CURRENT NEWS
Baker
Hughes Parts with Industrial Park
KATHERINE
FESER (Houston Chronicle)
Baker
Hughes Oilfield Operations has sold its massive Central City Industrial
Park redevelopment on 75 acres in the shadow of downtown.
Pelec
Central City purchased the property, consisting of 18 buildings
at 5301 Polk St. near Wayside.
The
industrial park was once home to the Hughes Tool drilling bit manufacturing
plant started by Howard Hughes Sr., the father of the reclusive
millionaire, in the 1920s. It came into the Baker Hughes fold when
it merged with Baker International in 1987.
The
property was redeveloped as an industrial park after the Hughes
Christensen subsidiary moved to The Woodlands in 1993.
The
Boyd Commercial team of R. Conrad Bernard represented Baker Hughes
while Dan Zoch represented the buyer, a local partnership with John
Frantz and John Pogue as principals.
"Baker
Hughes' primary objective in that renovation was to be a good neighbor
to the east side of town," Bernard said. "Rather than
shutter the plants, Baker Hughes spent millions of dollars tearing
down nonfunctional buildings and renovating buildings to lease out
to third parties."
Located
about three miles east of downtown, the complex contains 1 million
square feet of manufacturing and distribution space and is 82 percent
leased. Among its 13 tenants are Grant Prideco, HAJOCA Corp., Pilgrim's
Pride, Baker Oil Tools, Reed-Young Co. and Suddath Relocation Systems.
The state of Texas owns a 245,000-square-foot office facility in
the industrial park. About 2,500 people work in the park.
"Central
City kind of sparked some of the revitalization throughout the East
End," said Ralph Crabtree, director of real estate for Baker
Hughes.
Examples
of improvements that followed include the redevelopment of Gulfgate
Mall and the emergence of the Greater East End Management District
to promote economic development.
"Central
City is a value-added investment for Pelec and offers endless opportunities
for redevelopment, including industrial, retail and residential
uses," Zoch said.
Pelec
plans to continue operating the industrial park.
"Our
feeling is that the Port of Houston is kind of the heartbeat of
Houston, Texas, and we wanted to be a part of that," Pogue
said.
Terms of the
sale were not disclosed. The asking price was about $12.5 million.
Financing was arranged by Rob LaRue of Live Oak Capital through
Legg Mason Real Estate Investors.
Copyright 2007 Houston Chronicle
Boyd Commercial to handle DCT leasing
KATHERINE FESER (Houston Chronicle)
DCT
Industrial Trust has selected Boyd Commercial to handle leasing
for 10 buildings containing more than 675,000 square feet primarily
in northwest Houston.
The buildings represent
a portion of DCT's Houston portfolio of 34 industrial buildings
with nearly 2.5 million square feet. The projects include Willowbrook
Business Park, Greens Crossing, Silber Business Park and Wynnwood
Business Park.
The properties are
about 85 percent leased, said Alexander Reilly, a broker with Boyd
Commercial.
Deals are being negotiated
that could boost occupancy closer to the citywide average of 92
percent.
Some notable tenants
include Everyones Internet, now known as the Planet-EV1Servers after
merging with Dallas-based Planet; JCS (Jimenez Contract Services),
a furniture company; Ford Motor Co.; and XL Parts, an auto parts
distributor.
The properties consist
of warehouse/distribution and light industrial space. Leases range
from 3,000 square feet to 100,000 square feet.
DCT Industrial Trust
completed an initial public offering earlier this month. The Denver-based
firm is the nation's fourth-largest publicly held industrial real
estate investment trust. The company owns more than 60 million square
feet of distribution space in 24 markets leased to more than 750
corporate tenants.
Houston-based Boyd
Commercial is an affiliate of CORFAC International.
Argus
Sells 191,250-SF Distribution Center
By
Amy Wolff Sorter
(GlobeSt.com)
HOUSTON-Four
years after it acquired the Portwall Distribution Center II for
roughly $7 million, Argus Realty Investors LP has sold the 191,250-sf
distribution center to the Carson Cos. Sources ballpark the exchange
at $9 million to $11 million.
