HOUSTON – (Realty News Report) – CDC Houston, the developer of the 2,000-acre City Place, has acquired a significant majority interest in two office buildings and two hotels in the mixed-use development formerly known as Springwoods Village.
CDC Houston, a subsidiary of Coventry Development Corporation of New York, has acquired four prime City Place assets – a majority stake in two select-service hotels and 100 percent stake in two Class AA office buildings – for an undisclosed price.
The portfolio additions, which include the Residence Inn by Marriott Houston Springwoods Village and Courtyard by Marriott Houston Springwoods Village hotels, as well as the City Place 1 and City Place 2 office buildings, reflect an ongoing commitment to the long-term, mixed-use vision for City Place, the developer said.
The global headquarters of Exxon Mobil and Hewlett Packard Enterprise are located in City Place, a north Houston development at the nexus of I-45, the Grand Parkway and Hardy Toll Road.
In the case of the hotels, a pair of companies – each managed by CDC Houston – secured the membership interests from USAA Real Estate, reconstituting the two partnerships with Woodbine Development Corp. and InterMountain Management remaining as stakeholders. Similarly, in the case of the two office buildings, a duo of CDC Houston managed companies acquired 100 percent of the membership interest from the US Office Development Program, a real estate fund co-managed by Patrinely Group and USAA Real Estate.
Earlier this year, CDC Houston acquired the full Interest in Hewlett Packard Enterprise’s new global headquarters at City Place. More recently, they’ve announced significant land sales within the community to Harmony Public Schools and Kelsey-Seybold Clinic.
“It’s been an exciting ride at City Place sharing these assets with our partners, and we are grateful for their continued support and engagement in various aspects of the community,” said Warren W. Wilson, Executive Vice President of CDC Houston. “In addition to being sound, long-term investments, these acquisitions ensure an adherence to the City Place master plan throughout our evolution and maturation, as well as an ongoing commitment to quality, sustainable development.”
The Two Hotels
The two hotels are located side-by-side, just east of the City Place urban core, and complement the nearby Houston City Place Marriott, a full-service hostelry that was not sold.
HOTEL ONE: The four-story Residence Inn by Marriott was completed in 2015 and occupies a 3.29-acre parcel at 22814 Holzwarth Road. Designed for extended-stay guests, the property features 128 suites with full kitchens and separate living, working and sleeping areas.
HOTEL TWO: Completed in 2016, the 125-rooom Courtyard by Marriott is situated on just under three acres at 2272 Holzwarth Road and is also four stories.
According to Woodbine Managing Partner and Chief Development Officer King Scovell, “These strategically located hotels are key components of broader amenity package that adds to the appeal of City Place
The Two Office Buildings
Completed in 2019, City Place 1 was the first multi-tenant office building to debut in the urban core of City Place. Located at 1700 City Plaza Drive, the five-story structure totals 149,500 SF. Office tenants include CDC Houston and Arroyo Energy Investors. The building’s street level retail includes Focus Optical, Common Bond Bistro & Bakery, Sushi Rebel and Bread Zeppelin.
Neighboring City Place 2 office building at 1701 City Plaza Drive, was completed in 2018, and its office space is fully occupied, serving as the global headquarters for the American Bureau of Shipping. The 10-story, 326,800-SF building includes 23,700 SF of ground floor retail space with an Island Grill.
CDC Houston continues in partnership on other City Place assets – the Houston City Place Marriott with USAA Real Estate and Woodbine Development, as well as a 38,000-SF 24 Hour Fitness, plus City Place 1A with Patrinely Group and USAA Real Estate.
The multi-use City Place 1A includes a standalone, 1,400-seat Star Cinema Grill incorporating just over 3,300 SF of retail at 1495 Lake Plaza Drive and an adjacent, two-story mixed-use office building at 1401 Lake Plaza Drive. Coworking operator Common Desk, opening in January 2023, leased the entire 26,750-SF second floor.
City Place has two existing residential enclaves – Audubon Grove and Harper Woods –and several apartment communities.
A new development initiative with DMB Development will add a multitude of single and multifamily housing options at City Place.
Jan. 11, 2023, Copyright 2023, Realty News Report
Commentary by Ralph Bivins, editor, Realty News Report. Bivins is a winner of the First Place Gold Award for Best Real Estate Column presented by the National Association of Real Estate Editors.
File: CDC Buys Office and Hotel Assets
Photo credit: Mabry Campbell. Courtesy CDC Houston
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