Dynamic Week for Houston M-F; McCann Realty Builds, HGI Sells

By Georgiana Mihaila, Associate Editor

Two recent events stand out as further indicators of the strength of the metro Houston multifamily market: While McCann Realty broke ground on its newest community, the 323-unit Retreat at Vintage Park in the Champions submarket of Houston, Harbour Group International found a buyer for its 696-unit Fairfield Creek apartment community.

The new McCann Realty community will be a part of the Vintage development—located near State Highway 249 on Louetta Road in Northwest Houston, adjacent to the Vintage Park Lifestyle Center, which will provide residents with access to approximately 420,000 square feet of retail and commercial space.

The luxury Retreat at Vintage Park Apartments will consist of three-story stone-and-stucco exteriors, featuring attached and detached garages, a large clubhouse with a state-of-the-art fitness center, a resort-style swimming pool and an activity center with video games and media, a cyber cafe and a gourmet kitchen.

With Wells Fargo Bank providing the construction loan, McCann Realty will act as its own general contractor on the project, while Pegasus Residential will be in charge of managing the property. Leasing is scheduled to start in the first quarter of 2014.

RB Associates was the buyer in the Fairfield Creek apartment deal; while the transaction amount was not disclosed, seller Harbour Group International paid $27 million for the property in July 2010, then infused $1.5 million into property improvements.

Fairfield Creek was built in 1984 and consists of one-, two- and three-bedroom units averaging 781 square feet per unit. The property spans 24.8 acres and comprises 52 buildings, including 34 two-story structures and 18 three-story structures. The community features four swimming pools with four heated spas, four laundry facilities, picnic areas, a jogging path and limited-access gates. The interior amenities consist of nine-foot ceilings, washer/dryer connections, patios or balconies, brick fireplaces and built-in bookshelves. The asset was approximately 90 percent occupied at the time of the purchase.

Image courtesy of EveryAptMapped.com

Greenway Plaza Becomes Largest LEED-Certified Office Campus in Texas

By Georgiana Mihaila, Associate Editor

Crescent Real Estate Holdings’ 10-building office campus, Greenway Plaza, recently achieved LEED certification from the U.S. Green Building Council, becoming the largest Texas office campus to earn this designation.

The master-planned business campus consists of an impressive 4.3 million square feet of Class A office space, and is home to The Shops at Greenway; located five miles southwest of downtown Houston, the 55-acre business park and mixed-use community also includes residential condominiums, a luxury hotel and an athletic/social club.

The office park’s commitment to the environment is easily noticeable due to its large lawns, trees and network of internal roadways connecting to underground parking, all helping establish the “green culture” of Greenway Plaza. The ease of access to major freeways and mass transportation adds commuting options for employees and visitors and another layer of environmental sensitivity, as do its biannual electronics collection events. Maintenance and operations are likewise consistent with the LEED program.

“Along with our energy-efficient and now completely LEED-certified 10 buildings, our office campus has plenty of green space, including the largest green roof in Texas covering underground parking. We also have the most convenient mass transportation options for customers,” said Cruse.

Crescent Real Estate Equities L.P.—the entity that manages and, through its affiliates, owns the Greenway Plaza office campus—was the one to seek LEED recognition for the property. Besides attesting to the property’s environmental commitment, the certification provides a significant business advantage to Class A commercial buildings, according to Bob Carlen, vice president of property management for Crescent.

“Crescent is committed to environmental sustainability and being a responsible environmental leader among existing office buildings,” Carlen said. “Conducting ourselves as good environmental stewards is the right thing to do for the environment. At the same time, environmental leadership and energy savings is a sound business practice that helps our customers reduce costs and improve their bottom line.”

Image via GreenwayPlaza.com

Booming Local Economy Draws Buyers to Houston Multifamily Properties

By Georgiana Mihaila, Associate Editor

With Houston’s booming economy expected to generate approximately 117,000 new jobs in 2013, possibly the most sizable gain since the 1980s, nearly all sectors of the local economy have been experiencing increased activity. The multifamily sector is no exception.

According to a recent Marcus & Millichap report, multifamily property sales in the Houston metro area rose 40 percent in 2012, exceeding the metro’s prior peak by a wide margin. First quarter data is incomplete due to a lag in reporting, but the running year-to-date count has already exceeded the total for the same period in 2012.

The 244-unit Armand Place is one of the multifamily properties to recently trade owners; the Clear Lake property has been purchased for an undisclosed amount, with Resource Real Estate Opportunity REIT, an entity sponsored by national real estate firm Resource Real Estate Inc., being the buyer.

Located in Clear Lake—one of the largest communities of Bay Area Houston—Armand Place consists of 20 buildings spread across 10 acres, and includes two swimming pools, a 24-hour fitness center, wood-burning fireplaces, parking and a shuttle service to the University of Houston-Clear Lake. Residents also benefit from a diverse local employment base that includes professionals in the aerospace, education, engineering, petrochemical and technology industries, and points of interest including the University of Houston-Clear Lake and the nearby Johnson Space Center.

