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Houston-Sugar Land-Baytown

Jenkins Organization stores 258 new units in Rosenberg 

(4/22/2014)

ROSENBERG - Reading Road Self Storage, located 35 miles southwest of Houston at 5208 Reading Rd., was purchased by the Jenkins Organization Inc.

The facility comprises 33,700 net rentable sf of storage space and 258 units on 4.78 acres. It also includes more than two acres for potential expansion.

The property opened in 2006. Amenities include video cameras, monthly pest-control services and moving and packing supplies.

Read more at Inside Self-Storage.

Active senior-living Bonterra underway near the Exxon Mobil 

(4/22/2014)

NORTH HOUSTON - Nine model homes broke ground in a new 257-acre community, Bonterra, for active seniors 55 years and older. Taylor Morrison will build 700 homes total in Bonterra.

The model homes are set for completion in mid-July, when presales will begin. Homes will range in price from $200,000 to $400,000. Home sizes will range from 1,680 to 3,300 sf.

Bonterra is near the Exxon Mobil campus in north Houston, within the Johnson Development Corp.’s Woodforest. The development will share existing amenities in Woodforest as well as add new amenities such as a 10,000-sf clubhouse and pool.

Read more at the Houston Business Journal.

Avanti Senior Living goes to Towne with $15M 

(4/21/2014)

CYPRESS - Avanti Senior Living development in the Towne Lake master-planned community in Cypress is underway.

The $15 million facility will offer 90 residences for assisted-living and memory care clients, and employ 75 people.

The property will be 76,000 sf and will open within the next year.

Read more at the Houston Business Journal.

Marriott and Hilton pump rooms to Energy Corridor Houston 

(4/21/2014)

HOUSTON - Western International purchased 5.2 acres in the Energy Corridor of Houston at the corner of Barker-Cypress Rd. and Park Row. The company will build a Courtyard by Marriott and a Hampton Inn Suites by Hilton.

Each hotel will have 135 rooms. Construction is slated to break ground this summer.

The Dallas-based company purchased the property, which is part of a site known as Ten Oaks, from Houston-based Wolff Cos. for an undisclosed amount.

Read more at Houston Business Journal.

Tax breaks lure Downtown Houston living development  

(4/21/2014)

HOUSTON - Houston will double the number of tax breaks it gives developers for apartments and condominiums they build downtown.

The City Council unanimously agreed to expand the Downtown Living Initiative, first launched a year and a half ago. Tax breaks will now be offered for 5,000 residential units, up from 2,500.

Under the initiative, the city offers developers up to $15,000 for each residence they build in a complex of at least 10 units, provided they meet design guidelines focused on building retail at the street level.

Read more at the Houston Chronicle.

Texas-sized surprises at $350M Marriott Marquis Houston 

(4/18/2014)

HOUSTON - The 1,000-room Marriott Marquis Houston broke ground April 11. The $350 million, 30-story building is located on 2.6 acres adjacent to Discovery Green and the George R. Brown Convention Center.

Amenities will include a rooftop infinity pool and lazy river, 3,500-sf event pavilion, five restaurants, retail space, 40,000-sf ballroom, 22,000-sf junior ballroom and 166,000 sf of meeting, banquet and exhibition space.

The hotel is set to open September 1, 2016.

See previous story "2017 Houston Super Bowl fever at $335M to Marriott Marquis."

Read more at Houston Business Journal.

Body of experts' $650M Houston Memorial Hermann expansion 

(4/17/2014 7:00:00 AM)

HOUSTON - Memorial Hermann Health System will begin a $650 million expansion and renovation of its Texas Medical Center campus this summer.

The expansion includes an additional 1.34 million sf, 160 additional beds (plus 71 replacement beds), 24 new operating rooms and 16 additional emergency room bays.

The project also accounts for future growth with the construction of six shelled floors and six shelled operating rooms, with the potential to add 264 beds. Additionally, 750 new parking spaces and a 333-seat cafe will be included in construction.

The campus currently spans more than 2.5 million sf. Construction will conclude in 2018.

Read more at Houston Business Journal.

Watercolor lux brushes for 240 units in Baytown 

(4/16/2014)

BAYTOWN - The Leyendecker Group will break ground April 24 on the Watercolor Luxury Apartments. The eight-building, 240-unit complex will be located at 1700 Rollingbrook Dr. in Baytown.

The three-story buildings will offer one-, two- and three-bedroom floor plans, ranging from 632 sf to 1,304 sf. The complex will feature a pool, fitness center, clubhouse, dog park, and carports and garages.

Completion is expected in spring or summer 2015.

Source: Watercolor Luxury Apartment Homes

Read more at the Houston Business Journal.

Spring 384-unit Parkside Place underway near Exxon campus 

(4/15/2014)

SPRING - Parkside Place, a 384-unit apartment complex near the new Exxon Mobil campus, has broken ground at the northwest corner of FM 2920 and Kuykendahl Rd. The complex will feature one- to three-bedroom units ranging from 525 to 1,400 sf.

Rents will range between $900 and $1,700. Amenities include a pool and sundeck, 24-hour fitness center, dog-walking park and movie theater room.

Austin-based Oden Hughes is the developer on the project. Parkside Place is set to open in 2015.

Read more at the Houston Business Journal.

Historic Houston office building sold for $5M 

(4/15/2014)

HOUSTON - The 38,720-sf former Commercial National Bank building at 917 Franklin St. has been sold.

LM & Associates purchased the building from New Hyde Park for $5 million, or about $129 per sf.

The office building, which was constructed in 1904, is located in Houston’s central business district near Market Square.

Read more at CoStar Group.

Super bowl? 2,350 rooms in Houston by 2017 

(4/15/2014)

HOUSTON - Houston now has at least 2,350 hotel rooms coming by the time the city hosts the Superbowl in 2017.

The most buzzed about project is the 1,000-room Marriott Marquis. This $335 million hotel will be tied to the George R. Brown Convention Center, and is expected to help put Houston on the map for convention planners. Additionally, the project will include 100,000 sf of meeting space and 20,000 sf of ground floor retail.

Other new development projects include the 261-key Hyatt Place, a 225-room Hotel Alessandra, a 168-room Hampton Inn and a 132-key Homewood Suites.

Some properties are being completely redeveloped and rebranded, such as the 325-key JW Marriott, the 166-room SpringHill Suites, and the 215-key Holiday Inn.

While industry experts admit there is a severe shortage of hotel space in Houston, some worry the eight hotel projects in the works will bring too many rooms to the market place.

Read more at GlobeSt.com.

Houston's 456-unit multifam Westchase Creek sold 

(4/14/2014)

HOUSTON - Westchase Creek, a 456-unit apartment community in Houston’s Westchase District, has been purchased by an affiliate of Harbor Group International, LLC. Westchase Creek is located at 3000 Woodland Park Dr. between Westheimer Rd. and Richmond Ave. west of Beltway 8 in West Houston.

The complex has an average unit size of 639 sf and is 93.4 percent leased. The appraised value as of January 2014 is $19.9 million, according to the Harris County Appraisal District.

The property was renovated in 2012–2013.

Read more at Realty News Report.

Houston ritzy hotel: Kickoff 2016, Super Bowl 2017 

(4/14/2014)

HOUSTON - The development of a 225-room hotel has been announced in the GreenStreet mixed-use development in downtown. The Hotel Alessandra will be constructed on a block bounded by Main, Dallas, Polk and Fannin.

The Alessandra will be built on the site of a former Yao Restaurant & Bar. Demolition work will begin in June and the hotel plans to open third quarter 2016, in time for the expected crowds drawn by the Super Bowl in February 2017.

The hotel will feature a 25th-floor lobby, a rooftop pool and bar, and 7,000 sf of retail space.

Midway, the company that will own the Alessandra, hopes to position the hotel among “five-star” accommodations, such as the Four Seasons, St. Regis and Hotel Garnduca. Room rates will likely be on par with the Four Seasons, according to Jamie Bryant, executive vice president of Midway.

Read more at the Houston Chronicle.

Grand Parkway sparks Stonebrook Estates in Cypress 

(4/14/2014)

CYPRESS - Stonebrook Estates, a new 54-acre gated community, is under development along Spring Cypress Rd. about a mile east of SH 249. Construction will begin on two model homes in May, which are expected to be open by early August. Presales are expected to begin in the next 45 days.

Newmark Homes of Houston will be the exclusive builder for the gated community, which will include 135 lots.

Pricing will begin in the high $300,000 range for homes on 70-foot lots and from the $450,000s for homes on the larger home sites.

“Stonebrook Estates borders a stretch of Cypress that has seen no new-home construction for probably five years,” said Jeff Dye, vice president of Newmark Homes. “With the opening of a new section of the Grand Pkwy., the timing is right to introduce a new community to the area.”

The new community will feature lake and nature trails, and it will be a low-impact development, according to Dye.

Read more at the Houston Business Journal.

Houston housing market to churn through 2018 

(4/11/2014 8:00:00 AM)

HOUSTON - Houston had more new-home starts in 2013 than the entire state of California, says housing consultant John Burns, head of Calif.-based John Burns Real Estate Consulting.

Burns' survey of the best-selling master-planned communities in the nation shows that ten of the top 25 are in Houston.

He projects that annual new-home starts in Houston will increase about 13 percent annually over the next three years, peaking at 50,000 starts in 2016. “With only a three months supply of houses on the market, prices have to go up,” Burns says.

Houston builders could be building and selling 50,000 new homes in 2014, but a shortage of labor and quality lots is suppressing the local construction industry somewhat.

These projections indicate home prices will continue to increase, probably about 5 percent this year, followed by 4 percent next year. Prices will continue to rise through 2017, but will soften slightly in 2018.

Read more at Realty News Report.

