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O’Connor & Associates 2000 N. Loop West, Suite 110 Houston, TX 77018 713.686.9955

HOUSTON REAL ESTATE TRENDS EDITED BY PATRICK O’CONNOR, MAI

$99 PER YEAR

VOLUME 13 NUMBER 8

OCTOBER 1999

APARTMENTS

Apartment transactions decreased in August with 7 projects containing at least 80 units changing hands. There were no foreclosures of a complex with at least 80 units. The 1,570 units sold was down 55.51% from the 3,529 units sold in July and up 28.27% from the 1,224 units sold in August 1998. Note: The multifamily projects listed below are followed by the O’Connor & Associates’ database identification number and are included for subscriber cross-referencing. The property information contained within the Houston Area Apartment Data Program is published on a quarterly basis. Bill Slawson and Pandora Slawson (303-750-1835), of Aurora, CO, purchased the 16-unit Branard Apts. (1456) from John F. Houchins III and Johnnie Mae Houchins (713-522-6094) for $395,000 ($24,688 per unit). Consideration included a $316,000 note financed by the seller. The 40-year-old complex features flat roofs and is 95% occupied with an average rental rate of $0.61 per square foot. The Class C complex is separately metered for electricity. The complex is located at 519 Branard in the Montrose area (493S). John E. Gilmore and Herbert B. Richardson (713-680-1263) purchased the 60-unit La Fiesta Apts. (1698) from Market Street Ventures Ltd. (713-672-7500), of Friendswood, for $740,000 ($12,333 per unit). Consideration included a $640,000 note financed by the seller. The 35-year-old complex features pitched roofs and is 83% occupied with an average rental rate of $0.63 per square foot. The Class C complex is master metered for electricity. The complex is located at 12845 Market in east Houston (496M). HKG-Las Villas LP purchased the 140-unit Las Villas Apts. (2534) from AMRESCO Financial I LP (214953-7700), of Dallas. Consideration included a $2.56 million note financed by Coastal Banc SSB (713789-7879). The 31-year-old complex features both flat and pitched roofs and is 89% occupied with an average rental rate of $0.70 per square foot. The Class C complex is master metered for electricity. The complex is located at 2724 Broadway in southeast Houston (535K). GGN LLP (303-320-6100), of Denver, CO, purchased the 106-unit Charleston Court Apts. (1928) from Jerry R. Razer, Trustee (901-682-3147), of Memphis, TN, for $2.2 million ($20,755 per unit). Consideration included a $1.6875 million note financed by Southern National Bank of Texas (713-7770750). The 30-year-old complex features flat roofs and is 97% occupied with an average rental rate of $0.50 per square foot. The Class D complex is separately metered for electricity. The complex, currently undergoing renovations, is located at 7630 Bellerive in southwest Houston (530C). Skylark Holdings LLC (713-218-9611) purchased the 28-unit Golfcrest Apts. (2484) from Cynthia J. Hoverson, of Anahuac. Consideration included a $150,000 note financed by the seller. The 42-year-old complex features flat roofs and is 100% occupied with an average rental rate of $0.61 per square foot. The Class B complex is master metered for electricity. The complex is located at 3045 Golfcrest in southeast Houston (534M).

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AOF/Houston Affordable Housing Corp. (770-565-1070), of Atlanta, GA, purchased two apartment complexes totaling 746 units from L & L Kempwood Associates LP and L & L Brookhollow Associated LP, of Lion & Lamm (212-867-6303), of New York, NY, for $27,367,500 ($36,686 per unit). The buyer secured $20,917,500 in financing from Harris County Housing Finance Corp. (713-758-2222). The two complexes are the 200-unit Windfern Pointe Apts. (0292) and the 546-unit Waterford Place Apts. (0422). The 22-year-old Windfern Pointe features pitched roofs and is 95% occupied with an average rental rate of $0.69 per square foot. The Class B complex is separately metered for electricity. Windfern Pointe is located at 9515 Gulfbank in northwest Houston (410N). The 26-year-old Waterford Place features pitched roofs and is 83% occupied with an average rental rate of $0.53 per square foot. The Class D complex is separately metered for electricity. Waterford Place is located at 3521 Crestdale in northwest Houston (450K). Both complexes have recently been renovated. Holliday Fenoglio Fowler arranged $17.35 million in financing for the 320-unit Equinox Apts. (7113B) in Kingwood. Roger Trapnell, of Holliday’s Houston office, arranged the financing for VCK/MFI International Partners V Ltd., through Heller Financial. Martin Fein Interests developed the project, located in the Kings Manor community. The Class A complex was completed in 1998, and currently boasts a 98% occupancy with an average rental rate of $0.90 per square foot. L.J. Melody & Company has arranged $6.39 million in financing for the 196-unit Bissonnet Village Apts. (1324). Andy Lockwood and Holly Minter with LJ Melody’s Houston office arranged the financing from American Property Financing. The 26-year-old project was renovated in 1992, and currently boasts a 99% occupancy with an average rental rate of $0.85 per square foot. The Archon Group has begun construction of a 1,600 square foot open-air pavilion at 500 Greens Road adjacent to the CityView Lifestyle Office. The office will serve as a leasing and referral office for the 4,950 units in 16 properties Archon now owns in the Greenspoint area. Holliday Fenoglio Fowler arranged $4.485 million in financing for a 48,680 square foot independent living center in Katy. Julie H. Ambler in Holliday’s Houston office arranged the fixed-rate financing on behalf of Carriage Inn-Katy through AMRESCO Capital, LP. The 80-unit center was built in 1996 and is 100% occupied. Southwest Residential Partners has completed five transactions in five different states totaling 2,382 units. Four local complexes were included in the transactions: Bryant Management purchased Fall Lake Apts. (0194); Greystar Realty Services purchased Huntwick Apts. (0142) and Sunscape Apts. (2983) from Hudson Advisors; and JMG Realty purchased Beverly Palms Apts. (1150). SSR Realty Advisors, a San Francisco-based firm, has purchased a four-property portfolio (1,307 units) in the Woodlands from The Woodlands Company for a reported $60 million ($45,907 per unit). The four complexes are Grogans Landing Apts. (7078), Parkside Apts. (7087), Village Square Apts. (7043) and the recently completed Alden Landing (7104). The purchase brings to seven the number of local complexes SSR owns. Metric Property Management will manage the properties. Hanover Company, a Houston-based apartment developer, has opened a West Coast Division in Newport Beach, CA. Hanover has nearly 10,000 units currently under development in 11 primarily Sun Belt states. Jerry Davis will lead the California office. Many residents of Assisted Living facilities may require financial as well as physical assistance. According to study from the National Investment Center for the Seniors Housing & Care Industries (NIC), twothirds of assisted living residents in the U.S. have annual incomes below $25,000 per year. With median annual fees at the facilities of $22,500, many residents are forced to liquidate assets or borrow money to pay their bills. In a separate study, NIC estimates that total seniors housing industry revenues exceed $100 billion. This outpaces either the multifamily or lodging industries. Almost $12 billion worth of seniors housing and care construction is currently in the development pipeline. Houston Real Estate Trends 

