

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Industrial

Cirrus SL, LP purchasd a 33,900-sf industrial user property at 12802 Capricorn in Houston.
Mark Lehman and Bill Burge with Grubb & Ellis Company represented the seller, Capricorn Holdings, LP.

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Interwood Business Park

Wolff Companies, a Houston real estate investment and development firm, announced several land transactions in Interwood, a densely wooded 440-acre master-planned business park located at the intersection of Beltway 8 and John F. Kennedy Boulevard.

Schultz USA Inc. purchased 16 acres of land located on Interwood North Parkway, just east of Heathrow Forest Parkway. The property will serve as the company’s new North American headquarters and distribution center. The new project will consist of a 56,880 sf building. Construction will begin this fall. Bob Berry and Jeff Venghaus with Staubach represented the buyer.

In addition, CCIB, an affiliate of Austin-based Capital Commercial Investments has acquired a 12.5 acre site located between FM 525 and Interwood South Parkway from Essex Capital. The property will be used for light industrial development. Specific plans have not been announced. Mark Nicholas and Richard Quarles with Staubach represented the buyer. Marc Drumwright of Southwest Realty Advisors represented the seller.

A drilling fluid solutions and state-of-the-art drilling waste management services firm, Scomi Oiltools, bought 6.3 acres at the northeast corner of Interwood South Parkway and Heathrow Forest Parkway. Lucian Bukowski and Ryan Fuselier with Staubach represented the buyer.

Live Oak-Gottesman, an Austin-based investment builder, has purchased a site at the southwest corner of Interwood South Parkway and Heathrow Forest Parkway. The property is being developed for the U.S. Customs and Border Control Protection Services. Construction of the 35,000 sf facility starts later this year.

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Retail Building

Colliers International announced the investment sale of 6,895 sf retail building on a 30,318 sf corner lot leased to Blockbuster and Subway at 2038 Gessner Drive to In Kyu Cho and Hye Won Cho represented by Lemorris Grover, Advance Realty & Mortgage. David M. Butler, Principal/Director at Colliers International represented the Seller, ANZL-BB Houston, LLC.

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Lighting Inc. Buys Building

Lighting Inc. has purchased a two-story building near The Woodlands north of Houston for a retail facility. The building provides Lighting Inc. with 14,000 square feet of space for its third store in the Houston area. Drew Morris, managing director of the Houston office of Studley, negotiated the purchase on behalf of Lighting Inc. The building, 255 Ed English Lane, was purchased from K&B of Walden, LLC for an undisclosed price.

Lighting Inc., founded in 1959, offers an extensive selection of
lighting fixtures from a comprehensive collection of manufacturers. Lighting Inc. also has stores in San Antonio and Austin.

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Industrial Building Sold

Madewell LLC bought a 45,686 sq crane-served building at 1410 Harris Street. The buyer was represented by Armando Cepeda and Chris Klein, senior vice president at Colliers International represented the seller, Cidema Three Limited Partnership.

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GE Oil & Gas Lands in Westway

A new west side office complex in West Houston has landed a major tenant.

Dienna Nelson Augustine Company and Transwestern announced that GE Oil & Gas has executed a lease at DNA Westway II for 125,055 sf. As developer, Dienna Nelson Augustine Company commenced construction on two speculative office buildings totaling 436,300 sf in Westway Park in October of last year. The two Class A office buildings – a 250,000 sf, ten-story office tower and a 186,300 sf three-story office building will be built to Leadership in Energy and Environmental Design (LEED®) specifications and seek the LEED-NC silver certification and will be complete by year-end 2008.

Peter W. Dienna, president of Dienna Nelson Augustine Company commented on securing GE’s tenancy, “We are pleased to include GE Oil & Gas and look forward to them taking occupancy by January 2009.”

Robert S. Parsley, Principal and Co-Chairman of Colliers International, stated, “GE Oil & Gas’ decision to relocate its operations at Westway II was influenced strongly by the property’s location. The property’s proximity to major freeways and arteries linking it to key business sectors – including the Energy Corridor – is an obvious advantage. Also important to GE was providing its employees with mobility options, particularly with Houston’s employment base continuing to expand to outlying areas. From a business and human resources perspective, this location represented a win-win.”

John S. Parsley, Principal and Director of Colliers International, added, “We are finding that tenants, particularly those interested in quality, Class A office buildings, are more inclined to opt for newer office buildings that by and large are coming out of the ground green. Much of the absorption gains the market has posted over the past 12 months have been in newer buildings, and that is a trend that will very likely continue strong as LEED certification and energy conservation become the standard in our industry.”

Commenting on the deal as marketing representative for Dienna, Eric Anderson of Transwestern said, “Westway Park continues to attract quality companies and GE Oil & Gas consolidating operations to this site is a further affirmation this location is very strategic for larger companies that value a central location for many years into the future."

Dienna Nelson Augustine Company, the owner of DNA Westway II, Ltd., was represented by Eric Anderson of Transwestern and Robert S. Parsley, SIOR, and John S. Parsley, SIOR, of Colliers International represented the tenant, GE Oil & Gas.

The 13.5 acre site is located within Westway Park, a 150-acre office park conveniently located at the intersection of the Sam Houston Tollway and Clay Road.

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Texas Medical Center

David Aaronson of Live Oak Capital, Ltd. has arranged permanent financing on behalf of Fidelis Realty Partners. OneAmerica structured a forward commitment for a 10 year term, 30 year amortization with a rate below 6%. Fidelis has developed over 2 million sf of retail since the company’s inception in 2003. The property is located at the corner of Kirby Drive and Old Spanish Trail, which is heavily influenced by the Texas Medical Center. The property is comprised of two tracts; one is presently improved as a Capital One Branch Bank on a ground lease, and the other is a recently completed Walgreens.

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Houston's Hottest Spots

For Commercial Real Estate in 2008

Lewis Realty Advisors, one of the oldest and most respected real estate firms in Texas, has named the 2008 Houston Hot Spots among the city’s most vibrant commercial real estate markets.

Houston-based Lewis Realty Advisors has expertly appraised, brokered, consulted and developed commercial real estate projects since 1961. The Houston Hot Spots forecast identifies the submarkets that have the fundamental strength, market momentum and catalyst developments to outpace the rest of the city in 2008.

“The Houston commercial real estate markets are outstanding and getting even better as we look ahead in the new year. Continued job growth and surging oil prices have bolstered the local office market and industrial properties. Retail centers have been supported by the large numbers of new rooftops that have been constructed,” said Matthew Deal, co-managing partner of Lewis Realty Advisors.

The Lewis Realty Advisors 2008 HOUSTON HOT SPOTS are:

GOLD MEDAL – Uptown. Certainly Houston’s – and possibly the nation’s - biggest success story is Uptown, a mixed-use submarket that has fully blossomed in the last 10 years. Uptown boasts an even mixture of residential, office and retail. Residential development always precedes commercial development and new residential projects are going up everywhere in Uptown. These ‘rooftops’ (high-rise towers here, not suburban starter homes) are fueling commercial development. Hanover recently locked up a Wulfe Company site on San Felipe west of Post Oak for a 50 or 60-story residential tower. Ritz Carlton is building a hotel/condo on a Wulfe site south of San Felipe. These ‘customers’ will feed Wulfe’s Boulevard Place development, anchored by 80,000 square-foot Whole Foods and redevelopment of existing restaurants, including Café Annie. These developments have fueled new office building announcements on Post Oak. The bottom line: Uptown is diverse and the uses feed off each other. With improved mobility on San Felipe Road and in Uptown Park and Metro rail coming, the future is bright for this submarket.

SILVER MEDAL – Downtown. New office towers are planned by Hines, Trammell Crow and other major developers as the office vacancy has dropped to its lowest point in years. But the biggest change is Finger Companies’ new high-rise residential tower, One Park Place. This will advance the population growth to help lift the CBD over the top. Since 1997, government has invested significant capital in new CBD projects – a baseball stadium, a basketball arena, Metro rail, expanded convention center, significant street improvements and a convention hotel. But the 24-hour environment so sorely needed has not come to pass. There are some exceptions, such as the Bayou Place development near the Arts District, which has a vibrant night life. But many restaurants and bars on Main Street have closed. The underlying problem has been the lack of a significant number of residents in the CBD. Finger’s new residential tower is changing this. We could be seeing the start of an Uptown-like rebirth in downtown. The new Discovery Green park could be Houston’s version of Central Park, the Houston Pavilions entertainment/restaurant project by William Denton, and discussion of a second convention hotel, all point to a more diverse, mixed-use downtown.

