rednews june 2014 -southeast texas

TheEpicenter

of West Houston

Town CenTre one

June 2014

In this issue: The Economic Outlook for Real EstateCinco Ranch: Origins of a Top Selling Master-Planned Community in Texas

Office Developers Answer in San AntonioBuying and Selling Houston’s Highland Village

FOR 100,000+ CRE BROKERS, INVESTORS & DEVELOPERS

FEATURES• DallasPlatinumCorridorMarket• AccesstoTheTollway,GeorgeBushTurnpike,andLBJ

Freeway• NeartheGalleria• FreeGarageParking• WalkingDistancetoSeveralRestaurantsandShops• RecentlyRenovatedLobby,CommonAreas,Restrooms,

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600SFto14,200SF-FULLFLOORAVAILABLE6%COMMISSIONAVAILABLE

ParkwayPlazaI&II14110&14114N.DallasParkwayDallas,Texas75254

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*Leasemustbesignedbefore12/31/14toreceivecommissionbonusandgiftcard.

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Theinformationcontainedhereinwasobtainedfromsourcesdeemedreliable;however,HartmanIncomeREITManagement,Inc.makesnoguaranties,warrantiesorrepresentationstothecompletenessoraccuracythereof.Thepresentationofthisrealestateinformationissubjecttoerrors;omissions;changeofprice;priorsaleorlease;orwithdrawalwithoutnotice.

Brian [email protected]

For Leasing Information:

Darryl [email protected]

Jude [email protected]

PROPERTY FEATURES• Up to 127,200 SF Available (Divisible) » Build-to-Suit Office

• Master-planned, deed restricted park

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• Strategic location along Beltway 8 between I-10 and Hwy 290

• 120’ Fenced truck court

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4 R E D N e w s . c o m

Properties For Sale/Lease 1-3, 5, 7-9, 13, 15, 17, 19, 21-23, 27, 41, 44

Commercial Services

Banking/Lending 25

Environmental 30

Moving & Relocation 41

What’s Happening in Texas CRE

Calendar of Events 32, 34, 36

Networking Photos 33, 35, 37

Deals & Announcements 38 - 40

Cinco Ranch: Origins of a Top-Selling Master-Planned Texas Community 10 – 12

Office Developers Answers the Call in San Antonio 14, 16

The Economic Outlook for Real Estate Investors & Decision Makers 18, 20

More Bang For Your Buck in Houston Healthcare Properties 24, 25

BUZZ: Buying & Selling Highland Village Helped Me Achieve My Boyhood Dream 26, 28

Last Page: My Last, Last Page - My First Year in CRE 42

VISION | BEAUTIFICATION | GROWTH | SAFETY | AMENITIES

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For LeASInG InForMATIon:

7

816

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11A

11B

11H11H2

11I

11J

11J211EK

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11E11F1213A13B14B14A15

27 A27 B

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23A 23B 23C 23D

23E

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21C 19 C 19 B 19 A 7

7B6A

5B 5A 4B 4A

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3D 3C 3B 3A

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A NEW TASTE SENSATION

A NEW TASTE SENSATION

TOWN & COUNTRY BLVD

KIM

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GARY GREENE REALTOR

NORI SUSHI BISTRO

BAILEY BANKS & BIDDLE

COLDWATER CREEK

SOFT SURROUNDINGS

WELLSFARGO

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EVERYTHING BUT WATER

HOUSTON EARNOSE & THROAT

RELAX THE BACK

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THE ACCESSORYPLACE

POST OAK BANK

HUGO CALIENTE

MEMORIAL HERMANN

CREME DE LA CREMEDAY CARE CENTER

ALLERGY AND ASTHMAASSOCIATES

THE REBUS AGENCY

FRONTIER TITLE

MEMORIAL SLEEPCENTER

QUIZNOS

CHURCH

ELEMENTARY SCHOOL

MEDICAL OFFICE BUILDING

MANAGEMENTOFFICE

WEST BOUGH

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CIT

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SORELLA COURT

CITYCENTRE

GRAND PLAZA PARK

W SAM HOUSTON N PKWY / BELTWAY 8W SAM HOUSTON N PKWY / BELTWAY 8

TOWN CENTRE ONE

TOWN CENTRE TWO

TOWN CENTRE EIGHT-LEVEL

GARAGE

THEATER

HOTEL SORELLA

LIFETIMEATHLETIC

THE BROWNSTONES AT CITYCENTRE

THE DOMAIN APARTMENTS

RESIDENTIAL APARTMENTS

THE LOFTS AT CITYCENTRE

STUDIO MOVIE GRILL (LEVEL 2)

SORELLA MEETINGS AND EVENTS CENTRE

NORRIS CONFERENCE CENTERS (LEVEL 2)

LIFESPASALON

TOWN & COUNTRY VILLAGE:37 retail and specialty stores20 restaurants and eateries31 services

CITYCENTRE:13 retail and specialty stores19 restaurants and eateries 5 services 4 residential

6 R E D N e w s . c o m

Dear Readers,

As I write this, I know many of you are en route to Las Vegas for ICSC. I hope you’ve had great success, arrived home happily exhausted and are getting deals done! Thank you to Boxer Retail and MIMCO for their camaraderie and assistance at the show.

We welcome Catherine Cagle to our REDNews’ team. You’ll be seeing her at events in Austin and San Antonio. Get in front of her camera and tell us about your deals so we can share your picture and let the CRE world know about your latest prospects.

We are exploring new marketing channels for our clients. As we roll out more comprehensive campaign style advertising packages, we will give our clients monthly analytical reports that fine tune advertising intelligence, allowing you to react more aggressively to market changes.

The July issue of REDNews will focus on land and investment opportunities. We’ll have more on the Outlook of Texas Land Markets from the San Antonio Conference, articles from our favorite contributors and perhaps a fresh voice, or two.

Tell us your best stories from ICSC. We’d love to hear them. Send an email or go to our website www.rednews.com/icsc . Don’t forget to send pictures.

What happens in Vegas shouldn’t stay in Vegas. It should come back to Texas and make deals happen.

Ginger Wheless

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PUBLISHER

Ginger Wheless [email protected]

EDITOR Marjorie Gohmert [email protected]

ASSISTANT EDITOR Carol Swiantek

STAFF WRITER Janis Arnold

CONTRIBUTING WRITERS Ray Hankamer [email protected]

Austin - Jill Rowe San Antonio - Kim Gatley

ART DIRECTOR Connie Marmolejo - [email protected]

ACCOUNTING Benton Mahaffey [email protected]

DIGITAL ENGAGEMENT DIRECTOR Chris King [email protected]

E-MARKETINGChris King [email protected]

SALESCatherine Cagle [email protected]

Ginger Wheless [email protected]

Print & Digital DistributionREDNews is directly mailed each month to commercial real estate

brokers, investors & developers in the following cities /areas as well as 200+ locations throughout Texas:

Texas Brokers 7,650Texas Leasing / Tenant Rep 6,232

Texas Investors 4,979Texas Developers 4,710

Outside Texas Investors, Brokers, Developers, etc 81,577Total REDNews Distribution 105,148

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1 0 R E D N e w s . c o m

William (Bill) M. Wheless III grew up with Cinco Ranch. His family and the Abercrombie family bought it in the 40s. It was originally purchased by the Blakely family, who had it parceled to them by Stephen F. Austin himself in a land deal done before Texas joined the Union. Cinco Ranch, now managed and developed by Newland Communities, is the number one top-selling community in Texas and the number three top-selling community in the entire United States.

Ted Nelson from Newland Communities gave a talk in April addressing the dramatic growth Southeast Texas is undergoing because of Eagle Ford and other energy developments and how that growth is affecting the real estate market. Mr. Nelson said that “between the Medical and Energy Sectors, Houston now has the greatest accumulation of intellectual capital the world has ever seen.”

“Cinco Ranch, Telfair, The Woodlands and a number of ‘new’ communities skirting the edges of Houston and along the Grand Parkway are becoming self-contained cities unto themselves and a major source for the housing and retail needs of the booming influx of workers,” he stated.

Cinco Ranch is a mature community, having been

developed in its current capacity for close to thirty years. But where did it all begin?

It started with the father of the Father of Texas, Moses Austin. The Spanish government gave the blessing for Moses Austin to settle hundreds of families into the area. His son Stephen F. Austin, the Father of Texas, finished this settlement while Texas was still under Mexican government. One of those settlers was Randolph Foster who was deeded 4,000 acres in Fort Bend and Waller counties, which at the time were occupied predominantly by Indians and buffalo.

Foster’s daughter married Thomas Blakeley, cattleman and future sheriff of Fort Bend County. His son, Bassett Blakeley, followed in his father’s and grandfather’s footsteps and became a cowboy and cattleman. Bassett Blakeley owned 15,000 acres of land, 14,000 head of Brahman cattle, and his grandfather’s land. The cowhands of his Blakeley Ranch annually drove 10,000 head of cattle to the railheads in Kansas.

Our interview with Mr. Bill Wheless elicited more history of Cinco Ranch post World War II up to its sale to Newland Homes.

Have you studied the history of Cinco Ranch, in books or online?

Mr. Wheless: Yes.

There is information on you, your family, and the Blakeleys owning the property in 1937.

Mr. Wheless: Yes, I’ve seen some of that. My grandfather, William M. Wheless Senior, was head of the Land Department for the Gulf Oil Company. He did a lot of transactions representing Gulf with Mr. James Abercrombie who was an extremely successful independent oil man.

Mr. Abercrombie asked my grandfather to quit his job, which at the time was a very good job, to be his partner. Mr. Abercrombie proposed putting up the financing, and he wanted my grandfather to acquire property for their venture.

My grandfather took that step and became partners with Mr. Abercrombie. That was in the 1940s, right around World War II.

Cinco Ranch: Origins of a Top Selling Master-Planned Texas CommunityREDNews Interviews Bill Wheless III

Bill Wheless III

“A number of ‘new’ communities skirting the edges of Houston and along the Grand Parkway are becoming self-contained cities unto themselves and a major source for the housing and retail needs of the booming influx of workers.”

Cinco Ranch Texas Map

R E D N e w s . c o m 1 1

Mr. Abercrombie was on a trip, a grand tour of Europe. My grandfather was here. The head of Texas Commerce, now JP Morgan Chase Bank, came to my grandfather and said, “We foreclosed on a large ranch and we want you to buy it. We want to get it off our books.”

My grandfather was reluctant to do that because it was such a huge deal, 10,000 acres. “I don’t want to do that because it’s too big a deal,” he said “I have to consult with my partner before taking on such a huge obligation.”

At that time Jesse Jones was the head of the bank. He was also the head of the Reconstruction Finance Committee in Washington for FDR. Mr. Jones told my grandfather, “No, I talked to Jim before he left. He said you can buy anything you want. Here are the papers, and I want you to sign them right now!”

With much trepidation, my grandfather signed the papers without communicating with Mr. Abercrombie, there being no faxes or emails at that time. He then owned 10,000 acres between Westheimer and Katy and Highway 6, formerly the Blakely Ranch.

The more he thought about it, the more uncomfortable he was with what he had done, so he found partners to bring in on the deal before Mr. Abercrombie returned from his vacation in Europe. One was his good friend, the president of Gulf Oil Company, Mr. W. B. Pyron. The others were Mr. H. G. Nelms, a successful oil man and Mr. Lenoir Josey, another good friend of my grandfather. Now there were five partners, hence the name Cinco Ranch.

