NewQuest Properties will soon break ground on additional multi-tenant space in the Grand at Aliana after landing the award-winning First Watch as its newest tenant in the 56-acre regional development in Fort Bend County, Texas. The popular breakfast, brunch and lunch eatery has leased a 4,060-square-foot end cap in a soon-to-start 10,900-square-foot building. A second multi-tenant project, totaling 9,490 square feet, will begin to rise in early Q1. Both structures will be prominently positioned at the main entrance of the Grand at Aliana and front the Grand Parkway/TX 99. “The Grand at Aliana is one of the few large shopping centers that has delivered in 2020 in the region and has stores that are opening,” said Josh Friedlander, vice president of NewQuest Properties. He and David Meyers, leasing director, lease the project for the Houston-based development and brokerage firm. NewQuest will deliver the first multi-tenant building in May. Otwell Construction Inc. of Magnolia, Texas, is the general contractor. If all goes as planned, First Watch will open in September. The Grand at Aliana is First Watch’s 16th location in Greater Houston for franchisee Mac Haik Enterprises. Ron Marshall, president of Mac Haik Realty LLC, served as tenant representative in the negotiations. Opening in the past month were Burlington, Five Below and Petco. In early Q1, Michaels, Ross Dress for Less and Ulta will come online. At build-out, the Grand at Aliana will add nearly 400,000 square feet of class A retail and restaurant space to the Grand Parkway-West Airport Boulevard intersection. “First Watch is the first in its category to land at that intersection. The Aliana neighborhood has been asking for a wider selection of restaurants, which we are trying to provide,” Friedlander said. Aliana is one of Fort Bend County’s newest communities. It is master planned for 4,423 homes and its neighbor, Harvest Green, will have 2,626 at completion. NewQuest’s regional development’s trade area boasts 42,339 households with an average annual income of nearly $100,000. “The area as a whole is experiencing extraordinary growth,” Friedlander said. “As a result, our leasing activity is strong for inline space and pads. I have another dozen deals under negotiation.”
Mountain Pointe Enterprises leased 2,400SF at 5151 Mitchelldale in Houston, TX for 5 years. Kellye Eancheff with Texas United Realty represented the tenant and Justin Harrity represented the landlord, Hartman Income REIT.
Stream Realty Partners recently facilitated four industrial leases in Houston. Ordinary Concepts signed a lease of 2,865 square feet at Fairway Business Park, 10606 Hempstead Road. Garret Geaccone and William Carpenter with Stream Realty Partners represented the landlord, Brennan Investment Group. Green Explosion signed a lease of 3,600 square feet at Southport Business Park, 6001-6021 S. Loop Fwy. E. Cesar de la Guardia with CBI Realty represented the tenant. Boone Smith and Garret Geaccone with Stream Realty Partners represented the Landlord, Agellan Commercial REIT. Atlantic Clothing signed a lease of 19,221 square feet at Turning Basin Industrial Park, 2025 Turning Basin Drive. Matteson Hamilton and Jeremy Lumbreras represented the landlord, CenterPoint Properties Trust. Boomtown Coffee signed a lease of 5,603 square feet at Fairway Business Park, 2517 Fairway Park Drive. Garret Geaccone and William Carpenter represented the landlord, Brennan Investment Group.
Transwestern Real Estate Services (TRS) announced that Yang Ming Marine Transport Corp. has leased 34,541 square feet at Reserve at Westchase, located at 3250 Briarpark Drive in Houston. According to Transwestern research, this is the largest new deal done in the Westchase submarket since COVID-19 hit. Transwestern’s agency leasing team of executive vice president David Baker and associates Jack Scharnberg and Kristen Baker executed the lease on the heels of closing two new direct deals of 50,000 square feet and 3,500 square feet, as well as the completion of the lobby renovation. JLL’s Don Foster represented the tenant, which was previously located at 3 Sugar Creek Center in Sugar Land. “Despite virtually no property tours being conducted due to social distancing guidance and economic uncertainty, our team had been tracking every expiring tenant across Westchase and West Houston,” said David Baker. “We contacted over 200 tenants and brokers with leases expiring in the next four years to share this incredible Class A office opportunity and economic value.” Reserve at Westchase is a four-story, 194,919-square-foot building in the amenity-rich Westchase submarket. The building was recently renovated and features expansive floorplates that provide space for larger tenants to lease an entire floor with room to grow instead of having to separate their workforce across multiple floors. With an accessible location, park-like setting and abundance of nearby amenities, Reserve at Westchase is one of the best values in West Houston offering 125,000 square feet available for lease.
