Category: Focus November – 20

Triten Real Estate Partners Fills Over 500,000 Square feet of Industrial Space in the Port of Houston

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CBRE announced that two new tenants will be joining the Underwood Port Logistics Center and Bayport North Logistics Center I, absorbing over half a million square feet of industrial space in Houston’s Southeast submarket. A global e-commerce provider has signed a lease for 402,648 square feet at Underwood Port Logistics Center, located at 4600 Underwood Road in Deer Park, Texas. Frederick Trucking has secured 102,863 square feet of bulk distribution space at Bayport North Logistics Center I, located at 9701 New Decade Drive in Pasadena, Texas. The landlord, an affiliate of Triten Real Estate Partners, was represented by Joseph Smith, Patrick Rollins, Jason Dillee and Andrew Jewett of CBRE. Dedrik Pharis, with CBRE’s Inland Empire, California office, represented the tenant at the Underwood Port Logistics Center and Chris Haro with NAI Partners represented Frederick Trucking. “Both tenants recognized the value in having a modern distribution center within immediate proximity to the Port of Houston,” said Will Hedges with Triten Real Estate Partners. “These state-of-the-art facilities will offer both tenants a prime facility to meet the growing fulfillment needs of their business.” According to CBRE Research, at the close of Q3 2020, the Southeast industrial submarket had a vacancy rate of 7.6 percent.

NewQuest Properties Facilitates Retail Real Estate Sale in Houston

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Local investment group RMM Properties LLC has purchased another retail center in southeast Houston, snapping up the 39,038-square-foot Centre South in a value-add play. NewQuest Properties brokered the acquisition of the asset, located at 11030 Kingspoint Road. With Interstate 45 on its doorstep, the 3.3-acre property is located at a redevelopment hotspot near Almeda Mall, where a strong Hispanic population is the catalyst for a booming retail marketplace. The Newquest team of Kelley Workman, David Luther and Dakota Workman represented the out-of-state seller, Community Commercial Properties II LLC. “You need the right owner to understand the demographics of this market,” said Workman, vice president of NewQuest Properties’ investment sales group. She also sourced and represented the buyer. According to market reports, there are 62.8 million Hispanics in the U.S., representing the fastest growing population segment and highest-spending minority group. Research firm Claritas estimates 2020’s annual aggregate Hispanic household spending will reach $978 billion. Centre South’s five-mile trade area has a population hovering 300,000. The average annual household income is nearly $75,000. The center’s occupancy was 79.2 percent at sale time. Developed in 1970 and renovated in 2018, the project is anchored by Sherwin Williams, Brown Sugar BBQ and COVID-sidelined Club Rumba. RMM Properties, which has an in-house leasing team, has 6,000 square feet to fill in four spaces. “During COVID-19’s early months, we signed three new, healthy leases. That really motivated the buyer,” Workman said. The new tenants are Southside Driving School, Internet Café and La Fleur of Houston, a full-service event planner. A few renewals also were signed during the marketing period. RMM Properties financed the acquisition through Central Bank. Carlos Alvarez, senior vice president of lending, arranged the financing.

Bradford Team Secures Five Leases in 30 Days for Renovated Arlington Downs Tower

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With a recently renovated lobby as incentive, Bradford Commercial Real Estate Services has wrapped up a leasing flurry in Arlington Downs Tower in Arlington, Texas, signing one newcomer, two expansions and three renewals in a 30-day span. The deals have locked down 17,537 square feet for the long term in the 87,411-square-foot office tower, located at 2225 E. Randol Mill Road in the Arlington Entertainment District. Bradford’s Richmond Collinsworth, first vice president, and Erik Blais, vice president, lease the project for the local landlord, Arlington Downs Tower. New to the project is Creator Age Inc., a technology development company that’s set up shop in 2,958 square feet. Sheryl Pickens of PickensRidnour LP represented the tenant, formerly Spring St. Productions. Through direct negotiations, the Bradford team has signed renewals and expansions with PDMS Design Group Inc. and Stride Staffing which now occupy 9,765 and 2,370 square feet, respectively. The tenants have expanded by 1,122 and 415 square feet, respectively. The Parks Group Inc. has renewed a 1,719-square-foot lease and Mechanical Contractors Association of Dallas Inc. has re-upped 725 square feet. “We’ve had a lot of interest since we’ve completed the lobby remodel,” Collinsworth said. “Tenants spend a large part of their time at the office so it’s critically important to be in a place that brings you joy.” The lobby sports a contemporary look with new lighting, flooring and wall coverings accented by neutral colors of black, gray and taupe. The upgrades also included modernizing the elevator cabs, a digital directory, tenants’ lounge, a conference room and glass office doors on the first floor. Blais credits the newly signed leases to the lobby remodel and a competitive rate with office projects in Arlington and surrounding markets. The six-story structure historically has been popular with companies and professionals seeking 2,500 square feet or less. “In the past two weeks, we’ve been getting calls from people who want smaller spaces and are ready to get back to the office,” Blais said. “If you need 400 sf square feet, we have it. If you need more, we have it.”

