Sale-leaseback deal volume got off to a slow start in January, not a surprising development in light of the generally sluggish investment sales market. According to Real Capital Analytics Inc., sale-leaseback deals totaled only $183 million for the month. That figure represents only a fraction of the volume tallied for January 2008, when Real Capital Analytics tallied $790 million.In the biggest sale-leaseback deal reported so far this year, Gilead Sciences Inc. disclosed last Thursday that it had completed the $137.5 million acquisition of a 163,000-square-foot office building and 30 adjacent acres in Foster City, Calif. The transaction, a partial sale-leaseback, also provides significant room for growth to the buyer, a pharmaceutical development company, as it includes entitlements for 540,000 square feet of additional development.Although Gilead’s purchase is in the office sector, industrial properties are outnumbering other property sectors in sale-leaseback transactions. Since the beginning of the fourth quarter last year, 25 industrial sale-leaseback deals have closed. Another 16 office deals have closed or come under contract, and the retail sector lags far behind, mustering only three deals since Oct. 1. Although the small sample makes conclusions difficult to draw, the apparent popularity of industrial properties may reflect the sense among buyers that the sector may outperform the office and retail sectors.The trend continues to follow the pattern set in the past several years. Of 103 sale-leasebacks recorded during the fourth quarter of 2007, for example, the largest number of deals, 44, involved industrial assets. Office assets traded in 38 deals, retail properties changed ownership in 19 transactions and a pair of development properties rounded out the list.Some investors are finding opportunity in the efforts of owners in struggling industries to turn their assets into cash. In late January, Inland Real Estate Acquisitions Inc. said it had wrapped a $59 million sale-leaseback deal with The Home Depot Inc. for distribution centers in Birmingham, Ala., and Valdosta, Ga. In a statement, Inland acquisitions coordinator Mark Cosenza cited the facilities’ central role in Home Depot’s supply chain. Inland also liked the recent vintage of the two 637,000-square-foot facilities, which were both completed last year. Fro more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
By: Paul Rosta, Industrial Editor CPN news
Wednesday, February 4, 2009
Monday, February 2, 2009
Houston retail occupancy shows slight dip in 2008
Houston’s retail sector posted a lower occupancy rate in 2008 than in 2007, but it was only a slight dip year over year, according to The Weitzman Group.
Weitzman found that Houston had an occupancy rate of 87.8 percent at the end of 2008, down from 88.5 percent at the end of 2007.
The Dallas-based retail brokerage firm based its report on data from roughly 137 million square feet of retail space in shopping centers in the Houston area that have at least 25,000 square feet of space.
Store closures had an impact on occupancy rate, as national retailers reacted to the economic downturn.
The occupancy rate was also affected by the fact that in 2008 Houston experienced its highest level of retail building since 2001 when 6 million square feet of space was developed. Nearly 5 million square feet of retail space was added during 2008, according to Weitzman.
Most of the new projects were planned and funded before the credit crisis, which has brought new development to a halt because of a lack of financing.
Weitzman expects a number of retail projects will be completed in 2009, but fewer new deals are expected to be announced this year compared to last. For more information see ; www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Weitzman found that Houston had an occupancy rate of 87.8 percent at the end of 2008, down from 88.5 percent at the end of 2007.
The Dallas-based retail brokerage firm based its report on data from roughly 137 million square feet of retail space in shopping centers in the Houston area that have at least 25,000 square feet of space.
Store closures had an impact on occupancy rate, as national retailers reacted to the economic downturn.
The occupancy rate was also affected by the fact that in 2008 Houston experienced its highest level of retail building since 2001 when 6 million square feet of space was developed. Nearly 5 million square feet of retail space was added during 2008, according to Weitzman.
Most of the new projects were planned and funded before the credit crisis, which has brought new development to a halt because of a lack of financing.
Weitzman expects a number of retail projects will be completed in 2009, but fewer new deals are expected to be announced this year compared to last. For more information see ; www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Mix use project across from NASA coming up
Vertical construction has begun on the first mixed-use project to be developed by Houston-based Griffin Partners Inc.
Martin Fein Interests Ltd. broke ground last week on 313 apartments in the previously-announced Nassau Bay Town Square project. The yet-to-be-named apartment complex is going up in the 31-acre development at the intersection of Nasa Parkway and Saturn Lane.