When Mr. Abercrombie got back from his trip, my grandfather met him at the dock in Galveston and said, “I don’t want you to be mad, but I want to tell you what happened…Jesse Jones made me buy this ranch... But, don’t worry…We got three more partners and now there are five of us.” Mr. Abercrombie looked at the deal for a second and said, “I am furious. This is the best deal I’ve ever seen in my life. They purchased it for ten dollars

an acre. You go buy those other partners out immediately and give them double their money.”

Mr. Abercrombie and my grandfather owned the ranch 50/50 for over forty years. My father operated it, and they grew rice and raised cattle.

When I finished graduate school, my grandfather was in failing health. He decided to sell half the ranch to Robert Mosbacher. I have fond memeories of working with him on that sale.

So now Mosbacher and Abercrombie were partners?

Mr. Wheless: Yes. Mr. Abercrombie’s daughter Josephine owned one half and Robert Mosbacher and a group of his friends owned the other half. That was in the ‘70s.

Then in 1984 Abercrombie and Mosbacher decided to sell.

The first part of the ranch that sold was to Vincent Kickerillo. That was eight or nine hundred acres, now called Kelliwood.

That was closer to I-10.

Mr. Wheless: Yes, closer to I-10 off Fry Road.

In 1984 the purchasing group consisted of US Homes, the largest home builder in America, American General, one of the largest insurance companies in the nation, and the Mischer Corporation, one of the largest land developers in Houston. Each one played a role. One was the developer, one was the financier, and one was going to build the houses. That sale was $84M. When you add in the Kickerillo transaction, it was a raw land sale in excess of $100,000,000.

In total?

Mr. Wheless: Total. Which was and still is, to the best of my knowledge, the largest raw land sale in the history of Houston.

“My grandfather was reluctant to do that because it was such a huge deal, 10,000 acres. ‘I don’t want to do that because it’s too big a deal, he said. I have to consult with my partner before taking on such a huge obligation.’”

continued on page 12

Club House Circa 1955

William M. Wheless Senior


Once they had it, Mischer, US Homes, and American General, developed it through several business cycles, and American General wound up with it. Their subsidiary was called Newland, who had an affiliation with a company called Newland Homes, and Newland’s is to this day the developer of Cinco. They added several more tracts to the west toward Fulshear as they ran out of land in Cinco.

It was two years ago, I think, that Cinco was rated the top-selling Master-Planned Community in the United States. I believe it even surpassed the Woodlands.

That is quite remarkable. What do you think made it so successful?

Mr. Wheless: Staying power, the ability to go through two really bad cycles because there were some bleak times. It wasn’t all straight up. They had such a huge land cost, and in addition they had a huge infrastructure cost. They had to channel Buffalo Bayou through Cinco. The headwaters of Buffalo Bayou start just on the northwest corner of Cinco near Katy. As you know, the Bayou goes through the middle of Houston and all the way to the Ship Channel.

When did they start developing?

Mr. Wheless: Kickerillo started in the early 80s. Cinco started in the late 80s. If you remember, Houston’s economy was horrible in the late 80s.

What was the price of an acre back when you sold it?

Mr. Wheless: Divide 5,200 acres into 84 million. It was an all-cash transaction.

Mr. Wheless: Now we have Bridgeland and the Woodlands. Both are really big deals. Camp Strake will be a very big deal.

Yes, it will be a big deal.

Mr. Wheless: When you develop large tracts, it takes a long time to absorb all the land.

What was the best time and the worst time?

Mr. Wheless: The best time for me personally was growing up as a kid out there and having access to

all that property, hunting and fishing. My brothers and sisters and I have great memories. It was a Tom Sawyer type of existence. We hated to part with it, but my grandfather was in ill health, and he wanted to get his estate in order before he passed away.

Anyway, it was hard emotionally to part with the ranch. I was privileged to be in a position to help him sell our property as well as to be involved with the subsequent sale in 1984.

I remember reading, years ago, that your grandfather was considered to be one of the largest land owners in Texas

Mr. Wheless: He and Mr. Abercrombie were the second largest land owners in Harris County when he died. They also owned the Atascocita Country Club, as well as most of the land on the western shores of Lake Houston. He certainly was a role model for me.

Pavilion Rice Well at Buffalo Bayou Flood Stage

REDNews would like to thank Mr. Wheless for his travel back in time through one of the nation’s great burgeoning communities. The history of land and the big power brokers of Texas are fundamentally the history of Texans, from Stephen F. Austin to William M Wheless-big people, big deals. As George W. Bush said, “Some folks look at me and see a certain swagger, which in Texas is called ‘walking.’”

continued from page 11

Cinco Ranch Rice Fields

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In August of 2013, less than one year ago, then Chairman of the San Antonio Economic Develop-ment Foundation, Henry Cisneros, petitioned the San Antonio real estate community for more office space. Cisneros made the case that the Alamo City would not have successfully lured then South-western Bell’s headquarters from St. Louis in the early 1990s or Medtronic, Inc., in 2009 if the market had not been able to immediately offer available vacant space. The same could be said of PetCo, Whataburger, Kohl’s and Becton & Dickinson – all found and filled vacant office space over the past several years.

Not everyone agreed with Cisneros’ position, es-pecially considering that the citywide vacancy rate hovered around 19 percent at the time of that address to the San Antonio Real Estate Council. Some, however, may not have realized that the number of office properties that could accommo-date a large user could be counted on one hand and that the vacancy rate within the top-tier, Class A properties, was steadily nearing 10 percent – a level that typically triggers developers to add new products to the market.

As if right on cue, a parade of announcements for

new projects hit the market. “Like runners lined up at the starting line, office developers were set and waiting in the starting blocks, but no one wanted to jump the gun,” said Brian D. Harris, CCIM, Senior Vice President and Partner with REOC in San Anto-nio. While some developers subscribe to the ad-age “Build it and they will come” – most have opt-ed for a more conservative approach in the wake of the Great Recession, especially in San Antonio which has never been known to have a strong speculative market.

More typical to San Antonio’s growth pattern, large corporate users opted to build and occupy new fa-cilities in lieu of leasing office space. In 2012, Na-tionwide Insurance, for example, relocated out of several office locations to fill the a 300,000-square-foot regional operations center along Highway 151 in the Far West sector. NuStar Energy relocated out of Heritage Oaks to fill their 300,000-square-foot headquarters facility along Interstate Highway 10 outside Loop 1604, and KCI, a medical technology company, vacated Callaghan Tower upon comple-tion of its 98,000-square-foot headquarters along Interstate Highway 10 inside Loop 1604. Although this generated negative absorption within the multi-tenant office market and caused statistical vacancy to increase, the expansion and resulting job growth were a net positive for the greater San Antonio area.

The next group of projects to enter the develop-ment pipeline included expansion phases of exist-ing projects, and most were started only after an anchor tenant had been identified. In 2013 locally-based R.L. Worth & Associates, who has an estab-lished history of securing a significant amount of pre-leasing before beginning construction, added Building 2 (103,480 sf ) to The Oaks at University Park project only after pre-leasing roughly 40,000 square feet to Univision. Shortly after comple-tion, Worth inked a lease with WellMed for 24,601 square feet, which took occupancy to 64 percent where it has remained through the end of the first quarter.

Similarly, local home builder, James Japhet, added Building 4 (43,500 sf ) to the Shavano Center proj-ect in the Far North sector. The three-story office building came online last year with 8,000 square

feet pre-leased to Armadillo Homes. The building continues to move through the lease-up process and now stands at 34 percent occupied.

Even brand new projects added last year were not started on a truly speculative basis, including medical projects. Sarah Teel, of MSL Investments, lined up a primary care medical group before starting construction on Westover Hill Medical at Town Center – a three-story, 45,000-square-foot medical office building in the growing far west community of Westover Hills. “We are excited to deliver the first and only multi-tenant, multi-story medical office building in the Westover Hills area that is not directly affiliated with a hospital,” says Teel. Through the course of construction, Teel has successfully led the property through the lease-up process with a variety of modalities including pe-diatric, urology, physical therapy, a multi-specialty clinic and pharmacy. The building is currently 68 percent pre-leased and negotiations with two ad-ditional groups could move the project to 85 per-cent by the time the building opens in the second quarter.

Two new properties are growing the niche market of Lincoln Heights in North Central San Antonio. Milam Real Estate Capital is nearing completion on 250 W Nottingham (68,000 sf ) which is report-edly 80 percent pre-leased and Quarry Village II Development, led by Gene Powell, is putting the finishing touches on the Quarry Village II mixed-use project (40,510 sf ).

Bob Worth, founder and president of R.L. Worth &

Office Developers Answer the Call in San Antonio

by Kim GatleySr. V.P. & Director of ResearchREOC San Antonio

Sarah Teel, MSL Investments

“Not everyone agreed with Cisneros’ position, especially considering that the citywide vacancy rate hovered around 19 percent at the time of that address to the San Antonio Real Estate Council.”


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FOR SALE4511 Yoakum Blvd4511 YOAKUM BLVDHouston, Texas 77006

• New Construction Class A Inner Loop 610 User Building• +/- 8,100 SF 2-story building situated on 12,250 SF of land• Central location between Houston Central Business

District, Greenway Plaza & Galleria submarkets• 3 carrier HVAC units• 19 total parking spaces (10 in a gated area near rear of

building)• Asking Price: $2,369,000

BARKLEY PESCHEL+1 281 242 [email protected]

FOR LEASERotunda Building5819 HIGHWAY 6Missouri City, Texas 77459

• 3-story quality office space adjacent to the award-winning Riverstone Master-Planned Community

• “Second” generation space available including Medical, Dental and Office

• 700 - 2,880 SF available for lease• Highway 6 frontage with close access to FM 1092,

Highway 59 & Fort Bend Parkway Toll Road• Building recently updated

DAVID L. CARTER+1 713 830 [email protected]


FOR SALE2224 Bay Area Blvd2224 BAY AREA BLVDHouston, Texas 77058

• 139,115 RSF, Stabilized, Class B Office Building• 100% occupied (single tenant)• Located in the NASA/Clear Lake submarket• Year built: 1981• Site: 5.66 acres• Parking: 595 spaces (205 covered) at 4.28/1,000 SF• Asking Price: $18,000,000

DAVID L. CARTER+1 713 830 [email protected]


FOR SALE8901 Gaylord St8901 GAYLORD STREETHouston, Texas 77024

• Owner/User 2-story Class A Office Building built in 2009 with 12,505 SF available

• Opportunity to purchase and relocate offices to a class A office building and earn 6.5% return

• Stable cash flow, no deferred maintenance, quality location in highly sought after Katy Freeway submarket

• Asking Price: $8,740,000


Associates, sought out and purchased land in the RidgeWood Business Park. Located in the shadow of the Tesoro Headquarters, situated just outside Loop 1604 at US Highway 281 in the Far North sec-tor, the land was acquired with the intent to de-velop three value-added office buildings. Before kicking off construction on RidgeWood Business Center Building 1 (67,148 sf ), Worth’s team locked in Pulte Homes as an anchor tenant for more than 15,000 square feet. In the first quarter of this year, RidgeWood landed another tenant, Mortenson Construction, for 11,442 square feet which moved occupancy to 40 percent.