Archway Properties Sells Manufacturing Facility in 1,655-acre Conroe Park North to LaserWeld

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Archway Properties has sold a 71,750-square-foot manufacturing facility in the 1,655-acre Conroe Park North in Montgomery County to LaserWeld Inc. for its second location in Greater Houston. Situated on 10.5 acres at 3479 Pollok Drive in Conroe, Texas, the facility was move-in ready at sale time. The Archway-developed building, completed in 2017, features 10-inch thick slab, 10-ton crane and climate-controlled welding areas. LaserWeld is a sheet and plate metal fabricating company headquartered in Katy, Texas, roughly 65 miles southwest of its new operation. Key to the sale is the built-in capability to expand the structure to 129,250 square feet and a location in a city with a labor-ready and skilled trades workforce. “We built this facility with the future in mind,” said Ben Allen, partner in the Houston-based development company. “In a rapidly changing world, it is difficult to predict what industry needs will be required decades from now, but at Archway we endeavor to create functional projects that will stand the test of time.” Allen represented Archway in the sale to LaserWeld. Bill Byrd of Colliers International negotiated on behalf of the buyer. LaserWeld will be the 40th company in Conroe Park North, which has one of the largest concentrations of manufacturing facilities in Montgomery County. The industrial hub accounts for nearly 4,000 jobs with more on the way as several projects near completion, including a 145,200-square-foot warehouse for Illinois-based Buske Logistics. Earlier this year, Five Below Inc. opened a $42 million, 715,000- square-foot distribution center in the park. “We’ve put a lot of tools in place that will let manufacturing be successful, such as a Lone Star College satellite campus that offers training in trades like welding,” says Danielle Scheiner, executive director of Conroe Economic Development Council. “The labor force here is highly skilled and continues to grow because of the population growth.” Conroe’s population hovers around 92,000, a city with a good quality of life and available housing at all price points. Conroe Park North is a manufacturing hub deeply focused on the supply chain, underwritten by multiple business incentives that include Foreign Trade Zone and quadruple Freeport Exemptions designations. The industrial park was created in the early 1970s by a group of local investors. The city acquired it in the 1990s and expanded it to 1,655 acres. A third four-lane access point to Interstate 45 is under construction. Scheiner said there has only been one other time a project was vacant in the park during her seven-year tenure and, like Archway’s facility, it was immediately backfilled. “We are grateful to Archway Properties that this site will remain in production so residents can continue to have job opportunities,” she said. “We are excited to have LaserWeld join the family.”

Stream Realty Partners Awarded Leasing of Million Square-foot Office Portfolio

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Woodbranch Management has selected Stream Realty Partners’ Houston office leasing team as the exclusive leasing partner for its 1.1-million-square-foot, six-building Houston office portfolio. The portfolio includes four buildings in the Westchase submarket—9800 Richmond Avenue, 3100 S Gessner Road, 11000 Richmond Avenue and the 21-floor Millennium Tower, located at 10375 Richmond Avenue, which is currently undergoing significant renovations. Additional properties, located in the Galleria submarket, include 1775 St. James Place and 4265 San Felipe Street, which will also receive large-scale renovations. “This portfolio includes some of Houston’s best properties for office leasing and we are proud to put them in the experienced hands of Stream Realty Partners,” said Philip Schneidau, Woodbranch Management. Millennium Tower’s renovations are expected to be complete by the fourth quarter of 2020. They include a major lobby renovation, granite paneling in all 21 elevator lobbies, modern executive conference rooms and a state-of-the-art tenant lounge. High-speed internet access will be incorporated into every office through several providers, enabling tenants to choose which service best suits them. Updates to San Felipe will include a redesigned lobby, with floor to ceiling vertical LED lights, a touch screen directory, modern marble walls and floors and new glass doors. Additionally, the lobby will have access to the breezeway, which will undergo renovations such as new LED down lights, flat white ceiling tile, white marble garage elevators, and modern sconce lighting for visitor parking. “We are excited to have the opportunity to work with Woodbranch on the successful lease-up of these prominent buildings,” said Ryan Barbles, managing director for Stream. “The combination of all six properties, and the renovations to come, make any building in the Woodbranch portfolio an attractive option for tenants looking for a modern space that serves their business needs.” Stream’s office leasing team of senior vice president Brad Fricks, vice presidents Craig McKenna and Mat Volz, senior associates Adam Ross and Matt Asvestas, and associate Elliot Collie will serve as leasing agents for the six properties.

Fort Worth FedEx Distribution Facility Sells for $8 Million

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An approximately 92,450-square-foot distribution building leased to Federal Express Corporation in Fort Worth, Texas has sold for $8,110,000. Ryan Barr and Ryan Bennett of Lee & Associates – North San Diego County represented the seller, Infinity nine of Fort Worth LLC; Cushman & Wakefield represented the buyer, a California-based investor, MH Sherman Company, in the 1031 exchange. The building sits on a 10-acre parcel and is located at 5601 Mark IV Parkway in Fort Worth. The building features 11 loading doors, expansive parking and a vehicle maintenance shop with three drive-in bays. FedEx has occupied 100 percent of the facility since completion of the build-to-suit construction in 1998. They have since extended the lease twice, the most recent in August 2018, extending their term another 10 years. The subject property is located just a half-mile from Interstate 820 at the interchange of Interstate 35W for quick access to downtown Fort Worth less than eight miles to the south. Additionally, the property is strategically located just five miles from the Fort Worth Meacham International Airport, which sees 1,800 flights per day and is undergoing an expansion, with new hangars and a renovated terminal and administration building.