In a significant transaction in Houston’s Greenway Plaza area, Novel Office has successfully sold a 227K square foot building at 3555 Timmons Lane approximately 18 months after acquiring it. The sale comes on the heels of a 25% increase in occupancy during Novel Office’s ownership period.
The buyer, DML Capital, financed the acquisition through a loan arranged by JLL Capital Markets. While specific deal terms were undisclosed, recent valuations from the Harris Central Appraisal District pegged the building’s worth at roughly $20 million.
Novel Office had announced its acquisition of the property in January 2024, at which point occupancy stood just under 71%. Following a robust investment of at least $1.4 million in renovations, the building now boasts a lease rate of 95%. One-third of the building is anchored by the Houston-Galveston Area Council.
Originally constructed in 1982, the property underwent renovations in 2017 and recently in 2024. The financing team at JLL Capital Markets that facilitated the transaction comprised Michael Johnson, Michael King, Scot Sarlin, and James Lovell.
In personnel news, Gensler has appointed Stephanie Pons Reece as the regional healthcare practice leader based in Houston. Reece will focus on collaborating with local health systems and academic medical centers to optimize their environments to meet clinical and operational demands.
Prior to joining Gensler, Reece was associated with Baylor College of Medicine and Texas Children’s Hospital. Her extensive experience includes consulting for healthcare organizations across the United States and internationally in markets such as South Africa, Spain, and Argentina.
Additionally, Ember, a Houston-based real estate investment and development firm, has elevated Jeb Kolby to the position of president. Kolby previously held the role of vice president of acquisitions and development and was instrumental in launching Ember’s first master-planned community in Grand Prairie.
Having joined Concourse Development in 2022, shortly before it merged with Maquina Holdings to become Ember, Kolby brings over 20 years of experience in engineering, international community development, and large-scale residential land projects. His previous role included directing land development at Friendswood Development Co.
Meanwhile, Pagewood, another Houston-based real estate investment firm, has successfully closed its $25 million GP Fund I, which is set to support expansion efforts into the Dallas-Fort Worth area and Central Texas. The fund aims to back acquisitions and development in multifamily and industrial assets.
As part of their growth initiatives, Pagewood has made two key hires: Susan Pohl has joined as senior vice president, focusing on multifamily investments and bringing with her three decades of experience with a notable track record of $4 billion in deals involving 35,000 units. Daniel Burnum has come on board as an investment analyst after four years in debt and equity financing at Berkadia.
In the realm of sales, Energy Crossing I has changed hands as Capital Commercial Investments, an Austin-based private equity real estate firm, has acquired this 240K square foot office building located in Houston’s Energy Corridor. This three-story property, built in 2010, is situated on a 5-acre site at 15021 Katy Freeway. JLL’s Capital Markets Investment Sales and Advisory team, specifically Kevin McConn and Rick Goings, represented the seller during this transaction.
On the construction front, Constellation Real Estate Partners has acquired 15 acres in Houston’s southeast market. Plans are underway to develop Constellation Genoa Red Bluff, a substantial 240K square foot industrial building at 2555 Genoa Red Bluff Road in Pasadena, with construction slated to begin in the third quarter of this year. The project’s completion is expected by the second quarter of 2026, with marketing and leasing exclusively handled by CBRE professionals Joseph Smith, Ed Frantz, and Savannah Smith.
In another development, J. Alan Kent Development has secured 228 acres at Hegar Springs Parkway and Kickapoo Road in Waller. This property is set to evolve into a residential subdivision featuring lots ranging from 50 feet to half an acre, aimed at addressing market demands for mid- to high-end homes. The first phase is projected to include 255 residential lots.
Meanwhile, Triten Real Estate Partners has completed construction on the McKay at Will Clayton Logistics Center, a 171K square foot speculative distribution center located on McKay Center Drive in Humble, north of Houston. Construction commenced in October, with the facility designed to accommodate one to three tenants and featuring spaces as small as 50K square feet and including 4,360 square feet of office space. The general contractor was Angler Construction, while the civil engineering was handled by Grey Wolf Engineers and Method Architecture took the lead on the project design.
In financial news, JLL Capital Markets has arranged an undisclosed construction financing amount for Clock Tower Residences, a boutique multifamily extension to the Heights Clocktower mixed-use project in the Houston Heights area. This funding was made possible via a four-year construction loan through Veritex Community Bank, representing a joint venture between Radom Capital and Asana Partners.
Additionally, C2R Capital Management, a private real estate credit platform based in Houston, has successfully closed its inaugural $100 million debt fund. This fund is dedicated to facilitating short-term, asset-backed bridge lending and note purchases, with a concentrated focus on Texas and other Sun Belt markets. The Secured Debt Fund I from C2R Capital will pursue a diverse portfolio encompassing first-lien bridge loans, performing and non-performing note acquisitions, and structured credit opportunities. The firm was founded by experienced real estate veterans Darryl Robinson, Brady Crosswell, and Allen Crosswell.
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