Hot in Houston for residential remodeling  

(4/11/2014 6:45:00 AM)

HOUSTON - Residential remodeling projects grew increasingly profitable and popular in Houston during 2013, according to the 2014 Texas Remodel Valuation Report by the Texas Association of Realtors.

The report analyzed the project recoup costs and recoup cost growth in 2013 for remodeling projects in Houston, Austin, Dallas, El Paso and San Antonio. Four of the five Texas markets showed significant gains in project recoup costs in 2013.

All five Texas markets demonstrated that smaller, functional remodeling projects showed greater increases in recoup costs than upscale, luxury projects.

Steel entry door replacements ranked number one for total recoup cost nationwide and in Houston, recouping up to 105.5 percent of the total project cost.

Basement remodels ranked in the top five for recoup cost in four of the five major cities in Texas, recouping up to 99.6 percent of the total project cost.

Kitchen remodeling projects also ranked in the top five for recoup cost growth in all five Texas metro areas, recouping up to 143.9 percent of the total project cost.

Backup power generators ranked number one for recoup cost growth in Austin, El Paso and Houston including a 105.1 percent gain in recoup cost in El Paso in 2013.

Natural materials, such as wood, cement and steel, led to a significantly higher recoup cost than synthetic, plastics-based materials, such as composites and vinyl.

Sunroom additions ranked in the bottom five for recoup cost in five Texas metro areas, recouping a maximum of 61.3 percent and as little as 38 percent of the total project cost.

Read more at Business Wire.

See the full Texas Remodel Valuation Report 2014 under Housing in Houston Market Data Sources.

HAR: increased home sales for 34th consecutive month 

(4/11/2014)

HOUSTON - Single-family home sales increased for the 34th consecutive month, reaching 5,971 single-family homes in March 2014, a 3.7 percent increase over the 5,756 sold in March 2013, according to the Houston Association of Realtors.

Prices remain high while local inventory remains at a record low 2.6 months of supply for the fourth consecutive month. The inventory of single-family homes across the U.S. currently stands at 5.2 months, according to the National Association of Realtors.

Rentals of single-family homes rose 22.3 percent compared to March 2013 and townhouse/condominium rentals grew 12.4 percent. The average rent for a single-family home increased 5.2 percent year-over-year to $1,633 while the average rent for townhouses and condominiums rose 7.2 percent to $1,496.

Foreclosure property sales continued their freefall, dropping 45.3 percent compared to March 2013. Foreclosures now comprise 6.8 percent of all property sales, down from a 12.3 percent share a year earlier. The median price of foreclosures rose 8.7 percent to $93,500.

Housing Market Summary March 2013 vs. 2014
  Mar. 2013 Mar. 2014 Change
Total sales 6,975 7,277 4.3%
Total dollar volume $1,569,146,124 $1,809,673,861 15.3%
Total active listings 32,704 28,085 -14.1%
Total pending sales 4,433 4,596 3.7%
Single-family sales 5,756 5,971 3.7%
Average price $235,484 $261,329 11.0%
Median price $173,000 $189,900 9.8%
Single-family inventory* 3.5 2.6 -

* The number of months it will take to deplete current active inventory based on the prior 12 months of sales activity.
   Source: Houston Association of Realtors

For the full MLS Report, see Houston Association of Realtors. For more housing stats, see Houston Market Data Sources.

350,000-SF carrier-neutral data center underway in Houston 

(4/9/2014)

HOUSTON - A new 350,000-sf data center, situated on 18 acres, is under construction in the Greenspoint area near I-45 and the Beltway. The estimated cost of construction is $35 million, according to state filings.

The project from Austin-based Data Foundry will be the company’s second data center in Houston. Holder Construction Co. is building the facility.

The center will be carrier-neutral and serve both retail and wholesale customers.

Read more at the Houston Chronicle.

$12M fastens down buy for Houston Century Distribution 

(4/8/2014 7:00:00 AM)

HOUSTON - Industrial Property Trust Inc. has purchased Century Distribution Center. The Denver-based company paid $11.5 million for the newly constructed 149,000-sf distribution facility.

PrimeSource Building Products Inc., a distributor of building materials in North America and fasteners throughout the world, leases the entire building.

Read more at GlobeSt.com

Chancellor's 224 units purchased for $7.74M in Houston 

(4/8/2014 7:00:00 AM)

HOUSTON - The 224-unit Chancellor Apartment complex in Houston's Kingwood-Harris submarket has been purchased for a little more than $7.743 million. The three-story complex totals 167,630 sf at 311 Parramatta Ln.

The apartment complex was constructed in 1984. Cornerstone Investment Properties, a Florida-based real estate investment company, purchased the property.

Read more at CoStar Group.

Shadow Creek Ranch in Pearland sold in Pearland 

(4/7/2014)

PEARLAND - The Class A Retreat at Shadow Creek Ranch, a 370-unit multifamily property at 2500 Business Center Dr., has been sold by McCann Realty Partners. The complex, which opened in early 2013, was 90 percent occupied at the time of sale.

The property, purchased by Inland Real Estate Acquisitions, is adjacent to master-planned community Shadow Creek Ranch and is within walking distance of the Pearland Town Center.

The community includes one-, two- and three-bedroom apartments, as well as a fitness facility, internet cafe, resort-style swimming pool and pet park. Units range in size from 656 sf to 1,486 sf and in rent from $1,043 to $1,934 per month.

Read more at GlobeSt.com.

New community, private golf club heads to Montgomery 

(4/4/2014 9:00:00 AM)

MONTGOMERY - Bluejack National, a private golf club and community, is underway on 755 acres at 4430 S. FM 1486. The community will include about 400 residential units, with options ranging from member suites for short visits to family homes such as cottages, Sunday homes and estate home sites.

Bluejack National’s golf facilities will include an 18-hole course, a short course ideal for families, a golf performance center and “The Porch,” a lounge place for golfers and nongolfers.

The community also will include “The Fort” — which will feature a bowling alley, movie theater, game room, pottery room and an American burger joint — plus zip lines, a rope course, archery range, sports courts, a fishing dock and other outdoor offerings.

Bluejack National is located at the former home of Blaketree National Golf Club. Membership opportunities will be separate from real estate sales and will be available by application and invitation only.

Read more at the Houston Business Journal.

Houston 300,000-SF Enclave Place rising with tenant in hand 

(4/4/2014)

HOUSTON - Enclave Place, a 300,000-sf office building, is rising at 1414 Enclave Pkwy. The Class A office space will be located on a 4.7-acre site in the Energy Corridor.

Construction on the site south of the Katy Freeway, between North Eldridge and Briar Forest began before landing a tenant. Construction is projected to finish by June 2015.

Enclave Place joins 16 buildings totaling nearly 4.2 million sf under construction in The Katy Freeway/Energy Corridor market, according to PM Realty Group.

Read more at the Houston Chronicle.

Market hunting at the bayou pays off in Houston 

(4/4/2014)

HOUSTON - The Market at Hunting Bayou, a 201,268-sf retail center at 11410-11430 East Fwy., has been sold. The property is anchored by a 17-screen Cinemark theater, a 43,460-sf 24-Hour Fitness, and a 24,515-sf Goodwill.

The center benefits from high visibility from traffic on I-10. Florida-based JBL Asset Management purchased the property.

Read more at CoStar Group.

Kroger Marketplace planned for Cypress 

(4/3/2014)

CYRPESS - A 123,000-sf Kroger Marketplace is set to open in late 2015 in the master-planned community of Fairfield.

In addition to the store, there will be four pad sites and an additional 30,000 sf of retail space on the site near Cypresswood Dr. and Fairfield Meadow Dr.

Kroger plans to hire more than 300 new employees for the new Fairfield location when it opens, according to Kristal Howard, public relations manager for Kroger.

The Kroger Marketplace will feature fresh foods, apparel, furnishings, home goods, small appliances, jewelry, a fuel center and pharmacy.

Read more at Community Impact Newspaper.

Friendswood Baybrook Mall growing to 1.7M SF 

(4/2/2014 6:30:00 AM)

FRIENDSWOOD - Baybrook Mall has announced plans to add an estimated 555,000 sf to the 1.2 million-sf center. The expansion will increase the size of the mall by about 50 percent to 1.7 million sf, and will rival Houston's Memorial City Mall and the Galleria in size.

The mall's owners, Chicago-based General Growth Properties, said that the mall is nearly 100 percent leased and has continued to show growth.

The project will add more than 30 retailers, ten restaurants, and entertainment and hospitality venues to the property, which is located at the northwest corner of Bay Area Blvd. and I-45.

Work will begin in early May with completion by the 2015 holiday season.

Located on the north side of Baybrook Mall, a 285,000-sf lifestyle expansion will connect to the existing property between Forever 21 and Dillard's. A 270,000-sf power center will complete the project with a variety of big-box anchor tenants, restaurants and family-friendly activity venues.

Houston-based Hoar Construction has been contracted for the construction and renovation project at the mall.

Read more at the Houston Chronicle.

465,000-SF industrial Centre at Cypress sold in NW Houston 

(4/2/2014)

HOUSTON - The four-building, 465,716-sf Centre at Cypress Creek has been purchased by SG Cypress Real Estate Ventures.

Centre at Cypress Creek comprises three office buildings totaling 220,622 sf located on State Hwy. 249, and a 245,094-sf flex industrial/office property on Compaq Center Dr. The office space is 93.6 percent leased to tenants including Gexa Energy, FoxConn, Intel Americas and Noble Energy. The industrial space is fully occupied by FoxConn.

Building amenities include three parking garages, a cafeteria, auditorium, jogging trails and picnic areas. The Centre is located within the former HP Compaq Computer Campus, a 300-acre office park fronting SH 249.

Read more at the Houston Business Journal.