BRONZE MEDAL - Texas Medical Center. A city in and of itself, the Med Center GDP is greater than many entire states. Med Center ‘citizens’ are highly educated with high-paying jobs. And the Med Center is expanding, resulting in more residential development, which is attracting new retail. Real estate prices in this submarket have shot up dramatically. Periphery sites to the east along Almeda Road and to the south of the Med Center that have been lying fallow for years are being purchased for high-rise and mid-rise residential development. New projects include the 800-unit Mosaic condo project, which is under construction on Almeda Road. Office space and other commercial square footage are at a premium. Medical institutions are seeking off-site, but nearby locales, for offices for accounting functions and other back-office workers, as well as warehousing. Med Center demographics cannot be overlooked – some 75,000 people are employed there, including 10,000 doctors or other PhDs.

About Lewis Realty Advisors: Founded by David M. Lewis, has appraised, brokered and developed commercial real estate for almost 50 years. The Houston-based company provides consulting and advisory services for private property owners and governmental agencies. More information is available at www.LewisRealty.com

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Houston Strong Market Brings New

Downtown Towers; New Investors

By Ralph Bivins
Editor-in-Chief
RealtyNewsReport.com

Three new office towers will be under construction in downtown Houston within the next few weeks.

Developers are being prompted to move as rents have skyrocketed and vacant space is hard to find, according to the CB Richard Ellis realty firm.

The three new buildings proposed in the near-term pipeline are Hines’ Main Place, a 1 million-sf tower on Main Street; Trammell Crow Co,’s 871,000-sf Discovery Tower near the Geo. R. Brown Convention Center and the new Discovery Green park; and Six Houston Center, a 584,000-sf extension of the Houston Center complex on the east side of downtown.

The first building coming to market is virtually assured of success because the market is so tight.

Downtown’s Class A vacancy rate is 6.5 percent, the lowest since 1998, according to Sanford Criner, executive vice president of CB Richard Ellis.

Energy firms have been expanding, chewing up large amounts of office space and no new buildings have been constructed in downtown in several years. The office rental rates have been rising significantly, registering a 23 percent gain during 2007, CB Richard Ellis reported.
Houston is a leader in job growth and the strength of the economy is attracting the attention of investors, said Richard Rudd, executive vice president of investment properties at CBRE.

“The fundamentals of Houston have not gone unnoticed around the country,” said Rudd.

The story of rising oil prices and Houston’s job growth is a compelling narrative for investors.
“Houston is still very strong from an investment standpoint,” said Jeff Majewski of CB/Melody.

Craig LaFollette, who specializes in multi-family investments for CB Richard Ellis, said he emphasizes when speaking to investors that Houston has more than just an energy-based economy, the city also boasts a strong port and a massive medical center.

“We hang our hat on oil and that’s a big, big attraction. But it’s not just a one-horse town anymore,” LaFollette said. “We don’t want them to just focus on the oil business.”

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Industrial Sale

Beext Holdings, LLC has purchased a 119,212 sf industrial building from Northwest Warehouse, LLC. The facility is located at 7250 West 43rd Street in northwest Houston. Tom Lynch, Alisha Renshaw and Faron Wiley of CB Richard Ellis represented the seller in the transaction. Karyn Stephens and Jeff Beard of the J. Beard Real Estate Company in The Woodlands represented the seller.

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Interwood Business Park

Wolff Companies, a long-time leader in Houston real estate investment and development, recently announced the closing of three land transactions in Interwood, a densely wooded 440-acre master-planned business park located at the intersection of Beltway 8 and John F. Kennedy Boulevard.

Western International purchased an 8.6 acre tract located at John F. Kennedy Blvd. and Interwood North Parkway. The property will be home to two nationally-recognized hotels as well as a restaurant.

“Interwood is truly one of the most beautiful commercial real estate properties in Houston, with hundreds of towering pine and oak trees that give the area a lush, nestled feel, even though the property is located just off of the Beltway and a few minutes from the terminals at Bush Intercontinental Airport,” said David W. Hightower, executive vice president and chief development officer for Wolff Companies.

A 134-room extended stay hotel, TownePlace Suites by Marriott, will break ground soon and is slated to open fall 2008. Specific plans for the second hotel and the restaurant have not yet been announced.

According to Michael H. Mahoney, development partner for Western International, Interwood is an ideal site for properties of this nature. “Not only is Interwood conveniently located to the airport but we feel that our hospitality properties will greatly benefit occupants of the business park by providing premium select service and hotel accommodations,” said Mahoney.

Additionally, BRG Cornerstone Development has purchased 4 acres on FM 525 at Alliant Drive for an office/service center totaling 42,000 sf.

Western International was represented by Jay Berry, with Gulf Western Realty Advisors in Dallas.. BRG was represented by John Ferruzzo and Travis Land with NAI Houston commercial brokerage. David Hightower represented the seller in both transactions.

In addition, Friendswood Development Company has acquired 12 acres in Interwood across Interwood North Parkway from the Western International site. The property adjoins Coventry Health Care’s 80,000 square foot office building and is near Administaff’s office building. Specific plans for the property have not been announced.

Interwood tenants in the master-planned business and office park include ExxonMobil, Administaff, Coventry Health Care, Cameron, Averitt Express, U.S. Foodservice, United States Postal Service, FedEx and Prime Source.

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Pasadena Land

Heritage Exchange Corporation of Texas has sold 11.4-acres to Liongate Holdings I, LP. The site is being considered for potential medical office development and is located within the subdivision of Bayshore Park in Pasadena, Texas. Simmi Jaggi and Elizabeth Clampitt of CB Richard Ellis represented the seller in the transaction while Rodney Lerner of Yancey-Houseman represented the buyer.

Hobby Business Park

PinPoint Commercial, a leading developer of commercial and industrial properties throughout the United States, announced the introduction of Hobby Business Center, a world class, 350 Acre Logistics and Industrial Park located adjacent to Hobby Airport in Houston. It is believed that this new location will be the largest industrial park developed inside the Beltway in over a decade.

Because of the rapid growth of the Houston economy, PinPoint Commercial recognized a key opportunity to develop a signature business park this close to the heart of Houston. Whereas most modern industrial parks are located miles from Central Houston, Hobby Business Center offers a unique location, close to most major corridors in the city. Whether business is conducted locally, regionally, nationally or around the world, Hobby Business Center will offer a central location, flexible designs and a unique set of amenities for any tenant with complex logistics, warehousing or distribution needs.

The land for Hobby Business Center was originally purchased in March of 2007, and several premier logistics companies have already committed to the Park, including Southeastern Freight Lines and FedEx Ground. In addition, the Houston Airport System has expanded their current footprint in the area by purchasing land within the park. Several other premier companies are looking for a presence in the park, and PinPoint expects the velocity of deals to continue.

“So far, the interest in the Hobby Business Center has exceeded our initial expectations,” said David Toone, Principal, PinPoint Commercial. “Its central location, affordability, excellent access to major thoroughfares, including rail, and flexible development plans are vital components for logistic and industrial clients. Our ability to handle a variety of needs is our competitive advantage.”

This master planned, multi-modal distribution complex is designed to handle cargo from rail and truck with speed and efficiency. Centrally located between I-45, Beltway 8, I-610, Highway 288 and Telephone Rd, , Hobby Business Center is strategically located to facilitate logistics to the City, the region and beyond. Additionally, direct rail access from BNSF will minimize travel time between the Port of Houston and other major industrial hubs throughout the country.

“Location was key for us.” Said W.T. Brogdon, Vice President of Real Estate, Southeastern Freight Lines, Inc. “If you are an industrial user who needs access to the Port of Houston as well as the major transportation corridors in the region, including rail, there is no better location than Hobby Business Center. Plus, there really are not many other locations of this size this close to the Center of Houston.”

The park was created with logistics in mind. Every parcel is designed to accommodate standard and non standard building configurations, allowing for innovative development to solve the most complex needs. Generally speaking, buildings will be tilt wall construction with extended clear heights and truck aprons. However, innovative designs to meet tenant needs will be considered.

When complete, tenants will be able to take advantage of a direct rail connection to the BNSF Inter-modal facility, immediately adjacent to Hobby Business Center. This will allow for near seamless transition between ships (coming from the nearby port of Houston), rail and ground freight.

“With extremely complex logistics requirements, it only makes sense for FedEx to want to go to Hobby Business Center,” John Thompson, President, PinPoint Commercial. ”The combination of Interstates, Rail, Air and central location makes this the perfect location for their needs. Plus, the infrastructure being added will also make it a world-class industrial park.”

The infrastructure for Hobby Business Center is expected to be complete and open by the first quarter, 2008. Build-to-Suit and Design build opportunities are available for tenants who require as much as 1,000,000 sf or as little as 20,000 sf. Amegy Bank is providing financing for the project.
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Med Building

Live Oak Capital, Ltd. has arranged the acquisition fixed financing for Norvin Kingsland LLC. Gary Dunkum of Live Oak Capital arranged this 5 year loan with one year interest only amortized over 25 years.