CRG, the real estate development and investment arm of Chicago-based Clayco, has launched a new national residential development strategy that includes $1 billion in multifamily developments over the next two to three years in response to COVID-19. Industry veteran and CRG managing partner J.J. Smith, who has sourced and developed more than $6 billion in residential communities across 100 cities since 2007, has rolled out this new residential development strategy in response to investor demand and changing economic conditions. The strategy will initially target a dozen U.S. markets, particularly in the Sun Belt, with stable rent growth and underserved middle-income multifamily demand. Due in part to COVID-19, CRG’s strategy will prioritize Class B, workforce housing aimed at people earning between 80 to 120 percent of U.S. Average Median Income (AMI). For this middle bracket seeking more housing options outside of the city, the firm will pursue development sites located in the first- and second-ring suburbs of urban centers. Dubbed “essential” housing communities by CRG, these developments will be specifically designed for the work-from-home resident, with pocket offices and what Smith calls “Zoom-worthy common spaces” for the remote-work crowd. “The pandemic has changed what middle-income earners want in a home and we think the effects will be long term,” said Smith. “After conversations with investors, we pivoted our focus toward building for the masses not the classes in locations that will provide a refuge from crowded areas without sacrificing quality of life, good school districts and proximity to job centers. Our plan addresses a development need which has largely gone underserved, and the pandemic has only further highlighted the need for these types of residential offerings.” According to the U.S. Census Bureau and U.S. Department of Housing and Urban Development, this new-construction, “essential” product has largely been missing for middle-income residents. In the Midwest, for example, the last large-scale development surge for middle-income families delivered about 1,400 communities in the 1970s, but then only approximately 800 between 1974 and 1994. In recent years, these projects have been deemed too expensive to build, but CRG’s vertically integrated platform with Clayco creates significant efficiencies to lower construction costs. Additionally, land prices have seen steep declines during the pandemic, further creating opportunity for the firm. CRG is currently building its first “essential” community, Broadway Chapter, in Fort Worth, Texas. The 320,000-square-foot project located at 401 Hemphill Street is a five-story, wood-framed multifamily complex. It’s scheduled for delivery in summer 2021. “We believe we’ve perfectly timed our first ‘essential’ community at Broadway Chapter as market occupancies are high and rental rate growth has remained positive,” Smith said. “We have been able to incorporate many of today’s design features that will make working from home a seamless experience.” CRG will continue to develop Class A, urban-infill communities in major cities. The firm will be more selective about market and site selection as well as its target renter demographic, but anticipates serving young professional and empty nester segments depending on individual market needs. “Large scale, urban-infill projects can take three to four years to develop and construct, and we are bullish that urban living will continue to remain desirable in the years ahead,” added Smith. “Our firm’s pipeline will feature a balanced mix of product types with a near-term focus on quicker-to-market Class B wood-frame communities while still lining up the longer lead time Class A infill opportunities.”
Marcus & Millichap brokered the sale of The Peanut Gallery, a 9,516-square-foot, net-leased childcare property located in La Porte, Texas, according to Steven D. Weinstock, regional manager and first vice president of the firm’s Chicago Oak Brook office. The asset sold for $925,000. Dominic Sulo, first vice president, and Eric B. Luhrsen, associate, and investment specialists in Marcus & Millichap’s Chicago Oak Brook office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer, a limited liability company, was secured and represented by The Sulo Group of Marcus & Millichap. Tim Speck assisted in closing this transaction as the broker of record in Texas. The Peanut Gallery is located at 3902 Underwood Road in La Porte and is now a member of the Cadence Education family of schools, a leading national childcare operator. The property is an absolute net-leased childcare facility.