SUGAR LAND, TEXAS — CBRE has negotiated the sale of CHI St. Luke’s Health Sugar Land Medical Plaza, a 120,596-square-foot medical office building located in the southwestern Houston suburb of Sugar Land. The five-story building is situated within the CHI St. Luke’s hospital campus. Shane Seitz, Chris Bodnar, Lee Asher, Ryan Lindsley, Sabrina Solomiany and Nelson Udstuen of CBRE represented the seller in the transaction. The buyer and other terms of sale were not disclosed.
AUSTIN, TEXAS — The Jenkins Organization, a Houston-based self-storage developer, has opened Northgate Storage, an 800-unit facility in Austin. The property, which spans 124,000 square feet of climate-controlled space, fronts State Highway 183 on the city’s north side. Additional features include a covered loading zone, video monitoring and gated access. ARCO/Murray served as the design-build firm on the project.
HOUSTON — Burns & McDonnell, a Missouri-based, employee-owned engineering, architecture and construction firm, has extended and expanded its office lease at 1700 West Loop South in Houston. The company has grown its footprint at the building, which is owned by Virginia-based Lingerfelt CommonWealth Partners LLC, from 158,000 square feet to 218,000 square feet, and plans to hire an additional 300 employees by 2021. Scott Fikes and Jenny Mueller of JLL represented the landlord in the lease negotiations. Joe Peddie of Cushman & Wakefield represented Burns & McDonnell, which has about 7,000 employees across 50 offices worldwide.
HOUSTON — Wood Partners, a multifamily development and investment firm with offices around the country, has broken ground on Alta River Oaks, a 364-unit multifamily project in Houston. Located at 3636 W. Dallas St., the property is situated near an array of shopping and dining establishments, as well as the Buffalo Bayou hiking and jogging trails. Floor plans will consist of one-, two- and three-bedroom units with stainless steel appliances, quartz countertops, custom backsplashes and individual washers and dryers. Amenities will include a pool, fitness center and outdoor kitchen areas. Alta River Oaks is slated to open in the fourth quarter of 2020.
CORPUS CHRISTI, BASTROP AND SAN ANTONIO, TEXAS — KeyBank Real Estate Capital has provided $35 million in HUD financing for a three-property, 378-bed skilled nursing portfolio located throughout Texas. The financing includes $16 million for the Regency-Windsor Calallen in Corpus Christi; $14.5 million for the Regency Bastrop Nursing & Rehabilitation Center in Bastrop; and $14 million for the Regency-Windsor Mission Oaks Nursing & Rehabilitation Center in San Antonio. The financing was closed using HUD’s 232/223(f) mortgage insurance program and paid off an acquisition loan structured by KeyBank’s Healthcare Group. Grant Saunders, Peter Trazzera and John Randolph of KeyBank handled the transaction.
DALLAS — Florida-based private investment firm Waramaug Hospitality has acquired the Embassy Suites by Hilton Dallas Central Park, a 279-room hotel located near the Galleria area of Dallas. The hotel offers amenities such as an indoor pool, fitness center, business center and 7,800 square feet of flexible meeting space. Waramaug plans to renovate the property’s guest rooms and public space. The seller was not disclosed.
SPRING, TEXAS — Marcus & Millichap has arranged the sale of a 53,548-square-foot industrial building located at 3315 Spring Cypress Road in the northern Houston suburb of Spring. According to LoopNet Inc., the property was built on four acres in 2001. Thomas Costello of Marcus & Millichap represented the seller, a partnership, in the transaction. Other terms of sale were not released.
AUSTIN, TEXAS — Locally based investment firm Rastegar Property Group has purchased Zilker Place and Redbud Bungalows, two multifamily assets in Austin totaling 38 units and roughly 33,000 square feet. Zilker Place is located in south Austin and features 23 units, and Redbud Bungalows is located in the West Lake Hills area and totals 15 units. Both properties will undergo capital improvement programs. The seller(s) was not disclosed.
If industry professionals, particularly developers and landlords, don’t make educated attempts to understand the mindsets of their tenants, they have little hope of advancing the dialogue and ultimately furthering their understanding of tenant decision-making. Take the Houston office market, for example, and its inventory of approximately 330 million square feet, according to CoStar Group. This market has experienced rising vacancy and declining rents throughout the four-year oil slump, but continues to see strong tenant demand in the Class A space. To this end, CoStar reports that there are still nearly 3 million square feet of new office projects under construction throughout metro Houston, the vast majority of which is Class A product. The high proportion of Class A deliveries is partially attributable to rising land and construction costs that mandate heftier rent projections. But still, there’s no question that Houston’s growth in certain employment sectors — healthcare, technology, financial services — ensures that many of the jobs being created in the city need to be paired with high-quality office space. Understanding and explaining the actions of the thousands of companies that commit to millions of square feet of office space is a case-by-case endeavor. But as markets of this size …
LUBBOCK, TEXAS — A partnership between TEXLA Housing Partners and a private equity fund managed by Crow Holdings Capital has acquired Thrive in Lubbock, a 744-bed student housing community serving Texas Tech University. The 264-unit property was built in 2004 and recently underwent a $1.6 million renovation program that upgraded certain amenities, including the clubhouse and fitness center. Benjamin Roelke and Ian Walker of CBRE arranged acquisition financing through East West Bank for the transaction. The loan carried a five-year term, a floating interest rate and three years of interest-only payments.