Houston's Mattress Mack furniture stack to 140,000 SF 

(4/1/2014 9:00:00 AM)

RICHMOND - Gallery Furniture is going big with the addition of a 140,000-sf store off the Grand Pkwy., next to the Palladium Theater. The store is expected to open in December in southwest Houston in Richmond.

This marks Gallery Furniture's third Houston-area location and, more significantly, will be the furniture retailer's largest store. Its flagship store, located at 6006 North Fwy., is 110,000 sf. Its other store is at 2411 Post Oak Blvd.

Gallery Furniture owner Jim “Mattress Mack” McIngvale plans to hire between 50 and 75 new employees to work at the store.

“It’s a bold move, but we feel like there is a demand there,” McIngvale said. “We feel like the location is really good, next to the Palladium Theater on the Grand Parkway and near Sugar Land.”

Like its sister stores, the new location will include a variety of furniture inventory as well as an indoor playground, parrots, monkeys and a full restaurant. It will also provide a space for residents of The Brookwood Community, a residential and vocational program for adults with developmental disabilities, to craft and sell their art and homegrown plants.

Read more at the Houston Business Journal.

TAMU-Galveston: Hunt's $45M cadet hall 

(4/1/2014 6:42:00 AM)

GALVESTON - Hunt Cos. will develop a $45 million cadet residence on campus at Texas A&M University. The project will bring 612 beds and an adjacent commons, which will include classrooms, office space, conference rooms and retail.

The project will serve cadets at the school who are part of the Texas A&M Maritime Academy. Construction is scheduled to start second quarter 2014 and complete by fall 2015.

The project is Hunt Cos. first project with the university system. Previously, Hunt Cos. developed more than 70,000 military homes.

Read more at GlobeSt.com and at Texas Real Estate Business.

Jenkins pops the lock on Cypress self-storage facility 

(4/1/2014)

CYPRESS - The former Big Star Storage at 14820 Cypress N. Houston Rd. has been sold and will be rebranded as Cypress Self Storage. The Jenkins Organization Inc., a self-storage operator, developer and management company bought the property.

An expansion of 55,000 sf is planned on the 48,265-sf property, according to The Jenkins Organization.

Amenities include all ground-level units, boat and RV storage, onsite management, gated access, video cameras and packing and moving supplies.

The Jenkins Organization owns and manages a portfolio of 53 self-storage properties in Louisiana, Oklahoma and Texas, comprising more than 3.5 million sf of storage space.

Read more at Inside Self-Storage.

Can it! Goya's new bean facility opens near Houston  

(4/1/2014)

BROOKSHIRE, WALLER COUNTY - Goya Foods new $75 million, 350,000-sf facility is running at full speed at 30602 McAlister Rd.

The facility is located on a 130-acre farm and serves as the prime hub for the manufacturing and distribution of Goya's healthy bean lines and will produce 1,000 cans of beans per minute.

The positioning of the Texas facility is a strategic location for Goya that provides key access to skilled workforce, affordability, a favorable business climate, railroad transportation, and acts as a launching pad for global export from Houston's port and the Panama Canal.

Goya employs 160 people at the new facility.

Read more at PRNewswire.

Eat at home with international flair! Goya features recipes by region — Caribbean, Mexico, South America and Central America

Houston's 223,000-SF Almeda Crossing to $35M 

(4/1/2014)

HOUSTON - The 223,223-sf Almeda Crossing at the northwest corner of Almeda-Genoa Rd. & Rowlett Rd. has been sold. A subsidiary of TitanStar Properties Inc. will purchase the retail power center for $35 million later in April.

Completed in 2006, Almeda Crossing is currently 98 percent leased and has a variety of retail clients with major tenants including:

• Ross (27,650 sf)
• Marshall's (25,000 sf)
• Staples (20,480 sf)
• Conn's Electronics (30,000 sf)
• PetSmart (19,509 sf)

TitanStar Properties Inc. is a publicly traded Canadian real estate investment company that focuses on the southwestern United States.

Read more on page 9 at TitanStar Properties and Marketwired.

CBRE: Houston office vacancy, rent up in 1Q 2014 

(3/31/2014 9:00:00 AM)

HOUSTON - In first quarter 2014, vacancy rates increased by .1 percent from 4Q 2013, pushing total vacancy to 11.9 percent, according to a preliminary report from CBRE Group. However, demand for key submarkets and trophy assets is still hot.

“Four office buildings totaling 1.2 million sf were delivered in Houston, but these developments did not add vacancy to the market since three are owner-occupied and the fourth was 100 percent preleased during construction,” said Cody Armbrister with CBRE Houston.

Asking rents increased by 1.7 percent from 4Q 2013 to $25.03 for the metro area.

Rents should peak over the next one to two quarters before falling back to current levels, according to the Houston office of New York-based Studley Inc., which studied the correlation between employment, crude oil prices and office rents in the Houston area.

Houston’s suburbs also saw an increase for its gross rental asking prices, which went from $22.03 in last quarter of 2013 to $22.49 in first quarter of 2014, a 2.1 percent increase.

Houston’s peak rental prices were in the Central Business District, at $34.05 per-sf, the Woodlands at $33.73 per sf and the West Loop at $29.74 per sf for 1Q 2014, according to Studley.

Read more at the Houston Business Journal. For more stats, see Office under Houston Market Data Sources.

$74M Methodist Retirement Communities to League City 

(3/31/2014 6:30:00 AM)

LEAGUE CITY - The Crossings, a $74 million senior living community, will break ground April 7. The Methodist Retirement Communities' project will be built on 18.8 acres near FM 270 (Egret Bay) and FM 518.

The complex will consist of 116 independent living apartments, 34 assisted-living apartments, 48 skilled nursing apartments and 24 memory support apartments.

It will be the only Life Care option for seniors in the area, according to Methodist Retirement Communities. The campus will offer dining venues, a fitness facility, pool and various activity centers.

The construction, which will bring 150 jobs to the community, is expected to be completed fall 2015.

Read more at the Houston Chronicle.

Fuller knocks on Houston's 9801 Westheimer door 

(3/28/2014 6:56:00 AM)

HOUSTON - 9801 Westheimer, a 211,125-sf, 11-story office building has been acquired by HUSREF V* and Fuller Realty Partners.Situated on a 5.4-acre lot facing Westheimer in the Westchase district, the building is 86 percent occupied.

The buyers plan to invest additional capital upgrading and leasing vacant space at the property.

*Harbert United States Real Estate Fund V

Read more at MarketWired.

The Woodlands lands 153,000-SF Costco 

(3/28/2014 6:40:00 AM)

THE WOODLANDS - Costco Wholesale break ground very soon on a 153,000-sf facility at the northeast corner of Hwy. 242 and I-45.

The Woodlands store, which is expected to open in November 2014, will be the sixth Houston area location for Costco. The Woodlands Township approved a $2.3 million sales tax grant to induce the retailer to open the store.

Costco is expected to complete the acquisition of the land from The Woodlands Development Company in April or May, with construction beginning soon after.

Read more at Community Impact Newspapers.

Houston 137,000-SF 2900 Weslayan sold; redo to Class A 

(3/28/2014)

HOUSTON - The 136,698-sf office building and 20-lane motor bank at 2900 Weslayan has been sold. The six-story property in the Greenway Plaza/Galleria submarket is 73 percent leased to a variety of tenants including anchor tenant, JP Morgan Chase.

PM Realty Group, who purchased the building and bank, will be investing significant capital to reposition the building to Class A.

The property, which sits on almost three acres, is adjacent to a new 40-story residential development, which is also being developed by PM Realty Group.

Read more at GlobeSt.com.

Houston construction contracts Feb. 2014 

(3/28/2014)

HOUSTON - McGraw-Hill reports that $12.0 billion in construction contracts were awarded in the metro area during the 12 months ending February 2014, an 8.1 percent increase from the $11.1 billion awarded during the 12 months ending February 2013.

Residential contracts totaled $7.6 billion, up 2.9 percent from $6.9 billion. Residential includes single and multifamily housing.

Nonresidential contracts totaled $4.4 billion, up 18.2 percent from $3.8 billion. Nonresidential includes commercial, manufacturing, educational, religious, administrative, recreational, hotel, dormitory and other buildings.

The substantial gain in nonresidential contracts was a result of a $1.2 billion propane dehydrogenation facility in Alvin reported earlier this year.

 
Metro Houston Construction Contracts*
  12 Months Ending  
  Feb. 2013 Feb. 2014 Change
Nonresidential $3,767,029,000 $4,451,754,000 18.2%
Residential $6,954,209,000 $7,585,113,000 2.9%
Total building $11,138,559,000 $12,036,867,000 8.1%

*Includes Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, San Jacinto and Waller Counties
Source: McGraw Hill Construction

Read more at the Greater Houston Partnership.

Wright Landing affordable housing in Spring 

(3/27/2014)

SPRING - Gracepoint Homes seems to have struck gold combining a popular location with comparatively affordable housing prices.

Texas-based Gracepoint began purchasing additional properties in 2011 in north Houston within five miles of the announced Exxon Mobil headquarters. One property, Wrights Landing, an 85-acre tract two miles east of I-45 and near an extension of the Grand Pkwy. is breaking the mold.

While so many of the surrounding communities are courting buyers with high salaries and luxury taste, Wrights Landing, which opened six weeks ago, features 306 single-family homes priced between $230,000 and $340,000. And the plan is working.

Even without a completed model home to show prospective buyers, Gracepoint has already sold five houses in three and a half weeks.

The craftsman-style homes in Wrights Landing will range in size from 2,055 to 3,800 sf.

Read more at the Houston Business Journal. Want to hear the latest? Then check out Podcast 210 for news you may not know.

Brookwood adding 41,000 SF, jobs in Brookshire 

(3/27/2014)

BROOKSHIRE, WALLER COUNTY - The Brookwood special needs center is embarking on a $30 million fundraiser to finance a new 41,000-sf Education and Enterprise Building.

