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Material Change
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THE HOUSTON CHRONICLE •
MONDAY-SUNDAY, MAY 16-22, 2022
TEXASINC
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HOUSTON
Material Change WESTLAKE CEO ALBERT CHAO POSITIONS HIS COMPANY AS MORE THAN A CHEMICAL MAKER
THE SMART MONEY: TEXAS LAWS REQUIRING COMPANIES TO BE POLITICALLY CORRECT ARE A BAD TREND INSIGHT: NEW DALLAS FED PRESIDENT TEMPERED BY CRISIS
B2 MONDAY, MAY 16, 2022
TEXAS INC. | TEXASINC.COM
TEXAS INC. | TEXASINC.COM
MONDAY, MAY 16, 2022 B3
IN CASE YOU MISSED I T
Rob Gavin Business editor [email protected] Brian Rausch Assistant business editor [email protected] Felicia L. Mason Assistant editor [email protected] Susan Barber Creative director [email protected] Becca Carballo Business reporter [email protected] Rob Wilson/Dreamstime/TNS Steve Helber/Associated Press
ENERGY THE NEXT BIG THING? Offshore wind developers are eager to get their share of subsidies for the technology. HoustonChronicle.com/offshorewind
Amanda Drane
RETAIL BIG NEW BOX
Retail reporter
The electronics retailer is increasing the number of its concept stores, one focused on outdoor furnishings and another on bargain appliances.
Katherine Feser [email protected]
HoustonChronicle.com/bestbuyconcept
Energy reporter
[email protected]
Real estate reporter
James Osborne [email protected] R.A. Schuetz Business reporter
W I NNE RS & LOSERS
CO NTENTS
STA F F
[email protected] Shelby Webb Business reporter [email protected] Chris Tomlinson Columnist [email protected] Jaundrea Clay Copy editor
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FUEL FIX
Oil industry is poised for a raucous year amid investment and inflation.
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RETAIL WRAP
Rosati’s Pizza debuts drive-thru location in The Woodlands.
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ON THE REBOUND
After domestic setbacks. Mexico’s president is seeking an international role.
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SYNC YOUR CALENDAR
Stay in the know about business workshops and other events in the area.
ON THE COVER
Albert Chao, chief executive of Westlake Chemical. Photo by Marie D. De Jesús/Staff
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REPRINTS
To order single, glossy page reprints, contact us at: [email protected].
[email protected] Ken Ellis Designer [email protected] Gladys Ramirez Designer [email protected] Richard Drew/Associated Press
Losers Reed Saxon/Associated Press
Winners
OXY
Occidental Petroleum joined the industry’s financial festival, saying it earned $4.7 billion in the first quarter — a year after a loss in the same period.
EVERYONE ELSE
The rest of us pay more for gasoline, diesel and groceries as inflation taps our bank accounts. The Dow is off more than 5 percent in the past year. Home prices are at record highs, and mortgage and other loan rates are jumping for the first time in years. Happy Monday.
Nadya Shakoor Designer [email protected] Jeni Heard Director, Market Development [email protected]
COMING NEXT WEEK Memorial Hermann CEO Dr. David Callender on health equity, lessons from COVID and how the hospital system will improve access to health care in Houston
B4 MONDAY, MAY 16, 2022
TEXAS INC. | TEXASINC.COM
I N SI GH T
The Dallas Fed has a new leader — with experience leading in crises By Robert Downen STAFF W R IT E R
Months after its former president retired amid a scandal — and facing skyrocketing inflation — the Federal Reserve Bank of Dallas has appointed a new president with a history of leading through crisis. Lorie Logan was appointed as the regional bank’s new president and CEO this week, eight Logan months after the sudden retirement of Robert Kaplan, who faced criticism for trading millions of dollars in stocks as the central bank undertook an unprecedented intervention in financial markets to combat fallout from the COVID-19 pandemic. Logan, 49, is the vice president of the Federal Reserve Bank of New York, where she oversees the Fed system’s massive securities portfolio and leads the implementation of monetary policy. She has been employed with the Federal Reserve for more than two decades, serving in prominent positions throughout three major crises: COVID-19, the 2008 financial crash — which prompted Logan to end maternity leave early — and the terrorist attacks on September 11, when Logan was one of a handful of employees to remain in Manhattan to monitor global financial markets. Her tenure, which will begin on Aug. 22, comes as the Fed continues to battle skyrocketing inflation rates that have hit the Houston region particularly hard, and this month led policy
Staff file photo
A change of leadership is coming to the Federal Reserve Bank of Dallas, which influences the economies of three states.