Built in 1994, 777 South Fry is a class A medical office building located in the far west Houston area at the north east corner of South Fry Road and Kingsland in Katy, Texas. It is adjacent to the campus of the Christus St. Catherine’s Hospital. The new ownership, Norvin Partners, Ltd, founded in 1997, is a real estate private equity fund with offices in New York and Houston, Texas. The firm invests in high quality office and medical properties in select markets. Norvin Partners is one of the largest owners of healthcare properties in the Texas Medical Center

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Coca-Cola Building Sold

Cameron Management purchased the Minute Maid Building located at 2000 St. James Place in the Galleria area from The Coca-Cola Company. The acquisition of the property was financed by Cameron Management and Wachovia Bank in conjunction with a local group of private investors. With this purchase, Cameron Management currently offers the largest block of contiguous office space for lease in the highly desirable Galleria area.

The 2000 St. James Place building is a 12-story structure comprised of approximately 350,899 sf of rentable office space located in the Galleria/Uptown submarket. The office building is located between Westheimer Road and San Felipe Street, just a few blocks west of Post Oak Boulevard. Built in 1978 on a 6.23 acre site, the building received over $11.8 million in capital improvements in 2006 and features a fitness center, full cafeteria kitchen and an inviting green space. Constructed of reinforced concrete, the structure also contains 1,230 parking spaces and a basement.

The Coca-Cola Company will continue to lease from Cameron Management approximately 150,000 sf of space currently occupied by its Minute Maid business unit until construction of their future site is complete in late 2008.

“The Minute Maid Building reflects the high standards and impeccable quality of The Coca-Cola Company,” said Dougal Cameron, chief executive officer of Cameron Management. “We are pleased to add this first-rate Galleria-area property to our portfolio.”

With the acquisition of 2000 St. James Place, Cameron Management increases its portfolio of classic office buildings to approximately 984,000 sf of rentable space in Houston and San Antonio. Cameron Management properties, which are all owned, leased and managed by the company, include Houston Club Building at 811 Rusk downtown, 3000 Richmond Avenue in the Greenway Plaza area, and in San Antonio, One Park Ten, a complex located at 6800 Park Ten Boulevard in the city’s northwest.

Cameron Management is a Houston-based real estate group that owns, manages, and leases office buildings in Houston and San Antonio, Texas. Its portfolio is comprised of classic buildings located in Class A submarkets and managed to a Class A standard. Tenants are attracted to the economic value and attentive onsite management provided by Cameron Management.

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Fountainview

John Burke, Senior Vice President and Managing Director, of NorthMarq Capital, Inc.’s (NorthMarq) Houston Regional office, arranged first mortgage financing of $6.5 million for the 123,400 square foot Fountainview Office Buildings located in Houston.
Financing was based on a 3-year term interest only and was arranged for the borrower, Bammelbelt L.P., by NorthMarq through its relationship with ViewPoint Bank. The borrowing entity is made up of a three borrower TIC structure.

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Build-to-suit

Azura Energy Systems. has contracted with Clay Development and Construction to construct a 45,000 sf, crane-served industrial building at 5905 Thomas Road in northwest Houston. Jim Stark and Cody Armbrister of CB Richard Ellis represented Azura in the transaction. Robert Clay and Charlie Christ represented Clay Real Estate Holdings.

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3D/International Tower Sold

Lowe Enterprises and Buchanan Street Partners have acquired 3D/International Tower, a 406,415-sf, Class A office tower at the intersection of San Felipe and the West Loop. The property is approximately 90 percent leased to top-tier businesses such as Parsons/3D International, Transwestern and Arthur J. Gallagher.

“The Houston market continues to attract some of the nation’s leading companies. Its business base has grown and diversified to include technology, aerospace, medical, manufacturing and business services in addition to energy-related companies,” said Steve Nesterak, president of Lowe Enterprises Real Estate Group’s commercial operations in the central US.

The joint venture is the first between Buchanan Street Partners and Lowe Enterprises and was cemented by Buchanan’s ability to enable an all-cash closing and its solid track record in the Houston market.

“We were able to close equity in a 45-day timeframe, allowing the acquisition of a premier asset along the West Loop, which is historically one of the area’s top performing office markets,” said Kristin Panehal, senior vice president of Buchanan Street Partners.

Built in 1979, the property has been significantly upgraded over the years, most recently in 2000.

The partnership will invest approximately $1.5 million in additional funding for property upgrades primarily to building systems, as well as some signage and common area improvements. Property management and leasing services will continue to be provided by Transwestern, under the direction of Lowe Enterprises. Rudy Hubbard and Leah Gallagher of Transwestern Houston represented the seller in the transaction.

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Hillwood Buys Major

Acreage in Houston

Dallas-based Hillwood has purchased the 3,827-acre Sienna Plantation South property in Fort Bend County near Houston. Plans for the site include approximately 7,000 single-family homes, as well as 300 acres for retail and commercial use. Hillwood also is setting aside 100 acres for schools and churches, as well as preserving more than 1,000 acres for parks and open spaces.

In 2007 Hillwood has now obtained more than 7,100 acres of residential property, which makes it the company’s most aggressive year in terms of purchasing residential land. The transactions are part of an increased focus on acquiring residential property.

Hillwood’s purchase of Sienna Plantation South is the company’s first project in the Houston market and the largest residential property the company has ever purchased. The project is part of the 10,500-acre Sienna Plantation development that is located in the ETJ of Missouri City.

“Hillwood is fortunate to be in a position to acquire large tracts of land that are either already planned for single-family homes or are suitable for residential development,” said Fred Balda, president of Hillwood Residential. “With the current market conditions, our increased focus is particularly compatible with home builders, other residential developers and owners of large tracts who need a more aggressive exit strategy.”

Brian Carlock, vice president of Hillwood Residential, will lead the company’s efforts to explore these new acquisition opportunities. He oversaw the company’s purchase of Sienna Plantation South.

“Sienna Plantation South is the perfect project for Hillwood to enter the Houston market,” said Carlock. “The property’s heritage and its beauty with centuries old oak trees and proximity to the Brazos River offers us a tremendous opportunity to create trails, lakes and other amenities that will make it a great place to live. In addition the tremendous job growth in the Houston area, the population growth in Fort Bend County and the recent opening of the Fort Bend Toll Road, which allows easier access to the area’s major employment centers, make Sienna Plantation South a great location for a new community.”

Sienna Plantation South is located approximately 25 minutes from the Houston CBD, the Energy Corridor and the Medical District. The site is south of Sienna Plantation Country Club between the Brazos River and FM 521.

Plans for Sienna Plantation South, which is located in the Fort Bend ISD, include several school sites. Hillwood also plans to build two amenity/recreation areas, each with multiple swimming pools and a clubhouse. Homes in Sienna Plantation South will be priced from $160,000 to $1 million. Home builders have not been selected, but the community will be a good opportunity for builders who are approaching buildout in Sienna Plantation.

Hillwood has already started engineering and predevelopment on the property. Construction of infrastructure is scheduled to begin in 2008 with the first lots set to be available in mid-2009.

According to the U.S. Bureau of Labor Statistics, Houston had the highest percentage growth among the nation’s 10 most populous metropolitan areas between July 2006 and July 2007, adding 82,000 jobs during that period. Fort Bend County has added close to 123,000 new residents since 2000 and expects close to 140,000 more new residents by 2011. Sienna Plantation, which is consistently ranked by Metrostudy among the top four active communities in the Houston area, averages more than 700 new home sales per year.

Earlier this year Hillwood completed the acquisition of 1,267 acres of Saddlebrook Estates in Waxahachie, Texas and 2,000 acres of the Heartland community in Kaufman County, Texas.

Since 1988 Hillwood has developed residential communities with innovative features and top recreation amenities. The company has delivered more than 18,000 single-family lots in more than 30 cities primarily in North Texas. Communities currently under development include the Creeks of Preston Hollow in Dallas, Heritage in Fort Worth, Heartland in Kaufman County, Chisholm Ridge in Fort Worth, Liberty in Melissa, Saratoga in Fort Worth, Creekwood in Saginaw, Twin Creeks in Allen, Harmony in Red Oak, Gateway Estates in Glenn Heights and Falcon’s Lair in Mesquite. In Jackson Hole, Wyoming, Hillwood also is developing Bar BC Ranch.

In addition to its exceptional residential communities, Hillwood (www.hillwood.com), a Perot company, is best known for its development of the 17,000-acre AllianceTexas project, located 15 miles northwest of DFW Airport; the $420-million American Airlines Center and Victory district near downtown Dallas; and the 2,000-acre AllianceCalifornia development near Los Angeles.

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Houston Building Sold

KBS Real Estate Investment Trust bought the 2200 West Loop South, an 11-story, 196,217-sf Class A office building in the Galleria/Uptown submarket of Houston. The seller was CCD Acquisitions. The purchase price was not disclosed.

Bill Rogalla, Senior Vice President/Acquisition Officer, represented his firm, KBS Capital Advisors, in the transaction. Danny Miller, Marty Hogan and Rusty Tamlyn of HFF (Holliday Fenoglio Fowler, LP), Houston, represented the seller. Rodney Richerson, Senior Vice-President/Director of Asset Management, KBS Capital Advisors, oversees the KBS REIT and KBS Realty Advisors’ 25-million-square-foot portfolios, including 3.9 million square feet in Houston.

