HOUSTON—Investors maintain the push into Houston's suburbs as occupancy rates continue to exceed incoming supply. Submarkets such as Katy/Cinco Ranch/Waterside reflect this trend in the commercial real estate market, with newly built apartments offering high-end amenities and office campuses boasting compelling price points for new construction, GlobeSt.com learns. In addition, the Grand Parkway has injected life into the Katy market.
A couple of recent transactions exemplify these trends. Grand Mason at Waterside Estates, a 229-unit garden-style community located in Richmond, TX, recently sold at an undisclosed price. The seller was Grand Mason Partners Ltd., a partnership sponsored by BC Realty Partners out of Dallas, and the Betz Companies, a commercial real estate firm based in Houston. The buyer is a real estate investment, operation and development company based in Fort Worth.
Berkadia's Houston office represented the seller. The professionals involved include senior managing director Ryan Epstein, director Jennifer Ray and associate director Scott Bray.
“Houston's suburban areas will continue to attract investors with strong components, such as prominent amenities, recently built apartments and absorption rates that outpace new units coming on line,” said Epstein. “Over the last 12 months, the Katy/Cinco Ranch/Waterside submarket has seen almost 2,000 units become occupied, noticeably exceeding the 1,000 units added.”
Built in 2015, Grand Mason at Waterside Estates is located at 9900 South Mason Rd. The five-building apartment community features 229 units throughout its three-story garden-style buildings. One-, two- and three-bedroom units offer high speed Internet, spacious walk-in closets and stainless steel appliances. Community amenities include a fitness center, business center, pet park, media room and swimming pool with outdoor grills.
Situated in southwest Houston, the community is located near major transit routes and retail destinations. Grand Parkway is less than five minutes away and Westpark Tollway is minutes away. The Shops at Bella Terra, Kroger Marketplace and Bank of America Financial Center are also a short drive away.
In another suburban transaction, two deals totaling 30,139 square feet have been executed at Phase IV of Grandway West, a six-building office project that will total approximately 850,000 square feet when completed. Currently, the project has delivered 280,252 square feet in three separate buildings. Phase IV, which consists of 72,045 square feet, delivered in January of this year and is now 93% leased.
Grandway West is a 56-acre office development located 1 mile north of Interstate 10 with frontage along the Grand Parkway in Katy, TX. The buildings are owned by Houston-based InSite Realty LP and Urban Construction Southwest Inc.
Jones & Carter Inc. leased 17,900 square feet and was represented by Savills Studley executive vice president Derrell Curry. Gallagher Benefit Services Inc. leased 12,239 square feet and was represented by CBRE's senior vice president Bill Boyer and transaction manager Trevor Jeske. Transwestern's executive vice president Eric Anderson and senior associate Parker Burkett represented the building owner in both transactions. GlobeSt.com learns that the second floor is to be occupied by PCL Construction.
“The location, access and visibility have proven to be the key features contributing to the leasing success of the project,” said Burkett. “In addition to the outstanding geographical attributes, Grandway West offers a compelling price point for new construction, which is particularly appealing in the current market conditions. The completion of the Grand Parkway has injected strong momentum into the Katy office market and Grandway West is well positioned to continue capitalizing on these strong trends.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