The capital campaign will be Brookwood’s largest ever, and the new complex is projected to double the amount of job opportunities for special needs adults, according to Joe Mazzu, director of development.

“The need is enormous. More and more kids are aging out of special education programs, and they need something for life,” Mazzu said. “We are gladly accepting any donations towards the project.”

Demand for accommodations like Brookwood is nothing new. The 485-acre community in Brookshire has been serving disabled individuals since its inception in 1985.

Other initiatives Brookwood hopes to accomplish with the campaign include an addition of two more group homes; a renovation of the existing handcrafts building, which will expand therapy and activities programs; and infrastructure improvements to maximize accessibility and safety.

Read more at The Rancher.

Houston CBD office rents rise high to the sky 

(3/26/2014 7:00:00 AM)

HOUSTON - Rent for trophy assets in the Central Business District has skyrocketed as top employers compete to provide top-notch work environments for their employees.

Houston rents for top-tier Class A offices that are larger than 500,000 sf, known as trophy assets, have increased 4.5 percent over last year to $44.50 per sf, which includes expenses. Vacancy rates are at 6.1 percent, according to JLL’s 2014 Skyline report released March 12, 2014.

“Until new product such as six Houston Center arrives on scene in 2016 and 2017, rents in the Houston skyline will continue to rise and landlords will continue to restrict concessions,” said Chrissy Wilson, senior vice president at JLL’s Houston office.

Almost half of the Central Business District’s skyline is owned by either New York-headquartered Brookfield Office Properties or JPMC/Crescent.

“This isn’t your father’s oil company office space anymore. The office building and office environment have evolved. In turn, projects that can offer tenants this type of quality have been able to dramatically push rental rates and set the tone for Houston’s Class A market,” said Chris Dekker, vice president of the agency leasing team for JLL’s Houston office.

By the numbers:

• $44.50 average rent per sf, including expenses, a 4.5 percent year-over-year increase
• 2.2 million sf of new office construction slated to start in 2014 in the Central Business District
• 15 Fortune 500 companies with headquarters in downtown
• 36 percent: amount of new construction this year in the Woodlands, the highest percentage in the Houston area
• 6.1 percent: space available in top-tier downtown buildings
• $250 million: estimated cost to construct 6 Houston Center, which should break ground summer 2014
• 7 new office buildings either underway or planned for downtown, including 6 Houston Center. Only two have broken ground, according to Central Houston Inc.

Read more at the Houston Business Journal.

Click through the slideshow to see the rest of the Central Business District skyline and a take a closer look at downtown's trophy towers.

Tall, skinny Madeline fits Houston 6:45AM 

(3/26/2014)

HOUSTON - Madeline, a 22-lot community featuring “tall and skinny” single-family homes, has opened at I-610 and Ella Blvd. Located in Houston’s Inner-Loop, the dense development features three- and four-story homes situated on one acre.

The vertical model provides buyers a less-expensive alternative to the typical single-family home. Prices begin at the $440,000.

The Gracepoint Homes community opened for sale last month, with four lots currently on hold for purchase.

Gracepoint opened four communities outside the loop in the first six weeks of 2014, and is developing more. The Forest, a 156-acre community at FM 1488 and People Rd., and Wrights Landing, a 306-home community at I-45 and Grand Pkwy. are both under construction.

Read more at the Houston Business Journal.

225,000-SF warehouse starts on West Airtex Blvd. Houston 

(3/26/2014)

HOUSTON - Work has started on a 225,360-sf warehouse property at 300 West Airtex Blvd. International Airport Centers (IAC) is developing the property, which is scheduled for completion in summer 2014.

“Houston’s continued growth throughout the past few years has made the city one of our top target markets, and the Airtex Distribution Center is a significant step in our advancement within the area,” said Larry Krasner, president of IAC.

The Class A cross-dock building, known as The Airtex Distribution Center, will feature 32-foot clear heights, high truck door, trailer parking and mechanical features including T-5 lighting and ESFR sprinklers.

Ed Frantz and Faron Wiley of CBRE’s Houston office have been hired to lease the project, which could host up to four tenants, though Wiley expects fewer. Lease rates will be $4.68 per-sf net with a $4.00 per-sf tenant improvement allowance.

Read more at the Houston Business Journal and GlobeSt.com.

Houston: land sold; Class A industrial near Hardy Toll Rd. 

(3/26/2014)

HOUSTON - A Denver-based firm has acquired 35 acres along Beltway 8 with plans to develop a 352,000-sf industrial building on the site.

The site has more than 1,200 feet of frontage on Beltway 8 and lies just east of the intersection with the Hardy Toll Rd. in Houston’s north submarket, one of the healthiest industrial submarkets in the country.

Amstar and Davis Commercial Development will construct the Class A, cross-docked building, which is designed to achieve LEED certification.

"Amstar is excited to be a part of such a promising, well-located development, especially with a high-caliber partner like Davis Commercial Development. We have partnered DCD before and look forward to a great outcome," said Amstar Senior Vice President Daniel Cohen.

Read more at PRWeb.

Downtown Houston's residential growth 

(3/24/2014 10:00:00 AM)

HOUSTON - Downtown Houston’s residential population could more than double over the next several years with projects underway and a dozen proposed for the city center.

The boom is being fueled in part by a city program offering developers up to $15,000 for each apartment or condominium they build in a multifamily complex of at least ten units. They must meet design guidelines on how the project looks at street-level.

Of the projects proposed, three have been approved for the incentive program, and agreements are pending on the others.

Approved projects include a 33-story tower planned near Market Square Park; a 38-story building by Discovery Green; and a ten-story structure on the southern end of downtown.

According to the Houston Downtown Management District, since the program went into effect more than a year ago, the following developments have broken ground:

•  Alliance Residential Co.: five-story, 207-unit building at Main and Bell;
•  Texaco Building: 323 units at Capitol and San Jacinto;
•  SkyHouse Houston/Novare Group: 24-story, 336-unit building with retail at Fannin and Leeland; and
•  Finger Co.: seven-story, 397-unit building with retail at Prairie and Crawford

Current downtown data are shown below.

Downtown residential
Rental or for sale units 2,614
Occupancy 90.8%
Estimated population 3,060
Units under construction 1,263
Units proposed 2,251
Total units* 6,128
Estimated population* 7,635

*Numbers assume completion of all proposed projects.

Read more at the Houston Chronicle and another story at the Houston Chronicle.

For more Multifamily, see Houston Market Data Sources.

CBRE: Houston multifamily 4Q 2013 

(3/24/2014 8:00:00 AM)

HOUSTON - The multifamily market ended 2013 with a strong fourth quarter, according to CBRE’s 4Q 2013 Multi-Housing Marketview.

Rent growth continued in 4Q 2013 and Houston average rental rates are on track to reach $1.00 per sf soon. Rents reached $0.98 per sf in 4Q 2013, continuing the upward pattern for all four quarters of 2013.

Citywide occupancy stands at 90.5 percent, marking an entire year of citywide occupancy rates above 90 percent.

With robust home sales bringing months of supply to historic lows and strong housing demand in general, multifamily fundamentals are tight, especially as more millennials opt for Class A rentals in the Inner Loop.

The number of units absorbed in 2013 reached 16,678. Not only is net absorption outpacing the three-year average of approximately 14,000 units, but this marks the sixth consecutive year with positive annual net absorption.

For CBRE’s full report, see Multifamily under Houston Market Data Sources.

No Reliant Park in Houston? Look for NRG Park, NRG Stadium 

(3/24/2014)

HOUSTON - Reliant Park and its entities will be renamed NRG Park, NRG Stadium and NRG Center. The newly renamed NRG Stadium should have signs in place by the time the Houston Texans start their upcoming 2014 season.

The Harris County Sports & Convention Corp. board of directors voted to approve the change.

Read more at the Houston Business Journal.

100 Jobs tap into $15M Houston brewery expansion 

(3/21/2014)

HOUSTON - Karbach Brewing Co. will hire 100 new employees as it breaks ground next week on a $15 million, 19,000-sf expansion project next to the current facility at 2032 Karbach St.

The new two-story facility, situated on a 1.2-acre tract, will include a public taproom, a kitchen and space for special events.

In 2013, Karbach produced 19,000 barrels of beer, but the expansion will take the brewery to 60,000 barrels in annual production and will allow room for future growth.

The craft brewing market is booming in Texas and is projected to reach $5.6 billion in about seven years. “It’s all part of that trend of people not consuming as much beer, but what they do consume is higher quality,” said Eric Warner, brewmaster for Karbach.

Karbach drew national attention in 2013 when cited by The New Yorker as the second fastest-growing brewery in the nation.

Read more at the Houston Business Journal and Brewbound.

The Woodlands: Four hotels planned near Exxon campus  

(3/21/2014)

THE WOODLANDS - Dallas-based Woodbine has unveiled plans for the first of four hotels it plans to build near the Exxon Mobil Corp. campus near I-45 and the Hardy Toll Rd.

Woodbine Development Corp. has purchased a 3.25-acre site with Louisiana-based InterMountain Management to develop an extended-stay hotel in the CDC Houston’s master-planned, mixed-use Springwoods Village community.

The 128-room Residence Inn is expected to open in summer 2015 and will serve Exxon’s 385-acre campus, Southwestern Energy Co.’s new headquarters and other employers in the area.

“The new Exxon Mobil campus will bring over 100,000 hotel room nights to the Woodlands area,” said PKF Consulting USA’s Randy McCaslin. “There is definitely a need for more hotel rooms.”

The Residence Inn is the first of three select-service hotels Woodbine plans to develop in Springwoods Village. It also plans to develop a full-service hotel in Springwoods Village’s Town Center.

Read more at the Houston Business Journal.