While these select projects provided a little extra elbow room needed for new and expanding com-panies, they were not near the size or scope that Cisneros had in mind when he called for more space. But who would pull the trigger on a size-able speculative project in San Antonio?

Early this year, USAA confidently stepped up to the plate with plans to hit a homerun at WestRidge South. USAA broke ground in January on a 128,470-square-foot, Class A office building locat-ed at 15900 La Cantera Parkway situated directly adjacent to The Shops at La Cantera on the city’s Northwest side. Construction started prior to any pre-leasing.

Jason Koehne, Executive Director, Real Estate In-vestments at USAA Real Estate said, “We continue to be bullish on the San Antonio office market. San Antonio is comparatively very attractive at this point in the office cycle due to the limited sup-ply currently underway, improving fundamentals, and a lack of modern Class A office space. City-wide vacancy is not that impressive, but if you look at Class A office product built within the last ten years, vacancy is very low. We feel like the timing is right, and when you consider first class amenities nearby, it’s a very compelling proposition.”

The 4-story, LEED certified building is the first of four buildings planned and is scheduled to be completed by early 2015. “As we realize success at WestRidge South, we’ll continue with additional phases of the WestRidge office park as the market dictates,” says Koehne. WestRidge can ultimately accommodate over 500,000 square feet of office product.

Allan Young, Managing Partner of the San Anto-nio office of Stream Realty, believes the timing is also right for his project. Young expects to break ground on Lockhill Crossing (126,626 sf ) by mid-May. In 2007 and 2008, Young was involved with the development of two office buildings in the same vicinity, which are now 100 percent occu-pied. When asked how the new Lockhill Crossing project differs from the earlier projects, Young said, “Those prior projects were “value office” geared toward dense users needing lots of parking and open floor plans, but Lockhill Crossing is a Class A building designed to accommodate professional tenants like law firms, oil and gas companies, CPAs, financial services, real estate and regional sales of-fices.”

Young reports that the five-story building, located at 4630 N Loop 1604 W between Lockhill Selma and NW Military Hwy., is 16 percent pre-leased but he did not disclose the tenant name. The project is scheduled to reach completion in the second quarter of 2015.

Although these two projects represent a signifi-cant increase in local development activity, they combine with a couple of additional smaller proj-ects for a total of less than 350,000 square feet of

multi-tenant office space - a far cry from the 2008 peak performance of 1.4 million square feet and considerably lagging behind the construction levels reported in other major Texas metro areas. While Houston, Dallas and Austin are all listed among the top markets in the U.S. for office devel-opment, developers in San Antonio are answering the call for more space in a much more conserva-tive manner.

Local developer Koontz McCombs Construc-tion, for example, is working to complete a new two-story headquarters facility for Pape-Dawson Engineers, Inc. – just one of many projects in the works for this busy developer. Located at 2000 NW Loop 410 in North Central San Antonio, the 73,000-square-foot office building is expected to be completed in July. Immediately following, con-struction will begin on a three-story design-build for Bank of San Antonio.

In the Far North sector, Minneapolis-based Ryan Cos. is developing a two-story, 58,000-square-foot office building for Avnet, Inc. – a Fortune 500 com-pany based in Phoenix and leading global tech-nology distributor. The project is scheduled for completion in August.

R.L. Worth & Associates has plans to build on the success and momentum experienced in their proj-ects. Before the end of the year, it is likely that Worth will expand The Oaks at University Park with Building 3, start construction on Building 2 at RidgeWood Business Center and, perhaps, move forward with Building 3 at Heritage Oaks for a total of nearly 250,000 square feet of new space.

Allan Young, Stream Realty ready to move forward with Lockhill Crossing

“While Houston, Dallas and Austin are all listed among the top markets in the U.S. for office development, developers in San Antonio are answering the call for more space in a much more conservative manner.”


VISION | BEAUTIFICATION | GROWTH | SAFETY | AMENITIES

Now, you have 3 million new reasons to move to Westchase District

Learn more: WestchaseDistrict.com or 713-780-9434 WESTCHASE. WHERE BUSINESS IS MOVING.

With three million square feet of new, Class-A office space under construction, there’s never been a better time to relocate your business to Westchase District. We are renowned for our exceptional beauty, mobility, safety, schools and neighborhoods – qualities that are also enticing developers to build new hotels, apartments and amenities. So explore your opportunities in Westchase District today.

1 8 R E D N e w s . c o mcontinued on page 20

The Economic Outlook for Real Estate Investors and Decision MakersOverview of Mark Dotzour’s Presentation

Mark Dotzour is the Chief Economist and Director of Research for the Real Estate Center at Texas A&M University in College Station. Mark has been bull-ish on the economy for the last two years and is having a lot more fun now.

Dotzour: “We are five years into the recovery and I predict that we are going to find out that there is nothing wrong with the U.S. economy. The fed has begun to taper in earnest. The 10-year Trea-sury Bill was at 2.59 recently; a declining 10-year treasury bill generally will indicate a coming reces-sion OR it can signal unrest in other countries. This has everything to do with other countries such as Venezuela, Russia and China. Money is flowing out of those countries. At this point, Mark reminded his audience that he is certain of these projects with a 50% reliability; however, it is a fact that money is flowing into commercial real estate in the United States from other countries.

Dotzour: “There’s nobody on earth that can out-spend an American, and personal consumption expenditures are definitely up. During the down-

turn, when we stopped buying, we created a real problem for China (the subcontractor for the U.S.)In China, as in America when people aren’t buying goods, the government puts its people to work building infrastructure, but the buildings have no tenants. We’ve done it here and China is doing it now in their country.”

Consumers are paying down debt for the first time in 50 years. There has been supposition that young people aren’t going to buy houses and for this rea-son, something is wrong with the housing mar-ket. “If there’s anything wrong with the housing market, I can’t find it,” Dotzour said. Young people do not plan to spend their lives in apartments.

The labor force participation rate is declining, but it has been declining for the past 30 years. Women are exiting the labor force, working aged men are exiting the working force. The news me-dia blows up every story. There is only 7 minutes of real news. If you’re watching news for over that amount of time, you’re doing yourself serious emotional damage.”

The net worth of many American households has never been greater. This has come about be-cause interest rates have been kept at zero. When that happens, people with property and stock-holders get richer and spend money. But those who don’t own a house or have investments are still waiting for the recovery. We can see this in all areas of the economy. Michael Kors sales are good, the expensive car sales are up but the Dollar Stores, Target, and Wal-mart, are facing challenges. Their customers are running out of money.

Dotzour: “We need fiscal policy. Congress is a complete failure at creating policies that encour-age Americans to put people to work.”

Household Debt Service Payments: This is a powerful number; it is the percent of our income that goes to paying off debt that we have already incurred. Americans have never been richer as the household net worth is now $81 trillion. Never in the last 35 years have American households had more money available to spend.

Dotzour: “American businessmen are succeeding in spite of our federal government. At the pres-ent time, only 10 percent of the family’s income goes to pay off debt. We are also seeing effec-tive demand. People want to buy something and have the ability to buy it, and after five years of pent-up demand, the American consumer is back in the saddle buying.”

“We need fiscal policy. Congress is a complete failure at creating policies that encourage Americans to put people to work. “

by Janis ArnoldREDNews

Rachel S. Grant7887 San Felipe Suite 122,

Houston, TX 77063Phone: 713-789-3133

Cell: [email protected]

Ella Blvd.

FM 1960

EAGLES LANDING

EAGLES LANDING

NORTH FOREST

GLEN ABBEY

WOODFALLSCOURT

VANDERBILTPARK AT KIRKSTALL

QUAIL CHASE

PLAZA AT AIRTEX-ELLA

BLUE ASH

WOODS OF KUYKENDAHL

Kuykendahl Rd.ABBEYABBEY

WOOWOODCOCO

FM 1FM 1

NORTH FORESTNORTH FOREST

VAND RB LTVANDERBILT

QUAIL CHASQUAIL CHASE

PLAZA AT A RT X-PPPLAZA AT AIRTEX-E

OF KUYKENDAHLS OF KUYKENDAHL

Ella Blvd.Ella Blvd.

GLES LANDINGGLES LANDING

YY

DFALLDFALLSOURTOURT

WOODWOODS

AGLES LANDINGEAGLES LANDING

AGEAG

KuKuyky endahl Rd.

Kuyky endahl Rd.KSTALLRKSTALL

I-45

Tract 2Tract 1

Rachel S. Grant7887 San Felipe Suite 122,

Houston, TX 77063Phone: 713-789-3133

Cell: [email protected]

Ella Blvd.

FM 1960

EAGLES LANDING

EAGLES LANDING

NORTH FOREST

GLEN ABBEY

WOODFALLSCOURT

VANDERBILTPARK AT KIRKSTALL

QUAIL CHASE

PLAZA AT AIRTEX-ELLA

BLUE ASH

WOODS OF KUYKENDAHLKuykendahl Rd.ABBEYABBEY

WOOWOODCOCO

FM 1FM 1

NORTH FORESTNORTH FOREST

VAND RB LTVANDERBILT

QUAIL CHASQUAIL CHASE

PLAZA AT A RT X-PPPLAZA AT AIRTEX-E

OF KUYKENDAHLS OF KUYKENDAHL

Ella Blvd.Ella Blvd.

GLES LANDINGGLES LANDING

YY

DFALLDFALLSOURTOURT

WOODWOODS

AGLES LANDINGEAGLES LANDING

AGEAG

KuKuyky endahl Rd.

Kuyky endahl Rd.

KSTALLRKSTALL

I-45

Tract 2Tract 1

Tract 1• 1,136 FF on Kuykendahl Road | 5.69 Acres

Tract 2• 529 FF on Kuykendahl Road | 9.92 Acres

• Great visibility on heavily traveled Kuykendahl Road• Located in dense residential area just west of I-45• +/- 400’ Northwest of Ella Boulevard, Houston, Texas• Zoning: None• Utilities: HC MUD #399• Key Map: 372B

Asking Price: A: $5.50 PSF; B: $5.50 PSF

15.62 Acres Ready FoR Retail, oFFiceMedical oR industRial developMent



Corporate Profits: When profits are up, compa-nies are hiring. Profits are up and it appears as if only the uncertainty over health care has kept hir-ing lower than we would have expected.

Dotzour: “The best thing we can do is cut off all of the money that we are sending to Washington, D.C. Let the mayors and governors who know how to manage the money in their states take over.”

Manufacturing: Bottom line: we’re competitive in this country! So, even though the 10-year treasury says that something is wrong, it’s not something about the U.S. economy that is wrong. We’re grow-ing in spite of our government, and business hir-ing is up.

Proprietors’ Income numbers are up. Part of the employers’ problem is that we can’t find workers.

Dotzour: “We need more people who are willing to work. We need immigrants because right now we’ve got a whole bunch of people in this country who don’t want to work. This is a serious problem.”

At the present time, there are almost 4 million job openings in our country. Our businesses are looking for workers. We need skilled labor. The construction industry posts 156,000 openings; manufacturing has 270,000; trade, transporta-tion, and utilities have 711,000; professional and business services have 656,000 openings; educa-tion & health care have 689,000 openings; leisure & hospitality have 633,000 jobs available, and the government currently lists 369,000 openings. For Americans who want a job, the jobs are out there.