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The National Real Estate Investor rates apartments as the most stable of all property groups. Demand for apartment complexes remains high, particularly older complexes that can be refurbished and produce higher rents. The National Multi Housing Council reports that in 1999 private buyers and pension funds have displaced REITs as the dominant buyer of apartment projects. According to the O’Connor & Associates September 1999 Greater Houston Apartment Data Program, overall occupancy for Houston area multifamily projects is 91.56% (Class A = 88.11%; Class B = 94.04%; Class C = 92.19%). Compared to the current rate, occupancy in the Houston office market is off 1.09 points in the last twelve months following a decline of 0.36 points over 2Q 1999. Meanwhile, the overall multifamily rental rate is $0.68 per square feet per month, the same rate as the previous quarter and up 4.62% over 3Q 1998.

SINGLE-FAMILY HOUSING

Used home sales continue at a record pace, with 4,495 homes sold in September, according to the Houston Association of Realtors. September home sales were up 3.8% from last year’s figure of 4,332. Available inventory rose slightly to 23,926 from August’s 23,862 and 1.1% above the September 1998 total of 23,657. The median prices of single-family homes also set a new September record, despite falling 0.84% to $106,000 from August’s $106,900. Compared to last September’s 77 days to sell a home, used homes spent 7 fewer days on the market at only 70 days, a 9.1% drop. Townhomes and condominiums showed a particularly dramatic price increase, rising 26.8% to $69,000. New home sales in Houston have receded from their frantic pace of early 1999, while the backlog of unbuilt houses has subsided, according to CDS Market Research. Home sales for September were unchanged from 1998 levels, with year-to-date totals running 11.3% behind. Tarantino Properties is considering building 100 upscale condominiums at the 22-story Commerce Building, 914 Main, which they purchased earlier this year. Unlike loft apartments that often feature exposed beams and air conditioning ducts, the condos would have traditional drywall ceilings and full carpeting. If the company proceeds, the project would feature such upscale amenities as valet carpeting along with 30,000 square feet of retail and a parking garage. Trendmaker Homes has rented 50 billboards across Houston to tout its website, TrendmakerHomes.com. The billboards, scheduled to remain up through December 2000, is seen as the largest outdoor advertising campaign ever offered by a Houston builder. Trendmaker expects to sell 470 houses in 1999 with revenues of $100 million. Local attorney Stan Fortson and his CPA-brother Herb are developing CityScene Court, a new townhome community in Midtown. Bounded by Jackson, Crawford, Dennis and Drew, the townhomes are designed Rice University architecture professor Gordon Wittenberg’s Wittenberg Partnership. The project features flat roofs, fourth-floor observation decks with skyline views and Midtown’s first townhome swimming pool. The 21 townhomes sell for an average of $280,000. Attorney David Sheller has announced plans for a mini-loft project one mile west of downtown. One Millennium Place will be located at 810 Waugh, between West Dallas and Allen Parkway. The eight-story project will feature 16 units starting at $200,000. The “loft-lite” development will not feature the exposed ceilings and Spartan walls typically associated with traditional lofts, instead opting for a higher level of finish to cater towards patrons who previously opted towards single-family homes. Rising interest rates and a paucity of available affordable homes, particularly in areas close to the city’s center, have made this a trying time for families looking for reasonably priced homes. A tight market has resulted in many homes selling at or above their listing price, while the cheap lots resulting from the real estate crash of the 1980s have disappeared. According to American Metro Study, the number of singlefamily homes listed for sale below $150,000 has dropped by 50% over the past four years. Houston Real Estate Trends 

October 1999

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Sales of premium homes in Houston continue to escalate. More homes have sold for an excess of $1 million in the first eight months of 1999 than in any previous year. According to John Daugherty Realtors, 95 such homes have sold this year, compared to 64 through this point last year and 46 the previous year. Many of these homes have reportedly been sold to international buyers. Woodland Terrace, a small collection of 70-year-old homes near the Heights, saw the greatest increase in sales prices of any Houston-area subdivision over the past year, according to a recent study by the University of Houston’s Institute for Regional Forecasting. Offering what today’s home buyers desire, traditional homes in a good neighborhood minutes from downtown, Woodland Terrace saw prices increase 27.6% during 1998. Southside Place, Afton Oaks and Montrose, all close-in neighborhoods, each experienced a jump in excess of 20% as well.

PERMIT ISSUANCE

The City of Houston issued permits to build 385 houses and to demolish 101 houses in September 1999. Permits were issued to build 12 multifamily buildings (448 units) and to demolish 2 multifamily buildings (13 units). Permits for privately owned new non-residential construction totaled $119,217,924. Public sector permits for new non-residential construction totaled $10,348,198. Additions, alterations and conversions totaled $70,137,236 for the private sector and $10,872,475 for the public sector. Total Building Permits, City of Houston 1997 September $ 295,911,608 Year-to-Date $ 1,911,243,880

1998 $ 199,421,280 $ 2,665,387,747

$ $

1999 304,822,197 2,394,872,168

OFFICE BUILDINGS The number of office building transactions increased in August 1999 with 10 buildings greater than 40,000 gross square feet in size changing hands, totaling 2,056,392 square feet. Owners (versus lenders) sold all buildings. This month’s transactions represent a 2.22% increase (in square feet) over the August 1998 office building transfer activity. Note: The buildings listed below are followed by the O’Connor & Associates’ database identification number and are included for subscriber cross-referencing. The property information contained within the Houston Area Office Data Program is published on a quarterly basis. West Memorial Park Office LP, of LaSalle Advisor Capital Management, of Atlanta, purchased the 56,010 square-foot office building at 8582 Katy Freeway (FAW 069) from 8582 Katy Freeway Ltd., of Austin. The 20-year-old Class B building is 68% occupied with an average rental rate of $16.00 per square foot. The multi-tenant building is located in west Houston (491A), on the north side of I-10 between Bingle and Wirt. IH-35 Building Ltd., led by Diller Corporation, GP, (512-474-4242) of Austin, purchased the 63,000 square foot office building at 1502 Augusta (GAL 004) from Nonrea Ltd., of San Antonio. The 19-year-old Class B building is 72% occupied with an average rental rate of $18.00 per square foot. The multi-tenant building is located in near west Houston (491P), north of San Felipe and east of Fountainview. QAI Assets (713-271-8173) has purchased the 51,956 square-foot building located at 8330 Broadway (SOE 017) from SF Broadway Ltd. Consideration included a $375,000 note financed by the grantor. The building is vacant. The building is located in southeast Houston (535X).

