Category: Southeast Texas

The Boulder Group Arranges Sale of Net Leased CVS Pharmacy in the Houston MSA

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(Wilmette, IL- November 30, 2020) – The Boulder Group, a net leased investment brokerage firm completed the sale of a single-tenant CVS Pharmacy located at 5757 New Territory Boulevard in Sugar Land, Texas for $2,957,500. The 10,906 square foot building is located adjacent to the Grand Parkway interchange (44,973 VPD), a primary north-south thoroughfare. Retailers within the same stretch include Chase Bank, Chevron, 7-Eleven, GNC, and Extra Space Storage. The CVS property is located within the Houston MSA – ranked #5 for population size in the United States. Sugar Land is a southwest suburb of Houston and only 20 miles from downtown. There are 182,706 people living within 5 miles of the property with an average annual income of $137,942. Jimmy Goodman and John Feeney of The Boulder Group represented both sides in the transaction. The buyer was a New York based investor involved in a 1031 exchange and the seller was a Texas based developer. The CVS lease has over 11 years remaining and features four 5-year renewal option periods with $0.50 psf rental escalations in each option. CVS Pharmacy is the nation’s largest drugstore chain and total prescription revenue and operates 9,800+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil. CVS is an investment grade rated tenant (S&P: BBB). “CVS drug store properties with proven operating histories continue to garner significant investor interest” said Jimmy Goodman, Partner of The Boulder Group.  John Feeney, Senior Vice President of The Boulder Group, added, “Properties near large metropolitan areas remain in demand with all investor classes, especially with tenants such as CVS.”


About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $6 billion of single tenant net lease real estate transactions. From 2012-2019, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

Investors Purchase 1111 Fannin Office Tower in Downtown Houston

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JLL Capital Markets completed the sale of 1111 Fannin, a 17-story, 428,629-square-foot office tower located in the heart of Houston’s central business district. JLL represented the seller and procured the buyers, Triten Real Estate Partners and Taconic Capital Advisors. Terms of the deal were not disclosed. “We are very excited to close on this opportunity with Taconic,” said Scott Arnoldy, managing partner at Triten Real Estate Partners. “1111 Fannin represents one of the best redevelopment opportunities in downtown Houston. The project is well-located within the CBD, has direct access to the tunnel system and is steps away from an incredible slate of amenities, including Discovery Green, the Four Seasons Hotel and the Green Street development. More importantly our basis will allow us to offer a completely unique experience at a dramatic discount to current market rents. It’s also an attractive option for any user looking to control their own environment.” “We have selected HPA Architecture out of Chicago to help us conceptualize the possibilities of the building,” Arnoldy said. “HPA has worked on notable creative office developments and re-developments across the country including HQ buildings for two of the big five tech companies nationally. We look forward to working with HPA to design an experience that will meet the rapidly changing needs of the market.” 1111 Fannin, which is 100 percent leased to a single investment-grade tenant, features a podium-style design with center-core floor plates that average 31,500 square feet. On-site amenities include a conference center, card key access, 24/7 security and an attached parking garage. The property has direct access to Houston’s tunnel network, which features more than seven miles of underground, climate-controlled walkways with retail and dining amenities. Additionally, the property’s location in the heart of Houston’s CBD affords it quick access to a variety of amenities and attractions, including The Shops at Houston Center, The George R. Brown Convention Center, Market Square, Minute Maid Park and the Toyota Center. 1111 Fannin also has direct access to Houston’s highway system as its centrally located between Interstates 10, 45 and 69, providing connectivity to the greater Houston area. The JLL Capital Markets team representing the seller was led by senior managing director Dan Miller, senior director Martin Hogan and analyst Ethan Goldberg.