Dan Zoch, a broker
with Boyd Commercial LLC/Corfac International, says that the Newport
Beach, CA-headquartered buyer liked the 250 Portwall St. building
because of the submarket. The area is booming from activity at
the Port of Houston. "The buyers found it enticing because
in the northeast submarket, there's a sub-5% vacancy rate and
a shortage of modern distribution buildings," says Zoch,
who represented Carson Cos. Argus was self-represented.
Zoch tells GlobeSt.com
that it was an off-market transaction, Carson's second, but not
its last in the region. Carson also owns the 80-acre Bayport Distribution
Center at 4330 Underwood Rd. and 4770 New Century Dr. And, he
stresses, it is looking for other buildings to buy.
The building has
106,850 sf of open space, now being marketed at $3.27 per sf.
Part of the vacancy has been leased by a tenant who plans a year-end
move-in, according to Zoch, who isn't providing details about
the deal. "We have other deals working, but nothing specific
at the time," he adds. Portwall's lone tenant is Gulf Supply
Inc., a distributor of packaging equipment and supplies with a
mid-term lease for 84,400 sf.
Op Fund Exits Houston With 655,261-SF Sale (GlobeSt.com)
HOUSTON-Brookfield
Asset Management has hawked a 20-building, 655,261-sf flex industrial
portfolio to Insite Commercial Real Estate. The Toronto-based seller,
bidding goodbye to the metro, inherited the asset last fall in a
$177-million, 3.2-million-sf acquisition of US properties.
Industry sources believe
the Brookfield Real Estate Opportunity Fund collected $50 per sf
to $70 per sf for the portfolio based on sales of similar properties.
The portfolio consists of the 296,400-sf Commerce Center at 9000
Southwest Freeway; 88,314-sf Commerce Park North at 15621 and 15631
at Blue Ash Dr.; 151,898-sf Plaza Southwest Business Park at 7302
and 7350 Harwin St., 5601 and 5750 Bintliff Rd., and 5755 Bonhomme;
71,647-sf Technipark Ten Service Center at 16115 and 16133 Park
Row; and 47,702-sf Westchase Park at 3120-30 Rogerdale Rd.
"It was part of
their plan to sell off the entire portfolio in pieces and to add
value where they could," says David Boyd, with Boyd Commercial
LLC who represented the local buyer, which previously had leased
and managed the 20-year-old portfolio. He estimates InSite Commercial
will invest several million dollars to stabilize the 80%-leased
assets.
"This
portfolio provided a value-added opportunity to capitalize in the
strong current market," Boyd tells GlobeSt.com. "The overall
occupancy of the properties is currently underperforming in the
market. InSite will make significant capital improvements to help
stabilize them."
TEXAS SNAPSHOT
Houston Office Market
by
Clay Peeples, SIOR of Boyd Commercial, LLC
Texas
Real Estate Business- September 2006
The trend for new office
development in Houston is in the suburban office markets, in particular,
the Energy Corridor/Park 10 area, Westchase and along the West Sam
Houston Parkway, according to Clay Peeples, SIOR, director of Houston-based
Boyd Commercial/ CORFAC International. “Accessibility is driving
the growth in these areas while companies are moving to and expanding
in areas that are closer to the residential communities where their
employees reside with good access to the freeway systems,” he says.
A number of significant
office developments are underway or planned throughout the metropolitan
area. Myers, Crow & Saviers, for example, is developing Oak
Park Office Center II in the Westchase District. The 206,362-square-foot
facility is located at 6380 Rogerdale. Also in Westchase, Dienna
Nelson Augustine Company is developing a 300,000-square-foot office
building for Jacobs Engineering. “This is the second building that
will be owned and occupied by Jacobs Engineering,” Peeples says.
