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Deals & Dealmakers

City Place Master Developer CDC Houston Acquires Four Prime Assets

CDC Houston, a subsidiary of Coventry Development Corporation, New York and the master developer of north Houston’s City Place, has acquired four prime community assets – a majority stake in two select-service hotels and 100% 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 LEED Silver-certified City Place 1 and City Place 2 office buildings, reflect an ongoing commitment to the long-term, mixed-use vision for fast growing and award-winning City Place, ideally located 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 Corporation and InterMountain Management remaining as stakeholders. Similarly, in the case of the two office buildings, a duo of CDC Houston managed companies acquired 100% 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 are located side-by-side, just east of the City Place urban core, and complement the Houston City Place Marriott. 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 spacious suites with full kitchens and separate living, working and sleeping areas. Amenities range from complimentary offerings including daily breakfast, overnight parking and high-speed Internet to meeting and event space, onsite laundry/dry cleaning and a convenience store.

Completed in 2016, the Courtyard by Marriott is situated on just under three acres at 2272 Holzwarth Road and is also four stories. Highlights include 125, thoughtfully-designed guestrooms, a lobby bistro and flexible spaces, meeting and event space, fitness center and outdoor pool. Guests enjoy free high-speed internet and overnight parking in addition to onsite laundry and valet dry cleaning.

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 for office tenants, employees, residents and visitors.”

Surrounded within the community by major employers, programmed green space, dining and entertainment offerings, the hotels continue to benefit from and expanding ecosystem both on the business and leisure fronts.

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 square feet. Office tenants include CDC Houston and Arroyo Energy Investors, and at street level, Focus Optical joins first-to-market food and beverage offerings such as Common Bond Bistro & Bakery, Sushi Rebel and Bread Zeppelin.

Neighboring City Place 2 at 1701 City Plaza Drive, was unveiled 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-square-foot building includes 23,700 square feet of ground floor retail space and includes Island Grill as a tenant.

CDC Houston continues to partner on other City Place assets – the Houston City Place Marriott with USAA Real Estate and Woodbine Development, as well as a 38,000-square-foot 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 square feet 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, will occupy the entire 26,750-square-foot second floor, which features 14-foot ceilings, and the street level encompasses 25,300 square feet of retail.

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