THE WOODLANDS, TEXAS — Kodiak Gas Services has subleased 26,530 square feet of office space in The Woodlands, about 30 miles north of Houston. Kodiak’s headquarters space now encompasses the entirety of floors 18 through 20 at 9950 Woodlock Forest Drive. Dan Boyles and Brent Bishop of Partners Real Estate represented the subtenant in the negotiations. William Padon and Sydnee Hilburn of CBRE represented the sublandlord, New York Digital Investment Group LLC. The owner of the building was not disclosed.
By Taylor Williams The concept of cap rates is an interesting phenomenon when you stop to think about it. Short for “capitalization rate” and calculated as net operating income (NOI) divided by sales price, this all-important real estate metric represents a page borrowed from Wall Street’s playbook, a savvy maneuver by investors to create a vehicle of asset valuation and apply it to select securities on a widespread basis. The circumstances of the metric’s inception are largely unknown, but all that matters is that the real estate industry has successfully propagated the use of cap rates as a crucial mechanism to underwriting and pricing transactions for these assets. And the most basic thing to know is that to a point, sellers like low cap rates because they reflect high purchase prices, and buyers prefer high cap rates for the opposite reason. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. Yet for all their ubiquity, cap rates are fluid, representing snapshots of valuations at random points in time. Tenants move out, leaving spaces vacant, and a property’s …
HOUSTON — Clay Development will build a two-building, 495,360-square-foot speculative industrial project in northwest Houston. The buildings, which will span 425,360 and 70,000 square feet, represent Phase I of Northwest 99 Business Park, a 172-acre, 2.3 million-square-foot development at the intersection of Grand Parkway and Mueschke Road. The larger of the two buildings, Northwest 99 Distribution Center I, will feature a cross-dock configuration, 36-foot clear height ceilings, 110 dock-high doors, four drive-in ramps, 220 employee parking spots and the option for additional trailer parking. The building is designed to accommodate up to four different users. The smaller building, dubbed Northwest 99 Spec I, will be a single-tenant manufacturing building with 125-foot truck court depths, up to 45 employee parking spots and two acres for a future stabilized lay-down yard. JLL and CBRE have been tapped as leasing agents for the larger and smaller buildings, respectively, and their efforts will be aided by those of Clay Development’s Copeland Rhea. Construction is scheduled to begin by the end of the year and to be complete in the third quarter of 2025.
WILMER, TEXAS — JLL has arranged a loan of an undisclosed amount for the refinancing of a 334,000-square-foot industrial building in the southern Dallas suburb of Wilmer. Built in 2023, the rail-served facility at 901 Distribution Drive features 36-foot clear heights and 62 dock doors. Trey Morsbach, Jarrod McCabe, Ryan Pollack and Chad Lisbeth of JLL arranged the five-year, fixed-rate loan through PPM America. The borrower was not disclosed. The building was fully leased to two third-party logistics providers at the time of the loan closing.
DALLAS — Marcus & Millichap has brokered the sale of an eight-story, 125,874-square-foot office building in northeast Dallas. Built in on 5.8 acres in 1985 and renovated in 1999, the property at 9101 Lyndon B. Johnson Freeway is known as The Interchange Building and offers amenities such as a tenant lounge and a café. Joseph Jaques and Ron Hebert of Marcus & Millichap represented the undisclosed buyer in the all-cash transaction. The seller and sales price were also not disclosed.
ROCKWALL, TEXAS — Locally based brokerage firm DuWest Realty has negotiated the sale of an 85,116-square-foot hospitality development site in Rockwall, a northeastern suburb of Dallas. Shiv Hospitality Group purchased the two-acre site at 600 Cooke Drive with plans to develop a 130-room hotel that will be operated under the Tempo by Hilton brand. The hotel will be a component of Sapphire Bay, a mixed-use waterfront development. Giancarlo Carriero and Scott Rodgers of DuWest Realty brokered the deal.
KATY, TEXAS — Locally based investment firm Wile Interests has sold Katy Green, a 14,920-square-foot retail strip center located on the western outskirts of Houston. The center is home to tenants such as Starbucks Coffee, Potbelly Sandwich Shop and Pure Smiles. Ryan West, John Indelli and Gianna New of JLL represented Wile Interests in the transaction. The buyer and sales price were not disclosed.
DALLAS — Granite Properties has topped out 23Springs, a 626,215-square-foot office project in Uptown Dallas. In addition to the 26-story office building, the development includes two separate restaurant buildings totaling roughly 16,000 square feet and a half-acre park. Granite Properties is developing 23Springs in partnership with North Carolina-based REIT Highwoods Properties (NYSE: HIW). Dallas-based GFF served as the project architect, and DPR Construction is the general contractor. Amenities will include a coffee and wine bar, indoor lounge with a golf simulator, fitness center, conference facilities and an outdoor lounge. Full completion is slated for spring 2025. The property is 60 percent preleased to tenants such as Deloitte, Sidley Austin LLP and Bank OZK, which also provided construction financing for 23Springs.
SELMA, TEXAS — Atlanta-based developer Ackerman & Co. has delivered Corporate Drive Industrial Complex, a 511,000-square-foot industrial property in Selma, located northeast of San Antonio. Building 1 at the property totals 274,000 square feet, and Building 2 totals 237,000 square feet. Building features include 32- to 36-foot clear heights, 60 dock doors, two drive-in bays and 647 parking spaces (expandable to 735). Ackerman developed the project in partnership with Baltisse US Inc. Partners Real Estate has been tapped as the leasing agent. Construction began in summer 2023.
AUSTIN, TEXAS — Minneapolis-based developer United Properties has completed Bishop Momo, a 274-unit apartment community in Austin’s St. Elmo District. Bishop Momo houses studio, one- and two-bedroom apartments as well as 6,000 square feet of street-level retail space. Amenities include a pool, fitness center, multiple lounges, coffee bar, dog run, conference room, package lockers and grilling stations. Belshaw Mulholland Architects designed Bishop Momo, and OHT Partners served as the general contractor. Rents start at approximately $1,450 per month for a studio apartment.