Category: Focus 2020

CBRE Brokers Sale and Arranges Financing for 180-Unit Multifamily Property in Euless

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CBRE announces the sale and financing of Riverside Villas, a 180-unit, Class A multifamily community located at 3741 Post Oak Boulevard in Euless, Texas. First Capital Advisors (FCA) purchased the property from Dallas-based Trinity Postoak Ltd. Chris Deuillet, Jeremy Faltys and William Hubbard with CBRE capital markets’ investment properties in Dallas represented the seller. Jeff Stein, Michael Thompson and Brock Hudson with CBRE capital markets’ debt and structured finance team in Houston arranged the financing on behalf of FCA. This is the second multifamily purchase for FCA as they re-enter the Dallas-Fort Worth market. They were encouraged by the strong DFW market fundamentals and foresee the area as a core market for multifamily ownership across the country. “With Riverside Villas coming out of its initial lease up in the midst of the pandemic, collections were not affected,” said Deuillet. “This was one of our first assets to market in a post-COVID environment and Dallas-Fort Worth is still a very desirable location for solid returns. I was surprised on the level of interest we received.” The CBRE debt and structured finance team worked with FCA to secure attractive 10-year fixed rate agency financing from Freddie Mac. “Riverside Villas garnered intense lender interest from both agencies, but in the end, Freddie Mac was able win the assignment by allowing FCA to lock rate immediately and got comfortable with borrower projections on a property that was just stabilizing amidst COVID-19,” said Stein. Constructed in 2019, Riverside Villas offers residents high quality interior features and community amenities including a resort-style pool, 24-hour fitness center and business center. The property has close proximity to several major Dallas-Fort Worth employers, including DFW Airport, American Airlines, General Motors, Lockheed Market and the University of Texas at Arlington. The property was 94 percent occupied at the time of sale.

Medical Transportation Management, Inc. Renewed 16,600SF at 5151 Mitchelldale in Houston

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Medical Transportation Management, Inc. renewed 16,600SF at 5151 Mitchelldale in Houston, TX for 6 months. Ed Frantz with CBRE represented the tenant and Justin Harrity represented the landlord, Hartman Income REIT.

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.”