Site work on streets and utilities in Nassau Bay Town Square is expected to be finished in March. Construction of the retail portion will follow in the second quarter.
When the development is finished the apartment units will be joined by 600,000 square feet of office space in three buildings, 73,000 square feet of retail space, a 180-room Marriott Hotel, 24,000-square-foot conference center and the Nassau Bay City Hall.
First announced in April 2007, the new development replaced a dozen older office buildings that sat across from the entrance of NASA’s Johnson Space Center. For more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Martin Fein Interests Ltd. broke ground last week on 313 apartments in the previously-announced Nassau Bay Town Square project. The yet-to-be-named apartment complex is going up in the 31-acre development at the intersection of Nasa Parkway and Saturn Lane.
Site work on streets and utilities in Nassau Bay Town Square is expected to be finished in March. Construction of the retail portion will follow in the second quarter.
When the development is finished the apartment units will be joined by 600,000 square feet of office space in three buildings, 73,000 square feet of retail space, a 180-room Marriott Hotel, 24,000-square-foot conference center and the Nassau Bay City Hall.
First announced in April 2007, the new development replaced a dozen older office buildings that sat across from the entrance of NASA’s Johnson Space Center. For more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Thursday, January 29, 2009
Chase closes 36 site of WAMU
JPMorgan Chase & Co. will close 36 Houston-area branches operated by Washington Mutual Inc. as part of a national consolidation.
A spokesman for Chase Bank said Wednesday that 36 of 111 WaMu branches in the region will close by the end of March.
Chase Bank began the process of identifying WaMu branch closures nationwide after its parent company, JPMorgan Chase, acquired WaMu in 2008 after the Seattle financial services giant filed for bankruptcy protection.
Chase already has 145 branch offices in the Houston region, meaning that after the consolidation the combined Chase-WaMu entity will have 220 branches, making it clearly the largest bank ranked by deposits in the market.
By mid-year, the remaining WaMu branches will be converted to Chase branches.
The combined Chase-WaMu financial giant has about 6,900 employees in the Houston region and 25,000 in Texas. Across the state, Chase intends to close a total of 88 WaMu branches and keep 169 open.
In addition, Chase intends to open five new branches in the Houston area by the end of 2009.
The spokesman said virtually all of the affected WaMu employees will be retained when the branches close. For more information on these site call or email ; www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
A spokesman for Chase Bank said Wednesday that 36 of 111 WaMu branches in the region will close by the end of March.
Chase Bank began the process of identifying WaMu branch closures nationwide after its parent company, JPMorgan Chase, acquired WaMu in 2008 after the Seattle financial services giant filed for bankruptcy protection.
Chase already has 145 branch offices in the Houston region, meaning that after the consolidation the combined Chase-WaMu entity will have 220 branches, making it clearly the largest bank ranked by deposits in the market.
By mid-year, the remaining WaMu branches will be converted to Chase branches.
The combined Chase-WaMu financial giant has about 6,900 employees in the Houston region and 25,000 in Texas. Across the state, Chase intends to close a total of 88 WaMu branches and keep 169 open.
In addition, Chase intends to open five new branches in the Houston area by the end of 2009.
The spokesman said virtually all of the affected WaMu employees will be retained when the branches close. For more information on these site call or email ; www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Tuesday, January 27, 2009
HOMEWOOD SUITES BY HILTON OPENS
HOUSTON — Hilton Hotels Corp. has held the grand opening for the new Homewood Suites by Hilton – Northwest/CY-Fair, a 123-suite hotel located at 13110 Wortham Center Dr. in Houston. The hotel comprises studio, one-bedroom and two-bedroom suites. It features an executive business center, a swimming pool, a sports court and 1,050 square feet of meeting space. The property is owned by Wortham Hospitality, Ltd. and will be managed by New Horizons Hospitality. This newest hotel marks the 260th location for Homewood Suites by Hilton. For more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Monday, January 26, 2009
City Buys WATERWALL in Galleria
City buys water wall
The popular Water Wall Park was purchased by the City of Houston to be preserved as a public park for generations to come.
The city paid $8.5 million to an affiliate of Houston-based Hines Interests LP for the Water Wall and the three-acre park in which it sits in the Galleria area. The 64-foot wall of cascading water has been one of the most recognizable and frequently visited landmarks in Houston for nearly a quarter of a century.