Transwestern Tapped to Lease and Manage 350,000-SF Office in Houston’s Bellaire Submarket

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Capital Commercial Investments Inc. (CCI) has engaged Transwestern Real Estate Services to provide leasing and management services for a five-story, 351,030-square-foot building at 6500 W. Loop S. in Houston. Longtime owner and occupier AT&T will remain on the fourth floor, leasing 74,000 square feet of space. Transwestern’s managing director Doug Little, executive vice president Justin Brasell and senior vice president Ashley Cassel will represent the building owner in leasing efforts. Located only four miles from the Texas Medical Center, the property is ideal for traditional office users as well as those in medical-related fields. “The Texas Medical Center has only two existing properties with availability over 40,000 square feet,” said Brasell. “With this property’s proximity to the campus, it’s a fantastic opportunity for medical users that need a large footprint.” 6500 W. Loop S. sits on 11.4 acres, has a three-story parking garage and expansive 74,000-square-foot floor plates. CCI is currently planning capital improvements that will include a refreshed exterior, activation of the exterior green space, common area upgrades and updated energy efficient lighting throughout. “Bellaire is a unique submarket, and nothing competes with the excellent location and large floor plates,” said Roger Shipp, senior vice president of acquisitions for CCI. “Any office user will find this combination of superb location and outstanding building attributes appealing and we expect to attract prospects from all over the city. Over the past 25 years, CCI has been one of the real pioneers in acquiring, evaluating and re-purposing large office projects in search of their next life.”

Leaving a Legacy: Celebrating the Life of James B. DeGeorge, Sr.

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When Michele DeGeorge (née DiGiorgio) arrived in Houston from Italy in the 1880s, he could never have predicted the impact he and his descendants would have on his new home. Several generations later, the community he quite literally helped build is saying goodbye to Michele’s last surviving grandchild, James B. DeGeorge. Born in 1932 to parents Gasper M. DeGeorge, Sr. and Josephine Pinto DeGeorge, James attended school and even some college in Houston before attending the University of Texas at Austin. The call of duty interrupted his studies in 1951; James, a United States Marine Corps reservist, served at Camp Pendleton during the Korean War. He married several years later in 1955 and, two years after that, welcomed his first child into the world. James “Jimmy” Bernard DeGeorge Jr. was followed by Gregory “Greg” Allman DeGeorge in 1958 and Lance Clayton DeGeorge in 1970. “He was like a lot of dads,” said Greg. “He was very interested in my upbringing and how I did in sports.” James would often take the time to come to his sons’ games or, as a special treat, take them to a pro football game on the weekends. As they grew older, Greg said his father never pressured him or his brothers to pursue a career in real estate. “His attitude was ‘You can do whatever you want to do,’” Greg said. “I actually got more pressure from a couple of friends who told me I’d be crazy if I didn’t go into real estate because it’s in my blood.” To understand that, you need to look back into the history of the DeGeorge family. James’ grandfather, Michele DeGeorge, immigrated to the United States in 1882 with his wife Ursula and settled in Houston by 1884. There, he operated a grocery store and saloon, which he eventually expanded to three different locations. Michele invested the money he earned into real estate, eventually founding the DeGeorge Hotel in 1913 and the Auditorium Hotel (now the Lancaster Hotel) in 1926. Click to read more at www.rednews.com.