HAR: increased home sales hit 33 consecutive months 

(3/20/2014 3:00:00 PM)

HOUSTON - Single-family home sales increased for the 33rd consecutive month, reaching 4,765 homes in February 2014, an 8.3 percent increase over the 4,398 sold in February 2013, according to the Houston Association of Realtors.

Prices remain high as the Houston housing market continues to experience its lowest supply of homes for sale on record. Local inventory stood at 2.6 months of supply, the third consecutive month at that level.

The inventory of single-family homes across the U.S. currently stands at 4.9 months, according to the National Association of Realtors.

Rentals of single-family homes rose 19.2 percent compared to February 2013 and townhouse/condominium rentals grew 4.3 percent. The average rent for a single-family home increased 5.2 percent year-over-year to $1,590 while the average rent for townhouses and condominiums rose 6.1 percent to $1,481.

Housing Market Summary February 2013 vs. 2014
  Feb. 2013 Feb. 2014 Change
Total sales 5,333 5,810 8.9%
Total dollar volume $1,121,054,005 $1,372,917,225 22.5%
Total active listings 33,361 27,798 -16.7%
Total pending sales 3,877 3,777 -2.6%
Single-family sales 4,398 4,765 8.3%
Average price $220,014 $247,534 12.5%
Median price $162,500 $181,500 11.7%
Single-family inventory* 3.6 2.6 -

* The number of months it will take to deplete current active inventory based on the prior 12 months of sales activity.
   Source: Houston Association of Realtors

For the full MLS Report, see Houston Association of Realtors. For more housing stats, see Houston Market Data Sources.

Houston: Beltway 8 Corporate Center III, IV bring $45M 

(3/20/2014 8:00:00 AM)

HOUSTON - Canadian-based Agellan REIT recently purchased 10900 Corporate Center Drive (Beltway 8 Corporate Center III) and 4920 Westway (Beltway 8 Corporate Center IV) for a total purchase price of $45 million, excluding acquisition costs, representing an implied capitalization rate of 8.47 percent.

The properties have approximately 130,000 sf of gross leasable area (GLA) each.

The properties were constructed in 2006 and are located in the fast growing Techway and Energy Corridor. The properties are leased to six investment grade tenants, with weighted average term to maturity of 4.3 years.

The complex is part of a larger corporate office park which includes the previously acquired 101,000-sf Beltway 8 Corporate Center II for $18.25 million.

Source: digitaljournal.com

Newly formed Niavo Gulf grabs 102,000 SF in south Houston 

(3/20/2014)

HOUSTON - Newly formed Niavo Gulf Industries Inc. has secured a lease for a 102,000-sf crane-served facility at 12300 Amelia Dr. The facility’s overhead cranes were among the features that helped close the deal.

Niavo is a manufacturer of cryogenic tanks and other vessels used in the oilfields and is currently hiring.

Read more at the Houston Business Journal.

Katy's Autumn Leaves falls into to memory care options 

(3/20/2014)

KATY - The newest Autumn Leaves memory care community is set to open at 24024 Westheimer Pkwy., representing the ninth community in the Houston market.

Autumn Leaves of Cinco Ranch will hold a grand opening on April 3.

The 28,000-sf property is designed for 46 residents living with Alzheimer’s, dementia and memory impairment. The community will provide educational seminars, Alzheimer’s support groups, day stays and respite care for families living in the area.

The memory care segment has been expanding in the Houston area with 541 units under construction at the end of 2013, according to the National Investment Center for the Seniors Housing and Care Industry.

The number of memory care units rose to 1,989 in the Houston market in 2013, up 18 percent over 2012.

Autumn Leaves noted that the need for specialized care is growing as 340,000 Texans live with Alzheimer’s.

Read more at the Houston Chronicle.

Heartis: Seniors stroll to Cypress, Clear Lake 

(3/19/2014)

CYPRESS, CLEAR LAKE - Caddis Partners has broken ground on two assisted-living communities. The Cypress location is at Longenbaugh Rd. west of Barker Cypress. The Clear Lake facility will be on Old Galveston Rd., south of Clear Lake City Blvd.

Both locations are planned to open first quarter 2015.

Each facility will contain 63,000 sf consisting of 78 units with 54 dedicated to assisted living and 24 for memory care. The communities will offer three interior courtyards, daily activities, meals, housekeeping and laundry services, and transportation services.

The properties will feature a streetscape with various storefronts and activities such as a movie theater, 1950’s-style ice cream parlor and art studio.

Both facilities will be under Caddis’ recently launched Heartis assisted-living and memory care brand.

Read more at the Houston Chronicle.

Montgomery County: Gracepoint Homes' 156 acres to The Forest 

(3/19/2014)

MONTGOMERY COUNTY - Gracepoint Homes has purchased a 156-acre tract near I-45 just south of FM 1488 that will be used for residential development, an answer to the growing need for housing in booming Montgomery County.

The initial phase of The Forest, which is slated to begin home sales in early 2015, will include 65-foot homesites for patio homes and 80-foot properties for traditional single-family homes. Pricing in the development is expected to range from the $600,000’s to the millions.

The property is currently used as farm land. It is bordered on two sides by W. G. Jones State Forest, a 1,722-acre forest owned by Texas A&M.

“This is a beautiful property,” said Gracepoint President Tom Cox, Jr. “Having a state forest as a boundary and being zoned to Conroe ISD schools located in The Woodlands are definite benefits.” The Forest also will feature several lakes, parks, trails and open space.

Montgomery County is seeing a surge in commercial development, with 3 million sf of office space under construction in The Woodlands, equating to 10,000 employees, said David Jarvis with Metrostudy.

Cox said he expects The Forest to serve Exxon Mobil employees. “This development is approximately ten miles from the new Exxon Mobil campus, and will be an option for people wanting a new home in the area, especially since The Woodlands is nearing close out.”

Read more at The Paper.

South Africa Sasol HQ to 175,000-SF tower in Houston 

(3/18/2014 8:00:00 AM)

HOUSTON - Work has begun on a 175,000-sf building at 12140 Wickchester Ln., which will be the fourth building of Woodbranch Plaza in the Energy Corridor by PM Realty Group.

The building will house Sasol’s North American headquarters. Headquartered in Johannesburg, South Africa, Sasol is listed on the New York and Johannesburg stock exchanges.

Slated for delivery in April 2015, the new building will share a fitness facility and café with Jacobs Plaza, which topped off on March 3, the same day as the groundbreaking.

California-based Jacobs Engineering Group Inc. will occupy almost half of Jacobs Plaza, with employees moving in August. The other 52 percent of the building is still open for lease.

The Woodbranch Plaza project is owned by Stena Realty, which is headquartered in Sweden and Amsterdam.

Read more at the Houston Business Journal.

Momentum drives BMW to 95,000-SF dealership in Katy 

(3/18/2014 7:00:00 AM)

KATY - Momentum BMW will break ground on a new 95,000-sf dealership on April 9. The new facility at 20820 Katy Fwy. is expected to open by first quarter 2015, said Maria Moncada Alaou, the dealership’s general manager.

Momentum BMW West has outgrown its current facility at 15865 Katy Fwy., Alaou said, and the new location will give the dealership the opportunity to build a more up-to-date facility in the prime Energy Corridor area.

Momentum BMW West is owned by Charlotte, N.C.-based Sonic Automotive.

Read more at the Houston Chronicle.

Houston Sonic drives in to biggest Audi store in U.S. 

(3/18/2014 6:55:00 AM)

HOUSTON - A unit of Sonic Automotive has opened a glitzy 142,000-sf Audi dealership at 2120 Southwest Fwy. The southwest Houston Audi dealership is the largest in the United States. The dealership cost about $25 million to build and has interior capacity for more than 300 vehicles.

The seven-story store, which is more than eight times the size of a conventional dealership, features a 5,000-sf ten-car showroom, according to Automotive News.

Audi’s strong growth — sales were up 13.4 percent in 2013 — has prompted dealers to spend more on new facilities, officials say. “This new dealership exemplifies the growing investment of our dealer body,” said Mark Del Ross, chief operating officer of Audi of America.

Read more at the Dallas Morning News.

H-E-B shopping Houston burbs 

(3/18/2014)

CYPRESS, LAKE JACKSON, CY-FAIR - Three new H-E-B supermarkets are on tap for the Houston suburbs of Cypress, Lake Jackson and Cy-Fair.

The Cypress store will be at the corner of Tuckerton and Fry Rds. down the street from Bridgeland, Howard Hughes Corp.'s latest master-planned development that will be the Houston area’s largest community of its kind once it is built out over the next 20 years. H-E-B just closed on the land, so it does not have a timeframe for construction or when it will open.

The new Lake Jackson store is slated to open in spring 2015 and will be at the corner of Oyster Creek Dr. and Oak Dr.

The Cy-Fair area store will be located at the corner of Grand and Spring Cypress Rds. It has a tentative opening date of late fall 2014 and an estimated size of 95,000 sf.

Supermarkets will dominate aggressive retail development in Houston over the next year, representing half of 2014 retail growth with 28 new grocery stores planned.

Read more at the Houston Business Journal.

Houston's 20 Greenway Plaza $5M renovation, new tenants 

(3/18/2014)

HOUSTON - Three new tenants and a $5 million renovation are headed to 20 Greenway Plaza, giving the building a fresh look and pushing occupancy to 85 percent.

RealEC Technologies is leasing 38,000 sf. Mitsubishi Heavy Industries America will occupy 12,000 sf, and Mercuria Energy Trading Group will take 27,000 sf in the 466,000-sf building.

CBRE and owner Principal Real Estate Investors will also add landscaping, upgrades to the interior and exterior graphics, work on the parking garages, a new fitness center and a remodeling of the lobby, common areas and rest rooms.

Renovations on the 1980s-era building are expected to be finished in September.