“2200 West Loop South is well-situated in the heart of the Galleria/Uptown market,” Rogalla notes. “Due to continuing growth in the energy sectors, as well as other fields, Houston is experiencing steady demand for Class A office space.”

“2200 West Loop South is in the nation’s largest suburban office market, home to 2,000 businesses housing 200,000 workers, five million square feet of retail and 26 hotels,” Richerson says. “With its recent renovations and ample parking, 2200 West Loop South will continue to attract top tenants.”

Mike Hackett and Doug Little of PM Realty Group, Houston, will handle leasing at 2200 West Loop South. PM Realty Group will also manage the property.

2200 West Loop South is located on West Loop 610 between San Felipe and Westheimer in the 32-million-square-foot Galleria/Uptown submarket. The property includes 4.27 acres and a four-level parking garage. Major tenants in the buildings are Tenaris and Morgan Stanley. 2200 West Loop South is 99 percent leased.

With the acquisition of 2200 West Loop South, the KBS REIT portfolio in Houston now totals 367,000 square feet. The KBS Realty Advisors portfolio in the Houston area includes 3.5 million square feet. This year, KBS REIT acquired the 170,436-square-foot, two-building complex, The Offices at Kensington, 1600 and 1650 Highway 6, Sugar Land. KBS Realty Advisors acquired the 234,231-square-foot 3355 W. Alabama in late August 2007 and the 199,001-square-foot Ten West Center One, 17420 Katy Freeway in June.

KBS REIT was formed by Peter Bren, President; Charles Schreiber, Chief Executive Officer and Chairman; Peter McMillan, Executive Vice President and Treasurer; and Keith Hall, Executive Vice President.

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Hines Starts New Tower

On Houston's Main Street

Hines, the international real estate firm has announced plans to develop MainPlace, a new 46-story, one million-sf office tower in downtown Houston at 811 Main Street. Construction activities by the general contractor, D.E. Harvey Builders, will commence immediately with the first tenants occupying the building in late 2010. The project will be a classic urban infill development, replacing one of the most blighted blocks in downtown with a signature high-rise office building that will spur redevelopment for blocks around and re-define the epicenter of downtown.

"Designing and building structures that are more efficient and self-sustaining make good business sense and will help the sustainability of our environment," said Mayor Bill White. "It's good to see Hines, with its strong Houston roots, setting the pace by building the first LEED-Silver skyscraper in our downtown district."

Jon Pickard, AIA, of Pickard Chilton, the building’s architect, notes, “Our design for MainPlace acknowledges the contemporary tradition of the Houston skyscraper while keeping with the historical tradition of Main Street’s classic architecture.”

MainPlace will be situated on Main Street on the block bordered by Fannin, Rusk and Walker streets, across from the 1929 Gulf Building (now the JPMorgan Chase building). MainPlace tenants will enjoy easy access to Houston’s mass transit system, including Metro’s light rail system on Main Street, and being located within four blocks of every major downtown attraction.

MainPlace will also continue Hines’ ongoing commitment to the environment and leadership in sustainable (or “green”) building design by being pre-certified at the silver level by the U.S. Green Building Council. In fact, Hines will develop the project through its Hines CalPERS Green (HCG) fund, a new fund that focuses exclusively on developing sustainable office buildings throughout the United States certifiable through the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design Core and Shell (LEED-CS) program.

Designed by the nationally recognized architectural firm of Pickard Chilton, MainPlace will be clad in horizontal sunshades of glass and aluminum that will wrap around the building’s curved north and south façades. The west façade will be shaded from the low-glancing evening sunlight by vertical glass fins, which will soar 630 feet from Main Street’s sidewalk level to the crown of the tower. A signature feature of the tower will be a dramatic 39th floor sky garden recessed into the building’s form that reveals planted terraces and a five-story crystalline atrium. The sky garden will provide a meeting place during the day and define the tower on the night skyline with its glow.

A grand lobby with atrium located directly off of Main Street will offer a connection to Houston’s underground pedestrian tunnel system, linking MainPlace to office buildings, hotels and retail centers.

MainPlace will contain floor-to-ceiling windows that will maximize natural light in tenant spaces, as well as offering panoramic views of downtown to the south and west, and uninterrupted views to the east. Notched corners in the buildings structure will allow for eight corner offices per floor, as well as an abundance of daylight into interior corridors. Eighteen high-speed elevators will serve the office floors over three zones. An additional three elevators will service the nine-level parking garage, which will contain a total of 1,130 parking spaces.

“We think MainPlace’s sustainable features, superior location and unique design will make it a highly sought-after address in downtown,” said Hines Vice President John Mooz. “Since One Shell Plaza, Hines’ first downtown Houston office tower developed nearly 40 years ago, we have made significant investments in architecture that have transformed the city’s skyline while keeping in mind our commitment to green development. MainPlace will continue that tradition, and will add to our firm’s 50-year legacy of development in the city.”

Schematic design development will conclude in January 2008. Site preparation is underway, a ceremonial groundbreaking is slated for April 22, 2008 (Earth Day), and the grand opening is slated for Earth Day 2011, although some tenant occupancy will commence in late 2010.

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Uptown Parcels Purchased

Lewis Realty Advisors successfully represented the Uptown Development Authority in the acquisition of a number of parcels of urban land in a right-of-way acquisition program that will lead to improved traffic flow in Houston's thriving Uptown area.

The latest purchase in this effort is a parcel just east of the intersection of San Felipe and Post Oak Boulevard. The property, purchased from Rosario Messina Properties Ltd., had been used for retail customer parking.

Adding to a long list of Uptown transactions completed by Lewis Realty Advisors, the latest acquisition is one of four deals between Post Oak Boulevard and Garrettson Street negotiated by Matthew Deal on behalf of the Uptown Development Authority. The land purchases cover about a half-acre at this primary intersection in Uptown Houston.

The land transactions included the earlier purchase of a well-known Chinese restaurant, formerly Ho Sai Gai, which had operated on the site for more than 30 years, in addition to tracts used for retail parking at Wachovia Bank and Brucette’s Shoes.

The agency’s land acquisitions are necessary steps in a comprehensive plan to widen San Felipe and enhance mobility in the area, said Deal, co-managing partner of Lewis Realty Advisors, which represented the Uptown Development Authority in the transactions.

"Uptown Houston is one of the premier mixed-use activity centers in the United States, having an urban blend of high-rise residential, office and retail development. The expansion of this roadway will enhance existing uses and pave the way for anticipated new development," Deal said.

The vast majority of the right-of-way acquisitions have been completed by negotiation without condemnation. “Lewis Realty Advisors has a long history of representing both governmental agencies and private property,” Deal said.

Westchase Building sold for $26M

Capmark Finance Inc. funded $24 million in interim financing for the $26 million acquisition of the Westchase Bank Building, an office property located in Houston. The 85 percent LTV loan has a three-year term.

Situated on approximately 5.36 acres at 9801 Westheimer Street, the 11-story building features 208,643 sf of office space. Completed in 1981, the Westchase Bank Building was designed by Skidmore, Owings & Merrill. Occupied at 98 percent, major tenants include URS Corporations, World Cinema, Abby Executive Suites and KRBE Radio.

Senior Vice President Jim Adams of the Capmark Finance Houston office originated the transaction, which closed in just 35 days from application. Younan Properties, an affiliate of Zaya Younan, was the borrower.

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Major Development for

Former HISD Site

Trammell Crow Co. has announced plans to develop a two-story, 256,700 sf retail center at an urban infill, mixed-use development site located in the inner loop of Houston. The new center will be called “Greenway Commons” and will feature a 164,000 sf Costco with an LA Fitness health club occupying 45,000 sf on the second story directly above. Trammell Crow is developing the project in partnership with The Morgan Group and institutional investors advised by Prudential Real Estate Investors (PREI). Ground breaking will occur immediately, with an anticipated delivery date of summer, 2008.

Greenway Commons will occupy approximately 15.4 acres of the 24-acre development site that formerly housed Houston Independent School District’s (HISD) headquarters, at the northeast corner of Weslayan Road and Richmond Avenue. The site is located between the Uptown Galleria area and the Greenway Plaza office market. A high-density redevelopment project, Greenway Commons is one of the largest urban infill sites in the city, encompassing almost an entire city block.

In addition to Costco and LA Fitness, the retail project will include a four-level parking structure adjacent to the Costco building, a 39,000 sf, two-story retail building, and two pad sites. Trammell Crow has secured retail tenants for most of the center; only limited small shop spaces and one pad site are still available.

“Given the scarcity of inner loop sites, this represented a unique opportunity for Costco and LA Fitness to secure full-size facilities in an area that is almost impenetrable for users of their size”, said Craig Cheney, Managing Director of Retail Development for Trammell Crow. “Increasing the density by stacking them one on top of the other was the only way to make a retail center economically feasible, which led us to a very urban development plan.”