Resource Real Estate Opportunity REIT plans to invest capital to improve individual units and common areas, upgrade the landscaping and establish a professional, on-site property management team.

Another Houston property to trade recently is the 168-unit Dover Pointe Apartments, acquired by a Texas partnership whose name was not disclosed. The property, located at 14445 Wallisville Road, commanded a list price of $5.4 million.

Marcus & Millichap Real Estate Investment Services represented the seller, which also wanted to remain unnamed but plans to enhance operations by repositioning the asset through modified renovations.

ExxonMobil Markets Sites Nationally as New Corporate Campus Proceeds

By Georgiana Mihaila, Associate Editor

While working on what will soon become one of the largest corporate campuses in the world, ExxonMobil is apparently trying to minimize its office footprint throughout the country.

Just last week, the company hired Cassidy Turley to market its 117-acre corporate campus in Fairfax, Va., consisting of five buildings with 1.3 million square feet of Class A office space; underground parking structures totaling approximately 1 million square feet; and approximately 92 acres of undeveloped land. Since the company  first announced the development of the new corporate campus in Houston, there were clear mentions of the fact that its goal is that of accommodating additional employees from the immediate area and from the company locations in Fairfax, VA and Akron, OH.

Now, Exxon Mobil is also listing the ExxonMobil Chemical Company Headquarters campus in Houston’s Energy Corridor. The property, which serves as headquarters for the company’s chemical division, will be marketed by Holliday Fenoglio Fowler. A sales team has already been set in place, with HFF’s senior managing director Robert Williamson and managing director Davis Adams leading it; the debt team will be led by senior managing director Wally Reid and director Colby Mueck.

In addition to 352,170 rentable square feet of improvements consisting of an office building and conference center, the ExxonMobil Chemical Co. campus—located at 13501 Katy Freeway—features 1,000 feet of frontage on Interstate 10 and 800 feet of frontage on Memorial Drive. The property is situated on approximately 35 acres in the heart of Houston’s Energy Corridor, adjacent to the BP America Headquarters, across Interstate 10 from both ConocoPhillips and Shell Oil’s North American Exploration and Productions headquarters, and within a mile of Mustang Engineering and Dow Chemical.

ExxonMobil will be grouping more of its divisions on the campus it started building in 2011 in The Woodlands, one hour from Houston; located on a 385-acre wooded site on company-owned land near the intersection of I-45 and the Hardy Toll Road, the ExxonMobil Houston Campus will accommodate approximately 10,000 employees and is being constructed to high standards of energy efficiency and environmental stewardship. Employees will move in phases as the buildings are constructed, beginning in early 2014. Full occupancy for Houston-based employees is expected by 2015.

Image courtesy of ExxonMobil website

Shorenstein Hires Transwestern to Lease 1.2 MSF Exxon Mobil Tower

By Georgiana Mihaila, Associate Editor

San Francisco-based Shorenstein Properties L.L.C. has chosen Transwestern to serve as the exclusive leasing agent for 800 Bell—the 1.2 million-square-foot office tower in Houston’s Central Business District that the company acquired back in January.

The 45-story 800 Bell St. building, known as the ExxonMobil Tower, was built in 1962 as the headquarters of Humble Oil & Refining Co., a predecessor to ExxonMobil; at that time, it was the tallest building west of the Mississippi River, at 606 feet. The property includes a seven-story parking garage covering two city blocks on the corner of Travis and Bell streets.

Current tenant ExxonMobil will vacate the building in 2015, when the development of its campus will be completed, giving Shorenstein the opportunity to deliver significant improvements to the property through an extensive redevelopment. The details of the redevelopment project have not yet been released.

For leasing, 800 Bell relies on its unique corporate identity on the Houston skyline and on the fact that it remains one of the largest blocks of contiguous space offered in Houston in more than 30 years.

“We are very excited about this unique opportunity,” said Transwestern’s Eric Anderson, executive vice president. “It is not very often that we can be a part of something as significant as enhancing the downtown Houston skyline. Shorenstein has a reputation for delivering successful signature redevelopment projects, such as Market Square in San Francisco, which includes the headquarters of Twitter, Yammer and One Kings Lane. We are excited to see what Shorenstein has in store for 800 Bell and downtown Houston.” Anderson, executive vice president David Baker and vice president Paul Wittorf will be in charge of marketing and leasing the property.

Image courtesy of Obskura via Flickr

$95M Terminal B Redevelopment Nearly Complete; Tenant Line-Up Revealed

By Georgiana Mihaila, Associate Editor

George Bush Airport – Terminal B

United Airlines recently unveiled the dining and retail line-up soon to be featured at the new Terminal B south concourse at Houston’s George Bush Intercontinental Airport.