The Energy Corridor
is another booming area of town for office product. Trammell Crow
Company is currently developing the first phase of a two-building
project at the northeast corner of Eldridge at Katy Freeway. The
330,000-square-foot, 13-story Energy Center speculative building
is set to be available in the fourth quarter of next year. Also
along the corridor, CORE Real Estate is developing Park Ten. The
three-story, 174,000-square-foot speculative building is located
at 17000 Katy Freeway.
“Regarding the impact
on the market, the new development is taking place where the demand
has been the strongest, so my feeling is the demand should be there
for these new buildings,” Peeples says. “I don’t see energy prices
dropping significantly anytime soon, so I think that the office
market in Houston is going to be strong for some time to come.”
Duke Realty Corporation
and Koll Development Company (KDC) are two new office developers
in the Houston market. “Duke Realty purchased 42 acres along the
West Sam Houston Parkway and will kick off their first office building
in the Sam Houston Crossing project,” Peeples says. “It will be
a three-story, 159,175-square-foot building, which should be ready
for occupancy in June 2007.” KDC is beginning development
of a 150,063-square-foot speculative building called Intellicenter,
which will be located in Westway Business Park off the West Sam
Houston Tollway between Clay Road and Tanner.
There is no major tenant
absorbing the majority of office space in Houston, according to
Peeples. “While the energy industry has had plenty to do with the
overall positive absorption in the Houston office market, other
sectors such as healthcare, finance/insurance/real estate and law
firms have also been expanding,” he says.
The range for Class
A space in the Houston office market is $20 to $26 per square foot
(full service). According to CoStar, Class A vacancy rates are at
12.4 percent for the overall suburban market and 17.8 percent for
the central business district (CBD). Class B vacancy rates are 15.4
percent for the overall suburban market and 15.9 percent for the
CBD. The overall Houston office market ended the second quarter
2006 with a vacancy rate of 14.4 percent. The vacancy rate was 15.1
percent at the end of the first quarter 2006, 15.4 percent at the
end of the fourth quarter 2005, and 15.5 percent at the end of the
third quarter 2005. Net absorption totaled approximately 1.51 million
square feet in the second quarter 2006.
Near term, Peeples
expects the Energy Corridor, Westchase, and the West Sam Houston
Parkway markets to continue to be active. “It is my understanding
that BP has acquired 39 acres near their Westlake location for future
expansion and Shell is also planning for some expansion of their
existing campus, so we should see some significant ‘user’ development
to go along with the speculative development,” he says. “We will
also see new office projects in Sugar Land, The Woodlands and the
FM 1960/FM 249 areas.”
Overall, the recent
positive office absorption and the pace of new office development
are being fueled by a strong energy market and steady job growth
in the Houston area. “While the energy business and related companies
are fueling much of the growth, other industries such as healthcare
are showing strength as well as evidenced by the 511,000-square-foot
medical building and the 800,000-square-foot headquarters currently
being built for the Memorial Hermann Healthcare System,” Peeples
says.
Buying
a building may be attractive alternative to leasing space
by Mike Boyd, CRE, SIOR of Boyd Commercial
Houston Business
Journal, August 21, 2006
It's
no surprise to tenants of industrial buildings who have renegotiated
their leases since the first of the year, that rents are going up.
The trend of decreasing
vacancy rates, which started over 24 months ago, has led to a tightening
of the market to the point where landlords can increase rental rates.
Increases in construction, land and financing costs have also played
a role in boosting the level of rents landlords need to receive
on projects built since 2004.
A ready-made alternative
to leasing for companies that lease less than 20,000 square feet
is the purchase of a newly constructed freestanding building. With
the ample availability of still relatively low interest rate loans,
companies that buy a facility instead of leasing space may find
that their debt service payments are less than their rent has been.
There are new developments
of freestanding buildings for sale or lease in many parts of the
city. Primarily located near the Sam Houston Parkway in the southwest,
west and northwest areas of Houston, these buildings typically range
from 10,000 to 25,000 square feet in size and may be constructed
of metal, masonry or tilt-wall concrete.
