Situation
- Through ongoing pursuit efforts by Stream Houston in 2007, Principal Real Estate Investors, owners of a 137-acre site in Houston connected with Stream to analyze the market, discuss the development pipeline, leasing deals in the market, and to better understand the project’s potential.
- During this time, the Southeast Submarket was in its infancy in terms of institutional-quality real estate investment, but the area was attracting a lot of attention due to:
- The pending Panama Canal expansion to allow larger ships through its locks.
- Addition of Port Houston’s second container terminal, Bayport.
- Wal-Mart had recently built two, 2 million SF distribution buildings in Cedar Port as a port diversification strategy to avoid being held at the mercy of the busiest ports in the United States, Los Angeles and Long Beach which had recently experienced a crippling strike by their longshoremen, thus preventing key products from reaching retails shelves during peak season.
- As the market discussions with Principal progressed well, Stream was selected for fee development, leasing, and property management services on the first phase of Bay Area Business Park.