Economic Challenges:

• Today’s economy is characterized by bifurcated consumers. Some of them are really struggling.

There are people out there waiting for the re-newal of America! In Texas our politicians have created a positive environment for business. Gold is down to $1,300 per ounce because in-flation fears are not as high as they once were. Investors who don’t buy gold, buy other assets. Farmland is going flat. However, apartments and self-storage units haven’t gone back down.

• Inflation won’t have an impact if wages aren’t going up. A worker whose income is flat will simply buy less when prices increase.

• The actual money supply is growing at a normal rate. Sure, the fed is printing money, but it is buried in the banking system. Europe is starting to go into deflation, and they are talking about negative interest. This means that you will pay the bank to house your savings rather than them paying you interest for the privilege.

• We need more homes built in this state. We start to lose that competitive advantage when we lose our ability to maintain affordable hous-ing. Our statewide inventory of unsold homes is down to an average of 3 to 4 months; this is too low for the number of people who are look-ing and plan to buy within the next six months.

• The investment market: Sovereign wealth funds from other countries are flowing into the

U.S. Investors are fleeing their governments. Their question isn’t what is the history of sales in this or that area for the past six months. These foreign investors are asking, “How fast can I dump this suitcase of money and get title to that land?’. It is a well-proven fact that com-munist and socialist countries take themselves off the dance floor. At least in our country, we still pretend that we observe the rule of law and private property values. Thus we see high net

worth foreign investors fleeing their govern-ments and putting their assets into real estate investments, trust funds, private equity funds, and individual investments in this country. Now is a good time to invest in stocks and bonds in Texas Land!

“The best thing we can do is cut off all of the money that we are sending to Washington, D.C. Let the mayors and governors who know how to manage the money in their states take over.”

Mark Dotzour

“We are five years into the recovery and I predict that we are going to find out that there is nothing wrong with the U.S. economy. The Fed has begun to taper in earnest.”


OPEN

SUMMER 2015

1. If you DO NOT have changes please sign, date and return.2. If you HAVE CHANGES, indicate changes on proof and return within 24 hours.3. Proofs not returned within 24 hours will be considered approved to run AS IS.4. Ads or inserts cancelled after the 10th of the month will be billed 100%. July 2012

Lila ConstructionHPCPGinger WhelessLilaCo_RN_HP_0712_01.inddBC06.12.12

2Send your

Deals Done to

[email protected]

Using the information in this ad, property information will be sent to LoopNet to be added/updated in their listing service (at no cost to you). To opt-out, contact us at [email protected]

Elizabeth Stevens | Lila Construction | 713.741.9900 | [email protected]

FOR LEASE (near US 59 / Hillcroft) | 6400 Southwest Freeway, Houston, TX 23,000 SF Immediate Move-in Available | 3,500 SF and 2,200 SF Also Available• Easy access to / from US 59 / Westpark, Adjacent to Metro Transit Park & Ride• Prior southwest school location with more than 120 Parking spaces & playground area• Possible uses: Education, Medical, Engineering, Manufacturing, Retail

FOR LEASE | 2306 - 2428 Texas Parkway, Missouri City TXRetail Spaces Available 2,500 SF / 1,250 SF / 21,000 SF• Price PSF are from $0.55 for the smaller spaces and $0.30 for large space.

Southwest Fwy

SITE

Metro Transit Area• Easy access to / from US 59 / Westpark (adjacent to Metro Transit Park and Ride)

• Playground area and parking spaces (100 to 120)

• Recommended facility usage: Education, Medical Office, Engineering, Manufacturing

FOR LEASE - 23,000 SF Available6400 Southwest Freeway, Houston TX (exit US 59/Hillcroft)

Elizabeth Stevens | Lila Construction | 713.741.9900 | [email protected]

FEATURES • Medical Center location with easy

access

• On-site deli, bank, pharmacy & medical lab

• Recent exterior and interior renovations

• Valet & reserved garage parking

• Covered drop-off area

• On-site property management

Call For Pricing

FEATURES • Office/Office Medical

• Move-in ready suites

• Adjacent to Kindred Hospital North Houston

• Pylon/monument signage

• On-site pharmacy & Labcorp

• Convenient & ample parking that’s covered and gated

• Covered drop-off area

• Great access to the North Freeway (I-45)

Call For Pricing

Office/Medical Space For Lease - 7515 S. Main, Houston TX 77030Greenpark One

For Sale or Lease – 7007 North Freeway, Houston TX 77076North Houston Medical Plaza

For more information, contactBlake R. Virgilio, CCIMOffice: 281.664.6651 Email: [email protected]

Jack A. RussoOffice: 281.664.6637 Email: [email protected]

FEATURES • Building and Land Available -19,096 SF Office -40,877 SF Land• Owner occupied, 2-story building• Recent interior renovations• Located at Jones Road and Mills Road • Great access to SH 249, FM 1960 and Beltway 8• Ample parking• Could be converted to multi-tenant• Brick construction

Price: $1,200,000

Office Building For Sale12851 Jones Road, Houston TX 77070

For more information, contactKeith P. Grothaus, CCIM, SIOROffice: 281.664.6635 Email: [email protected]

FEATURES • Office/Medical Office• Move-in ready suites• Centrally located between US 290, SH 249,

FM 1960 & Beltway 8• Adjacent to Cypress Fairbanks Medical

Center & Kindred Hospital Northwest• On-site property management & Labcorp• Convenient & ample parking with a

physician parking area• Deed restricted hospital campus surrounded

by abundant retail & restaurants• Vending & break area

Call For Pricing

For Sale or Lease – Steeplechase Corner Professional Building 11301 Fallbrook Drive, Houston TX 77065

For more information, contactBlake R. Virgilio, CCIMOffice: 281.664.6651 Email: [email protected]

Jack A. RussoOffice: 281.664.6637 Email: [email protected]


by Beth Young, CCIM, LEED APSenior Vice PresidentHealthcare Investment Services GroupColliers International

More Bang For Your BuckHouston Healthcare Properties Update

There was a short healthcare conference in Hous-ton in May, and speakers ranged from developers and appraisers of medical real estate to the real estate directors of Houston’s major health sys-tems. Much was discussed about the effect of the Affordable Care Act on hospital systems and the trends that are affecting healthcare real estate. An interesting fact was that 17.6% of the GDP is in Healthcare, and $7 billion was spent in medical-office building transactions last year producing an average cap rate of 7.60%.

One panelist remarked that the marketplace will pay a premium for single-tenant medical office buildings (MOBs) in primary markets, with cap rates often between 6% and 7%, and premier properties have even traded at cap rates in the low 6s and high 5s. Good quality multi-tenant medical buildings in secondary markets commonly sell at 7% – 8% cap rates.

A representative of a REIT that owns properties in our market said they evaluate MOBs by compar-ing tenants, location, and quality of the building. Buildings with strong-credit hospitals or health systems as tenants will produce the lowest cap rates or highest prices when sold. The location that has traditionally resulted in the highest sale price is on-campus, or adjacent to the hospital. But now, the location is more about whether it is strategically important to the hospital’s platform and the long-term plan to gain a larger market share. The quality of the building doesn’t mean simply the quality of construction. Buyers are equally concerned with their acquisition being relatively new, functional, flexible, able to handle the newest ways of delivering medical care, and at least 60-70% leased at the time of the purchase.

More technically complex buildings in communi-ties is a growing trend, often seen in sports-med-icine facilities where treatment centers are being equipped with advanced imaging such as MRIs. Newer healthcare facilities have an advantage when they are expandable, flexible, and come equipped with medical gases and generators - providing mini treatment centers.

Landlords are always concerned about losing ma-jor tenants, but when the building is a specialized medical property, the risk for the owner increases. The question is raised, “What happens at the end of the lease if the tenant used the building for special purposes, like a cancer treatment center?” Repurposing is difficult, but there are small niches that can work. That is one reason retail formats have become so popular for medical offices. When a medical tenant moves out, it can always be re-purposed into typical retail.

There are many additional reasons retail is a lead-ing trend for medical facilities. The most impor-tant is fueled by the new regulatory environment, requiring health systems to be more efficient, im-prove the quality of care and lower costs for pa-tients. Locations in communities provide conve-nience, and studies show that procedures done in ambulatory surgery centers vs. hospitals can save patients as much as 50 percent while providing a better environment. Although some doctors still find it makes more sense to be located next to a hospital, many prefer the suburban locations be-cause it is more strategic to their business. Good retail locations come with great car counts and vis-ibility, but the lease rates are higher compared to hospital campuses.

One director of real estate for a health system said they take a proactive position in becoming an an-chor tenant in some retail centers – an easy win for the systems which are provided with nearby complementary businesses and high visibility. Hospitals and health systems can provide patients

with more preventative care and engage with them sooner in retail settings. Patients can often get up and recover more quickly when treated in outpatient facilities.

Although it is currently more common in Houston than other cities, the trend of outpatient centers in communities will continue to grow, as the num-ber of in-patient facilities shrink. As more health systems merge or acquire each other, they are focused on capturing market share, so they will provide local emergency care, urgent care, and ad-ditional out-patient clinics in off-campus settings. (Urgent Care centers are set up to assist patients with an illness or injury that does not appear to be life–threatening, but also can’t wait until the next day, or for their primary care doctor to see them.) Texas allows groups that are not affiliated with a hospital to build surgery centers and outpatient clinics also. In addition, insurance companies are buying operators, hospitals, and ensuring that their place is confirmed in the care of patients.

Health systems are also pursuing relationships with senior-living, memory-care and long-term care companies. Although residents of these types of facilities do not want to be located next to hospitals to remind them of their conditions, they do need to be near an acute-care facility/hospital, and it is becoming more common for post-acute-care facilities (such as LTACHs or long-term-acute-care hospitals) to be located next to senior-living facilities.

Sustainability is also having an effect on new med-ical developments. SRI, or socially-responsible-in-vesting, is being watched by Wall Street. A compa-ny’s sustainability score correlates with the overall management score of a healthcare organization, like any other company. It quantifies the overall quality of a company. Many healthcare property owners who are developing projects choose to self-certify their buildings to mimic Energy Star re-quirements. Health Care REIT has a Green Arrow program that equips tenants with tools to reduce their energy use, recycle, and be more sustainable. LEED certifications come with a premium, but the

“One director of real estate for a health system said they take a proactive position in becoming an anchor tenant in some retail centers.”


development experts and owners of the build-ings say you get a real “bang for your buck”. One panelist said it is not as cost prohibitive as peo-ple who are not in the industry think, and the savings on operating expenses are significant.

When the Affordable Care Act was introduced, many health systems and hospital developers put the brakes on their master plans. But there are numerous examples of how the master plans are now moving forward including Memorial Hermann’s 1.4 million square foot expansion in the Texas Medical Center (TMC) and a new cam-pus coming to Pearland; CHI St. Luke’s Health’s future medical complex on 23 acres in Spring-woods Village, and Texas Children’s Hospital’s recent purchase of land in The Woodlands where construction starts in June. In addition, Medi-star’s Bay Area Regional Medical Center, a 104-bed acute care facility, is scheduled to open on July 21st in Webster.

Health systems are split in their views about monetizing their MOB portfolios. Some see selling as a good way to make money off of the real estate and have already sold properties that were not considered “on-campus.” Others don’t plan to sell properties because of a lack of control. One panelist said if they could sell their properties to a landlord who would take

the lease payments and let the systems operate the facilities as they want, they would sell more properties. Control and flexibility is important.