Features can include
being "crane ready." The facilities may have both dock
and grade truck loading capability and may also have either a finished
out office or an office allowance built into the price.
Depending on the size
and level of improvements, purchase prices can range from the mid-$50s
to over $65 per square foot. Buildings that have substantial office
finish will cost even more.
It may make sense for
those companies with a lease coming up in less than a year to look
at the alternative of purchasing a building rather than renewing.
Owners and managers of companies with a lease expiring in 18 months
or longer, may want to consider having a building built to their
specifications.
There are several areas
to consider before taking the plunge:
-
Down payment. Typically,
a prospective building owner is required to put 20 percent to
30 percent of the purchase price into the building as a down
payment to get a fixed rate, long-term conventional loan. If
the borrower qualifies for a SBA loan, this amount could be
reduced, but the other terms of the loan may not be as attractive.
The question for the individual borrower is: Does it make sense
to invest this money in a piece of real estate where the returns
are typically around 10 percent a year versus investing it in
the company's business operations?
-
Future growth.
Will the building that company owners are considering purchasing
give the business a home for the mid- to long term? Before buying,
company owners and managers should try to project the company's
space needs over the next 10 years and feel comfortable that
the facility they are purchasing will accommodate those needs.
Many of the new buildings
available from developers today have limited expansion capability.
If a company is experiencing dynamic growth, its best bet may be
to continue leasing to maintain the flexibility to move at the end
of the lease term rather than be saddled with a long-term commitment.
-
Investment potential.
Is this the best place to invest the company's money? If the
company doesn't need the money that would be used for the down
payment for its business, and if it can reasonably be projected
that the facility will accommodate the company for the foreseeable
future, and if the total cost of occupancy (debt service, taxes,
insurance and maintenance) isn't much greater than the projected
rental payments, "do it."
Over the long term,
owning a facility will help a company fix its occupancy costs and
yield a fair return on its investment.
J. MICHAEL BOYD,
CRE, SIOR, is president of Boyd Commercial LLC, representing buyers
and tenants of industrial and commercial properties. He is chairman
of the Commercial Advisory Board of the Houston Association of Realtors.
Houston
Industrial Real Estate Continues to Boom
by
Daniel G. Zoch of Boyd Commercial,
Houston
Business Journal
Commercial
Real Estate Market Guide 2006
After 13 consecutive
quarters of positive absorption and sub 7% vacancy rate for Class
A warehouse projects, it’s no secret that the Houston industrial
real estate market is booming. In the last 24 months, developers
have keyed in on tightening market conditions and responded by securing
land sites for speculative and build-to-suit development throughout
most submarkets in the City. A strong economy, good job growth
and an expanding energy sector are fueling this expansion.
When combined with the abundance of institutional money available
for real estate development today, a level of development activity
is occurring which has not been seen in the City in the past two
decades. This trend is particularly evident in the Southeast
submarket; where close to 3 Million square feet of industrial space
is either under construction or ready for occupancy. In addition
to the above growth factors, the Southeast market is being driven
by the success of the Barbour’s Cut Container Terminal and the Bayport
Terminal expansion.
Last year approximately
1.6MM TEU’s (20 foot container equivalent unit) came through Barbour’s
Cut. With phase one of Bayport coming on line later this summer,
it is projected that 1.8MM TEUs will come through the combined terminals
this year. It’s expected that incoming container traffic will
increase by 10-15% annually.
Other driving forces for this submarket are the thriving petrochemical
and plastics industries. While the majority of these products
are exported via the Ship Channel, a substantial amount of them
are diverted to warehouses via rail and truck for blending, packaging,
and storage. The Southeast submarket is somewhat unique to
other markets in that the logical tenant base has to be located
there, mainly for proximity to the container terminals, refineries,
and rail lines. Typically, tenants not directly tied to the
Port of Houston and/or the Ship Channel industries will locate in
other submarkets. Developers and investors are betting
big on the expanding Port activity to fill their warehouses.