Houston Real Estate Trends 

October 1999

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Massachusetts Mutual Life Gentlemen, led by vice president George Helf, (413-788-8411), of Springfield, MA, purchased the 342,292 square-foot 1177 West Loop South Building (GAL 102) from Prudential Insurance Co. of America, led by vice president Peter L. Ruggerio, (201-877-7530), of Newark, NJ. The 20-year-old Class A building is 92% occupied with an average rental rate of $22.00 per square foot. The multi-tenant building is located in the Galleria-area (491R), between Woodway and San Felipe. Houston Towers TX LP (480-627-2700), of Scottsdale, AZ, purchased the 248,906 square-foot One Eldridge Place (FAW 285) from Chase Bank of Texas NA (713-216-4865), represented by vice president and trust officer Janet Mysinger. The 15-year-old Class A building is 83% occupied with an average rental rate of $21.00 per square foot. The multi-tenant building is located in west Houston at 777 Eldridge Pkwy, at the southwest corner of Eldridge and Memorial. Hines 911 Walker LP, of Hines Interests (713-621-8000), represented by executive vice president Louis Sklar, purchased the 338,338 square-foot San Jacinto Building (DTN 104) from San Jacinto Building Inc. of San Antonio. Consideration included a $2.22 million note financed by National Exchange Services (210-545-6762). The 47-year-old building currently sits vacant; Hines is weighing possible renovation. The multi-tenant building is located at 911 Walker in downtown Houston (493L), at the corner of Walker and Travis. 2900 Weslayan Ltd. (713-963-0845) has purchased 139,890 square-foot office building located at 2900 Weslayan (NEW 148) from Sun Life Assurance Co. of Canada, of Boston. Consideration included an $8.5 million note financed by Wells Fargo Bank (713-224-6611). The 19-year-old Class B building is 96% occupied with an average rental rate of $18.50 per square foot. The multi-tenant building is in near west Houston (492S). CCI 16055 Ltd., of Capital Commercial Initiatives (512-472-6990), of Austin, purchased the 168,000 square-foot McDonnell Douglas Tower (SOE 095) from McDonnell Douglas Corp. (714-896-1300), of Huntington Beach, CA. The 14-year-old tower is 82% occupied with an average rental rate of $16.50 per square foot. The Class B building is located at 16055 Space Center Boulevard in the Clear Lake area (618L). NF Industries LLC (713-626-0355) purchased the 33,120 square-foot building located at 2800 San Jacinto from WELEW LLC. Consideration included a $1 million note financed by Comerica Bank (713888-3400). The 14-year-old building was renovated earlier this year. The Class B building is 72% occupied with an average rental rate of $13.00 per square foot. The building is located in central Houston (493T). Bay Area Blvd. Ltd. (281-486-7197) purchased the 117,000 square-foot One Corporate Plaza (SOE 094) from Teachers Insurance & Annuity Association of America (212-490-9000), of New York, NY. The 14-year-old building is 91% occupied with an average rental rate of $18.50 per square foot. The Class A building is located at 2525 Bay Area Blvd. in the Clear Lake area (618L). L.J. Melody & Company has arranged fixed-rate financing in the amount of $60 million for 1201 Louisiana (DTN 070). CIGNA provided the funding through Tom Melody and Tom Fish. The 35-story Class A office building encompasses over 840,000 square feet in downtown Houston. The 28-year-old building is 95% leased with an average rental rate of $22.00 per square foot. BMS Management, Inc. has purchased the Enserch Tower (FAW 178) at 10375 Richmond from TXU Gas Company. The 365,955 square-foot office building is 92% occupied. The 17-year-old Class A building features 21 floors with an average rental rate of $22.75 per square foot. The building will undergo a name change, and the newly dubbed Millenium Tower is slated for renovation. The acquisition makes BMS the largest office owner in Westchase. Ken Page, Jeff Stone and Robert Edge of Cushman & Wakefield represented the seller. Houston Real Estate Trends 

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Cushman & Wakefield is relocating its Houston branch office to the 43-story America Tower (NEW 017) at 2929 Allen Parkway. The firm will occupy approximately 22,500 square feet on the 21st floor. The Houston office had been at 1300 Post Oak Boulevard (GAL 046) since 1984. The 16-year-old tower is 99% leased with an average rental rate of $23.50 per square foot. Crescent Real Estate Equities has refinanced the 2.9 million square-foot Houston Center (DTN 019, 063 and 065). Scott Galloway of Holliday Fenoglio Fowler arranged the $200 million package for Crescent from a J.P. Morgan-advised pension fund. Galloway earlier arranged refinancing for Crescent of Greenway Plaza. Adelphia Business Solutions has leased 18,414 square feet of Class A office space in 4 Houston Center (DTN 065) from Crescent Real Estate Equities LP. The building is located at 1221-1331 Lamar. The 16-year-old building is 98% occupied with an average rental rate of $22.50 per square foot. Clay Peoples of Boyd-Page represented the tenant, while Debra Wilson of Crescent represented the landlord. On behalf of The Estate of James Campbell, Trammell Crow Company is redeveloping the Greenspoint Technology Center (NOE 173), a 300,000 square foot telecommunications park. The project will house the switching equipment of telecommunications carriers, as well as heavy telecom users like Internet developers, call centers and web site housing companies. Trammell Crow Company has recently signed twelve (12) lease agreements totaling 206,643 square feet. The project has 62,513 square feet of available space remaining. Briarhollow LLC has acquired four Houston-area office buildings, bringing to six the total in its Houston portfolio. The buildings are located at 9575 Katy Freeway (FAW 085), 9601 Katy Freeway (FAW 086), 16000 Barker’s Pointe Lane (FAW 003) and 19 Briar Hollow Lane (GAL 016). The buildings boast a combined occupancy rate of 95% for their nearly 200,000 square feet. Trammell Crow Company will lease and manage all six buildings. Elliot Hirshfeld and D.A. Smith will handle the leasing. Dave Hanusa of Trammell Crow negotiated the transaction for the purchaser; Moody-Rambin Interests was the seller. L.J. Melody & Company has arranged fixed-rate financing n i the amount of $10.5 million for 5757 Woodway (GAL 127). Bank United of Texas provided the funding, secured by Bernard Branca and Paul House of L.J. Melody’s Houston office, on behalf of Fuller Realty Partners and Nest Management. The 22-year old multi-tenant building has 162,000 square feet and is 91% occupied with an average rental rate of $17.75 per square foot. Turner, Collie and Braden is the building’s major tenant. The 10-story office building at 2200 West Loop South (GAL 114), formerly the Stewart Title Building, is currently undergoing renovations. The exterior glass will be changed from a dull brown to a more modern silver, while a 769-space garage will address parking concerns at the 200,000 square-foot building. Prentiss Properties is overseeing the renovations of the 25-year-old building. Lexington Corporate Properties Trust (LCPT) has purchased the single-tenant building at 15375 Memorial (FAW 119) for $34.77 million ($102.08 psf) on behalf of a joint venture LCPT has formed with an institutional investor. The 340,627 square-foot Class A building is the headquarters of Vastar Resources. Veritas DGC Inc. will consolidate 500 employees into its new world headquarters (SOW 241) currently under construction. The build-to-suit project is the first development for Hines Corporate Properties, an affiliate of Hines Interests. Energy Tower I Ltd. has acquired three tenants. Sprint Communications Co. LP has leased 18,225 square feet of space in the recently completed building at 11700 Old Katy Road (FAW 386), while Pioneer USA has leased 47,216 square feet and Sorema North America Reinsurance Co. has leased 13,904 square feet. Chip Horne of Cushman & Wakefield represented Sprint, Mike Boehler of the Staubach Co. represented Pioneer and Ron McWherter of CB Richard Ellis represented Sorema. Kevin Poynter of Mac Haik Management Corp. represented the landlord in each of the leases. Houston Real Estate Trends 