Future goals for the Texas Medical Center in-

clude creating opportunities that attract life-sci-ences research and clinical trials, development of residential living, a new hotel, and convenient live/work/play environments for the TMC’s em-ployees.

Memorial Hermann Sugar Land Hospital The expansion of the Sugar Land Hospital will include a six-story patient tower and a second pro-fessional office building to create an additional 220,000 square feet of space. - Courtesy Memorial Hermann Health System


RAY HANKAMER Hankamer & Assoc, Broker, Houston Contr ibut ing Wri ter

HOUSTONCOMMERCIAL BUZZ

Buying and Selling Highland Village Helped Me Achieve My Boyhood Dream of Owning Old Masters Art

An Interview with William Morris, IIIby Ray Hankamer

William, to begin with, I guess it could be said that you were born into a real estate family.

Morris: My great-grandfather Maco Stewart start-ed Stewart Title in Galveston, and my father Car-loss and his brother Stewart Morris, Sr., built the company, which went public when I was a young man. My brother Malcolm and Stewart Morris, Jr., are Co-Chairmen and Malcom’s son Matt is CEO of Stewart Information Services. I worked at Houston Title Company while in law school, and at the same time I began brokering real estate. Then the sale of Houston Title Company by Malcolm, Stewart, Jr., and myself provided me with some working capital to begin investing on my own. My early in-stincts told me to always go for the best quality in whatever I bought.

How did that translate into real estate invest-ing in Houston?

Morris: I knew there were only two Interstate Highways in Houston. So I chose I-10 west from downtown. I also liked Westheimer, even when it was only a two-lane road. I always looked for cor-ners, since they were in limited supply. In the early days I owned an interest in three of the four cor-ners at I-10 and Highway 6 and contracted for First Baptist Church a prime corner at I-10 and Loop 610, which I gave to the church. We still own acre-age tracts on I-10 in the city of Katy.

Did you only invest in land, or did you ever have operating businesses?

Morris: At one time I had approximately eight Jack in the Boxes and a couple of filling stations, but they were leased out triple net. I put together numerous land syndications when I found good buys, and many of my were friends I had met playing tennis, investors who began trusting my instincts on tracts of land which had appreciation potential.

That brings us to Highland Village, obviously an operating retail business. How did it come to your attention, when, and what happened next?

Morris: Brokers bought me Highland Village, which I knew well growing up. Before the Galle-ria, it is where people on the west side of Houston shopped. There was a mixture of mostly small, lo-cal tenants. Each storefront had a different color awning, and there were massive power lines down

both sides of Westheimer right through the mid-dle of the development.

What attracted me about Highland Village was the opportunity to have eight corners on Westheimer, near River Oaks and other upscale neighborhoods. I met with the sellers’ representative at five o’clock one afternoon, reached preliminary agreement; then I went home to dinner. I returned to the ne-gotiations, and we hammered out a hand-written contract and signed it about 11PM. I wrote a $50,000 earnest money check, which was about all I had in the bank at the time. The next day an offer came in to the sellers for $1 million over what I had agreed to pay, but my deal held firm.

That next day I immediately called the office of the two friends I thought would partner up with me, Charlie Swain and Harvey Houck. Houck and Swain were big in multi-family units (The Allen House, The Georgian, Westcreek, Savannah Club, etc.), and Houck had retail all over the west side

William Morris, III

“What attracted me about Highland Village was the opportunity to have eight corners on Westheimer, near River Oaks and other upscale neighborhoods.”



THE INSIDER SOURCE FOR INTERIOR DESIGNthe RED vault

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Sergio Ortiz, Jamie Irvinee-mail: [email protected] • [email protected]

[email protected] • [email protected]

HANKAMER& ASSOCIATESBROKERS, L.L.C.


40 Years Experience AsDeveloper | Owner | Operator


40 Years Experience As Developer, Owner & Operator

Brokers: Ray Hankamer, Jr. [email protected] Szub [email protected] Ortiz [email protected] Irvine [email protected]

(713) 789-7060 • www.hankamer.com

PROPERTIES AVAILABLE• Beach Lots - Gilchrist• Hotel, Condo, Retail Site - Cruise Terminal - Galveston• Freeway Sites - I-20 - Monahans• 30 Acres - Commercial/Rail Serviced - Tomball• I-45 Huntsville 12 Acres - Residential/Commercial - HuntsvilleContact: Ray Hankamer

• Hotels - Statewide Contact: Sergio Ortiz

LAND

/CHU

RCHE

S FO

R SA

LE Eastex Church 11255 Eastex Frwy - 15,500 SF. ...................... ............. ......... ... $950,000

LEASE SPACE - St Paul Presbyterian Church 7200 Bellaire Blvd. - 5,600 SF. ......................... ............. ......... $5,000/mo.

Multi-Purpose Facility w/housing 15402 Sellers Rd. - 7,000 SF .......................... REDUCED ............. $225,000

NW Houston Church 10225 Woodedge - 20,000 SF. ......................... ............. ...... ... $1,100,000

Miracle Life Church International 9930 Aldine Westfield - 3,200 SF. .............................. ... ....... ..... $275,000

Multi-Purpose Bldg 710 College St. - 7,200 SF .......................SALE PENDING ............. $650,000

Religious Facility in South Houston Beaumont St. @ Illinois - 11,800 SF ........SALE PENDING ............. $799,000

Baytown Campus/Training Center Facility (Income producing property) 301 Ilfrey .................................................SALE PENDING ..........$3,400,000

Aldine Christian Church 2233 Aldine Mail Rte. - 10,500 SF .........................SOLD ............. $499,000

International Church Realty(713) 541-4005

www.internationalchurchrealty.com


of Houston. They had an organization, so they were ideal partners for me.

Their secretary said, “Mr. Morris, you cannot speak with them…they are off hunting pheas-ants in England.” I knew I had a big problem, since I did not have the funds to close the deal alone. I immediately went to see Charles Crady, their attorney. He knew how to reach them, and we concluded a deal over the transatlantic phone to each put $150,000 down, with each owning one-third. The balance of the sale price of about $4.5 million was to be seller financed, involving a note at around 2.5% interest to Rice University.

Highland Village Bank loaned me my $100,000 when I requested it, and I did ask the banker if his bank wanted to remain in our development. (Grin) So we bought this somewhat depreciated development – with eight corners on Westheimer, including all the improvements,for about $4.50 per SF. Houck & Swain allowed me to make a $60,000 commission for assembling the deal and putting it under contract and this, along with the bank loan, allowed me to post my share of the equity and walk away from the closing with $10,000 in my pocket.

One of the first things we did was to invest approx-imately $2 million in burying those ugly power lines on both sides of Westheimer. This, along with requiring our tenants to have coordinated green awnings, improved the visual aesthetics immense-ly. We turned the management over to Swain and Houck’s organization, and we started upgrading tenants to higher quality ones, and some national ones. We brought in two Tony Vallone restaurants, Grotto and Anthony’s. We slowly started raising rents, which were at rock bottom lows when we purchased the center. Today, under the current owner, some of Highland Village rents are higher than those in The Galleria.

Some of the original tenants which were well-known to older Houstonians were Weiner’s de-partment store, Moses Melody Shop, Athas Florist, Nielsen’s Delicatessen, Highland Village Drugstore (complete with soda fountain / lunch counter), Evan Brooke Shoe Store, and Eaton’s Children’s shop.

How long did you own Highland Village, and how did your sale come about? How did you personally come out financially, and where did the proceeds get reinvested?

Morris: Before I answer this, please know that all dates and numbers I am giving you are more or less accurate, since this all happened long ago! We owned Highland Village about fifteen years. We sold for a handsome profit over what we had paid about $4.5 million for, and in addition we had profits from operations.

So with this handsome profit in your bank ac-count, did you re-invest in real estate, or some-thing entirely different?

Morris: I had taken a college tour to Europe and one day in Cannes, I encountered Pablo Picasso painting out on the beach. I am not sure why he was there, and he passed away about ten years later. But it triggered something deep inside me to one day be able to own fine art by world famous artists like Picasso. After the sale of Highland Vil-lage, I was in a good position financially to begin collecting. Over the years I have profited by buy-ing, owning and enjoying, and selling art.

You gave us your secrets in real estate invest-ing-buy corners and buy quality- but what can you tell us about what guided you in your new world as a fine art collector/investor?

Morris: Two guidelines: buy the best quality paintings and artists even if it does seem expen-sive at the time and pay a close eye to “prove-nance”, which is an art world term meaning what is the history of the painting…i.e. under what circumstances was it painted, for whom, and who has owned it since.

The quality of the chain of ownership tells subse-quent owners that a given piece has long been

considered of the highest quality, and when you decide to sell it after owning and enjoying it your-self, you have a compelling reason that the next buyer should have the piece.

What are some of the art pieces you have col-lected, and what type of art do you lean to-ward? Where do you purchase your pieces?

Morris: I first collected paintings and bronzes in the Western Art category, but over the last twenty years I have evolved into being a more passionate collector of Old Masters and Impressionist artists.

Sometimes I make my purchases through private sales of a single piece of art, which I hear about through my contacts in the art world, and some-times via auction at one of the big houses like So-theby’s or Christie’s.

To summarize collecting, whether it be art or real estate: my instinct has always been to go for qual-ity. Over time you cannot go wrong doing that.


•••

Morgan Moliver, Client Services Manager

Mobile 817 821 [email protected]

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What’s Happeningin CRE Texas

The following pages contain a calendar of Texas CRE events, networking photos and deals/announcements. For more of the above, log on to

REDNews.com. We update CRE news and events every day!

EVENTS • NETWORKING • DEALS • ANNOUNCEMENTS


Central / South Texas Au s t i n | S a n Anto n i o | R i o G ra n d e Va l l e y

Austin

BOMA ................................................................................ www.bomaaustin.org

CBA Austin ...........................................................................www.cbaaustin.com

CCIM .................................................................................... www.ccimtexas.com

CREW .................................................................................www.crewaustin.com

CTCAR ................................................................................ www.ctcaronline.com

IREM.................................................................................... www.iremaustin.org

RECA .................................................................................. www.recaonline.com

ULI ........................................................................................ www.austin.uli.org

San Antonio BOMA San Antonio .....................................................www.bomasanantonio.orgCCIM ........................................www.chapters.ccim.com/sanantoniosouthtexasCREW .........................................................................www.crew-sanantonio.orgIREM.............................................................................www.iremsanantonio.orgIREP........................................................................................... www.irepsa.comRECSA ............................................................................www.recsanantonio.comSABOR ........................................................................................ www.sabor.comSIOR (South Texas Chapter) ........................................................... www.sior.com

For a complete list of monthly events, visit their website

For more information onCALENDAR OF EVENTS

log on to

Email your events to:[email protected]

Event dates are based on each organization’s typical monthly schedule which is subject to

change. Please verify each event with the related organization.