Read more at the Houston Chronicle.

$15M price tags Houston Woodbranch Building 

(3/11/2014 2:00:00 PM)

HOUSTON - CapRidge Partners LLC purchased the Woodbranch Building for $15 million from Parkway Properties. The 109,471-sf office building at 12012 Wickchester is 100 percent leased.

Parkway received approximately $13.9 million in net proceeds, which were used to fund subsequent acquisitions, according to SEC filings.

The Woodbranch Building is situated on 3.7 acres near the northwest corner of Kirkwood and I-10. Built in 1983, the property sits on 3.72 acres.

Class A office space in the Energy Corridor area is 99 percent leased and over 5 million sf is under construction.

Read more at GlobeSt.com and SEC.

Houston shipping 260,000 SF of amenities to Greenspoint 

(3/11/2014)

HOUSTON - American Bureau of Shipping (ABS) has renewed its lease in Greenspoint Place, a north Houston office complex that has been the home of Exxon Mobil.

The ABS will lease 228,254 sf, expanding by 30,481 sf, making their total leased space 258,735 sf.

The renewal and expansion encompasses the entire ABS Plaza building (16855 Northchase Dr.), space in Greenspoint Place 2, (16945 Northchase Dr.) and retail space in Gallery 1.

Exxon Mobil is vacating a huge amount of office space in Greenspoint and across Houston as it moves into a new Exxon Mobil office campus just south of The Woodlands.

Hines also announced a comprehensive plan to reposition Greenspoint Place that includes an amenity-rich program which will allow the campus to remain competitive with other Class A properties across the city.

Source: RealtyNewsReport.com

Houston: One of world's largest spec projects underway 

(3/8/2014)

HOUSTON - Construction has started on one of the largest spec office projects in the world. The Hines project — 609 Main at Texas — is a 48-story, 1,050,000-sf office tower at the corner of Main St. and Texas St. in downtown Houston.

The company planned to build a smaller building, but increased the size of the tower because demand for space in the building appears to be growing. Construction is expected to take 36 months with delivery scheduled for February 2017.

Houston’s energy business has been expanding and generating growth in other sectors for several years. Houston, with 82,000 new jobs last year, led the nation in job growth and housing starts in 2013.

Office occupancy is exceptionally high in Houston and rents are rising. The Energy Corridor in west Houston has and Class A occupancy rate of 99 percent. The Houston CBD vacancy rate is 9.2 percent in overall and 7.5 percent in Class A, according to CBRE.

Read more at Realty News Report. Also see more office information under Houston Market Data Sources.

CyrusOne, two, three data centers on Houston West Campus 

(3/7/2014 6:45:00 AM)

HOUSTON - CyrusOne's third data center (514,000 sf) is underway at its 45-acre Houston West campus at 4201 Southwest Fwy. along Beltway 8.

Upon completion, the new facility will include 428,000 sf of raised floor capacity, 86,000 sf of Class A office space, and up to 96 megawatts of critical load. The third facility serves to increase data center capacity available at the Houston West campus to more than 1 million sf.

The company plans to construct the third facility in two phases, with Phase 1 consisting of a 321,000-sf powered shell with 214,000 sf of raised floor space, 43,000 sf of Class A office space and up to 48 megawatts of critical power load. It expects the first data hall, which will have approximately 54,000 sf of raised floor, to be operational by early 2015.

Read more at the Wall Street Journal.

Prairie View A&M $37.8M building underway 

(3/7/2014 6:00:00 AM)

PRAIRIE VIEW, WALLER COUNTY - Construction is underway for the 96,000-sf Agriculture and Business Multipurpose Classroom Building at Prairie View A&M University.

The $37.8 million structure, slated to open in fall 2015, will house both the College of Agriculture and Human Sciences and the College of Business.

Amenities will include a 400-seat auditorium, student lounge, teaching laboratories, meeting rooms and wireless internet.

Read more at Texas Real Estate Business.

Houston Magi sell 1,600 self-storage units 

(3/7/2014)

HOUSTON - Six self-storage properties totaling 270,000 sf have been sold. World Class Capital Group (WCC) purchased the 1,600 units. The properties range from 26,000 sf to 84,000 sf.

The locations are 632 Timkin Rd. in Tomball; 941 Fairmont Park in Pasadena; 4806 Marie Ave. in Deer Park; and 16530 W. Hardy Rd.; 5811 N. Houston Rosslyn Rd. and 8320-8330 Alabonson Rd. in Houston.

The seller was MMD Group, which operated the units as Magi Self Storage. WCC will rebrand the units as Great Value Storage. Renovations will start immediately.

“Houston is a strategic market for our platform and we plan to continue acquiring and developing high-quality self-storage facilities in the Houston market,” said WCC President and CEO Nate Paul.

Austin-based World Class Capital now operates 45 self-storage properties accounting for 25,000 units in several states.

Read more at the Houston Business Journal, Business Wire, CoStar Group.

Cypress’ Hidden Creek homes at Bridgeland 

(3/6/2014)

CYPRESS - Hidden Creek won’t be hidden long when ground breaks for the next phase of Bridgeland, an 11,400-acre master-planned community. Construction begins this month on 1,200 to 1,400 lots spread over 800 acres, with houses ready for sale in third quarter 2014.

Home prices will range from $200,000 to $1 million.

“From a Howard Hughes perspective, Bridgeland is the next master-planned community that will move to the forefront. With the Grand Parkway intersecting our community, it links the Exxon Mobil (Corp.) campus to the north and the I-10 Energy Corridor to the west,” said Paul Layne, executive vice president of master-planned communities for The Howard Hughes Corp.

Established in 2006, Bridgeland currently has 2,000 homes with thousands of lots left for development, making it a contender for the largest master-planned community in Houston, Layne said.

Read more at the Houston Business Journal.

Near IAH: Interwood industrial pair (200,086 SF) sold 

(3/5/2014 10:00:00 AM)

HOUSTON - Interwood Business Center I and II, two Class A industrial warehouse facilities totaling 200,086 sf, have been sold.

Interwood Business Center I and II are located at 14430-14440 John F. Kennedy Blvd. and 14469 Heathrow Forest Pkwy. within the Interwood Business Park, which is situated immediately south of the entrance to George Bush Intercontinental Airport between I-45 and US 59.

The properties were built in 1999 and tenants include International Seal, Nippon Express, Goodman Distribution and Top Notch Solutions.

Stockbridge Real Estate Funds purchased the properties, free and clear of debt, from KTR Capital Partners.

Read more at Done Deals.

26-Story Belfiore lux through the roof in Houston 

(3/5/2014)

HOUSTON - Work has begun on a 26-story condominium building in Uptown. Raising the bar on luxury high-rise living, Giorgio Borlenghi previously introduced Belfiore as "a building by popular demand".

Belfiore's two-acre site is located at the southeast corner of Post Oak Ln. and S. Wynden Dr.

Belfiore, which is already 60 percent sold out, will feature only 46 residences, including two penthouses, with two homes per floor. Each home spans about 4,650 sf, in addition to 700 sf of terrace, starting at $2.5 million.

Construction is expected to be completed by spring 2016.

In both the rental and condominium markets, Houston is seeing larger floor plans in proposed buildings that are marketing to the Baby Boomer generation. With the flood of demand for these properties, higher rents and higher absorption figures are expected in 2014 and 2015, according to Jim Wallace, principal and founder of Houston-based WGW Architects Inc..

Read more at the Houston Business Journal and Houston Culture Map.

600,000-SF office downtown dubbed 6 Houston Center 

(3/4/2014 6:15:00 AM)

HOUSTON -  A 30-story, 600,000-sf Class AA office tower, dubbed 6 Houston Center, will be built in downtown Houston. The $250 million building will be bounded by Rusk, Caroline, Walker and San Jacinto streets on Block 95.

Crescent Real Estate Holdings LLC expects to secure building permits and select a general contractor in March with a groundbreaking by mid-summer 2014. Annual rents are expected to range between $34 and $37 per sf.

Plans for the precertified LEED Gold building include ten- and 12-foot ceilings, a rooftop garden, fitness and conference centers as well as a 15-foot glass skybridge connecting the building to 1 Houston Center.

Houston’s Class AA occupancy rate is at around 96 percent, and experts say supply is struggling to keep up with demand.

The Houston market closed 2013 with 4.9 million sf of positive absorption, the most since 2006, and the second highest absorption totals the market has seen since 1997, according to CBRE research.

Read more at the Houston Business Journal. Check out all Houston office sources under Houston Market Data Sources.

Houston historic Finger Furniture sold (old Busch site) 

(3/4/2014)

HOUSTON - The historic 600,378-sf Finger Furniture building at 4001 Gulf Fwy. has a new owner. The site consists a retail and warehouse building and two smaller storage buildings on 16.5 acres.

The site was home to minor league baseball teams at Busch (Buff) Stadium from 1928 until 1961.

The Finger family purchased the property, built a grand furniture showroom in 1965 and expanded it in the mid-1970s. They showcased sports memorabilia in the Houston Sports Museum in a portion of the store, which closed in late 2012.

Houston Developer Frank Liu bought the Finger property from Amegy Bank with intentions to develop it into the highest and best use, which could be retail or residential, said Tony Patronella of Read King, who represented Liu in the purchase.

Read more at the Houston Chronicle.

Houston's $35M Post 510 tenant-ready in March 

(2/28/2014 7:53:00 AM)

HOUSTON - The 242-unit Post 510 apartment complex is completed in the Montrose submarket. The $34.8 million mid-rise project at 510 Richmond Ave. will be ready for tenants to occupy in March. Construction cost per square foot was $168, according to SEC filings.

Post 510 features one- and two-bedroom apartment homes with modern kitchens and upgraded finishes. Floor plans will range in size from 613 sf to 1,120 sf and in price from $1,305 to $2,040 per month.