The architectural theme will be consistent throughout the project – contemporary in an urban vein. CDA Architects is the architect for the retail project and Miner-Dederick Constructors, Inc., is the general contractor.

The Morgan Group will begin construction on the site’s residential component, a 526-unit, high-end mid-rise apartment community in December.

“This site is the premiere location for inner-loop living in Houston,” said Morgan Group President Alan Patton. “Residents will have immediate access to the city’s finest shopping, restaurants and entertainment.”

The project’s design and target demographic will be similar to Morgan Group’s other highly successful urban infill developments at 3000 Sage (Galleria) and 36sixty Richmond (Greenway.) Wallace Garcia Wilson is the architect for the residential project and Morgan Construction is the general contractor.

In keeping with a global-wide corporate commitment to green initiatives, the TCC team preserved more than three dozen mature live oaks along the perimeter of the property. Several of these trees are adorned with plaques honoring retired HISD employees’ service. TCC also doubled their typical landscaping budget to provide as much greenery as possible on the site. In an effort to conserve materials, the team recycled all the concrete and asphalt on-site to use during site preparation.

Trammell Crow Company, The Morgan Group and PREI won the right to purchase the 24-acre Houston Independent School District tract through a public bid process in 2004. The partners acquired the land in June, 2006. The deal structure calls for TCC to build the retail facility; and The Morgan Group to develop a 526--unit class ‘A’ multifamily complex on the northern nine acres of the site. PREI is a partner in both the retail and multifamily developments. Matthew Keener and Alex Makris of CB Richard Ellis will handle the leasing for the retail side of the project.

Trammell Crow Company, founded in 1948, is one of the nation’s leading developers and investors in real estate. The company has developed or acquired over 2,500 buildings totaling over $50 billion in value. Trammell Crow Company’s teams are dedicated to building value for its clients through creative solutions and highly skilled, locally connected professionals in major cities in the U.S., Canada and India. The company is known for the quality of its people and for the world class facilities they create. Trammell Crow Company serves users of, and investors in, office, industrial, retail, healthcare, student housing, on-airport distribution, multi-family residential, and mixed use projects.

Trammell Crow Company has experienced market leaders in 30 major cities. The company is an independently operated subsidiary of CB Richard Ellis Group, Inc., the world’s largest commercial real estate services firm (based on 2006 revenues).

The Morgan Group, Inc. (MGI) is a privately held national developer of Class A multifamily properties with offices in Texas, California and Florida. Since 1989, the Houston-based firm has developed more than 11,000 units at a cost of more than $1.5 billion. Specializing in upscale urban infill development, the company also provides construction and property management services. MGI currently has more than 5,000 units in planning or under construction in California, Texas, Florida, Missouri and North Carolina.

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Industrial Deals

First Industrial Acquisitions, Inc. has purchased 90,465 sf of industrial/warehouse space located at 700-760 Industrial Boulevard in Sugar Land, Texas and 84,872 sf at 7230-7260 Wynnwood in northwest Houston. Tom Lynch represented the seller, South by South Southwest HSO Limited Partnership and Wynnwood HSO Limited Partnership in the transactions.

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1031 Exchange

The Texas 1031 Exchange sold 42 acres of land on Stonegate Road and Highway 90 to Investment Property Exchange. Scott Fikes and Bob Bantly of Grubb & Ellis represented the seller.

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La Porte Refi

Holliday Fenoglio Fowler, L.P. has arranged a $5.65 million refinancing for the Highway 225 Building, a 150,000-square-foot industrial distribution facility in La Porte.
HFF director Tucker Knight and real estate analyst Steven Gautier worked exclusively on behalf of the borrower to secure a 10-year, fixed-rate loan through Principal Global Investors. The loan, which amortizes over 30 years, will take out an existing bank loan at stabilization.
The Highway 225 Building was completed in 2005 and is fully leased to Bethel Enterprises. Situated on seven acres at 11201 Highway 225, the property is close to the Houston Ship Channel in La Porte 27 miles east of the Houston central business district.

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New Project in Pearland

Transwestern announced that La Madeleine has ground leased a 48,351 sf pad site at Shadow Creek Ranch Town Center in Pearland.. Lindsay Miller of Transwestern and Will Deane of Fox Properties represented the owners. Myles Kelly of Realty Ventures represented La Madeleine.

Shadow Creek Ranch Town Center is a joint venture of Transwestern Development Co., WCF Development and Buchanan Street Partners. Located at State Highway 288 and FM 518 (Broadway), Shadow Creek Ranch Town Center will be a unique blend of grocery-anchored large format space, specialty soft goods retailers, restaurants, banks, and service retail. Shadow Creek Ranch Town Center will be anchored by a 150,000 sf H-E-B Plus grocery store constructed at the northeast corner of the site. Construction will be substantially complete by the summer of 2007.

Additional tenants taking space in the center include McAlister’s Deli and Bank of Texas. McAlister’s Deli has leased 4,300 square feet and is represented by Greg Stackhouse of Trammell Crow Company. In addition, Bank of Texas, represented by Don Foster of The Staubach Company, leased 5,300 sf and plans to build adjacent to H-E-B Plus.

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Garden Oaks Lease

Green Marine leased 7,200 sf of industrial space at 340 Garden Oaks. David Boyd of Boyd Commercial represented the tenant. Steve Hazel of Insite Realty represented the landlord, Houston Pine Forest Ltd.

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1031 Pearland Sale

Colliers International in Houston announced Christopher D. Winters, Principal and Director of Investments, and John S. Parsley, Principal and Director of Office Division, represented Southwest Guaranty Investments Ltd. in the disposition of the 1346 East Broadway office building located in the Pearland submarket in Houston. The 100% leased, 15,925-sf office building was acquired in a 1031-exchange by California-based First American Exchange Company, LLC, represented by Steve King of CB Richard Ellis.

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Greenspoint Sale

Colliers International in Houston announced Christopher D. Winters, Principal and Director of Investments, and Roddy McAlpine, Senior Vice President, represented California-based Peery Family, L.P. in the disposition of the 530 North Sam Houston Parkway office building located in the Greenspoint area of North Houston. The 32,455-sf property was purchased by Houston-based HRE,Inc., formerly known as Healthy Resources Enterprise, Inc.

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New Office Project

GenCap Partners and Transwestern Houston have announced a new office building in northwest Houston.

Located in the Chasewood Technology Park on State Highway 249 at Chasewood Park Drive, Four Chasewood will be a five-story, Class A office building containing 105,121 sf and enjoy campus-wide amenities including on-site management/engineering services, video surveillance, courtesy officers, banking facilities, conference facility and food service.

Chasewood Technology Park is a 32-acre development with three existing office properties totaling 358,746 sf. Remaining land inventory will accommodate an additional two office buildings and a planned hotel/conference center. The Chasewood Technology Park offers the only Class A office environment in the SH 249/Highway 6 submarket

Designed as a green building, Four Chasewood’s exterior will feature a distinctive architectural design and afford a highly efficient floor plate. Class A common area finishes throughout will include polished stone, stainless steel and wood-treated lobbies.

”We look forward to this new addition to a very successful office park. Four Chasewood is being built to continue to service our tenants and to attract new occupants to this exceptional location. The building is designed to complement our current assets and to further enhance the Chasewood Technology Park” said Paul Vangrieken of GenCap.

GenCap has retained Transwestern to provide leasing and management services on the project. Todd King and David Lee will lead the leasing team.

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Lakeside Place

Live Oak Capital, Ltd. represented KM Wilcrest, LP in their refinance of the Lakeside Place shopping center in Houston, Texas. Jim Kirkpatrick of Live Oak Capital arranged the loan through CIBC World Markets. The $2,300,000 loan carried a fixed interest rate of 5.75% over the 10 year term. The initial three years of the term were interest only followed by a 30-year amortization.

KM Wilcrest, L.P. is a partnership of KM Realty Advisors, a Houston based firm actively pursuing retail opportunities across the area. Principals of the firm are Randy Keith and Patrick Manchi.

Lakeside Place is a 14,875 sf retail center located at 700 Wilcrest Drive near the Lakeside Country Club and the Westside Tennis Center. KM Wilcrest, LP acquired the underperforming center in January 2006 and with a strategic rehabilitation they were able to successfully lease the center to its current 94% occupancy. Tenants include Wilcrest Animal Hospital, Pet Chalet, Universal Florist, AC Hair Design and Sun Food Market.

Live Oak Capital, Ltd. is a full-service commercial real estate mortgage-banking firm specializing in debt and equity placement as well as loan servicing for the commercial real estate industry. Live Oak Capital is a member of the Strategic Alliance Mortgage, LLC (SAM), an affiliation of 21 independent mortgage-banking firms with offices coast to coast.