Commercial Organization Contacts - Dallas | Fort Worth

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

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Real Estate Council of Austin Signature LDC Program

12:00pm – 1:00pm

CTCARMCE Course – “1031 Tax Deferred Exchange – Beyond the Basics”

9:00am – 11:00am

CBA Austin Luncheon

11:30am – 1:00pm

BOMA Austin Membership Luncheon

11:30am – 1:00pm

IREM Austin IREM Beach Bowl

12:30pm – 4:00pm

CCIM Central Texas Luncheon – Healthcare Real Estate –

A Changing Market 11:30am – 1:00pm

ULI Austin Mentorship Forum Kick-off

5:00pm – 7:00pm

CTCARProperty Information Exchange

7:30am – 9:00am

SABOR Smart Growth for the

21st Century 10:00am – 3:00pm

Real Estate Council of San Antonio Breakfast – Downtown Development

7:30am – 9:00am

CREW Austin Networking Luncheon & Presenta-tion – ‘Why Co-Working Matters?’

11:30am – 1:00pm

Real Estate Council of Austin June Ideas Forum

11:15am – 1:00pm

CREW San Antonio Luncheon – Lisa Hill, VP Buxton

11:30am – 12:55pm

IREM Austin Memorial Stadium Lunch & Tour

11:30am – 1:00pm

BOMA San Antonio Luncheon

11:30am – 1:15pm

IREM Austin IYP Icebreaker

5:30pm – 7:30pm

ULI AustinBreakfast - Seaholm Development

7:30am – 9:00am

“Commercial Lease Analysis, Comparison & Lease vs Own”

9 hours of MCE - Course #09-00-035-25248 - Provider #0287 Instructor Cliff Bogart, CCIM

www.ctcaronline.comCTCAR

Visit www.ctcaronline.com for pricing & registration info

COMMERC IAL


Au s t i n | S a n Anto n i o | R i o G ra n d e Va l l e y

Networking For more networking photos, log on to www.REDNews.com | Send your networking photos to [email protected]

Deborah Bauer, Martha Hardy and Helena Hauk

Steve Presti and Janice Landers

Dorothy Binder and Bert Schnoebelen Terry Bray, Tom Martine and Ray Head Amy Ables, Sheila McHargue and Crys-tal Green

Dena Welch and Brad Radick Catherine Cagel and Keith Goodman

Sheila McHargue, current BOMA Austin president and Paul Noetzel, past president

James Gaines, Speaker Stage view of attendees at the confer-ence

James Gaines speaking to attendees at the conference

Attendees at the conference

BOMA Austin’s 40th Anniversary Party

CREW San Antonio’s May Luncheon

24th Annual Outlook for Texas Land Markets – San Antonio

CTCAR Bat Boat Party


commercial real estate women

2014 SponsorshipPackages now available!

Is your company looking for exposure and recognition in the commercial real estate industry?

SPONSORSHIP OPPORTUNITIESSTART AT $750.

Visit the CREW-Dallas.org website for more information or call the

CREW o�ce at 214.890.6490

North Texas D a l l a s | Fo r t Wo r t h

BOMA Dallas....................www.bomadallas.org

BOMA Fort Worth ..... www.bomafortworth.org

CCIM .................................... www.NTCCIM.com

CREW Dallas ....................www.crew-dallas.org

CREW Fort Worth....................www.fwcrew.org

GFWREC ................................www.gfwrec.com

IREM Dallas ....................www.irem-dallas.org

NAIOP.....................www.northtexasnaiop.com

NTCAR ....................................... www.ntcar.org

SCR .......................................... www.scr-fw.org

SIOR ........................................... www.sior.com

SW Corenet ........ www.southwest.corenetglobal.net

TREC .................................. www.recouncil.com

ULI ..............................www.northtexas.uli.org



log on to




Commercial Organization Contacts - Dallas | Fort Worth

Calendar of EventsSunday Monday Tuesday Wednesday Thursday Friday Saturday

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NTCARGolf Tournament

11:00am – 5:00pm

BOMA Dallas Allied Panel: Future of Property

Management 11:30am – 1:00pm

CREW Dallas Luncheon and Meeting

11:30am – 1:00pm

BOMA Ft. Worth Every Building Conference & Expo

8:00am – 5:00pm


8:00am – 5:00pm


8:00am – 5:00pm

BOMA Dallas Engineer Lunch & Learn

11:30am – 1:00pm North Texas CCIM

Luncheon – Capital Markets Panel 12:00pm – 3:00pm

Southwest CoreNet Global NBC Studio Tour

3:00pm – 5:00pm

BOMA Ft. Worth Membership Luncheon

11:30am – 1:00pm

CREW Ft. Worth Luncheon – Retail Trends in Tarrant Co.

11:30am – 1:00pm

BOMA Ft. Worth Bowling Tournament

5:00pm – 8:00pm

ULI North TexasBreakfast Forum

Recent Developments in “P3” Financing

7:30am – 9:30am

Southwest CoreNet Global Dallas: The Emerging Corporate Capital

11:30am – 1:00pm

IREM DallasInsurance/Legal Update Seminar

11:00am – 1:00pm

North Texas CCIM Happy Hour

5:30pm – 7:00pm

BOMA Dallas Top Golf Bay Sponsor + Team

5:00pm – 9:00pm

The Real Estate Council of Dallas

Speaker Series – John Rossant and Max Anderson

7:30am – 9:00am

NTCARYPF 2nd Quarter Event

5:30pm – 7:30pm

IREM DallasACoM Exam

All Day


Networking

28th annual CREW Dallas Golf Classic

April CREW Dallas Luncheon and Meeting

President’s Cup Awards Luncheon2014 Nashville Designation Pinning and Business Meetings

For more networking photos, log on to www.REDNews.com | Send your networking photos to [email protected]

Mac McClure, CCIM, Susan McClure, CCIM, David Schnitzer, CCIM, Brad Crumpecker, CCIM, Saadia Sheikh, CCIM, Joe Garrett, CCIM, and John McClure, CCIM

Butler Burgher team-Daniel Stickane, Chris Roach, Justin Teel, Chase Add-ington

Candidates from North Texas receiving their pinning in Nashville.

Lisa Novotny Price, Clay Gilbert, Ce-leste Fowden, Katrina Keyes, speaker, Melayne Packer, Michelle Hudson, CREW Dallas President

John McClure, CCIM, Saadia Sheikh, CCIM, Joe Garrett, CCIM, Susan McClure, CCIM, Brad Crumpecker, CCIM, David Schnitzer, CCIM and Wayne D’Amico, CCIM, the 2013 CCIM National President.

Kari Walker-Higgins

Attendees at the President’s Cup Luncheon

Suzanne Brasuell, Kimberly Kramer, Susan Sherman, Emily Trevino, Rachel Koster


Southeast Texas Ho u s to n a n d Vi c i n i t y | G a l ve s to n

ACRP ..................................................www.acrp.orgBACREN .......................................www.bacren.comBOMA ................................www.houstonboma.orgCCIM ...................................www.ccimhouston.orgCoreNet ...............www.houston.corenetglobal.orgCREAM .......................................www.creamtx.comCRE ......................................................www.cre.orgCREN ................................. www.crengulfcoast.com

CREW .................................. www.crewhouston.orgFBSCR ..............................................www.fbscr.comGreater Houston Partnership ..... www.houston.orgHOLBA ............................................ www.holba.orgHRBC .................................www.houstonrealty.orgIREM ....................................www.iremhouston.orgNAIOP ................................www.naiophouston.orgO’Connor & Associates ............www.poconnor.com

HREC ............... www.houstonrealestatecouncil.orgSIOR .....................................www.siorhouston.comULI ......................................... www.houston.uli.org



log on to




Your real estate deserves real management.Count on a CPM® professional to deliver real results.

To find a CPM®

in your area, visitwww.irem-dallas.org

For optimal returns on your real estate portfolio, turn to a CERTIFIED PROPERTY MANAGER® (CPM®).

A CPM® has:Demonstrated experience in building value Pledged commitment to the highest ethical standardsProven expertise in maximizing returns

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IREM AUSTIN PRESENTS ETH800 -Ethics for the Real Estate Manager

September 10th, 2013, 8:00am – 5:00pmFor more information and registration

visit iremaustin.org

www.iremaustin.org • 512-301-3311

Contact Ginger Coleman at 713.783.0297or [email protected] /www.ccimhouston.org

CCIM Course ScholarshipsCI 101, CI 102, CI 103, CI 104

or CCR & Exam

Available to current Houston/Gulf CoastCCIM Chapter Members

Networking Educat ion Technology

Commercial Organization Contacts - Houston and Vicinity | Galveston

Calendar of EventsSunday Monday Tuesday Wednesday Thursday Friday Saturday

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FBSCR Monthly Meeting 8:00am – 9:00am

Greater Houston Partnership Coffee with the Consuls – Andrew Millar

8:00am – 10:00am Houston BOMA

Broker Panel Luncheon 11:30am – 1:00pm

HRBCMonthly Breakfast7:00am – 8:30am

BACRENMonthly Luncheon – Barbara Hayley

10:30am – 1:00pm IREM Houston

Young Professionals Happy Hour 5:00pm – 7:30pm

CREN Gulf Coast Breakfast – Marketing Session

7:30am – 9:00am

O’Connor & Associates Luncheon – Hotel/Lodging Forecast

11:30am – 1:00pm

CREW Houston Luncheon – Christine Spray, Presi-

dent Strategic Catalyst, Inc. 11:00am – 1:00pm

NAIOP Houston Luncheon – A.J. Teague

11:00am – 1:00pm

HOLBA Sponsor Appreciation Cocktail Party

5:30pm – 7:30pm

CREN Gulf Coast Monthly Luncheon – Doug Goff, The Johnson Development Co.

11:00am – 1:00pm

CREAMTXLuncheon – David Gornet, Grand Parkway Association

11:00am – 1:00pm

CCIM Houston Luncheon – Bob Ethington, Uptown

Houston 11:30am – 1:00pm

IREM Houston IREM Ethics Course 8:00am – 4:30am

ACRP Breakfast Meeting 7:00am – 8:30am CREN Gulf Coast

Happy Hour 5:00pm – 7:00pm

CCIM Houston Skeeters Ballgame Social

6:30pm – 9:00pm

IREM Houston IREM Real Estate 101: Brunch and

Learn, Insurance Edition 8:30am – 11:00am


Ho u s to n a n d Vi c i n i t y | G a l ve s to n

Networking For more networking photos, log on to www.REDNews.com | Send your networking photos to [email protected]

Mike Wyatt, speaker and Sandy Benak, CCIM Houston President

Mike Wyatt and Arlis Brodie

Ananesia Ware, Laura Le, CPM, Sheryl Green, Tanya Anderson and Melissa Walling

Marty McAdams, Ginger Wheless, Dave Gilkeson

Beccy White, Theresa Quartaro Smith, Wendy Ghormley, Marlene Hay

BACREN’s Happy Hour Cruise

Panelists Susan Ansel and Brandt Bowden

CREW Houston President Laurie Baker with panelists: Brandt Bowden, Alan Patton, Susan Ansel, Paul Forbes

Attendees at C.R.E.A.M. Haves/Wants Session

Park Carter, IREM Houston VP of Mem-bership, Matthew Townley, CPM, ARM and IREM Houston President Janie Snider, CPM

Dan Nguyen and Jim Autenreith

ACRP May Networking Event

CCIM May Luncheon

CREW Houston May Luncheon IREM Houston May Happy Hour

C.R.E.A.M. TX May Luncheon

BACREN’s Happy Hour Cruise


ANNOUNCEMENTS & DEALS DONECENTRAL/SOUTH TEXAS (AUSTIN/SAN ANTONIO AREAS) Log on to REDNews.com for daily updates

INDUSTRIAL Round Rock (SALE) – Stoltz Cos. purchased a three-building portfolio in Crys-tal Park industrial campus totaling 275,499 SF of distribution and manufacturing space at 110, 116 and 120 East Old Settlers Boulevard. Randy Baird, Jud Cle-ments and Robby Rieke of HFF represented the seller.