The looming question is, how long it will take?
IDI Maps
Out $50M Plan for Houston Inroad
(GlobeSt.com)
HOUSTON-In its first
speculative effort in the area, IDI will develop Greenspoint Business
Park, a 103-acre, 1.2-million-sf industrial and flex project. Groundbreaking
for the $50-million park is imminent, with the first phase ticketed
to deliver in the fourth quarter.
The first phase will
consist of three buildings: a 244,864-sf cross-dock, 106,698-sf
rear-load and 54,818-sf service center. Future development will
take place as the need and demand arises for warehouse, distribution
and logistics companies. The development site sits at the intersection
of Aldine Bender Road and Interstate 45 in the northern sector near
Beltway 8.
According to Doug Johnson,
regional development officer in Dallas for the Atlanta-based IDI,
the march into Houston has been years in the making. "We've
been looking in the market. We've competed for properties, but it
just wasn't coming together. We couldn't find the right piece at
the right price," he tells GlobeSt.com. He says that when the
appropriate land because available, IDI rushed to quickly put it
under contract.
Johnson says the location
is ideal for several reasons. "There are a lot of class A office
property and apartments," he explains. "It has a good
mix and a good employee base."
The property's other
advantage is it's close to the airport and comes with strong infrastructure,
including US Highway 290, and a large base of potential tenants.
"There are a lot of factors I like about that site and location,"
Johnson adds. "I feel like we're centrally located in the north
part of town."
Boyd Commercial LLC
of Houston is handling leasing. Boston-based McGregor & Associates
is the architect. Interviews are under way for a general contractor.
(view
article on Globest.com)
Corpus Christi Life Style Center Acquired by Detering Properties
Detering Properties has acquired the Lamar Park Shopping Center,
located at the intersection of Alameda and Doddridge in Corpus Christi,
from Harvie and Mary Jo Branscomb. The 57,000 square foot
Lifestyle Center is the home of Julian Gold, Chico's, Talbot's,
Ann Taylor Loft and Joseph A. Banks, as well as twelve other local
tenants. Mike Boyd of Boyd Commercial represented Detering
Properties in the acquisition. The Center, which was recently
renovated, was 92% leased at the time of the sale. Additional
information on Lamar Park can be found at www.lamarpark.com.
Dallas
Firm Takes 75,282-SF Park North (GlobeSt.com)
HOUSTON-Mylar LP of Dallas has acquired the 75,282-sf Park North
Technology Center for about $39 per sf, a little less than the $3-million
ask. Mylar, which purchased the flex building and the 5.3 acres
on which it rests from a Beaumont seller, plans a long-term hold
with eventual renovations for the building.
The
primary appeal of the property at 216 W. Airtex Blvd. was its vacant
20,000 sf in shell condition. "We thought we could do a good
job of building it out and leasing it," comments Claire Baker,
senior financial analysts with Mylar LP. "We saw a lot of upside
with the building."
The
multi-tenant building is 60% occupied, with Boyd Commercial LLC
of Houston retained to handle leasing activities. At this time,
the majority of tenants are industrial, with the space being used
for administrative and office purposes.
Boyd
Commercial, with Dan Zoch and David Boyd in the lead, represented
seller PN Tech Center Ltd., while George Jones at CB Richard Ellis
Group Co.'s Houston office was on hand for Mylar. "We've had
a long-term relationship with George Jones, and he's helped us obtain
other properties," Baker tells GlobeSt.com. "They know
we're on the lookout, and are still trying to place more money."
A
time frame or budget for renovation was not available though "we'll
probably split that 20,000 sf into smaller spaces," Baker says.
The building was constructed in 1985. (view
article on Globest.com)
Baker
Hughes Corporate Relocation
Conrad
Bernard completed the corporate relocation for Baker Hughes Incorporated,
a Fortune 100 Company, after starting on the project two years ago.