Hines and Transco Energy Co. originally developed the private Water Wall Park and adjacent Williams Tower in the 1980s. The skyscraper and park have changed hands over time, but went back under Hines-related ownership in 2008 when they were acquired by Hines Real Estate Investment Trust Inc.
HCSS breaks ground on new building
Ranked in the Houston Business Journal as one of city’s “Best Places to Work,” HCSS Inc. is now working on building an even better workplace.
The software development company broke ground in December on a 45,000-square-foot building in Sugar Land that is designed to be very employee-friendly.
The building will be constructed in the shape of a square that will enclose a 75-foot by 110-foot courtyard. The courtyard will be wired for electricity and have wireless Internet access so employees can work outside.
The new building will also have a gym with a half basketball court; exercise room; showers; a 600-meter crushed granite jogging trail; and a 200-meter running track surrounding a small soccer field.
In its new offices, the 112-person firm, leaving the space it leases at 6200 Savoy, will have room to accommodate 220 employees.
AETNA signs lease in Sugar Land
The Three Sugar Creek Center office building in Sugar Land that has stood vacant for more than a year has landed its first tenant.
Aetna Inc. signed a lease in December for roughly 52,000 square feet of space in the building, which was completed in 2007 on a speculative basis by Harry Green Interests Inc.
More than 350 employees are expected to move into two floors in the Class A office building at Three Sugar Creek Boulevard by April 2009. The Aetna professionals currently occupy about 45,000 square feet in Fluor Corp.’s building at U.S. Highway 59 and State Highway 6 in Sugar Land. Aetna needed a new home because Fluor wanted the sublease space back. For more information see : www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
The popular Water Wall Park was purchased by the City of Houston to be preserved as a public park for generations to come.
The city paid $8.5 million to an affiliate of Houston-based Hines Interests LP for the Water Wall and the three-acre park in which it sits in the Galleria area. The 64-foot wall of cascading water has been one of the most recognizable and frequently visited landmarks in Houston for nearly a quarter of a century.
Hines and Transco Energy Co. originally developed the private Water Wall Park and adjacent Williams Tower in the 1980s. The skyscraper and park have changed hands over time, but went back under Hines-related ownership in 2008 when they were acquired by Hines Real Estate Investment Trust Inc.
HCSS breaks ground on new building
Ranked in the Houston Business Journal as one of city’s “Best Places to Work,” HCSS Inc. is now working on building an even better workplace.
The software development company broke ground in December on a 45,000-square-foot building in Sugar Land that is designed to be very employee-friendly.
The building will be constructed in the shape of a square that will enclose a 75-foot by 110-foot courtyard. The courtyard will be wired for electricity and have wireless Internet access so employees can work outside.
The new building will also have a gym with a half basketball court; exercise room; showers; a 600-meter crushed granite jogging trail; and a 200-meter running track surrounding a small soccer field.
In its new offices, the 112-person firm, leaving the space it leases at 6200 Savoy, will have room to accommodate 220 employees.
AETNA signs lease in Sugar Land
The Three Sugar Creek Center office building in Sugar Land that has stood vacant for more than a year has landed its first tenant.
Aetna Inc. signed a lease in December for roughly 52,000 square feet of space in the building, which was completed in 2007 on a speculative basis by Harry Green Interests Inc.
More than 350 employees are expected to move into two floors in the Class A office building at Three Sugar Creek Boulevard by April 2009. The Aetna professionals currently occupy about 45,000 square feet in Fluor Corp.’s building at U.S. Highway 59 and State Highway 6 in Sugar Land. Aetna needed a new home because Fluor wanted the sublease space back. For more information see : www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net
Thursday, January 22, 2009
Big Industrial Deal for La Porte
DISTRIBUTOR SIGNS 103,184-SQUARE-FOOT INDUSTRIAL LEASELA PORTE, TEXAS — Overland Distribution has signed a lease for 103,184 square feet of industrial space at Port Crossing Corporate Center in La Porte. The building is located at 1701 S. 16th St.; it features 30-foot clear ceiling heights, 60 exterior docks, significant trailer storage and rail access. Bill Gold and Jeff Everist of CB Richard Ellis represented the landlord, a joint venture between National Property Holdings and ML Realty Partners. Greg Egan of LeaseSquareFeet.com represented Overland Distribution. For more information see www.houstonrealtyadvisors.com
or www.houstonraeltyadvisors.net
or www.houstonraeltyadvisors.net
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