San Antonio (SALE) – Ramiro Ceja and Jose Ramiro Cantu purchased a multi-building portfolio including a multi-family complex and warehouse complex at 511 N. Teel in Devine, southwest of San Antonio. Patsy Garcia of Tri County Realty represented the buyer, and John Cannon of DH Realty Partners, Inc. represented the seller, Jose Rodriguez.

El Paso (LEASE) – Zf Electronics Corp leased 52,800 SF at 12420 Mercantile. Anthony Mash of CBRE El Paso represented the landlord, 10/375 Industrial Portfolio Lp.

San Antonio (SALE) – JDT Investments purchased a 6,072 SF office/ware-house property at 718 N. Cherry Street. Charles L. Jeffers of DH Realty Part-ners Inc. represented the seller, Roland J. Ramirez.

LANDCedar Park (SALE) – HEB Grocery Co. purchased a 46-acre tract at FM 1431 and Lakeline Blvd. Aquila Commercial LLC represented the buyer, and Retail Connection represented the seller, Acme Brick Co.

Austin (SALE) – An Austin Investment Group purchased a 2.2 acre tract near downtown. The site, which is under development, is expected to be a mixed-use multifamily/retail site. Jim Young and Nick Nelson, CCIM, ASC of KW Com-mercial represented the buyer.

San Antonio (LEASE) – NGL Water Solutions Eagle Ford leased a .50 acre pad site at the SEQ of Highway 97 and Walton Ave in Jourdanton. Charlie Roof of Retail Solutions represented the landlord.

San Antonio (SALE) – Lloyd S. Moody purchased 10.35 acres on Cagnon Road. Steves Rosser of DH Realty Partners represented the seller, Rual and Inez Arias.

MULTI-FAMILYAustin (SALE) – An international investor pur-chased Trails of Walnut Creek, a 156 multi-fam-ily unit property at 11511 Metric Boulevard. Jim Young and Nick Nelson, CCIM, ASC of KW Commercial represented the buyer.

San Antonio (SALE) – The PPA Group will break ground on The Lookout at Comanche Hill, a 150-unit multi-family project on Nacogdoches Road. The class A multifamily project is expected to be completed in 2015. B&A Architects, Big Red Dog and Galaxy Builders all will collaborate on the project.

OFFICEAustin (DEVELOPMENT) – Riverside Re-sources has started construction on Capital Ridge, a 215,000 SF office building which will be part of a 38-acre office/hotel cam-pus near Loop 360 and Bee Cave Road. The seven-story, Class A office space is expected to be completed in April 2015. Doug Opalka of HFF arranged construc-tion financing for the project.

San Antonio (SALE) – A subsidiary of Senior Housing Property Trust (SNH) purchased Texas Center for Athletes, a 128,347 SF state-of-the-art medical office building in San Antonio’s South Texas Medi-cal Center at 21 Spurs Lane. Alan Grilliette and Russell T. Noll represented the seller, Sports SA Holdings. Transwestern will be

retained for leasing and management of the four-story, Class A building.

Austin (LEASE) – Bazaarvoice leased 7,510 SF at 3900 N Capital of TX High-way. John Gump and Nate Stricklen of CBRE Austin represented the tenant, and HPI Real Estate Services represented itself.

RETAIL/RESTAURANT San Antonio (SALE) – Inland American purchased Westover Marketplace Shopping Center, a 242,664 SF retail center located at the intersection of Loop 410 and Highway 151. The Class A power center is 93.4% occupied and tenants include Target, Lowe’s and Toys R Us/Babies R Us. Chris Cozby and Chris Gerard of CBRE Dallas and Kevin Holland of CBRE Houston represented the seller, Coventry Real Estate Advisors, and Graham Ketchum, Gene Williams and John Wright of CBRE San Antonio represented the seller in leasing Westo-ver Marketplace.

Austin (DEVELOPMENT) – Highland Re-sources will build a 163,000 SF, four-story, mixed-use project at the NWC of 38th Street and North Lamar Bouelvard. The project will include office, restaurant and retail space. Ar-chitects, landscape architects and engineers including STG Design, Studio dwg, Chioco De-sign, Consort Inc. and construction company Rogers-O’Brien Construction are all working together on the project.

Austin (LEASE) – A restaurant leased 8,532 SF in Windsor Village at 5811 Berkman. Matt Holm of Team West Real Estate represented the tenant, and Tucker Francis of Retail Solutions and Lance Tindall of Tribeca represented the landlord.

Brownsville (LEASE) – DaVita Dialysis leased 6,200 SF at 2000 Boca Chica Boulevard. USI Real Estate Brokerage Services represented the tenant, and Horacio Gallegos of Retail Solutions represented the landlord.

San Antonio (LEASE) – Pollo Tropical leased space at 13442 San Pedro Av-enue as part of San Antonio rollout for Pollo Tropic, a part of Fiesta Restaurant Group who also owns Taco Cabana. SIGA International represented the ten-ant, and Evan Ketabchi of CBRE San Antonio represented the landlord, M2G Development Properties, Ltd.

ANNOUNCEMENTS Commercial Texas has been acquired by Avi-son Young; the new office will be the 3rd loca-tion in Texas and the 40th in the United States for the Canadian company. Eleven employees from Commercial Texas will join the new office. Michael Kennedy, Carl Condon, Chrissy Cor-nelius and Burke Kennedy have been named

principals. Kennedy will be the managing director of the Austin location.


ANNOUNCEMENTS & DEALS DONENORTH TEXAS (DALLAS/FT. WORTH AREAS) Log on to REDNews.com for daily updates

INDUSTRIAL McKinney (SALE) – Hisun Motors Corp. purchased a 172,108 SF industrial facility at 310 E. University. Bob Kent of Structure Commercial negotiated the sale.

Dallas (LEASE) – FleetPride, Inc. leased 60,000 SF in the Royal Commerce Center at 2007 Royal Lane. Frank McCafferty, Blake Anderson, Craig Wilson, Randy Cooper, Kris Knapstein and David Eseke of Cassidy Turley repre-sented the tenant, and Ken Wesson, Adam Graham and Scott Alexander of Lee & Associates represented the landlord.

Dallas (SALE) – FL Shih Investment Corp. purchased a 37,530 SF building at 9136 Viscount Row. Alfred Goh of KCC Realty represented the buyer, and Jer-emy Mercer of Mercer Company represented the seller, Eric Hohn.

Richardson (LEASE) – RW Sales and Marketing leased 16,092 SF at 307-317 Hilltop. Matt Spellman of Mercer Company represented the tenant, and Josh Barnes of Holt Lunsford represented the landlord, Cobalt.

MULTI-FAMILYDallas (SALE) – Black Forest Ventures purchased Double-Tree Dallas – Campbell Centre, a 300-room, full-service hotel at 8250 North Central Expressway. The HFF investment sales team led by Bill Stadler and John Bourret represented the seller, a joint venture between GTIS Partners and Aimbridge Hospitality.

OFFICE Dallas (LEASE) – Tenet Healthcare Corp. will expand its space to 242,000 SF at Fountain Place, the 60-story skyscraper at 1445 Ross Avenue. Phil Puckett, Harlan Davis and Chris Hermann of CBRE Dallas represented the tenant, and

Johnny Johnson and Lauren Napper of Cassidy Turley represented the owner of Fountain Place, J.P. Morgan.

Dallas (SALE) – An undisclosed buyer purchased a 22,220 SF building at 2701 & 2707 S Hampton Road. Scott Jackson, CCIM and Debi Carter, CCIM of Hudson Peters Commercial represented the seller.

Plano (LEASE) – EGistics leased 12,410 SF in Tollway North Office Park at 5208 Tennyson Parkway. Nathan Rylander of Transwestern Dallas represented the tenant, and Justin Miller of Transwestern Dallas represented the landlord, KBS Realty Advisors.

Dallas (LEASE) – U.S. Capital Advisors LLC leased 9,656 SF on the 11th floor at The Crescent in Uptown. Matt Heidelbaugh of Cushman & Wakefield repre-sented the tenant, and Tony Click of Crescent Real Estate Equities LLC repre-sented the owner of the building.

Plano (LEASE) – Texas Child Neurology, PLLC leased 8,064 SF at 4032 Mc-Dermott, Suite 100. Debi Carter, CCIM of Hudson Peters Commercial repre-sented the landlord.

Dallas (LEASE) – Southwest Bank leased 5,886 SF in Park Place on Turtle Creek at 2911 Turtle Creek Boulevard. Theron Bryant and Casey Tounget of Coldwell Banker Commercial Alliance DFW represented the tenant, and James Esquivel of Jones Lang LaSalle represented the landlord, TRT Park Place LLC.

RETAIL/RESTAURANT Mansfield (SALE) – Inland Real Estate Acquisi-tions Inc. purchased Mansfield Pointe, a 148,529 SF shopping center at Highway 287 and Debbie Lane. David Disney brokered the sale, Matthew Tice of Inland Real Estate Acquisitions represent-ed itself and Alan Shor and Chad Bradshaw of The Retail Connection and Paul Bennett of Granite

Properties represented the seller, a group controlled by The Retail Connection and Granite Properties.

Mansfield (SALE) – Walnut Creek Plaza, LLC. purchased a 59,297 SF former Albertsons building in the Walnut Creek Village Shopping Center at 989 North Walnut Creek Drive. Randall Stepp of Lincoln Property Company and Nick Ibarra of Clear Fork Properties represented the buyer, and John Zikos and Chris Booras of Venture Commercial Real Estate represented the seller, Dallas Retail Associates, LP.

Irving (SALE) – Carlisle Interests purchased Market Square Shopping Center, a 46,979 SF retail strip mall within the master-planned community of Las Colinas at 5401-5465 North MacArthur Boulevard. Jennifer Pierson of CBRE Dallas arranged the sale.

Richardson (DEVELOPMENT) – Whole Foods plans to open a 45,000 SF store in the new CityLine development at NEC of Renner Road and N. Plano Road. CityLine is a new mixed-use development developed by Dallas-based KDC.

Fort Worth (LEASE) – The State of Texas leased 25,743 SF in the Ridgmar Village Shopping Center at Interstate 30 and Mall Circle. Sean Sunby of CBRE Dallas represented the tenant, and Clint Montgomery of Sperry Van Ness / Vi-sions Commercial represented Ridgmar Village Shopping Center.

Flower Mound (SALE) – An undisclosed private West-coast buyer purchased Cross Timbers Village, a 19,333 SF shopping center at FM 1171 and Bruton Orand Boulevard. David Disney and Adam Crockett of DIG secured the buyer, and represented the seller, Direct Development and Thackeray Partners.

Plano (LEASE) – The Holiday Warehouse leased 15,240 SF of retail space at 2819 W. 15th Street. Jeremy Cummings and Eric Deuillet of Structure Com-mercial negotiated the lease.