Conrad initially met with Baker Hughes Incorporated to discuss the
options for their corporate location which was due to expire in
twenty-six months. As for any large corporate relocation all
of the options were taken into consideration including remaining
at their existing location, relocating into another lease alternative,
purchasing an office building that could accommodate their needs,
or acquiring a land site and constructing their own corporate headquarters.
The market research was extremely extensive as Baker Hughes explored
all of their options. Throughout the process it was critical
to Baker Hughes to make a decision on the corporate relocation,
not only from an economic standpoint but also from the standpoint
of providing their employees an outstanding work environment.
Although the majority of the feedback was through the Director of
Real Estate at Baker Hughes Incorporated, presentations and evaluations
were presented to the Chairman of the Board and other corporate
officers. Conrad continues to thoroughly enjoy his relationship
with Baker Hughes Incorporated and strives to improve his level
of service to them everyday.
Andrew Sowell named 2006 Heavy Hitter
by Houston Business Journal
In 2005, Andrew W.
Sowell was a top producer for Boyd Commercial, LLC, closing more
than two dozen transactions in warehouse, land and investment deals.
His level of production and professionalism recently earned him
the 2005 Industrial Rising Star award from the National Association
of Industrial and Office Properties. An industrial specialist
with Boyd Commercial, Sowell is currently a candidate for membership
in the Society of Industrial and Office Realtors.
Thomas & Betts
leases 650,000 square feet in Monterrey Mexico
Thomas
& Betts, a Memphis based manufacturer of electrical components,
was leasing approximately 650,000 square feet in 17 Bodegas (warehouses)
in Monterrey Mexico. Even though the properties were owned
by the same entity, there were 17 different leases, in Spanish,
which had different terms and expiration dates.
Having
previously been represented by Boyd Commercial on a warehouse lease
in Houston, Thomas & Betts approached Mike Boyd relative to
representing the company in renegotiating and extending their leases
in Mexico. In addition, the company wanted to consolidate
the leases by Division, have the ability to terminate some of the
leases early and require the Landlord to make certain needed repairs.
If negotiations were not successful, T&B wanted to look at other
lease alternatives.
To
get “local expertise” Mike teamed with Felix Tejada, of the Alles
Group, a knowledgeable industrial broker in Monterrey. Mike
traveled to Monterrey several times as well as met with representatives
of the parties in both Houston and San Antonio. After approximately
16 months of negotiations, the new “English-Spanish” leases were
executed. The results included successfully reducing the number
of lease agreements, extending the term of the leases under favorable
rental conditions and having the Landlord do the desired modifications.
Through
our SIOR and CORFAC International connections, Boyd Commercial is
in a position to represent our clients throughout the nation and
around the world.
Mattress Firm's New Distribution
Center
During the First Quarter
of 2006, Mattress Firm took occupancy of their new Houston area
distribution center. The 55,000 square foot state of the art
facility located at Alamo Crossing Commerce Center will service
36 Houston area retail stores. The property which offers 30’
clear height, ESFR sprinklers and a cross docking configuration
was secured on a long-term lease. David M. Boyd, SIOR, CCIM
represented Mattress Firm and David Hudson with Trammell Crow Company
represented the Landlord.
Andrew Sowell named Industrial Rising
Star by NAIOP
The Houston Chapter
of the National Association of Industrial and Office Properties
honored emerging leaders in real estate at the Houston Country Club
on February 16. Boyd Commercial, LLC's Andrew W. Sowell was
named Industrial Rising Star for 2005.
Amega
Corporation
sells
last U.S. real estate asset
Conrad
Bernard and Mike Boyd have recently completed the sale of the last
U.S. real estate asset for the French based Amega Corporation. The
last project was the sale of a 260,000 sf manufacturing and distribution
facility located at 8909 and 8989 North Loop East in Houston. The
Purchaser was CHSP Property,L.P. Bernard and Boyd also assisted
Amega in the sale of a 12 acre parcel of land located at Gellhorn
Drive and the East 610 Loop. The site was divided and sold to Penske
Truck Leasing and Truck Nation. Both users currently have buildings
under construction. Bernard and Boyd also represented Amega in the
sale of the North Shepherd Business Center, a 142,000 sf multi-tenant
office/warehouse project located at 7801 - 7811 North Shepherd.