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Former Westwood Mall

Southwest Corporate Center, 9700 Bissonnet, has completed construction on the 175,000-sf West Wing Building, the second phase of the 535,000-sf property. “The West Wing is now ready for occupancy,” says Young Woo, principal of YoungWoo & Associates, the property’s owner. “Opening the West Wing is the result of strong leasing activity in Southwest Houston and the recent lease-up of Southwest Corporate Center, Phase One.”

In the 360,000-sf Phase One, 23,141 sf have been recently leased by Atos Origin and 6,895 square feet by Voter Consumer Research.

“The West Wing is a property designed for today’s high-density and high-tech users,” says Joseph Farkas, president of Metropolitan Realty Associates, operating partner for YoungWoo & Associates.

In late 2005, YoungWoo & Associates, a New York-based, investment and development firm, specializing in high-tech properties, purchased Southwest Corporate Center, a Class A, two-story office property.

Southwest Corporate Center is located on 53 acres on Bissonnet at the Southwest Freeway. Major tenants include Atos Origin, Voter Consumer Research, United Healthcare, Enterprise Rent-A-Car and Corinthian College. Formerly Westwood Technology Center, the roperty was originally Westwood Mall and was converted to Class A office space in 2000.

Steve Bryant of Moody Rambin Interests, Houston, leases the property and CB Richard Ellis, Houston, manages it.

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Industrial Buy

Mountain West Industrial Properties (“Mountain West”), a Colorado based real estate developer and investor, acquired the Houston Southwest Portfolio. Active in Houston since 2003, Mountain West’s March 2007 purchase of the four building portfolio expands upon their current Houston holdings, which include Kirby Business Center and Beltway Antoine Business Center. Houston Southwest totals 337,227 sf in four projects located at 3727 Greenbriar, 10610 – 10628 Rockley, 10325 – 10415 Landsbury and 8100 Westpark in southwest Houston. Each building is located within a business park setting consisting of tiltwall construction and brick facades. At the time of purchase the portfolio was 92.83% leased to various high quality tenants including Tyco Valves & Controls, Puffer Sweiven and Dish Network.

TJ Tarbell, Acquisition and Development Officer of Mountain West commented on the transaction saying, “This timely acquisition fits within our overall growth strategy for Houston and the other markets we are currently active in. We are committed to additional acquisitions throughout the year in Houston and other major markets.”

Mountain West has retained Transwestern to manage and lease the project. Leasing will be headed by Darryl Noon and Matt Young. The management team will be led by Transwestern’s Billy Reed.

Tom Lynch of CB Richard Ellis, Inc. in Houston represented the seller, First Industrial Realty Trust. Mountain West represented themselves in the transaction.

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Brownstones In Kingwood

Kingwood – Hahnfeld Witmer Davis a residential developer promoting pedestrian-friendly, urban living within suburban neighborhoods, has begun construction on Regent Square, a 3.4-acre residential community that will feature 35 brownstones on the shores of Lake Houston. Regent Square will be located within the 25-acre, mixed-use development Kings Harbor, a project destined to become a true city center for Kingwood.

Over the next year, HWD will work closely with a team of architects, urban planners and landscape architects to provide Kingwood with a vibrant, meticulously planned live-work-play community. Modeled after their award-winning Remington Brownstones in The Woodlands, Regent Square will be a waterfront enclave featuring classic architectural design and four distinctive floor plans that are priced from the high $300’s to $500’s and range from 2,450 to 3,300 square feet.

Kings Harbor will blend a mix of uses, including townhomes and brownstone living, boutique office space, local and national retail and restaurants, all combined in a unique pedestrian-oriented, waterfront environment. Located along Lake Houston on West Lake Houston Parkway, the initial phase of the project will contain 66,000 sf of upscale retail and restaurant space and 14,000 sfof office space.

Large Presidential Statues to Anchor Texas Destination

Mixed-use Development

Presidential Park at WaterLights, featuring large-scale 18-foot statues of all 42 U.S. presidents, is projected to draw 2 million people annually to a new entertainment/real estate development in the city of Pearland.

The presidential busts will be surrounded by pleasant water features and a navigable canal, said Richard Browne, principal of Historic Land Development LLC of Houston.

“The Presidential Park will provide an ideal setting for new restaurants and shops,” Browne said. “The presidential statues will be a significant tourism draw, creating a lot of customer traffic for the businesses that locate there.”

The presidential statues are the work of internationally acclaimed artist David Adickes. The Houston-based artist is known in Texas for his 67-foot statue of Texan legend Sam Houston on Interstate 45 near Huntsville.

The 50-acre WaterLights District mixed-use development will be located on Highway 288 at the future South Spectrum Boulevard, just south of Beltway 8. The project, opening in summer 2008, is 12 miles south of downtown Houston. Some 5 million people live within 35 miles and a factory outlet center is being developed within the WaterLights District™.

The presidential statues, made of concrete, each weigh 7,000 pounds. Two other sets of presidential statues by Adickes have been installed in Williamsburg, Va and in South Dakota. Several locations were considered before Pearland was selected as the ideal spot for the third set, which will be the only location in Texas to have an Adickes installation of presidents.

After the next election, Adickes will create a bust of the 44th president for the Pearland development. (Grover Cleveland served non-consecutive terms and is counted as the 22nd and 24th president.)

Carefully planned by Browne and planner Donald Bauer of Irvine, Calif., the statues will be situated to produce an exciting presentation that will encourage visitors to stay for hours. Hotels, retail stores, office spaces and residential condos and brownstones will also be developed.

Browne has designed a number of noteworthy projects around the world, including The Woodlands, Texas and Columbia, Maryland.

“Some developments rely on carousels or food courts to draw customers. But we believe that art, especially art with historical and educational significance, will make Presidential Park a rich and lasting attraction,” Browne said.

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Crow to Build CBD Tower

Trammell Crow Co. has acquired a full city block in Houston’s central business district where it will construct a 31-story office tower. The site, known as Block 126, will be the location for development of an office building known as Discovery Tower.

Situated on a high-profile site the future project will be located in the
heart of Houston’s Entertainment District and overlooking the new $93 million, 12-acre downtown park, Discovery Green, currently under construction. The site is also in close proximity to Houston Center, Four Seasons Hotel, Hilton Americas Hotel, Toyota Center,
Minute Maid Park, George R. Brown Convention Center, and One Park Place, a high rise residential development under construction.

According to Aaron Thielhorn, a Principal with Trammell Crow: “Based on the improving market dynamics in the Houston central business district, we made the decision late last year to pursue the best available site downtown. Our site, overlooking Discovery Green, allows us to capitalize on the heightened activity planned for this urban amenity. With the recent development around the
park, you can see and feel the momentum building.”

Gensler Architects has been hired to design the project, which will be built as a LEED certified project under guidelines established by the US Green Building Council. The project is expected
to be between 600,000 and 1.2 million sf. “We have the flexibility to gauge the final size of the project based on tenant interest in the coming months,” said Thielhorn.

The project is expected to break ground by the first quarter of 2008 with completion and occupancy by the first quarter of 2010.

The project is to be developed in conjunction with Principal Real Estate Investors. It will be the fifth project, and the second in Houston, built under the national office development program
established by Trammell Crow Company and Principal Real Estate Investors in 2006. Discovery Tower will represent the largest single project undertaken in the program.

“We’re very pleased with Trammell Crow Company’s ability to select prime development sites located in markets with strong demand fundamentals. The existing nearby amenity base and the new Discovery Green park make this site very attractive,” said Joe Wanninger, senior asset manager, Principal Real Estate Investors.

Thielhorn and Adam Saphier, Senior Associate, will oversee development of the project for Trammell Crow Company. Leasing and marketing will be handled by John Pruitt and Cody
Armbrister of CB Richard Ellis.

The parties to the site transaction were represented by David Cook of Cushman & Wakefield.

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Church Land

Glenwood Baptist Church bought nine acres of land on Red Bluff Road. Jay Jenckes of Grubb & Ellis handled the sale.

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Major Development

in Downtown Houston

The Houston office of Holliday Fenoglio Fowler L.P. has secured financing and joint venture equity for Houston Pavilions, a 544,000-sf mixed-use development underway in downtown Houston. HFF managing director Mark Sixour worked exclusively on behalf of the borrower, Houston Pavilions, L.P., to arrange a $120.59 million construction loan through North Houston Bank. Buchanan Street Partners provided $47 million in joint venture equity. Public grants from the CIty of Houston and Harris County totaling about $14 million also finance the project. The principals of Houston Pavilions, L.P. are Geoff Jones and William Denton. Denton is the president and CEO of Los Angeles-based Entertainment Development Group,, which develops urban retail and entertainment projects throughout the United States.

Due for completion in October 2008, Houston Pavilions will feature 350,000 sf of retail, 194,000 sf of office space and a 1,525-space parking garage. House of Blues, Lucky Strike Lanes, Books-a-Million and Forever 21 will anchor the center and other tenants will include McCormick & Schmick's, Red Cat Jazz Café and Antica Osteria. Houston Pavilions is situated on three city blocks in the center of Houston's central business district and has easy access to Minute Maid Park and Toyota Center.