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Aaron and Tony Wiese have purchased the 10-story building at 812 Main (DTN 130), formerly the Battlestein’s department store. The 73,060 square-foot building will be renovated into office lofts. The lower levels of the building will likely be dedicated to retail or restaurants, with the upper levels featuring open offices echoing the spirit of recent residential loft developments. Nearly $1 billion worth of construction is under way in the Texas Medical Center. Among the more prominent projects is the recently announced $137.2 million nine-story basic science research building that the University of Texas M.D. Anderson Cancer Center plans to construct. Over 10 million square feet of space is expected to be added over the next 15 years to the Medical Center’s current total of 21 million square feet. Energy Enterprises has leased 47,771 square feet in Parkwood II (NOW 253) from Woodlands Office Equities 95 Ltd. NAI/Partners Commercial represented the tenant, while Damon Palerino of The Woodlands Operating Company represented the landlord. Trifinery Petroleum Services has leased 20,001 square feet at 1001 McKinney (DTN 051). Dan Boyles of Grubb & Ellis represented the landlord, while Kevin Poynter of Mac Haik Management Corp. represented the tenant. According to the O’Connor & Associates October 1999 Houston Area Office Data Program, overall occupancy for Houston area multi-tenant office buildings is 84.53% (Class A = 90.62%; Class B = 85.80%; Class C = 68.95%). Compared to the current rate, occupancy in the Houston office market is off 2.61 points in the last twelve months while experiencing its fourth consecutive quarter of retreating occupancy. Meanwhile, the overall multi-tenant office building rental rate is $18.29 per square feet per year, an increase of $0.45 or 2.52% over the previous quarter and is 6.28% over 3Q 1998.

RETAIL CENTERS

Shopping center transactions increased in August, with 7 centers totaling 537,704 square feet changing hands. This was an increase of 122.15% from the 240,700 square feet sold in August 1998. These figures are for centers that contain at least 40,000 square feet. Note: The retail centers listed below are followed by the O’Connor & Associates’ database identification number and are included for subscriber cross-referencing. The property information contained within the Houston Area Retail Data Program is published on a quarterly basis. Haneef Investments LTD purchased the 20,400 square-foot Fallbrook Plaza (NNW 001) from Fallbrook Shopping Center Partnership, of Kagan Edelman Enterprises, (713-748-2000). Consideration included a $760,000 note financed by Sterling Bank (713-952-6055). The 20-year-old multi-tenant center is 94% occupied with an average rental rate of $0.55 per square foot. The center is located in northwest Houston (371W) at 14400 Highway 249. Bastankhah at Gray Falls, Inc., of Pasadena, purchased the 33,000 square-foot Gray Falls Center II (FWE 073) from Ithaca Corp., of McAllen. Consideration included a $500,000 note financed by First National Bank (314-822-0070). The 15-year-old multi-tenant center is 91% occupied with an average rental rate of $0.75 per square foot. The center is located at 12122 Westheimer in west Houston (489S), on the north side of Westheimer at Gray Falls. Leadmen LP (713-271-9600) purchased the 52,000 square-foot Stone Fountain Center (FNW 033) from Albest Corp. Consideration included a $1.7 million note financed by Asian American National Bank (713-771-2828). The 14-year-old multi-tenant center is fully leased with an average rental rate of $0.34 per square foot. The center is located in northwest Houston (371L) at 12121 Veterans Memorial.

Houston Real Estate Trends 

October 1999

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Prosperity Group Inv. Of Houston Inc. (281-686-6483), of Sugar Land, purchased the 57,104 squarefoot Bellaire Gessner Shopping Center (NSW 020) from Rogamil Corp. Consideration included a $1.9 million note financed by First International Bank (972-578-7777). The 21-year-old multi-tenant center is 93% occupied with an average rental rate of $1.00 per square foot. The center is located at 6895 S Gessner in southwest Houston (530E) at the northeast corner of S Gessner and Bellaire. Paul Van Dang (713-673-5611) purchased the 19,800 square-foot Woodsman Trail Center (NNW 017) from Japage Partnership (713-290-9474), represented by managing partner George Min Hsieng Lee. Consideration included a $650,000 note financed by the grantor. The 18-year-old multi-tenant center is fully leased with an average rental rate of $0.65 per square foot. The center is located at 9903 N Houston Rosslyn in northwest Houston (411N), at the northwest corner of N Houston Rosslyn and Woodsman Trail. Hartman Reit Operating Partnership (713-467-2222), led by president Allen Hartman, purchased the 70,000 square-foot Kroger Center at 2853 S Richey (NSE 026) from Davis-Diamond Properties (713869-0772). Consideration included a $1.905 million note financed by the grantor. The 18-year-old center is 94% occupied. The multi-tenant center is located in the Pasadena area (536T), at the northeast corner of Queens and S Richey. Mission Best Center LP, of Homeland Co., (713-779-2306), purchased the 42,222 square-foot Mission Bend Center (FSW 005) from Kagan Edelman Capital Fund VII Ltd., of Kagan Edelman Enterprises, (713-748-2000). Consideration included an $800,000 note financed by New Era Insurance Co. (281-3687200). The multi-tenant center is 64% occupied with an average rental rate of $0.40 per square foot. The 20-year-old center is located at 15,000 Bellaire in southwest Houston (FSW 005), at the northeast corner of Bellaire and Winkleman. Amid much hoopla, Katy Mills Mall (FAW 164) opened this month. The mega-mall saw 120,000 curious shoppers attend its grand opening. Katy Mills’ shoppertainment is centered on such tenants as Bass Pro Shops Outdoor World, F.Y.E. (For Your Entertainment), Old West Warehouse and Rainforest Café. Developer the Mills Corp. boasts that the mall will become “the major tourist attraction in Texas” with 18 million visitors annually. Whether a shopping mall on the Katy prairie can top the Alamo as Texas’ signature sight remains an open question. Interfin Corporation has opened Uptown Park (NWE 189), the West Loop’s newest retail destination. The highly anticipated center features tenants Gelateria Parmalat selling Italian ices, art gallery La Galerie, plus The Furniture Idea, Longoria Collection, Danielle, Home Ambiance and Gitting Portraits, Lebba Rinova Salon and Day Spa, McCormick & Schmick’s and Champps Americana. Houston’s most prominent shopping mall has sold. Chicago-based Urban Shopping Centers has reached an agreement to purchase the Galleria (NWE 084) from Hines Interests for a reported $525 million. The new owners plan a renovation and expansion of the Houston landmark, with Nordstrom’s and Foley’s rumored to occupy the new space immediately south of the existing center. Jefferson Development Co. has announced plans for a 96-acre mixed-use retail center at the interchange of U.S. 290 and Barker Cypress in the Coles Crossing community. The first phase should break ground by year-end, with Randalls anchoring the 79,000 square-foot center. Plans allow for a 40,000 square-foot second phase, as well as numerous pad sites. The Woodlands Waterway, the Venice-styled canal scheduled for the master-planned community, will feature a 200,000 square-foot open-air shopping center. The Waterway Promenade will be home to restaurants and small shops that can showcase the Woodlands’ newest signature project. Madison Marquette will team with the Woodlands Land Development Co. in developing far north Houston’s answer to San Antonio’s River Walk. Best Buy Co. Inc. has subleased 26,431 square feet of space at 14041 Westheimer Road to Lots Off. H Dean Lane, Jr. and Scott Shillings of Boyd-Page represented Best Buy. Houston Real Estate Trends 

