The Houston commercial real estate market is experiencing notable activity with the recent sale of two office buildings, as reported by JLL Capital Markets.
The first high-profile transaction involved Chevron Phillips Chemical Co. selling a Class-A office building located in The Woodlands, measuring 200,000 square feet.
Acquired by Beland Properties, the eight-story structure at 10001 Six Pines Drive served as the global headquarters for Chevron Phillips Chemical up until its sale.
Originally completed in 2002, the building offers flexible floor plates, structured parking, and an additional three acres of land slated for future development.
JLL Capital Markets brokers Kevin McConn, Jeff Cairns, and Brandon Clarke were instrumental in representing the seller and facilitating the buyer’s interest.
McConn reported, “We had tremendous interest in this offering, particularly from owner-users, a trend we have witnessed throughout the last 24 months,” indicating a shift in demand patterns among tenants.
In a separate transaction, a private owner/user acquired Woodlake Plaza, a 106,000 square foot office building in the Westchase submarket.
This six-story property, built in 1974, features a break room, conference room, and parking capacity for 292 vehicles.
Marty Hogan of JLL Capital Markets led the team representing the confidential seller in this deal.
In addition to the office sector, several retail and industrial acquisitions were also reported recently.
True Saga sold Ella Plaza, an 82,000 square foot retail center, to Sega Development.
Completed in 2007, the retail space is currently 97% leased, housing tenants such as Advance Auto Parts.
This property spans seven acres at 1319 Cypress Creek Parkway, with Dakota Workman of NewQuest representing the seller and Northmarq Commercial assisting the buyer.
Alterra IOS also expanded its portfolio by acquiring three properties across Houston, totaling approximately 11 acres and 69,000 square feet of warehouse space.
These acquisitions include locations at 15545 Ennis Road in Sugar Land, 1960 S. Starpoint Drive in Houston, and 7470 Miller Road 2 in Houston.
For the Sugar Land property, Alexander Harrold of Matthews Real Estate Investment Services facilitated the transaction, while Jack Zalta of Kassin Sabbagh Realty handled the other two acquisitions for Alterra.
In another significant investment, CapRock Partners acquired the class-A Kennedy Greens Distribution Center, a 524,000 square foot facility located at 13300 John F. Kennedy Blvd.
This property, which sits near George Bush Intercontinental Airport, marks CapRock’s initial foray into the Houston market.
Completed in 2020, the fully leased center accommodates three established credit tenants.
On the industrial front, Partners Real Estate announced the sale of a speculative industrial building totaling 65,000 square feet located at 510 S. Sam Houston Parkway E.
Travis Land and A.J. Williams from Partners Real Estate represented the seller, while Chase Spence and Jeff Peltier from Colliers acted on behalf of the buyer.
A complementary structure, comprising 57,000 square feet, is currently under construction and available for sale or lease.
Leasing activity in the area remains strong, as illustrated by several lease renewals.
Houston Energy, a privately held oil and gas exploration company, recently renewed its lease for 28,000 square feet at Two Allen Center.
The renewal was facilitated by Bob Parsley and Darren Gowell of Colliers for the tenant, while the landlord, Brookfield Properties, was represented by a CBRE team including Bubba Harkins, Kristen Rabel, and Jenny Sealy.
In another notable leasing move, Dwyer Industries Inc. renewed its lease of 25,000 square feet at 1200-1236 Silber Road.
Represented by Oxford Partners’ Matt Rogers and Jacob Summers, the deal involved a landlord represented by Nick Peterson and Walker McCairns of NAI Robert Lynn.
A major lease agreement was also made by Representative Materials Co., signing a 119,000 square foot industrial lease at 1055 W. Lake Houston Parkway.
This marks the first lease for Outrigger Industrial’s 256,000 square foot building in the newly completed Generation Park Distribution Center, achieving 46% occupancy.
RMC specializes in manufacturing and providing value-added services for electrical conduit, fittings, and mechanical framing for various market segments.
The transaction was supported by JLL’s representation of Outrigger Industrial, which included Jarret Venghaus, Jeff Venghaus, and David Holland, while Ryan Fuselier and David Buescher, also from JLL, acted on behalf of RMC.
On the financing side, Imperial Ridge Real Estate Capital provided $2.9 million in senior construction financing to convert a former Holiday Inn at 703 N. Sam Houston Parkway E. into workforce housing.
Additionally, Imperial Ridge collaborated with Amalgamated Bank, securing $4 million in commercial property assessed clean energy financing for this $9.2 million redevelopment project, undertaken by The 702 LLC.
The plan aims to transform the existing 250-key, 74,000 square foot hotel into a mixed-use residential space, accommodating 137 studio and one-bedroom apartments.
The C-PACE funding will finance energy-efficient upgrades such as new HVAC systems and solar installation efforts.
Furthermore, the Texas Infrastructure Program, which partners developers with consultants to utilize municipal utility district reimbursements, closed five development financing transactions in the past three months.
Prominent projects include Sterling Traditions, a vast 475-acre residential community designed to host more than 1,800 homes near Dayton, with a financing deal valued at $37.7 million.
Another project, Milo Farms, spans 413 acres and aims for 1,200 homes near Needville in Fort Bend County, with financing secured at $30.2 million through a partnership with Rooted Development.
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