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Clear Lake Area

Land Deal for Hotel

Bill Rowell, executive vice president of retail for Yancey-Hausman represented a private owner. in the sale of 4.5 Acres of land located at 300 West Bay Area Blvd. in Webster, TX. to Bay Area 4.5 Acres Ltd. Two acres of the land was then sold to Webster Hotel L.L.C. Rowell handled both transactions.

Rowell then represented Bay Area 4.5 Acres Ltd. in the resale of approximately 2 Acres of land located also at 300 West Bay Area Blvd. in Webster, TX. to Webster Hotel L.L.C.

Established in 1971, Yancey-Hausman currently has more than 60 employees in offices in Houston and Austin.

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League City Land

Magnolia Crossing 2005 bought 30.7 acres located on I-45, just south of the FM 646 intersection in League City, Texas. Simmi Jaggi and Elizabeth Clampitt of CB Richard Ellis represented the seller, Silvestri Investments of Florida, Inc.

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Buyer Taps Stream

Stream Realty Partners, L.P., will lease and manage a portofilio of Houston properties recently purchased by an Agellan Capital Partners investment group. The nine projects acquired contain a total of 1.15 million sf. The projects included in the acquisition are 2301 Minimax Drive, 232 West 38th Street, 302-350 W 38th Street, 9001 – 9101 Jameel Road, 6500 – 6600 Long Point Drive, 5975 – 6049 South Loop Freeway East, 1400 – 1412 East North Belt Drive, 6300 – 6320 Rothway Street, 2055 – 2155 Silber Road and 6100 – 6120 West by Northwest Boulevard.

At the time of the sale the portfolio was approximately 76% leased with vacancies ranging from 1,800 square feet to 37,000 square feet. Justin Robinson, Senior Associate with Stream Realty says, "The vacancies within this portfolio give us the opportunity to attract tenants of all types and sizes throughout Houston."

Kyle Valentine, Stream’s Co-Managing Partner in Houston stated “We are extremely excited to be working together with Agellan Capital Partners, Inc. and their investors on this assignment.” Valentine will work with Senior Associate Justin Robinson and Associate Wes Bautovich on the leasing of the portfolio. Laurie Gajevsky, formerly with Trammell Crow Co., will be the Senior Property Manager responsible for the day-to-day management of the portfolio.

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Westway Sale

Following its recent purchase of KTBU-TV Channel 55 “The Tube” and Channel 55 Production Company Inc., USFR Media Group is moving its headquarters to Westway Park, a 150-acre, mixed-use office park developed by Wolff Companies at the intersection of the Sam Houston Tollway and Clay Road, between Interstate 10 and U.S. 290. The 30,000-sf building at 11150 Equity Drive will serve as broadcast headquarters for both KTBU and America One Television Network, another USFR Media Group Holding.

Earlier this year, USFR Media Group purchased this Westway Park property, which served as the home of News 24 Houston until Time Warner’s 24-hour news channel ceased operations in 2004. The open facility offered a high-tech headquarters suitable for broadcasting in leading-edge digital media. KTBU-TV Channel 55 is available over the air, on cable and satellite networks, while America One Television Network has 167 affiliates nationwide.

Westway Park’s location puts it in the crosshairs of a high-tech hub reaching from the Energy Corridor to the west, software and computer hardware giants to the north and south, and fast-growing residential communities in the West and near Northwest.

In the past year, Westway Park has added five new global and U.S. headquarters locations. BJ Services Company has moved into its new 85,500-sf facility on 11 heavily wooded acres next to the 215,000 sf, class A headquarters of the Cameron division of Cooper-Cameron. Westway Park also is Western Hemisphere headquarters for London-based Invensys, a technology, instrumentation and controls company with more than $9 billion in total assets.

The headquarters locations of Equivalent Data, Satterfield & Pontikes and the Houston Apartment Association are all under construction. In addition, Dienna Nelson Augustine has broken ground on a 144,000 sf, three-story multi-tenant office building and pre-leased 70,000 sf for the new corporate headquarters for NATCO Group, Inc. St. Paul Travelers Companies have leased the 158,000 sf Intellicenter building being constructed by Koll Development.

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Retail Sale

Transwestern Houston today announced that it has brokered the sale of The Colonnade at West Lake Houston Parkway on behalf of The Lake Houston Group in the sale to DBSI Colonnade West Lake LLC.

The Colonnade, located in the Atascocita/Kingwood area, is a 54,219-sf strip retail center completed in 2004. The center, located one mile south of F.M. 1960 at the northwest corner of West Lake Houston Parkway and Aerobic Drive, was 100 percent leased at time of sale. “Neighborhood strip centers have performed very well in Houston over the last few years. Rents are steadily increasing," said Rudy Hubbard, who worked with Leah Gallagher of Transwestern in represented the seller in the transaction.

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Westchase Sale

Transwestern Houston brokered the sale of The Reserve at Westchase on behalf of a joint venture between Simmons Vedder and INVESCO Real Estate in the sale to Reserve at Westchase Limited Partnership

The Reserve at Westchase is a 193,772 sf Class A multi-tenant office building located in the Westchase District of Houston. The building is located on 6.562 acres and was constructed in 1999. At the time of sale the project was 100% leased to three tenants – Cameron International, Aegis Mortgage and Wood Group Pressure Control.

Rudy Hubbard and Leah Gallagher of Transwestern’s Gulf Coast Investment Services Group represented the seller in the transaction.

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Northwest Sale

Transwestern Houston brokered the sale of Northwest One on behalf of Northwest One, L.P. in the sale to RPD Catalyst, LLC.

Northwest One is a 126,015 sf, six story Class A multi-tenant office building located in the Northwest Freeway market of Houston. Situated at 13100 Northwest Freeway, the building was constructed in 1982 with recent renovations to the lobby and common areas.

Rudy Hubbard and Leah Gallagher of Transwestern’s Gulf Coast Investment Services Group represented the seller in the transaction.

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Industrial Sale

The Houston office of Trammell Crow Co. announced Prime Property Fund, an affiliate of Morgan Stanley, purchased the East Belt Business Park from Eastbourne Investments. In addition to the building, the sale included an option on an adjacent 12-acre site for future development to be made in conjunction with Trammell Crow Company’s Investment Development Division. Trammell Crow’s Rusty Tamlyn, Principal and Managing Director of the Capital Markets Group, along with Ralph Tullier, Vice President, negotiated the transaction on behalf of the seller. The 180,000 sf East Belt Business Park is a multi-tenant bulk warehouse located at 1455-1465 E Sam Houston Parkway in Pasadena. At the time of the sale, the building was 90 percent occupied to such tenants as Emerson Electric, Motion Industries, Teadit and Wrist USA.

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Dragonfly Sale

Dragonfly Investments No. 1 Ltd sold a 12,200-sf building on .87 acres of land to Hieu Nguyen and Christy Nguyen. The project is located at 5810 Windfern Drive. Thad Hickman and Tyndall Yaap with Grubb & Ellis Company represented the seller. Mark Lehman with Grubb & Ellis Company represented the buyer.

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Mini Storage

Live Oak Capital, Ltd. has arranged permanent financing for Metro Mini Storage—Cinco Ranch, located in Katy, Texas. John Fenoglio and Greg Young of Live Oak Capital arranged the loan with the Boston office of John Hancock Real Estate Finance in the amount of $3,300,000. John Hancock was able to offer a long-term, fully-amortizing loan structure at a highly competitive interest rate of 6.38 percent.Metro Mini Storage – Cinco Ranch is a 59,650 sq ft project encompassing 574 self-storage units.

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Lewis Realty in Uptown

Lewis Realty Advisors successfully represented the Uptown Development Authority in the acquisition of a key parcel of land in a right-of-way acquisition program that will lead to improved traffic flow in and around Houston's thriving Uptown area.

The latest land purchase in this effort is a strip of land at the northwest corner of San Felipe and Garrettson. The property, which was purchased from William C. Morris III, runs in front of a Wachovia Bank location.

The land deal is one of several negotiated by Matthew Deal of Lewis Realty Advisors on behalf of the Uptown Authority near the corner of San Felipe and Post Oak Boulevard, one of the primary intersections in Uptown Houston.

The land deals included the earlier purchase of a landmark Chinese restaurant, formerly Ho Sai Gai, which had operated on the site for more than 30 years.

“The agency’s land acquisitions are part of a plan to widen San Felipe to enhance mobility within, and beyond, Uptown’s jurisdiction, ” Deal said. “These purchases were vital steps in allowing Uptown to continue to emerge as one of the premier centers of commerce in Texas. The widening of the San Felipe artery will significantly decrease traffic congestion west of Loop 610.”

