This Week’s Houston Deal Sheet: $100M, 33-Story Tower Planned Near Memorial Park
Houston-based Zieben Group plans to construct a 33-floor tower for office, residential and retail use in the Uptown area near Memorial Park.
The local developer plans to start construction on Woodway Tower, at 11 Riverway Drive, in January, the Houston Business Journal reported. Plans for the 617K SF building include 11 floors of residential with 125 apartments, five floors of office, a penthouse and restaurants on the top floor.
Zieben Group President and CEO Lee Zieben told HBJ that the office space will target users looking for smaller boutique spaces and will eventually house Zieben Group’s headquarters. He expects the development to cost about $100M. No lender has been selected yet.
Zieben bought the tract of land in 2021. Gensler is the architect for the project and Zieben is in discussions with Tellepsen as the potential general contractor, according to HBJ.
“I felt like 100K SF of boutique, high-end (office) space was very manageable, and the Galleria area could absorb that,” Zieben told HBJ “But the same thing with multifamily: I didn't want to hit the market with a whole ton of high-end multifamily, and so I thought this was a unique opportunity to the market.”
SALES
Alterra IOS, which has an outdoor industrial storage portfolio of over 230 properties, acquired its 17th property in the Houston area. The location, at 9605 Galveston Road in Houston, is 9.77 acres and includes 31K SF across three buildings. Alterra is acquiring the property vacant and starting efforts to lease it.
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Colliers sold 347.69 undeveloped acres on Riley Road near FM 1774 in Waller County to Ersa Grae Corp. Ersa Grae plans to develop a single-family community in partnership with Avanti Properties Group.
Colliers’ James Kadlick, Chris Hutcheson and Harrison Kane represented Ersa Grae.
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Jetstream of Houston LLP purchased an 81K SF manufacturing campus at 4133 Southerland Road and 4135/4201 Dayco St. in Houston from Apex Dayco LLC. Transwestern’s John Ferruzzo and Matthew Morrison represented the seller while Tim Thomas and Austin Honey of LandPark Brokerage Services represented the buyer.
LEASES
Tigerhawk Logistics plans to expand and relocate within Portside Logistics Center, leasing 328K SF in Building 1. This brings its presence up from 135K SF. As part of the expansion, Stream’s construction management team is building a custom designed office space for Tigerhawk Logistics within Building 1.
Portside Logistics Center, a joint venture development between Principal Asset Management and Stream Realty Partners, is at 4838 and 4908 Borusan Road in Baytown. Stream’s Tyler Maner and Jeremy Lumbreras are the project’s leasing agents.
CBRE’s Grant Hortenstine and Pearce Martens represented Tigerhawk.
CONSTRUCTION & DEVELOPMENT
Shree Rang Krupa of Texas LLC, owned by hotel developer Kenny Rama, plans to develop a 60-room Studio 6 Extended Stay hotel at 500 Rayford Road in Spring. Construction is slated to start in the next few months, and delivery is expected in the first quarter of 2026.
Newcor Commercial Real Estate’s Josh Cheatham and David Alexander represented the buyer in the acquisition of the 1-acre Rayford Road parcel. Gus Lagos of Marcus & Millichap represented the seller, Woodlands Warehouse LLC.
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Tricoast Homes broke ground on Summer Place, its first proprietary community, at 347 Summer Place Drive in Montgomery. The 10-acre gated community will offer 67 single-family homes.
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Kids’ Meals Inc. broke ground on a 50K SF facility at 8790 Hammerly Blvd. in Spring Branch that will serve 26,000 children a day throughout the Greater Houston area by 2031. The nonprofit delivers free meals to food-insecure children aged 5 and younger.
Pin Oak Interests is the project manager, Kirksey Architecture is the architect and Satterfield & Pontikes Construction Co. is the general contractor. Lead investor BlueHub Capital made a $32.5M New Markets Tax Credit investment that yielded $6.2M directly to Kids’ Meals.
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Lowe’s plans to build a 94K SF store as part of the Magnolia Village retail project at 4427 Magnolia Village Drive in Magnolia. Parkside Capital sold 10 acres to Lowe’s and developed Magnolia Village in collaboration with Gulf Coast Commercial.
Construction is planned to start this year. The store is set to open in 2025.
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Wolf Capital Partners and Transwestern Real Estate Services completed the interior renovation at HeightsMED, the only Class-A medical office building in the Houston Heights. The 120K SF building at 427 W. 20th St. has a refreshed lobby and common areas on levels three and four.
In the last year, 38K SF of leases have been signed at the building. Transwestern’s Justin Brasell and Christian Connell represented Wolf Capital Partners in lease negotiations.
Phase 3 of the renovation began in April and will include an overhaul of the exterior façade, a new vehicle access and arrival experience, an outdoor patio with seating areas and two additional interior floor renovations. CTC Contractors continues as the general contractor on the project, which is estimated to complete in the fourth quarter of 2024.
FINANCING
Lone Star PACE, an administrator of Texas’ Property Assessed Clean Energy program, facilitated $46.6M in C-PACE financing for a mixed-use development near Houston’s Buffalo Bayou Park.
A $31M loan was administered for The Thompson, a 172-room luxury hotel at 1711 Allen Parkway. Another loan of more than $15M was issued for an adjacent 53K SF retail pavilion at 1755 Allen Parkway.
Lone Star PACE partnered with lender Nuveen Green Capital on the financing. Improvements covered by the loans include building envelope, lighting, HVAC and plumbing upgrades.
The Thompson Hotel anchors The Allen, a luxury mixed-use destination spearheaded by real estate development and investment firm DC Partners. The adjacent mixed-use pavilion includes retail, dining and a health and fitness club. A 99-unit condo tower is also on-site.