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City Center Retail has begun construction on the Shops at Village Walk, a 115,000 square-foot retail center on 8.3 acres near the intersection of Weslayan and Westheimer. The pedestrian-friendly center will have fountains, landscaping and brick paving stones. While no tenants have been confirmed, speculation persists that Tower Records will inhabit a 40,000 square-foot store in the center. The center marks the company’s first venture into the Houston market. Will the Pearland area be getting a regional mall? If Shadow Creek Ranch achieves the success Collins Development Co. anticipates, a regional mall will be constructed in the development. The mall is at least five years from fruition. HEB Grocery has subleased 28,850 square feet from Drug Emporium for a new grocery store location at 14540 Memorial Drive (FWE 163). H Dean Lane, Jr. and Culver Stedman of Boyd-Page represented HEB Grocery. Charlie Drago of Drug Emporium represented Drug Emporium. Trammell Crow Company has purchased the 60,000 square foot Bellaire/Weslayan Shopping Center (INL 026) from heirs of the original developer, Leo Corrigan. The 50-year-old center is 98% occupied with an average rental rate of $1.04 per square feet. The center sits on 3.8 acres at 4006-4060 Bellaire and features Ye Seekers Grocery and Discovery Zone among its tenants. Trammell Crow plans renovations for the center. Ross Dress For Less has opened three new stores in the Houston area. Ross will occupy 31,000 square feet at the northeast corner of FM 1960 and FM 249 in Willowbrook Commons that it leased from Trammell Crow. Mark Davis represented Trammel Crow. The Deerbrook Plaza (NEA 019) location features 31,484 square feet subleased from Randall’s. Ross leased 27,685 square feet in Westhill Village (NWE 033) from Weingarten Realty. Henry Peterman represented Weingarten. H Dean Lane, Jr. of Boyd-Page represented Ross in the transactions. 4455 S.H.P. has purchased the 22,000 square foot multi tenant retail center on 3.3 acres located at 4455 West Sam Houston Parkway (FNW 244) from GSL Investments Inc.. The one-year-old center is fully leased. Jim Foreman and Alan Parker of Cushman & Wakefield handled the transaction. According to the O’Connor & Associates August 1999 Houston Area Retail Data Program, overall occupancy for Houston area multi-tenant shopping centers (excluding those proposed or under construction) is 86.71%, an increase of .34% since May and a .95% increase in overall multi-tenant occupancy since August 1998. Approximately 738,000 square feet were absorbed in the August survey period, and despite some excess construction, this positive absorption trend is unlikely to be adversely affected mostly due to increasingly flexible leasing options or softer terms (higher TIA). As a result, overall multi-tenant rents retreated $0.04 PSF at $1.43 per square foot in the third quarter of the year.

VACANT LAND

Land sales increased in August, with 203 tracts totaling 2,289 acres changing hands. There were 2 foreclosures by former owners. The 203 sales fell 17.81% from the 247 sales in July and decreased 0.98% from the 205 sales in July 1998. Suncor of Texas NPG Ltd. (281-492-7477), of Katy, led by president William S. Nichols III, purchased 1.72 acres of land on Fairmont Parkway from Plano Vistas Ltd. (214-739-5553), of Dallas. A Walgreens is planned for the southeast Houston (577F) site.