ANNOUNCEMENTS Carissa Brown has joined SRS as a senior associate in the Dallas/Fort Worth office. In her new role, Brown will specialize on tenant representation, landlord representa-tion and SRS Urban services.

Richmond Collingsworth has joined Bradford Commercial Real Estate Services as vice president in the office division. Colling-sworth, who was recently a vice president at TIG, has earned nu-merous awards as a rising star in commercial real estate.

Campbell B. Henry has joined Spire Real Estate Brokers Inc. as a director and will be respon-sible for leasing in Dallas and Fort Worth. Formerly of CNL Commer-cial Real Estate and JLL, Henry has 10 years of experience in the industry.

Carissa Brown

Richmond Collingsworth

Campbell B. Henry

ANNOUNCEMENTS & DEALS DONECENTRAL/SOUTH TEXAS (AUSTIN/SAN ANTONIO AREAS) Log on to REDNews.com for daily updates


INDUSTRIAL

Houston (DEVELOPMENT) – Copeland Commercial and Hillwood Investment Properties will break ground in June on Interstate Commerce Center, a 717,706 SF master-planned office and logistics park in North Houston. Phase I will con-sist of two buildings: a 284,170 SF cross-dock building and a 129,936 SF front-load building and are both expected to be completed by Q4 2014. Phase II is on a 20.64-acre site ready for development of more than 299,070 SF or build-to-suit opportunities. Matteson Hamilton and Jeremy Lumbreras of Stream Realty will handle leasing.

Houston (LEASE) – Niavo Gulf Industries leased 102,000 SF at 12300 Amelia Drive. LeDon Wissner of Smith Raines Co. Realtors represented the tenant, and Clay Pritchett of NAI Houston represented the landlord.

Houston (SALE) – Richland Financial Services of Texas purchased a 66,654 SF industrial property at 11810 Fairmont & 13501 Bay Area. Tom Lynch of CBRE Houston represented the seller, Kelley Fairmont, Inc.

Houston (SALE) – Poroo Baker Investments, LLC purchased a 58,000 SF building at 5721 Harvey Wilson Drive. Steven O’ Conor and Marc Drumwright of Southwest Realty Advisors represented the buyer, and John Ferruzzo, SIOR and Chris Kugle of NAI Houston represented the seller, NIFF, LLC.

La Porte (SALE) – The Richland Cos. purchased Fairmont PH Business Park, a 66,654 SF, two-building complex on 4.94 acres at Fairmont Parkway and Bay Area Boulevard, parallel to the Port of Houston. The complex is 100% leased to four tenants, including Worley Parsons and GSA.

MULTI-FAMILYHouston (DEVELOPMENT) – Houston-based real estate de-veloper Morgan Group Inc broke ground on Pearl CityCentre and Pearl Residences at CityCentre and both are expected to be com-pleted in the fall of 2015. One com-plex will be an eight-story build-ing with 148 units and the other a seven-story building with 312 units.

ANNOUNCEMENTS & DEALS DONESOUTHEAST TEXAS (HOUSTON AREA) Log on to REDNews.com for daily updates

Houston (DEVELOPMENT) –Midway is developing Avenue Grove, a 270-unit apartment complex in their current proj-ect, Kirby Grove at Levy Park between Richmond and the Southwest Freeway. The complex, which is being designed by Houston-based Munoz Albin – HOUSE +

partner, will be in the shape of an E to increase the number of units.

OFFICEHouston (DEVELOPMENT) – Houston-based food distributor Grocers Supply Co will build a 1.7 million SF warehouse and distribution fa-cility on 159 acres at Pinto Business Park in North Houston. Hines, Pinto Realty Partners and Kohlberg Kravis Roberts & Company LP are currently developing Pinto Business Park. Phase 1 is expected to be completed by the end of 2015.

Houston (LEASE) – Harbert United States Real Estate Fund V, LP and Fuller Realty Partners purchased a 211,125 SF, Class A building at 9801 Westheimer Road. Marty Hogan and Dan Miller of HFF represented the seller, Younan Properties. Fuller will handle the leasing and management.

Houston (SALE) – A private 1031 investor purchased Arbor Square, a 55,521 SF business park at 17000 El Camino Real. Derek Hargrove of Marcus & Mil-lichap’s Houston office represented the buyer, and Justin Miller of Marcus & Millichap’s Houston office represented the seller, a Houston-based partnership.

Houston (LEASE) – Houston-based Blinds.com has doubled its lease to 55,470 SF at 10255 Richmond Avenue in Houston’s Westchase District. Doug Freedman of United Equities represent-ed the tenant, and Steve Rocher, Kris-ten Rabel and Parker Duffie of CBRE Houston represented the landlord, BMS Management.

Houston (LEASE) – Premier Millwork leased 20,000 SF on 1 acre of land at 3409 Garrow. David Gerber of Gerber Realty represented the tenant, and James E. Foreman and Louis “Beau” Kaleel, SIOR of Cushman and Wakefield of Texas Inc.’s Houston office represented the landlord, Dulles Cartwright, Ltd.

Houston (LEASE) – Sinopec Usa, Inc. expanded to 19,799 SF at 3050 Post Oak Blvd. Shirley Mei Qing of KW Commercial represented the tenant, and Cody Armbrister and Dave Hanusa of CBRE Houston represented the land-lord, 5718 Westheimer Road Investors.

Houston (LEASE) – Ebanks Horne Rota Moos leased 12,352 SF at 2777 Allen Parkway. Keith Lloyd of Newmark Grubb Knight Frank represented the tenant, and Kristen Rabel of CBRE Houston represented the landlord, American Gen-eral Life Insurance Company.

RETAIL/RESTAURANT Houston (SALE) – Consolidated-Tomoka Land Co. purchased a 131,644 SF Lowe’s at 19935 Katy Freeway. Ian Schroeder of CBRE Houston represented the buyer, and Ian Schroeder and Christy Ingle of CBRE Houston represented the seller, DDR Corp.

The Woodlands (LEASE) – The Republic Grille leased 3,800 SF in The Panther Creek Shopping Center at Woodlands Parkway. Rob Banzhaf of Newcor Com-mercial Real Estate and Terry McBurney of The Republic Grille represented the tenant, and the landlord, Regency Centers, was represented in-house.

ANNOUNCEMENTS Chad Beck has joined Cushman & Wakefield’s Hous-ton office as Senior Director specializing in office tenant representation. Beck, formerly Senior Vice President for tenant representation group at JLL, brings almost 20 years of commercial real estate experience to Cushman & Wakefield’s office tenant representation group.

Robin Black has joined Colvill Office Properties as marketing di-rector. Black brings over 20 years of experience in marketing and communications, with knowledge in many disciplines including me-dia relations, advertising, graphic design, business development and social media.

Robin Black

Chad Beck


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A. A. Realty Company .....................................13

ACRP .............................................................36

Allegiance Bank Texas ....................................25

Avison Young 1- Central/South Texas, ...........44

BACREN .........................................................36

Caldwell Companies ................................ 22, 23

CCIM Central Texas ......................................32

CCIM Houston Gulf Coast ...............................36

CCIM North Texas ...........................................34

Colliers International .......................................15

C.R.E.A.M. ......................................................36

CREN .............................................................36

CREW Dallas ..................................................34

CREW San Antonio .........................................32

CTCAR ...........................................................32

Greenberg & Co. .............................................27

Hankamer Commercial Brokers, LLC ...............27

Hartman Income REIT .......................................2

International Church Realty .............................27

IREM Houston .................................................36

LandPark Commercial ..................................... 7

Levcor, Inc. ...................................................21

Lila Construction ...........................................21

Moody Rambin Interests .. 1- Southeast Texas, 5

Move Resource Group ..................................41

Phase Engineering, Inc. ................................30

R. S. Hart Commercial Brokerage, L.L.P. .......19

TAO Interests, Inc. ........................................41

Tarantino Properties, Inc. ............................8, 9

The REDVault .................................................27

Transwestern Commercial Services ................3

Westchase District ........................................17

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LASTPAGE

I hope this article doesn’t turn into an award reception speech. It seems like it was just yesterday, one year out of college, I saw a job posting for an E-Marketing /Database Manager at REDNews. The job itself seemed great. I would be managing online marketing,, handling social media, managing website content, all the fun stuff marketing professionals like to do. However, I would be working with commercial real estate professionals, something with which I had very little experience.

The first few months were a feeling out process. feeling my way through the dark, more specifically, working with brokers, trying to understand the industry jargon they wanted on their promotional materials. Fortunately, I was surrounded by a good team and very patient brokers. I will definitely miss working with companies like Tarantino Properties, Transwestern, Cushman & Wakefield, EXP Realty Advisors, NGKF, McAlister Real Estate, among many others. My primary goal was to address their marketing needs, but I also became knowledgeable about the industry. It was not only knowing what a sale leaseback was, but being able to understand it as a practice.

This is my last article for REDNews Magazine, as I will be leaving for Stan Johnson Company to continue to grow my career as a marketing professional. SJC has become a net lease authority and is regarded as one of the top investment real estate brokerage firms in the country. As a result, the company is growing at an incredible rate, opening the door for me.

Initially, this last page article was intended for marketing and advertising on LinkedIn for commercial real estate professionals, continuing my unofficial series on social media and digital marketing. My article on LinkedIn marketing would have hopefully been useful; however, (channeling my inner Kanye West here), “an article on my experience at REDNews would be the best back page article of all-time!” Still I would like to reiterate the importance of digital marketing in CRE, an industry that is catching up to others. My prediction – CRE deal making will become completely mobile: your property is listed online; you send the digitally created OM via Dropbox or iCloud from your iPad to their tablet, post the completed transaction on Twitter and then connect with them on LinkedIn for future deals. If you attended ICSC Vegas, ask yourself, how much of an impact did social media and digital market play on your deal making?

In the (roughly) year I have been here, I have learned quite a few things, not only about commercial real estate, but about some of the people I work with:

• 99.7% of brokers in commercial real estate have Type ‘A’ personalities.

• The food spread at CRE organization breakfast events is better than the lunch spread.

• Happy Hour usually turns into, “Wait, I did what last night?”

Although I had little interest in CRE before this job, I believe my future is in this industry. Seeing the new developments is exciting and I look forward to see the fruition of what is happening in The Woodlands (and in Katy), how that will affect Sugar Land and Pearland’s development plans. I would not want to remain in CRE if I wasn’t optimistic about the future; however that does not mean I do not have concerns. Having my finger on the pulse of the news in this industry for a year, it begs the question, ‘can there be too much development?’ The continued growth in the oil & energy sector gives me pause for

concern. One advantage Houston has over other large cities is that it’s less dense. Eventually, the no-zoning laws of Houston could blur the lines, of once recognizable districts, into a mass of mixed-use developments and office towers intertwined with even more traffic congestion. Even if Texas is resilient enough to quickly recover from an economic downturn, a few years from now, we could be looking at a new Houston.

I am forever grateful for the opportunity I have had here at REDNews. It helped me grow, not only as a professional, but also as person. Even if my articles have become nothing more than lining for your birdcage it has been an honor to write them for you, the loyal REDNews reader.

My Last, Last Page My First Year in CRE

“Eventually, the no-zoning laws of Houston could blur the lines of once recognizable districts into a mass of mixed-use developments and office towers.”

Pulling a Kanye at the VMA’s, Mr. Marshall steals the spotlight in his last article for REDNews

by Jason MarshallREDNews

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