The $95 million south concourse redevelopment—expected to open in mid-April—is a new 225,000-square-foot facility designed to accommodate United Express regional flights. The new space, nearly four times the size of the former south concourse, will feature modern and expanded gate-lounge areas; 17 food, beverage and retail concessions; and a spacious central passenger lounge with expansive tarmac views.

The tenant list is led by two new celebrity-chef venues. First-time airport concession 3^rd Bar Oyster & Eating House is the creation of Houston native and celebrated chef Bryan Caswell and noted food and beverage director Bill Floyd—whose Midtown restaurant Reef was named the No. 1 seafood restaurant in the United States by Bon Appetit magazine in 2008. Another airport first is The Fruteria, developed by San Antonio chef Johnny Hernandez, whose passion for Mexican street food has already caught the attention of Travel & Leisure, Southern Living and Bravo’s Top Chef.

Other new airport concessions include Texas icon Whataburger; Bullrito’s, also a Texas native, which will feature fresh Tex-Mex; and Barcuterie, which will offer cured meats and classic cheeses in an energetic bar setting.

The retail component does not fall far behind, as it also includes a variety of shopping options, among them the iStore Boutique, the first airport retail concept authorized to sell Apple devices, as well as a Relay store and beauty brand The Body Shop. Brookstone will also be present on-site with a highly interactive store that will offer the latest business and technology gear, tablet accessories, checkpoint-friendly luggage, travel pillows and blankets, as well as gifts. Other well-known retail stores include Ice Currency Exchange, Johnston & Murphy, Natalie’s Candy Jar and Nuance Duty Free.

With 15,000 square feet of concessions, the new space is 500 percent larger than the concession space in the previous south concourse facility.

Responsible for leasing and managing the concessions, as well as the food and beverage operations in the Terminal B south concourse, is Westfield, the company that also manages the concessions for Terminal E at Bush Intercontinental Airport.

CNC Manufacturing Buys Lakeview Business Park Land for New Facility

By Georgiana Mihaila, Associate Editor

Following the recent purchase of a 7.6-acre development site within the Lakeview Business Park in Missouri City, Texas, CNC Manufacturing has hired Trammell Crow Co. to oversee the development of a new facility.

A 75,000-square-foot warehouse and industrial facility will rise on the newly purchased site at 911 Buffalo Run. As the CNC Manufacturing facility will be part of Lakeview Business Park—a 157-acre master-planned development owned by Trammell Crow and a private real estate fund advised by Crow Holdings Capital Partners L.L.C.—electing Trammell Crow to manage the development of the new facility was a natural choice.

“We are pleased CNC Manufacturing has chosen to relocate to Lakeview Business Park. They will build an attractive, high-quality building designed by Powers Brown Architecture that will be a great addition to the park,” said Jeremy Garner, senior vice president of Trammell Crow’s Houston business unit.

CNC Manufacturing, seeking to relocate from its current 40,000-square-foot Jessamine Street location in Houston due to expansion needs, currently employs 62 people. The company also plans to develop an additional 35,000 square feet within the first three years of occupancy, opening up the opportunity to hire another 45 employees.

CNC Manufacturing was represented in the land transaction by Studley’s Drew Morris and Holden Rushing, while Alexander Reilly and Bo Pettit with Boyd Commercial/CORFAC represented seller Lakeview BP Land LP.

Located near the Sam Houston Parkway, U.S. Highway 90-A and the Fort Bend Parkway, Lakeview Business Park offers a master-planned business park environment with opportunities for build-to-suit facilities and land parcels for sale. This transaction marks the eighth property sale within the park.

Image courtesy of http://www.lakeviewbp.com/

Massive 2,100-Acre Houston Development Site Hits the Market

By Georgiana Mihaila, Associate Editor

The Sam Houston Area Council of the Boy Scouts of America is looking to sell its more than 2,100-acre Camp Strake property, considered to be one of the largest available contiguous land parcels currently available in the Houston metropolitan area.

Jones Lang LaSalle Inc. has already been hired to market the property, and the proceeds from the sale will be used to buy, develop and endow in perpetuity a new Camp Strake north of the city. JLL capital markets experts including Managing Director Tom Kirschbraun, Senior Vice President Scott Cullen and Vice President Mark Lindenbaum are leading the national and global efforts on the offering, with Houston Market Director Dan Bellow and Senior Vice President John Talhelm leading local outreach.

The development site, located on the southwest corner of Interstate 45 North and Loop 336, south of Conroe, is expected to draw a great deal of both national and international interest, featuring more than two miles of commercial frontage, secluded residential areas and natural amenities suitable for recreation, parks, hiking trials, bike trails and environmental mitigation.