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City of Houston Aviation Department (281-233-1826) purchased 21.27 acres on the south side of FM 1960, west of Spur 184, from Edmond Broussard, of Loreauville, LA. The city plans a runway expansion for George Bush Intercontinental Airport on the north Houston (334V) land. W F Connolly, Trustee, (713-465-1330) purchased 27.15 acres of commercial land at 631 Riley Rd. from USA Waste of Texas Landfills Inc. The land is at the northwest corner of Riley and Del Papa in south Houston (612C). Gessner/Mills Rd., JV, of Klein & Havlick, (281-351-1545), of Tomball, purchased 18.28 acres on Mills Rd. from Joe D. Klores (281-537-2171). The land is located at the southeast corner of Gessner and Mills in northwest Houston (371N). Reliant Energy Solutions (713-207-6793) purchased 11.09 acres at the intersection of El Camino Real and Clear Creek from Exxon Land Development-Friendswood Development (281-423-4265). The land is located in southeast Houston (618U) in the Clear Lake area. Fidai Business, Inc., led by Mustanq Momin, of Sugar Land, purchased 13.41 acres of land on West Sam Houston Parkway South from Sun NLF LP, led by vice president Stephen E. Renneckar, (602-8525588), of Phoenix, AZ. Plans for the property, located at the intersection of the South Belt and Millbanks, include the construction of a service station. Concrete Specialized Tech Services, of Katy, purchased 11.37 acres of land on Pitts Rd. from Stephen C. Foster and Brenda Foster, of Barker for $32,000 ($2,814 per acre). The grantee has secured a $100,000 note financed by Norwest Bank of Texas (281-391-1004), and plans to build an 8,000 squarefoot office/warehouse on the property. The land is located on the west side of Pitts, south of FM 529 in Katy (404S). The Houston City Council has approved a plan that will create a land bank. Under the program, taxdelinquent properties will be foreclosed upon and resold to developers who would build low-priced homes. Properties that have back taxes, including penalties and interests, that total more than the land’s value will be foreclosed upon by the city. The lots would then be sold for approximately $3,000, which would cover the city’s foreclosure costs. The homes would sell for around $80,000. J. Muhich Asset Trust purchased 12.7 acres of vacant land on FM 528 in Alvin from Edwin H. Harris Jr., trustee. The buyer plans to erect storage facilities on the location. Bill Murphy of Murphy Properties represented both parties to the transaction. Texas 1031 Exchange, Edwin H. Harris Jr., trustee purchased 1.3 acres of vacant land near the intersection of the South Belt and the Southwest Freeway from Carsam Realty Four. The seller plans to construct a farm equipment showroom on the site. Bill Murphy of Murphy Properties represented the buyer, while Steve Darnall of Fuller Realty Partners represented the seller. Crest Chemical Co. purchased a 17-acre tract of landing Pearland from the Bolintom Family Partnership. Crest intends to relocate its existing chemical blending business to a 30,000 square-foot facility it will construct on the land at S.H. 35 and Magnolia. Charlie Eason of Hardcastle Real Estate represented the buyer, while Mauris Hardcastle of Hardcastle Real Estate represented the seller. Western Financial Services has purchased a 12-acre tract of land located on Interstate 10 from the Coeffield Estate. The east-side property had been on the market for years, with no buyer willing to meet the $1.3 million asking price. Proceeds of the sale will be donated to the Salvation Army, Boy Scouts of America and the Episcopal Diocese of Texas. The land will likely be used for restaurant and hotel development. Doyle Toups of Grubb & Ellis handled the sale. John Kirk Jensen purchased 5 acres of commercial land on San Luis Pass Road in Galveston from Horsepen Investme nts. Timothy Clay of Clay & Co. represented the seller. Houston Real Estate Trends 

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Harman REIT Operating Partnership LP purchased a 9-acre tract of land in Rayford Business Park from Carsam Realty Seven Ltd. Bill Smith and Steve Darnall of Fuller Realty Partners represented the seller. Frisco Health Investments Inc. purchased a 3.67-acre tract of land in Baytown from Briarcreek Homes LLC. The buyer will construct a nursing facility on the site, located on North Main. West Young of Frey Young represented the buyer and Claire Sinclair of Re/Max Baytown represented the seller in the transaction.

INDUSTRIAL FACILITIES

Industrial building sales decreased in August, with 18 buildings totaling 729,005 square feet changing hands. There were no foreclosures. The 18 sales were down 69.49% from the 59 buildings sold in July and down 75.00% from the 72 sold in August 1998. Note: The facilities listed below are followed by the O’Connor & Associates’ database identification number and are included for subscriber cross-referencing. The property information contained within the Houston Area Industrial Data Program is published on a quarterly basis. Tredex Tile Corp. (713-688-2271) purchased a 47,000 square-foot warehouse located at 2510 McAllister Rd. (1672) from Leo J. Rubenstein for $850,000 ($18.09 psf). Consideration included an $800,000 note financed by Bank One (713-751-6100). The 34-year-old metal building features dock-high loading and a 16-foot clearance height. The single-tenant facility is located in northwest Houston (451U), on the east side of McAllister. Plano Vistas Ltd. (214-739-5553), of Dallas, purchased a 36,993 square-foot warehouse located at 16337 Park Row (1047) from James K. Skipton Jr. for $1.13 million ($30.55 psf). Vice president Michael St. Clair represented the buyer in the transaction. The 19-year-old building features tiltwall construction, dockhigh loading, and a 22-foot clearance height and an average rental rate of $0.35 per square foot. The single-tenant facility is located in far west Houston (447Y). J S Tamorello Jr. (713-691-4400) purchased a 69,888 square-foot office/warehouse located at 55 Lyerly (2037) in Northline Business Park from Lyerly Business Park Inc. and Linda Heeter Hobbs (713-6914400) for $1.015 million ($14.52 psf). The 19-year-old building features masonry construction, grade-level loading and a 14-foot clearance height. The multi-tenant building is 90% occupied with an average rental rate of $0.33 per square foot. The facility is located in north Houston (453F). Westway LLC, of Alliance Financial, (619-814-3000) purchased a 41,405 square-foot warehouse located at 8000 Harwin (3895) in Westway Business Plaza from West Phase III Ltd. of Heungwoo Park for $2.4 million ($57.96 psf). The 25-year-old building features masonry construction, 18-foot clearance heights and an average rental rate of $0.45 per square foot. The single-tenant building is located in southwest Houston (530B), adjacent to the northeast corner of Harwin and Osage. A.J. May Inc. (713-681-6196) purchased a 48,306 square-foot warehouse located at 7967 Blankenship (1504W) from First Industrial LP, of First Industrial Realty Trust (312-344-4300), of Chicago, IL. Consideration included a $1.094 million note from Union Planters Bank (713-867-6330). The 34-year-old building is located in northwest Houston (451N), at the southeast corner of Blankenship and Spenwick. Midway Lockwood Partners LP, of the Midway Corporation, (713-629-5200) purchased two industrial facilities from Uncle Bens Inc. (713-674-9484). Midway acquired a 170,000 square-foot warehouse at 5518 Clinton (3136V) and a 57,540 square-foot office/warehouse at 5721 Harvey Wilson Dr. (3151). The east-side (494L) buildings are 49 years old. Houston Real Estate Trends 