The buyer was Regnum Properties, LP.
Boyd
Commercial exclusively markets/leases three industrial projects
in Houston for DDR
Developers
Diversified Realty of Cleveland, Ohio has selected Boyd Commercial
to exclusively market and lease three industrial projects in Houston.
The 3 properties consist of thirteen buildings and contain over
500,000 square feet. Commerce
Center and Plaza
Southwest are located in the Southwest submarket and Commerce
Park North is located in the north submarket.
Home
Depot is coming to Brenham
Home
Depot USA, Inc. has purchased an 18 acre site to construct a
102,000 square foot store and a 35,000 square foot garden center
in Brenham, Texas. The site is located on the south side of Hwy
290 and Wood Ridge Blvd, a new street connecting Hwy 290 with Hwy
36, to be constructed as part of the project. The site is adjacent
to a Super WalMart and was acquired from Carl and Will Detering.
Mike Boyd of Boyd Commercial represented the Deterings in the transaction.
Swiff-Train
purchases 5.74 acres in Brittmoore-Tanner Business Park
Alexander
Reilly, CCIM and Mike Boyd, SIOR of Boyd Commercial, LLC represented
Swiff-Train Company, a
floor covering and surfaces company that began operations in 1959,
although the company was founded in 1937 as a cotton reprocessing
company. Alexander and Mike helped Swiff-Train purchase 5.74 acres
in Brittmoore-Tanner Business Park, and then negotiated a Design-Build
contract with Clay Development for the construction of a state of
the art 80,000 square foot distribution facility for Houston operations.
The facility has 32’ clear height, ESFR Sprinkler system,
50’ by 50’ Column Spacing, and Dock-High Loading. The
building was completed in October of 2003.
Building
Supply Firm Ramps Up Texas Entry
(GlobeSt.com)
HOUSTON
- Interior Exterior Building Supply of New Orleans is settling into
a 17,000-sf leased building at Northwinds Industrial Park. The inbound
tenant signs for three years to test the waters in Texas. (full
article)
127,000-SF
Warehouse Sets Up Sale/Leaseback (GlobeSt.com)
HOUSTON
- A&L Valve & Fitting of Houston has purchased a 127,000-sf
industrial warehouse situated on 7.4 acres at 8550 Hansen Road near
Hobby Airport in southeast Houston.
The building was sold by Watts Regulator, another Houston valve
firm which, in turn, signed a five-year lease to continue occupying
60,000 sf. Clay Peeples, with Houston's Boyd Commercial tells GlobeSt.com
that Watts no longer need the entire building and decided to put
it on the market. After an 11-month marketing period with an asking
price of $2.2 million, A&L Valve put the building under contract.
A&L
Valve, moving from nearby leased space, didn't need the entire building
immediately so the logical move was to sign Watts as a tenant and
avoid the hassle of moving into leased space elsewhere, Peeples
says.
Peeples
represented Watts in the sale/leaseback talks. Grady Farris with
Houston Industrial Brokerage handled negotiations for the buyer,
who got a property with a $1.2-million assessment by Harris County.
Owner-occupied,
design/build warehouses hot -- leasing is not (Houston
Business Journal)
The
owner-occupied industrial building market in Houston has been red
hot. It is proving to be a bright spot in what has been a slow industrial
real estate market over the past few years. This demand, along with
the lack of quality freestanding buildings available on the market,
has created a boom in the design/ build and new construction market
for office warehouse buildings. .
The shift to ownership by industrial users is occurring despite
the fact that industrial rental rates today in many parts of Houston
are the lowest they have been in several years, and concessions
such as free rent or other favorable lease terms are available from
more than a few landlords.