Bellow believes that “Camp Strake is truly one of Houston’s treasures, but the time is right to create a new gem for this city. Between the Exxon Mobil Corporate Campus opening next year with more than 14,000 employees and the Town Center in The Woodlands with approximately 50,000 jobs currently in place and the potential for another 25,000, the north Conroe area is one of the top growth areas in the entire state of Texas.  Amazing things are happening here.”

The massive site presents no specific zoning requirements and will be annexed by the city of Conroe, whose mayor, Webb Melder, has declared himself in favor of future on-site development, offering potential new owners/developers full support.

The Camp Strake property served as the flagship camp for the nation’s largest Boy Scout Council for more than 70 years. It was named in honor of Susan and George Strake Sr., who provided the funds to purchase the camp property in 1943.

Photo: Grand Lake, the camping and activity area of Camp Strake, courtesy of Sam Houston Area Council.

West Ave to Debut Two New Luxury Tenants

By Georgiana Mihaila, Associate Editor

Two new luxury concepts are set to debut this spring at the chic West Ave mixed-use development, set at the crossroads of Upper Kirby and River Oaks. The two new tenants—Del Frisco’s Grille and Jonathan Adler—will join an already impressive list of high-profile retailers and restaurants.

The pedestrian-friendly West Ave boasts 190,000 square feet of high-end retail space on its first two floors, with more than 30 individual storefronts. West Ave has drawn some of Houston’s most talented brands along with highly regarded regional and national brands to create the ultimate one stop shop for fashion, dining, mingling and pampering.

We are excited to announce the addition of two new luxury brands that will join our retail lineup,” said Michelle Yeglic, director of marketing for developer Gables Urban. “We are committed to providing our guests with a unique and indulgent experience that includes the latest fashions, cuisine and urban nightlife that the city has to offer.”

The Jonathan Adler store, scheduled for an April opening, will showcase Jonathan Adler’s complete range of home décor, furniture, rugs, tabletop collections, bedding, gifts, candles and more, all within 3,500 square feet of space. The new Houston store will debut a brand-new merchandising concept that will be introduced across various Jonathan Adler stores. A “gift bar” will be created to inspire clients with the perfect gifts and clearly defined room vignettes will help clients envision how pieces will work in their own homes.

The 7,100-square-foot Del Frisco’s Grille opened on March 16. Targeted to a slightly younger, less business-based demographic than the brand’s legendary steakhouse—Del Frisco’s Double Eagle Steak House—it takes a modern approach to designing the spacious interior, with oversize lamps, large leather banquettes and lightning-rod ceiling fixtures throughout. The restaurant also features two outdoor patios and an indoor bar, complete with flat screen TVs.

The two brands join a tenant roster that includes such retailers and restaurants as Eddie V’s, Katsuya, Pondicheri, Cru Wine Bar, Ligne Roset and Ivory Bridal. They also join anchoring retailer TOOTSIES, , which opened in January 2011 in 34,000 square feet of premium ground-floor space.

Image: West Ave via Gables Urban

Hines Sells Iconic Williams Tower to Invesco for $412M

By Georgiana Mihaila, Associate Editor

The previously reported sale of Hines’ 1.4 million-square-foot Williams Tower to Invesco Real Estate came through this week, with the new owner paying $412 million for the trophy tower, according to Reuters.

Developed by Hines in 1983, Williams Tower returned to its original owner in 2008, when current seller Hines Real Estate Investment Trust Inc. bought the building from Fosterlane Holdings of Atlanta for $271.5 million. Hines put the tower back on the market in August 2012, when the company hired Jones Lang LaSalle Inc.’s Houston office to find a buyer.

“Williams Tower is a world-class building that has been one of Hines REIT’s most significant investments. It is also a very important property to Hines as a firm and to the city of Houston. This has been a great investment that delivered strong cash flows and a positive return to Hines REIT,” said Charles Hazen, president & CEO of Hines REIT.

When completed in 1983, the iconic 909-foot Williams Tower held the title of “the tallest skyscraper in the world outside of a Central Business District”; although the title was lost, the 64-story tower is still one the tallest buildings in the world outside of a CBD. Designed by renowned architects Philip Johnson and John Burgee, it was created in the art deco style. Clad in silver gray reflective glass and anodized aluminum, the sleek tower is accented by columns of bay windows made of non-reflective glass and podium setbacks on two lower floors and four higher levels. A 7,000-watt, revolving beacon on its roof can be seen for miles around, creating a virtual urban lighthouse. The tower is connected by skywalk to the world-famous Galleria, Houston’s popular shopping and tourist destination.

Williams Tower is currently more than 95 percent leased to tenants including Williams, Hines, Rowan Cos., Quanta Services and Cadence Bancorp. It also serves as Hines’ corporate headquarters. Hines has managed the property for three decades and will continue to do so under the new ownership.

Image: Williams Tower via Wikimedia Commons