In addition to representing the Uptown Development Authority, Lewis Realty Advisors provides real estate counseling for a number of governmental agencies and municipalities. With sensitivity to the needs and requirements of governmental entities, Lewis Realty has developed a niche as the leader in governmental real estate counseling. Lewis Realty Advisors, a 45-year-old firm, prides itself as being the preferred bridge between government and private property owners.

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Church Buys Tract

Chapelwood United Methodist Church bought a 7-acre parcel at 8526 Pitner Road.

Doug Nicholson and John Nichsolson with Grubb & Ellis represented the seller, Blazer Land, LLC.

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REI Wins Suit in I-10

Eminent Domain

A jury has awarded a $5 million judgment to the REI sporting goods retailer, which lost a considerable number of parking spaces through a condemnation proceeding that widened the Katy Freeway.

REI filed suit against the State of Texas after the government acquired 1 acre of REI’s 3.5-acre retail site in March of last year in an eminent domain proceeding.

The acquisition included over 50% of the parking and rendered the building of no value. “A retail store without adequate parking can no longer operate as a retail store because the store’s customers cannot find a place to park,” said Lewis Realty Advisors principal Mark Sikes, who testified as an expert valuation witness in the case.

The state contended that REI should be compensated $3.3 million. Sikes said that retailer should receive $5 million, reasoning that the property was worth $9.6 million before the eminent domain taking and $4.6 million after the taking.

A jury in Judge Jack Cagle’s Harris County Court-At-Law No. 1, agreed with Mr. Sikes and ruled in favor of REI. The store has been demolished and the retailer moved elsewhere.

The widening of I-10 in west Houston, resulted in dozens of disputes with the state about property values and acquisition prices. The Lewis Realty Advisors team, led by Sikes, handled many of the cases for Katy Freeway property owners in negotiating fair purchase prices from the state.

The REI case was the first lawsuit to go to jury trial in the Katy Freeway eminent domain takings, Sikes said.

“The taking of a commercial property through eminent domain is a complex event and property owners do not want to tackle it without an expert in this specialized field,” Sikes said. “A significant number of Katy Freeway property owners enlisted our help. The initial offers by the state were consistently too low and the property owners were wise to protest.”

Houston-based Lewis Realty Advisors, founded in 1961, has handled thousands of eminent domain matters over the years. The company has a long history of working as an advisor to private companies and various municipalities and government agencies in real estate appraisal, acquisition and counseling. The national leader in eminent domain expertise, Lewis Realty Advisors is the bridge between government and private property owners. .....................................................

Colliers Brokers Tract

For NW Apt. Project

Dallas-based Vista Realty purchased 16 acres in northwest Houston for a new apartment project.

The tract is located at Northpointe Boulevard and State Highway 249 in The Villages of NorthPointe subdivision.

Christopher D. Winters, Principal, and David Butler, Principal, of Colliers International represented Eastbourne Investments Ltd. in the disposition.

“The Tomball area is capturing much of the new residential expansion in Houston’s Northwest with commercial development following closely behind,” stated Winters. “This market area has experienced exceptionally strong growth over the past years, including the addition of Canyon Gate residential development, three new Tomball ISD schools, Chase
Bank, CVS Pharmacy, Wachovia Bank and Spring Creek Medical Center.”

This land transaction represents a continuation of recent activity along the 249 Corridor, between Willowbrook and Tomball, as developers and investors capitalize on the strong growth of Houston’s Northwest.

Despite Houston's strong job growth, some have expressed concerns that brisk apartment construction is could produce an excess of units. However, certain construction deals appear to be very solid.

"We expect to see construction slowing down a bit as occupancy softens in Houston. However, there are some niche opportunities for new development that make a lot of sense," said Teresa Guidotti Lowery, Principal in the Multi-Family Investment Properties group at Colliers International.
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Center Sold

Heather Nguyen of NewQuest Properties represented Pearland Plaza Partners in the sale of Pearland Plaza at the northeast corner of FM 518 and FM 1128 in Pearland, Texas, to MRA One, LLC. Connie Doumenis of Coldwell Banker Commercial represented the buyer.

Energy Corridor Building

Launched by CORE and Pru

CORE Real Estate, LLC, a Houston-based real estate developer, and Prudential Real Estate Investors, a Parsippany, N.J.-based real estate investment firm, have announced the development of the 173,815-sf, three-story 17000 Katy Freeway, an office building in the Park 10 development.

Groundbreaking will be Sept. 1 with initial occupancy in the second quarter of 2007.

The Energy Corridor area of West Houston has been a very vibrant submarket in recent months.

“The increased demand for large contiguous space in the Energy Corridor is driving the development of this property,” said Mike Wyatt of CORE Real Estate. “Energy and energy engineering firms are the primary market, with other oil and technology support firms a close second.”

17000 Katy Freeway is being developed in a partnership with investors advised by Prudential Real Estate Investors, the Parsippany, N.J.-based real estate investment and advisory business of Prudential Financial, Inc.

“17000 Katy Freeway will combine direct access, a convenient location and visibility from the Katy Freeway with upscale finishes and efficient floor plates,” says Bonnie Kelley of Trammell Crow, leasing agent for the building. “This property is planned for growing businesses and provides 59,000 sf of contiguous space on each floor. In addition, parking for approximately 800 vehicles will be available.”

Kelley and Cody Armbrister of Trammell Crow Co. will handle leasing for the new building. Mike Wyatt, Ric Pipkin and Mike Haley of CORE Real Estate are developing the project. The architect is Powers Brown Architecture, Houston; the general contractor is Harvey, also of Houston.

There is a considerable amount of new office space under development in the Energy Corridor.

In a separate Energy Corridor deal, Trammell Crow Co.’s Houston office recently announced the development of the 13-story, 330,000-sf Energy Center, Phase I, located in West Houston, at the northeast corner of Eldridge Parkway, between Dairy Ashford and the Katy Freeway. Construction of that office building will begin in September with occupancy in the fourth quarter of 2007.

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1900 St. James Place

Live Oak Capital, Ltd. has arranged fixed rate, non-recourse permanent financing for 1900 St. James Place Office Building in Houston in the amount of $8.8 million. David Aaronson of Live Oak Capital arranged the loan with American National Insurance Co.

The 140,000-sf building, constructed in 1973, is located at 1900 St. James Place in the Galleria area. The current occupancy is 61 percent and includes such major tenants as Barrett Burke Wilson Castle, Petris Technology, Inc., Suzanne Bruce and Associates and Gebbia Holding Co.

1900 St. James, LP is the owner of the property and Rockwell Management Corp. is the manager. Rockwell currently manages 21 multifamily properties totaling approximately 7,000 units located throughout Houston, in addition to three office buildings totaling approximately 400,000 sf. Etan Mirwis is the President of Rockwell Management.

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Hines Refi on

Downtown Tower

The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $49.187 million refinancing for 919 Milam, in the heart of Houston's central business district. The building is currently undergoing major renovation by Hines into 550,000 sf of Class A office space with a 300-space on-site parking garage.

HFF executive managing director Scott Galloway and managing director Susan Hill worked exclusively on behalf of National Office Partners Limited Partnership (NOP) to secure a three-year, adjustable-rate loan through Wachovia Bank. NOP is a joint venture between the California Public Employees' Retirement System and Hines that has a portfolio of approximately 5.2 million sf of Class A office assets.

Formerly known as 910 Travis, 919 Milam is located on a full city block bounded by Travis, Walker, Milam and McKinney Streets. The property contains 24 stories of office space and has access to the city's tunnel system

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Major New Center To

Be Built in Pearland

Transwestern Commercial Services and WCF Development, a Houston-based commercial real estate development firm, have announced plans to begin construction on a 600,000 sf H-E-B-anchored open air retail center in Pearland, Texas. The project is a joint venture of Transwestern Development Company and WCF Development, with substantial construction to be completed in the summer of 2007.

Located at the northwest corner of State Highway 288 and FM 518, Shadow Creek Ranch Town Center will be a blend of grocery-anchored large format space, specialty soft goods retailers, restaurants and service retail. Designed in an upscale Mediterranean village setting with various landscaped pedestrian venues, the center will be a Spanish Eclectic Style with red tile pitched roofs and asymmetrical facades with colors that reflect the earthy palette of the site's landscape.

Shadow Creek Ranch Town Center will be anchored by a 150,000 sf foot H-E-B grocery store constructed at the northeast corner of the site. H-E-B’s Shadow Creek store represents their largest store in the Houston metro area to date. Based in San Antonio, H-E-B proudly employs more than 60,000 partners and serves millions of customers in more than 150 communities throughout Texas and Mexico. Additional tenant spaces totaling 200,000 sf feet are currently under lease negotiation and include such tenants as Academy, Amegy Bank, Compass Bank, Hobby Lobby, La Madeleine, and McAllister’s Deli.

According to Will Deane, managing director of Transwestern’s Houston Retail Services group, “Transwestern has been interested in developing a retail center in Pearland for some time.