Post expects the property to be stabilized in first quarter 2015. Post defines stabilized occupancy as the earlier to occur of the attainment of 95 percent physical occupancy or one year after completion of construction.

The community in the Montrose submarket just south of downtown is an area that is leading the city in achievable rents with an average of $1.71 per sf, says CBRE.

The property is Post Properties Inc.'s third multifamily community in Houston.

Read more at GlobeSt.com.

Houston: Zimmerman Jansen starts 120,000-SF HQ 

(2/28/2014 7:40:00 AM)

HOUSTON - Construction has begun on a 120,000-sf industrial building. The property, which is scheduled for completion summer 2014, is within Kennedy Greens Business Park located on John F. Kennedy Blvd.

Zimmerman & Jansen Inc. will relocate its headquarters to the development from its current facility in Humble.

“This new state-of-the-art facility will not only enhance our manufacturing capabilities, but it will also provide our employees with a great work environment and help better service our customers,” said Daniele Cecchelli, president of Zimmerman & Jansen.

Of the 6 million sf of industrial under construction in Houston, 5 million sf is underway in the North and Northwest Corridors.

There is already limited availability of suitable land sites in these areas and along with rising per sf prices, users will need to expand their location searches further west or begin to look on the east side, according to Travis Land of NAI Houston.

Read more at GlobeSt.com.

Tomball's Willowcreek Ranch speeding up development 

(2/28/2014)

TOMBALL - Developers of the master-planned Willowcreek Ranch community are rolling out the second phase of inventory half a year earlier than originally planned because of high demand for the homes in the community.

Caldwell Communities said in a statement that 90 percent of its Phase I homes, which are slated to be completed fall 2014, have already sold. Due to demand, the predeveloped Phase II lots will be available for sale sooner than expected. The grand opening for those homes will be in May, but private tours are already available.

Asking prices for homes in Willowcreek Ranch start at $600,000 and rise into the millions. Lots range from one to seven acres and the property will include a 40-acre lake, an equestrian center and seven miles of hiking and riding trails.

The master-planned community is part of the growth of the area near The Woodlands, where Exxon Mobil’s new campus has influenced massive expansion of residential and commercial properties.

Read more at the Houston Chronicle.

Conroe: Crow Holdings purchases Wood Ridge Plaza 

(2/27/2014)

CONROE - The 211,673-sf Wood Ridge Plaza shopping center has been sold. Located 27582 I-45, the six-building center is 87 percent leased.

Major tenants include Pier 1 Imports, Kirkland’s, Office Depot, Mattress Firm, Pappas Bar-B-Q, Daily Spa and Chair King.

Crow Holdings Capital Partners purchased the center from Heitman Capital Management Corp.

Read more at CoStar Group.

Midtown apartments add Pearl at the Mix 

(2/26/2014 6:43:00 AM)

HOUSTON - Morgan Group Inc. has announced another multifamily development in the works for Midtown. The firm has plans to construct Pearl at the Mix, a five-story, 196-unit complex atop a two-level parking garage at the intersection of Milam St. and Tuam St.

Pearl at the Mix is slated to open in 2016, and will offer one- and two-bedroom units ranging from 612 sf to 1,503 sf. Additional features include a fitness center, pool with cabanas, barbecue stations and an e-lounge.

Houston-based Morgan Group is continuing work on two other multifamily developments in the area.

Pearl Midtown, which broke ground in January 2013, is a 154-unit complex at 3101 Smith St. The Class A development will open summer 2014.

Pearl Woodlake, a 376-unit Class A complex at 2033 S. Gessner Rd. in Westchase, broke ground in January 2014 and is expected to open in summer 2015.

Read more at the Houston Business Journal.

Permit me to run this ‘Bayou’! $6.2B seem high? 

(2/25/2014 10:00:00 AM)

HOUSTON - Houston’s building permits reached an all-time high in January with single-family homes, office towers, high-rise condos, apartment buildings all pitching in. Over the last 12 months $6.2 billion in construction was permitted, a record level in the city.

Residential permits in January were up 51 percent over January of 2013, according to a report by the Greater Houston Partnership.

Permits were issued in January to build a whopping 49 multifamily buildings in Houston.

Transwestern is preparing to pour a foundation in a few days on the 30-story BHP Billiton tower and Hines is starting work on a 1 million-sf tower on Main Street. And the skyline in Uptown, the Energy Corridor and The Woodlands is dotted with multiple construction cranes.

The Greater Houston Partnership on Monday released the following report:

“For the 12 months ending January 2014, the city issued building permits totaling $6.2 billion, surpassing the prerecession peak of $6 billion in October 2008. This was also a 25.5 percent increase over the $5.0 billion issued during the 12 months ending January 2013.

Residential permits increased 31.1 percent from $1.8 billion to $2.4 billion and nonresidential permits increased 22.2 percent from $3.1 billion to $3.9 billion."

Read this for yourself at Realtynewsreport.com. Don't take our word for it! See Greater Houston Partnership's Economic Indicators.

TopGolf seeking top 160 for Spring location 

(2/25/2014)

SPRING - TopGolf is seeking to fill over 160 positions at its new 65,000-sf location at 560 Spring Park Blvd., which is currently slated to open in April.

Recruitment events will be at TopGolf’s location from 10 a.m. to 3 p.m. Saturday, March 1, from 1 p.m. to 6 p.m. Sunday, March 2, and from 10 a.m. to 3 p.m. Monday, March 3. Officials are seeking out candidates ages 18 and up with daytime availability to fill 162 positions.

The Spring TopGolf is the company’s sixth Texas location. It will offer competitive golfing games for all ages and skill levels along with other entertainment and an extensive food and drink menu.

Read more at the Spring Observer.

Chicago toddling on down to H-Town's Alamo Crossing 

(2/25/2014)

HOUSTON - The Alamo Crossing Commerce Center, which encompasses more than 1,000,000 sf across four buildings, has been sold.

The complex, located along Hwy. 290 between the Sam Houston Tollway and I-610, is currently 100 percent leased. Current tenants include Ford Motor Company.

Cornerstone Real Estate Advisers Inc. is hoping to capitalize on a booming industrial market in Houston. The market grew in 2013, and will continue to do so, according to a report compiled by Commercial Gateway, the commercial division of the Houston Association of Realtors.

Vacancy in the industrial market overall is at 7.1 percent, slightly down from third quarter 2013's 7.3 percent, but higher than the 6.7 percent recorded a year ago, reports Commercial Gateway. Manufacturing space has the lowest vacancy of 5.2 percent.

Read more at the Houston Business Journal. See Industrial under Houston Market Data Sources for Commercial Gateway’s full report.

Toby Keith's I Love This Bar opens in Houston 

(2/24/2014)

HOUSTON - Country singer Toby Keith has opened a new 28,000-sf restaurant at the West Oaks Mall, which is bounded by Hwy. 6, Westheimer Rd. and Richmond Ave.

The venue will accommodate more than 1,500 guests for concerts and 500 for lunch and dinner, and will feature a 95-foot guitar-shaped bar. It will also employ 150 full- and part-time workers.

The West Oaks Mall location is the chain’s first location in Texas. There are now 16 restaurants across 12 states, with three additional restaurants planned for California, Ohio and Idaho.

Read more at the Houston Business Journal and the Houston Chronicle.

Pasadena delivers to supply-starved industrial space  

(2/21/2014)

PASADENA - A three-building 365,462-sf speculative development has been completed. The Carson Commerce Center, near the Port of Houston, will provide much-needed space to a supply-starved industrial market.

The park includes a two-story front load facility totaling 118,500 sf located at 3700 Hwy. 225; a 185,168-sf facility with a two-story office component located at 3750 Hwy. 225; and a 61,794-sf crane-served building located at 3800 Hwy. 225.

Demand in the Houston industrial market remains strong but absorption and decreasing vacancy has slowed to do limited supply.

Houston’s industrial vacancy rate will drop to 4 percent in 2014 from 4.3 percent at the end of 2013, according to Transwestern in a fourth quarter report. Vacancy rates should continue to decline until new development catches up to the demand.

Read more at GlobeSt.com.

See Industrial under Houston Market Data Sources for more quarterly information.

7700 San Felipe office buy for Hicks Ventures 

(2/20/2014)

HOUSTON - 7700 San Felipe, a 100,176-sf office building has been sold. Built in 1979, the five-story building is currently 80.6 percent leased.

The property was sold to Hicks Ventures, who has a history of buying troubled assets in Houston. Velocis acquired the property in September 2011.

Read more at the Dallas Business Journal.

Verandah at Centerfield home run buy in Houston 

(2/19/2014)

HOUSTON - The 97 percent leased, 400-unit The Verandah at Centerfield has been purchased at 7700 Willowchase Blvd. Located in the Greenspoint submarket, the Class A, 14-year-old property has average rents of $1.01 per sf.

An entity of SMC Management Corporation sold the property to GAIA Veranda at Centerfield LLC.

Source: oconnordata.com

Houston ranks No. 8 for home sellers 

(2/19/2014)

HOUSTON - The greater Houston area ranked eighth on ZipRealty’s Top Ten Best Cities for Home Sellers.

The study, which his based on housing market trends in 24 metro areas in the U.S., ranked the markets based on performance of median home sales, number of days houses stayed on the market and total housing inventory, according to research conducted by ZipRealty Inc.

The top three major metro areas are the San Francisco-Bay Area, Sacramento and San Diego, respectively. Dallas ranked seventh in the nation.

Read more at the Houston Business Journal.

HAR: Low housing inventory boost prices 

(2/19/2014)

HOUSTON - Home sales recorded a 32nd stright month in positive territory in January. The supply of homes matched December's 2.6 months of inventory, but compared to a 3.6-month supply in January 2013.