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4125 Hollister Ltd., of Houston Real Estate Services, (713-984-0199) purchased a 49,000 square-foot office/warehouse located at 4125 Hollister (1356) from Hollister Warehouses Inc. (281-447-5100), represented by Eshagh Malekan, president. Consideration included a $450,000 note financed by Sterling Bank (281-890-7979). The metal building features grade-level loading and a 16-foot clearance height. The multi-tenant facility is 70% occupied. The 25-year-old building is located in northwest Houston (450M), on the west side of Hollister. Lutheran Brotherhood (612-340-5795), of Minneapolis, MN, purchased a portfolio of six (6) industrial facilities in the Claymoore Business Park (1084B, 1084C, 1084D, 1084E, 1084I) totaling 742,250 square feet, from Lincoln National Life Insurance Co., of Fort Wayne, IN (219-455-2000) for a total of $25,978,750 ($35.00 psf). The facilities range in age from one to three years old. The park is in northwest Houston (449L), near the intersection of Brittmoore Rd. and Clay Rd. Foxshire Partnership has purchased two manufacturing facilities from Del Commercial Properties, of Chicago, Il for $425,000 ($8.74 psf). Consideration included a $398,000 note financed by Heller Financial (312-441-7000). One facility is a 45,095 square-foot building on 1.256 acres at 14209 Natalie (4998A) , while the other is a 17,292 square foot building on 1.928 acres at 301 Foxshire (4998). The facilities are located in south Houston (572X). Jim Foreman of Cushman & Wakefield represented the seller, while Don Haley of Haley Martin & Associates represented the buyer. John Frantz (281-296-2479), of Spring, purchased two industrial facilities from Barton Instrument Systems LLC, of American Commercial Holdings, of Cleveland, OH. Consideration included a $1.265 million note financed by Riverway Bank (713-881-1235). 7707 Pinemont (1338) is a 29-year-old manufacturing facility. The metal building contains 25,928 square feet and is located in northwest Houston (450H). 11413 Todd (1552) is a 19-year-old office/warehouse with 21,154 square feet. The masonry/metal building is located in northwest Houston (451P). Kinghorn, Driver, Hough & Co. arranged $2.5 million in permanent loan financing from Broadview Financial Services for Goulds Pump Office Warehouse in Stafford. Garner Environmental, a Houston-based company specializing in hazardous spill response and environmental clean-up, has leased a 15,750 square-foot warehouse on one acre to MetFab, Inc. The property is located at 314 Allen Genoa (4720). The 19-year-old building is 100% occupied with an average rental rate of $0.30 per square foot. David M. Boyd and J. Michael Boyd of Boyd-Page represented the landlord, while Casey McGuire represented MetFab. Trammell Crow Company on behalf of Crow Holdings Industrial Trust will develop a two building 177,096 square foot industrial project immediately across Wright Road from Trammell Crow Company’s recently completed Southwest Techniplex A, B & C (4902B, C & D). The project will consist of a 120,752 square foot cross-dock building and a 56,344 square foot front load building. Construction began in early October. Trammell Crow Company on behalf of Crow Holdings Industrial Trust has purchased a large tract of land at the northwest corner of the intersection of West Little York and Fairbanks North-Houston for the development of the Cole Creek Business Park. The park is designed to accommodate both build-to-suit and multi-tenant development, with an expected total of over 1 million square feet of space when completed. Construction began in October. Quad Partners dba Dale Industries purchased a 68,000 square-foot building on 5.2 acres at 308-317 Hughes St. (3445) from L & J Manufacturing Company. L. Michael Wallace and C. W. “Cappy” Ricks of Colliers International represented the seller, while Ron Roberson of Caldwell Watson Real Estate represented the buyer.

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Caldwell Watson Development Group is constructing a 90,000 square-foot office/warehouse in its Greens Crossing Business Park (0287A) . The building, located at 845 Greens Parkway, is the second constructed in the park; the first phase, a 45,450 square foot building (0288), is fully leased. Caldwell Watson plans to build 600,000 square feet of flex space in the park. Gulf & Basco has begun construction of 60,000 square-foot warehouse expansion at Broad Street and Telegraph Road. Dillard & Associates is the general contractor. According to the O’Connor & Associates July 1999 Houston Area Industrial Data Program, overall occupancy for Houston area multi-tenant industrial facilities (excluding those proposed or under construction) is 83.87%, an decrease of 2.25% since April and a 2.75% decrease in overall multi-tenant occupancy since July 1998. Overall multi-tenant rents remained steady at $0.37 per square foot in the most recent quarter.

ECONOMIC & FINANCIAL NEWS

The number of wage and salary jobs in the 6-county Houston area increased by 7,500 jobs to 2,059,300 in October 1999 from 2,051,800 in September 1999 and increased 2.4 percent by 47,900 jobs from 2,011,400 in October 1998, according to the Texas Workforce Commission. Houston’s unemployment rate fell 0.2 points to 4.4 percent in October; meanwhile the October 1999 statewide unemployment rate likewise moved down 0.2 points. As a result, the state rate of 4.3 percent remains slightly higher than the national rate, which dipped 0.3 points in October 1999, of 3.8 percent. While no one employment segment had significant movement in October, services have gained 21,400 jobs since last year and continues to produce the largest job growth in Houston. According to the Texas Workforce Commission, most of October’s gains were found in retail trade, construction and government. The U.S. unemployment rate dropped to just 4.1% of the workforce in October, the Labor Department said in early-November. It was the lowest jobless rate since January 1970. While 310,000 nonfarm jobs were added to the nation’s payrolls last month - more than expected - the trend over the last half-year suggests a slowdown in job creation. Average hourly earnings climbed just 1 cent in October, a comfort to inflation hawks. Personal spending rose 0.4% during September, while personal income was flat, the Commerce Department reported in early-November. Changes announced last month in the way the department accounts for certain retirement savings and tax payments made a dramatic difference in its estimate of the national savings rate. Americans saved 1.6% of their after-tax income in September, the department said. Previous estimates of the savings rate were revised upward by 3.5 to 4 percentage points per month. On average, according to the new estimates, the savings rate was a bit more than 2.5% of after-tax income - not negative as previously estimated - during the first three quarters of 1999. The Conference Board's index of leading economic indicators - a basket of ten economic components designed to signal turning points in the economy - dipped slightly (0.1%) in September. Hurricane Floyd was blamed for part of the drop. In a separate report, the Commerce Department reported that factory orders fell 0.9% in September, ending a run of four consecutive monthly gains. The U.S. economy expanded at an inflation-adjusted annual rate of 4.8% from July through September, the Commerce Department reported in its advance estimate of third-quarter gross domestic product (GDP). Vigorous growth was reported in most sectors, yet the GDP price deflator, the broadest measure of inflation, showed prices rising at a scant 0.9% annual rate for the period. In a major revision of GDP benchmark data going back four decades, the Commerce Department also reported that growth has been stronger, inflation lower, and personal savings higher during the 1990s than previously calculated.