NewQuest Launches Asia-Pacific Retail Division

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NewQuest Properties introduced a new international division in the Asia-Pacific Region. Development partner Heather Nguyen, based in Houston, will lead NewQuest Asia-Pacific Retail, a veteran team of brokers and affiliates in China, Japan, South Korea, Singapore, Taiwan and Vietnam. NewQuest managing partner Jay Sears is integrally involved and will spearhead capital investments. The team’s 10 professionals have more than 120 years of retail industry experience. “We’ve built strong relationships with overseas companies through the years. We understand their businesses and needs in the U.S.,” Nguyen said. “This is an unparalleled growth opportunity for NewQuest and our existing and future clients.” The expanded team includes Jason Wang, development director; Yoshihide Murata, development senior consultant and Kaishu Okada, business development consultant who is based in Tokyo. Wang most recently was development director for 85° C Bakery & Café’s U.S. expansion. Yoshihide formerly was vice president of real estate for Daiso Japan. Kaishu previously was senior managing director of Newmark Knight Frank’s Japan office. NewQuest’s new division also includes Naoyuki Kondo, retail leasing specialist who joined the brokerage firm earlier this year. He was the former real estate director for Kura Revolving Sushi Bar and spearheaded its expansion in the U.S. Rounding out the Asia-Pacific group are longtime NewQuest brokers Rebecca Le, senior vice president; John Nguyen, vice president; and Grace La, associate. “Texas has quickly become a retail powerhouse for Asian-Pacific tenants seeking to expand their operations in the U.S., and NewQuest Properties has proudly represented several internationally renowned players in this space with great success,” said Katherine Hatcher, president and COO. “The international expansion of our retail brokerage celebrates an exciting new chapter for NewQuest with great potential on the horizon.” Asia-Pacific is the world’s largest retail market, boasting innovative brands with strong growth trajectories in e-commerce and physical locations. Statista pegs APAC’s sales volume in the U.S. in e-commerce alone at $3.6 trillion. In the past five years, the region’s sales more than quadrupled that of the rest of the world, according to Bain & Co. “Asia-Pacific brands have experienced tremendous growth in their domestic and European markets. The U.S. is their next new market,” Nguyen said. “Our team will help these companies grow in the U.S. and make the right decisions to ensure a higher ratio of success.” NewQuest’s Carrollton Town Center, a 150,227-square feet retail redevelopment in north Dallas, is the genesis for the Asia-Pacific brokerage division. Through Nguyen and her team, scores of Asian dining and retail concepts have been introduced to Texas—some gaining an initial point of entry to the U.S. and others expanding for the first time beyond California and New York. “Carrollton Town Center’s success caught the attention of companies overseas,” Nguyen said. “Its tenants are hitting record sales this year. Texas has proven to the world that business can continue even during a pandemic.” The number of Asia-Pacific retailers looking to move to the Americas is growing by the day. In 2019, foreign direct investments from Asia Pacific in the United States amounted to approximately $858.5 billion U.S. dollars, according to Statista. For many brands, the Americas present the largest new customer pool for global growth. As the globalization of consumer culture continues, Asia-Pacific retailers are finding an increasingly receptive market and often distinguish themselves as a breath of fresh air into an otherwise saturated, mature retail market. The Asia-Pacific division will benefit from NewQuest’s development expertise. “If our client wants a specific retail synergy, we’ll find the right opportunity in its preferred market. If it doesn’t exist, we can build from the ground up and create the opportunity to meet our client’s needs,” Nguyen said. “We’re different in that we’re not just a brokerage company.” NewQuest’s new division has been five years in the making as the core team fine-tuned the development concept, resulting in upscale Asian-centric retail centers in Dallas and Houston. The firm’s brokers have built deep relationships globally along the way. “NewQuest is taking its talented brokerage team to greater heights with the addition of the Asia-Pacific Retail group,” Sears said. “Despite challenges for commercial real estate, our firm is thriving and continues to grow its portfolio and depth.

NAI Partners Arranges Sale of 16.8 Acres in Northwest Houston

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NAI Partners recently arranged the sale of a 16.8-acre site at 5550 Bingle Road in Houston to Trammell Crow Residential (TCR), who recently commenced construction on the site. Allora Northwest Crossing, a 378-unit, three-story, attainable rental housing community is slated to open in the fourth quarter of 2021. The high-quality, lifestyle-focused community features large floor plans, full-size in-unit washers and dryers, stainless steel appliances, fitness center, pool, dog park and a bike room. The premier location in northwest Houston provides convenient access to Northwest Freeway, offering a short commute to Downtown Houston and the Galleria area, and is within a mile of multiple dining, retail and entertainment options. NAI Partners’ Chris Caudill represented the buyer, Maple Bingle Apartments, LP, an affiliate of TCR, while the sellers’ group, led by Claude B. Anello, was represented by NAI Partners’ Clay Pritchett and Zane Carman. Terms of the transaction were not disclosed.