Home sales climbed 1.7 percent year-over-year — the smallest one-month sales increase since June 2011. January single-family home sales totaled 3,957, which is the lowest one-month sales volume since February 2012.

The combination of shrinking inventory and heavy sales activity among homes between $200,000 and $600,000 pushed pricing up significantly in the year-over-year comparison.

Home prices reached the highest levels ever recorded in Houston for a January. The single-family median price climbed 18.0 percent from last year to $177,000 and the average price soared 22.0 percent year-over-year to $244,070.

Single-Family Home Sales
  Jan. 2013 Jan. 2014 Change
Home sales 3,889 3,957 1.7%
Average sales price $200,079 $244,070 22.0%
Median sales price $150,000 $177,000 18.0%
Months inventory* 3.6 2.6 -27.3%

*Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Source: Houston Association of Realtors

Leaving on a jet plane: Oxy HQ to Energy Capital Houston 

(2/19/2014)

HOUSTON - Occidental Petroleum Corp. (OXY) has announced that it is moving its corporate headquarters from Los Angeles to Houston. Occidental Petroleum’s move will bring dozens of jobs to the firm’s local office.

Occidental Petroleum’s headquarters will have about 200 employees.

“Oxy ranks 125 on the Fortune 500 list, and the company’s move is further evidence Texas has built the most dynamic, pro-growth economy in the nation,” said Texas Gov. Rick Perry.

The company leases 850,000-sf at Greenway Plaza, which is a 4.3 million-sf complex near Buffalo Speedway and Southwest Fwy.

Occidental Petroleum will begin to focus more attention on the Permian Basin, a West Texas oil formation that is one of the richest oilfields in the world. Thanks to advances in drilling technology, the Permian Basin is a hotbed of economic activity and jobs creation.

Read more at Realty News Report.

Legacy at Fallbrook office in NW Houston 

(2/18/2014 8:00:00 AM)

HOUSTON - The first of three buildings is underway at Legacy at Fallbrook. The Class A, 208,000-sf office building will be five stories at 8303 Fallbrook Dr. A parking garage will be connected with the building.

The 20-acre Legacy at Fallbrook project is located near Beltway 8. Developer Liberty Property Trust is set to welcome occupants in first quarter 2015.

The building will add to the northwest market, where the vacancy rate for top quality office space is below 5 percent and few large blocks are available, according to Stream Realty Partners.

Read more at the Houston Chronicle.

Houston industrial stats year-end 2013 bonanza 

(2/18/2014)

HOUSTON AREA - Commercial Gateway, the commercial division of the Houston Association of Realtors (HAR), has released its area industrial report for year-end 2013. Start on page 16 for the industrial list with category division from the website below.

Houston Area Industrial Market Summary Year-End 2013*
    Net
Absorption
 
Market
Area
No.
Bldgs.**
Bldg.
SF***
Vacant
SF
Vacancy
Rate
Current YTD Wtd. Avg.
Rent****
Northwest 3,669 131,678,442 8,438,709 6.4% 1,606,930 3,304,266 $6.53
Southeast 1,922 80,672,780 6,842,052 8.5% 949,854 1,170,334 $5.05
Northeast 1,711 65,695,712 5,323,628 8.1% 420,947 927,645 $6.51
Southwest 1,411 51,579,454 4,129,962 8.0% 213,309 750,169 $7.85
South 958 31,118,310 1,550,144 5.0% -28,635 431,249 $5.50
Inner Loop 737 24,011,944 1,225,396 5.1% -9,518 101,823 $8.84
North 574 11,797,820 729,968 6.2% 50,440 259,906 $8.35
Total 10,984 396,591,662 28,239,859 7.1% 3,203,327 6,945,392 $6.18

*ranked by SF
** number of buildings calculated on specific buildings at each property address
*** includes all general-purpose existing industrial buildings 10,000 sf or larger
**** rental rates are weighted and averaged based on available space

Read more at Commercial Exchange. You must click on the list at the top of the page for access to complete statistics and broker commentaries.

The Woodlands final Technology Park office 

(2/18/2014)

THE WOODLANDS - Construction has begun on a Class A, 84,800-sf office building at Technology Forest Park. The building, which will be located at 2829 Technology Forest Blvd., is set to be completed in third quarter 2014.

Preleasing on the tenth and final building in Black Forest Venture’s development has already begun. The cleared land for the new building — adjacent to The Woodlands Township offices — also features a pad site for a restaurant, which has already been leased.

With Research Forest Lakeside’s nearby development underway, the area is one of the most sought-after locations for new commercial development in the region, according to Gil Staley, CEO of The Woodlands Area Economic Development Partnership.

Read more at Community Impact Newspaper.

Spring shoes step into 124,000-SF Kroger Marketplace 

(2/17/2014 9:00:00 AM)

SPRING - A 124,000-sf Kroger Marketplace is set to open April 11, 2014, at 24350 Kuykendahl. The new location will be the first in the Houston area to have apparel and shoes for adults and children.

The Kroger Marketplace will also have a Murray’s Cheese Shop; Fred Meyer Jewelers; bed, bath and home decorations; kitchen goods; strollers and playpens; office and computer supplies and a smartphone and tablet shop.

The Houston area has four Kroger Marketplace stores, which are much larger than traditional supermarkets, to make room for furniture, home goods, small appliances and jewelry.

Read more at the Houston Chronicle.

Wulfe & Co.: Houston hot retail 2014 

(2/17/2014)

HOUSTON - A survey by Wulfe & Co. says 2.6 million sf of new retail space will be coming online in Houston in 2014, an increase of 34 percent over 2013.

Ever increasing land and construction costs continue to challenge retail development, but with the more prevalent availability of financing and low interest rates to mitigate the higher costs, 2014 should experience pace setting activity to meet the demand for space.

An influx of new residents and a housing boom has awakened shopping center developers in Houston as new stores, restaurants and mixed-use projects pop up near new rooftops.

“Over 19,000 new multifamily residential projects are projected for 2014, which far exceeds annual production in any of the past several years as Houston continues to densify,” says Ed Wulfe.

Significantly, almost all of the new shopping center space included in Wulfe’s 2014 Survey is preleased with only 10-15 percent devoted to speculative space.

Read more at RealtyNewsReport.

ALN Houston apartments Jan. 2014 

(2/17/2014)

HOUSTON - ALN Apartment Data released January 2014 apartment occupancy and effective rent data for apartments in the Houston market.

Houston Market Review
Houston Market Stabilized Market*
Jan. 
2014
Annual
Change
Occupancy rate 92.4 1.5%
Units added -2,820 -
Units absorbed (annual) 4,279 -
Average size (SF) 871 0.1%
Asking rent $876 4.6%
Effective rent $864 5.4%
Effective rent per SF $0.99 5.4%
Offering concessions 33% -27.5%
Avg. concession package 4.7% -14.7%

*Stabilized market is everything in a market except for apartments in initial lease-up. 

Floor Plan Breakdown - Houston
Plan Type % of
Market
Avg.
SF
Avg.
Market
Rent/Mo.
Avg.
Eff.
Rent/Mo.
Efficiency 2.1% 500 $602 $591
1 BR 47.3% 707 $775 $763
1 DEN 3.4% 896 $1,022 $1,007
2 BR 38.9% 1,021 $971 $958
2 DEN 1.0% 1,242 $1,495 $1,472
3 BR 6.7% 1,270 $1,095 $1,082
>3 BR 0.7% 1,353 $1,058 $1,048


Read more at ALN Market News.

Houston: Heritage Plaza breaks $400 per SF barrier 

(2/13/2014 11:00:00 AM)

HOUSTON - AEW Capital agreed to acquire an 85 percent stake in the 53-story Heritage Plaza for approximately $475 million, or $413 per sf, according Ralph Bivens of RealtyNewsReport.com. The sale supports trend for trophy building sales over $400 per sf — rarified pricing that was once thought to be unattainable.

The rise past $400 per sf has been fueled by a boom in the energy industry, which brought on reduced vacancies in downtown towers. Investors flocked to Houston to lock-in a piece of the action.

The record is the price H&R REIT paid at $524 per sf, or $442 million, for the 845,000-sf Hess Tower in 2011.

The 973,000-sf BG Group Place tower, purchased by Invesco in 2013, sold for about $485 per sf, believed to be the second-highest sales price per sf ever in Houston.

Although the inventory of available trophy investment properties is shrinking, the upward movement in prices is a strong trend throughout the office market.

Read more at RealtyNewsReport.com

Pearland primes for 165,000-SF Center at Pearland Parkway 

(2/13/2014 9:00:00 AM)

PEARLAND - Construction will begin this month on a 165,000-sf shopping center at the northwest corner of FM 518 and Pearland Pkwy.

Stream Realty is developing The Center at Pearland Parkway, which is expected to open fall 2014. National retailers include Ross and TJ Maxx. The 27-acre site is next to a new H-E-B.

The Center at Pearland Parkway will provide the population in east Pearland, Friendswood and Alvin with more convenient access to a variety of shops, restaurants and service retailers,” said Mark Sondock of Stream Realty’s retail division in Houston.

Read more at the The Pearland Journal.

Katy's Cinco Ranch corrals 271 apartments 

(2/13/2014)

KATY - A 271-unit apartment complex will be the latest addition to the Cinco Ranch master-planned community. The Grand at LaCenterra, set to open second quarter 2015, will offer one-, two-, and three-bedroom units averaging 984-sf.

The Grand at LaCenterra will be bordered by Cinco Ranch Blvd. and The Grand Pkwy. and will provide walkable access to LaCenterra at Cinco Ranch, a mixed-use town center with shopping, dining, and entertainment.

Houston-based Martin Fein Investments will develop the complex. The Cinco Ranch community ranked number three nationally in new home sales for master-planned communities in 2013.

Read more at Realty News Report.

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