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The employment cost index, a key measure of wage and benefit costs to employers, rose just 0.8% during the third quarter, the Labor Department reported. The figure was less than analysts expected, allaying fears that a tight labor supply was creating inflationary pressure. The risk that wage gains could outstrip productivity gains is a factor the Federal Reserve Board cited in announcing its rate-tightening bias in early October. Activity in the nation's manufacturing sector continued to rise in October. In fact, the National Association of Purchasing Management monthly index, boosted by growing demand for U.S. exports, topped expectations. Rising interest rates and the after-effects of Hurricane Floyd were reflected in the housing market during September. U.S. new-home sales plunged 12.8% to an annual rate of 811,000 from a revised 930,000 in August, the Commerce Department reported in October. The decline brought the figure to the lowest level since December 1997, when sales were at an annual pace of 791,000 units. Sales of existing singlefamily homes slowed 2.1% during September to an annual pace of 5.13 million units, the National Association of Realtors reported in late-October. This figure was down from a revised rate of 5.24 million units in August. Sales of existing homes have fallen for three consecutive months from a record level of 5.63 million units in June; however, sales remain 3.4% higher than in September 1998. Consumer confidence, as measured by the Conference Board survey, dropped to a nine-month low during October but remained at historically high levels. Analysts cited such factors as stock market volatility, rising interest rates, and higher energy prices for the decline. In effect, consumers were wary about both current conditions and what the future might bring. Orders to factories for durable goods - products such as cars and machinery, which are expected to last three years or more - slid 1.3% in September, the first decline since April, the Commerce Department reported in October. Demand weakened for aircraft and automobiles, while orders for industrial machinery and electronic equipment rose. The much-anticipated report on September consumer prices was released late in the month, and the stock and bond markets seemed relieved to find that the report contained no surprises. The Consumer Price Index rose 0.4%, and the so-called core rate, which excludes the volatile food and energy components, rose 0.3%. Prices for goods and services were driven higher by increases in energy and tobacco, but prices of food, clothes, and cars also rose slightly. On an annual basis, the inflation rate now stands at 2.6%, with a core rate of 2.0%. The report suggests that inflation is subdued, but the Federal Reserve Board did decide to hike its target for short-term interest rates in November. Retail sales remained generally strong in September. Sales inched up 0.1% for the month, as a decline in car purchases dampened overall retail buying. Excluding autos, sales were up a strong 0.6%. The small September gain followed a remarkable 1.5% jump in August and a 1.0% increase in July. Some analysts focused on a separate report that revealed a 0.3% increase in the price of imported consumer goods, the largest such increase in almost four years. Higher import prices could be another inflationary warning signal. The U.S. trade deficit shrank slightly in August but imports surged to a record high. Overall, the deficit was $24.1 billion, down from July's record of $24.9 billion - a figure that was revised from an earlier report of $25.2 billion. The jump in imports (to approximately $106 billion) was offset by a rise in exports (to a record $82 billion). Trade with China resulted in a deficit of $6.9 billion for the United States, the largest deficit with any single country. Harris County Commissioners Court has decided to hold the overall property tax rate level for 1999, but many property owners will still see increased tax bills. The commissioners voted to raise the tax rate for the hospital district, which has an annual operating deficit of $85 million, by nearly 2.3 cents. To offset the increase, the county will receive a corresponding reduction in its rate. With appraised real estate values on the rise, however, flat tax rates still mean larger tax payments. Houston Real Estate Trends 

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Harris County ranked in the top five nationally in both job growth and payroll growth between 1996 and 1997, according to information recently released by the U.S. Census Bureau. Harris County gained 67,653 jobs in the period, trailing only Los Angeles, Dallas and Maricopa (Phoenix) counties. The $4.2 billion payroll increase lagged behind only New York, Los Angeles, Cook (Chicago) and Dallas. The nation's housing market remains strong, but construction activity tailed off a bit in September. Housing starts declined 3.2% to an annual rate of 1.62 million units, the Commerce Department said in October. Rising mortgage rates have dampened home buying activity slightly, but homebuilders continue to keep busy meeting solid demand for new homes. Metro reports that local bus ridership has reached record levels. For the fiscal year ending September 30, nearly 100 million passengers boarded a Metro Bus, an increase of over 5% from 1998. Metro credits extended service and an increased emphasis on commuter satisfaction with the higher ridership levels. Methodist Health Care System is building a 64-bed mini-hospital in the Willowbrook area. The $79 million community health care facility will be locate on 20 acres at the corner of S.H. 249 and Willowchase Blvd. The Methodist Health Center-Willowbrook will offer acute care services, diagnostic and treatment services and an emergency center among its services. The 173,000 square-foot health care center will be connected on each floor to a 139,000 square-foot medical office building. The health center is scheduled to open in December 2000. Earnings are up at the largest oil companies. Third-quarter profits at Exxon, Chevron and Arco beat analysts’ forecasts, while those at Mobil and Texaco under-performed the anticipated levels. Experts indicated that higher crude prices fueled the increase over 1998 earnings. Houston is still the nation’s 4th largest city. While Houston trails New York, LA and Chicago in population, its growth rate exceeds the three larger cities. The U.S. Census Bureau estimates Houston’s 1998 population as 1,786,691. San Antonio (8), Dallas (9), El Paso (17) and Austin (21) join Houston among the top 25 cities.

THIRD-PARTY LENDERS Lender(s) Apartments Coastal Banc SSB Harris County Housing Finance Corp LaSalle Bank FSB Southern National Bank of TX

Phone

Units, SF, acreage Amount, $000

713-789-7879 713-758-2222 773-693-3400 713-777-0750

140 746 8 106

$2,560.00 $20,917.50 $644.00 $1,687.50

713-888-3400 210-545-6762 713-224-6611

33,120 338,338 139,890

$1,000.00 $2,220.00 $8,500.00

713-771-2828 972-578-7777 314-822-0070 713-290-9474 281-368-7200 713-952-6055

51,600 57,202 33,000 19,800 42,222 20,400

$1,700.00 $1,900.00 $500.00 $650.00 $800.00 $760.00

Office Buildings Comerica Bank Nat'l Exchange Services Wells Fargo Bank Retail Centers Asian American National Bank First International Bank First National Bank Japage Realty New Era Insurance Co Sterling Bank

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THIRD-PARTY LENDERS Lender(s) Vacant Land Bank One Texas N A Chase Bank of Texas Houston Housing Finance Corp Norwest Bank Texas

Phone

Units, SF, acreage Amount, $000

713-751-6100 713-216-4865 713-461-2749 281-391-1004

1.72 21.62 14.45 11.37

$3,215.00 $3,767.80 $150.00 $100.00

713-951-7100 214-508-1370 713-751-6100 713-888-3400 713-993-0002 312-441-7000 713-881-1235 817-295-8221 281-890-7979 713-867-6330

36,993.00 14,019.00 47,000.00 24,201.00 27,648.00 48,605.00 47,082.00 10,100.00 49,000.00 48,306.00

$900.00 $75.00 $800.00 $370.00 $439.50 $398.00 $1,265.00 $415.00 $450.00 $1,094.40

1,088,526

$57,278.70

Industrial Facilities American Bank Bank of America Bank One Comerica Bank Texas First Prosperity Bank Heller Financial Inc Riverway Bank Southwest Bank Sterling Bank Union Planters Bank Total (not including SF in acreage or units)

Information in Houston Real Estate Trends is derived from primary and secondary sources. O’Connor & Associates is not responsible for nor does it guarantee the accuracy of the information. Houston Real Estate Trends  is compiled and prepared by Richard Zigler, Senior Market Analyst, Market Research Services, [email protected].

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