By
and large, the demand to own warehouse property rather than lease
has been driven by local and regional service and distribution companies.
Through the down cycle of the past several years, public companies
and large private companies have been selling off real estate assets
and leasing space in order to increase their flexibility, reduce
their debt and free up needed capital. Although the big boys are
primarily leasing, corporate mergers and downsizing have helped
to keep the leasing market soft.
The
opposite is occurring with individually or family-owned companies
which increasingly are looking to own their real estate.
(full article)
Developer
Exchanges 54,000-SF Buildings (GlobeSt.com)
The
Schroeder Partnership Inc., a locally based development and construction
firm, has completed a 1031 Exchange, acquiring a 53,157 SF building
in the southeast submarket from proceeds of a 54,000 SF building
sale
in the southwest sector.
The developer bought 403 S. Loop West, listed at close to $1.4 million,
and sold 7922 Hansen Rd., a 4.4-acre property that went to the first
bidder, BJH Holdings Inc., for slightly less than the $1.5-million
asking price. The local steel fabrication company tapped the site
for an expansion
Clay Peeples and Mike Boyd of Boyd Commercial, LLC in Houston, brokered
for BJH Holdings.
Peeples says the buyer looked at all available properties in that
size range, but felt the Hansen Road building was the best fit.
In a turnaround play, Schroeder, which wanted to settle in a better
location for its operation, then used the exchange money to buy
a building on 4.6 acres that Peeples was marketing. Schroeder was
the only bidder for property sold by Mapia Investments, a subsidiary
of Eagle Plant Equipment Inc. in Houston. Schroeder immediately
jumped into making some cosmetic improvements, moved into the bulk
of the building and leased the balance to a fabrication company.
Levan
Group Opens 2nd Houston Location
The
Levan Group dba Auto Body Parts Depot, has purchased a 28,700 SF
warehouse located at 4757 South
Loop East from the JBS Partnership. Earlier in 2003, Levan leased
24,000 SF at 910 Rankin Rd. as its initial entry into the Houston
market. The auto body parts distributor, which has 5 locations in
Northern California, experienced such rapid growth at the Rankin
location that it purchased the South Loop facility to accommodate
the South Houston market. Andy Sowell of Boyd Commercial represented
Levan in both transactions.
Sterling
Bank
Sterling Bank is relocating
its Bellaire branch from 5225 Bellaire Blvd. to 54109 Bissonnet,
in the Bellaire Triangle Center Shopping Center. The move tothe
new 9,660 SF facility will more than double the bank's current space
and increase its drive-in windows from one to three, plus an ATM
lane. The property was leased from the FKM Partnership. Clay Peeples
and Mike Boyd of Boyd Commercial represented Sterling Bank in the
lease negotiations.
Interceramic, Inc. Expands &
Relocates Houston Distribution Center
Interceramic, Inc., one of
the largest tile importers and distributors in the U.S., has relocated
its Houston showroom and distribution center to Clay Distribution
Center located at 8785 Clay Rd. @ Hempstead Hwy. The move was required
to accommodate growth requirements with the new facility containing
146,340 square feet, including 13,000 square feet of office showroom.
The state of the art cross dock building was developed by Transwestern
Commercial Services.
Interceramic, based in Mexico, had a long brokerage relationship
with El Paso Broker Mark Blangrund, SIOR. Mark used the SIOR network
to tap Mike Boyd and David Boyd to handle Interceramic Houston facility
requirements.
Vitol
S.A. Inc.
Vitol S.A., Inc., an international
energy trading and refining company, with offices worldwide recently
selected Conrad Bernard and Clay Peeples of Boyd Commercial to represent
them in renewing their office lease for the top floor of the 1100
Louisiana building in downtown Houston.
Following a meeting with Vitol's decision makers, Conrad and Clay
put together a list of viable alternatives for a potential relocation.
Even though their lease would not expire for another 18 months,
Vitol opened discussions to either renew or relocate to take advantage
of the softness of the downtown office market.