makers to raise interest rates. Logan won’t have voting power until 2023, however. In a statement, Kaplan Fed Chair Jerome Powell called her “a trusted colleague and dedicated public servant whose remarkable skill and experience with complex financial markets has informed our decisions and helped implement monetary policy to support the U.S. economy.” Others similarly praised her work. “Lorie Logan is an excellent
pick,” said Julia Coronado, an economics professor at the University of Texas at Austin and founder of the New Yorkbased research firm MacroPolicy Perspectives. “She has extensive experience in managing monetary policy and is known to be a cool head and an effective leader in a crisis.” In her previous and current positions, Logan has said little about her economic views, instead focusing on technical aspects of her roles. But former colleagues have described her as an even-keeled and measured decision maker, particularly in comparison to her predecessor Kaplan, a former Goldman Sachs investment
banker who was well-known for his frequent media interviews or comments on financial markets while leading the Dallas Fed. “Under her leadership, Dallas will not likely stand out either as atypically inflation hawkish or atypically financial stability hawkish as has been the case at times in the past.” Krishna Guha, who led the New York Fed’s communications until 2013, told the Wall Street Journal. Logan’s nod was not without criticism, however. Congressional Democrats had previously called for a Latino to be appointed to the position because of its influence on the
economies of Texas, New Mexico and Louisiana, all states with high concentrations of Hispanic residents. Other analysts took issue with her appointment because Logan is not an economist, or because she has spent almost her entire career working within the Fed system and, critics argued, could therefore be less transparent about reviews of the trading scandals that led to the departures of Kaplan and other Fed officials last year, including Fed Vice Chairman Richard Clarida. [email protected]
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F UEL FI X
Oil industry poised for raucous year As oil and gas companies report blockbuster profits for the first three months of the year, experts say the industry is positioned for a lucrative — but volatile — rest of 2022. The Federal Reserve made its biggest interest rate hike in more than two decades last week in an effort to curb redhot inflation, raising concerns that investment in the oil patch would take a hit. Instead, stocks went up following the announcement, but have since plummeted as the market gauges the impact of the series of rate increases the Fed has signaled. “A lot of industry experts had predicted a slightly higher increase,” said Carina Antweil, a corporate lawyer for Baker Botts who focuses on the energy industry. Antweil suspects chief financial officers at energy companies breathed a sigh of relief on the news that the Fed would hold future interest hikes to around a half-percentage point. Ahead of the Fed announcement last week some analysts feared the Reserve would opt for much larger increases in coming months. Energy companies hope the moderate approach will help ease the current 8.5 percent inflation rate, the highest in nearly 40 years, Antweil said. Inflation affects how much energy companies pay for supplies. As countries sanction major oil and gas exporter Russia in retaliation for the attack on Ukraine, it continues to make already tight global oil supplies even tighter. That’s led to pressure on companies to increase output, but the war has also caused snags across the global supply chain, which is making supplies and equipment harder and more expen-
January 2022, natural gasfired generators provided 36 percent of the nation’s electricity, and coal provided 23 percent. In the previous five Januaries, those shares had been much more similar: natural gas at 33 percent and coal at 27 percent, on average.” The news comes as natural gas is trading at multi-year highs of more than $7 per thousand cubic feet — which is translating into higher electric bills for Houston households and businesses. Local electricity costs are expected to increase even more as temperatures rise and people turn on air conditioners. Experts say the price of natural gas is unlikely to decline soon as Russia — a major exporter of gas — faces sanctions for its war against Ukraine, further tightening global natural gas supply.
— Kyra Buckley
Enbridge set to build blue hydrogen plant
Sergio Flores/Bloomberg
Investment and capital spending are expected to increase this year, especially while West Texas crude oil sits at more than $100 per barrel, well above what most companies need to turn a profit.
sive to get. “In a lot of ways, 2022 is so much more volatile than 2021 was because we have all of the things we had in 2021,” Antweil said, plus factors stemming from the war. “The economy and where it’s going to go this year seems very uncertain because of all of these things.” Still, she expects to see more investment and capital spending this year, especially while West Texas crude oil sits at more than $100 per barrel, well above what most companies need to turn a profit. Antweil expects that compa-
nies will have adequate access to capital even with the rate hike, and that even with supply chain issues, high oil prices will help boost domestic production. “I think it’s going to be a pretty busy year for energy,” Antweil said.
— Kyra Buckley
U.S. consumed a record in natural gas in January
The U.S. power sector consumed more natural gas during the first 30 days of the year than in any previous January, according to data from the
Department of Energy. The power sector used an average of 31.6 billion cubic feet per day in January. Previous Januaries clocked in at 30 billion cubic feet per day or less, but an unusually cold month in some parts of the country and declining coalfired generation helped boost natural gas consumption, the DOE brief said. “This past January was the coldest January since 2014, which resulted in the highest monthly electricity demand for any January on record,” according to the brief. “In
Pipeline company Enbridge Inc. said it will partner with Denver-based Humble Midstream to develop a low-carbon blue hydrogen facility outside Corpus Christi. The planned facility at the Enbridge Ingleside Energy Center, if built, would cost roughly $2.5 billion to $3 billion and could come online as early as 2026, said Enbridge, a Canadian company headquartered in Calgary. The project aims to pull in natural gas through pipelines to the facility, where the gas would be converted into blue hydrogen and ammonia, which could be used for lowcarbon energy purposes such as battery production for electric vehicles, Enbridge said. The remaining carbon leftover would be captured and stored.
— Amanda Drane
B6 MONDAY, MAY 16, 2022
TEXAS INC. | TEXASINC.COM
TH E SMA RT MON EY
Trend not conservative — it’s autocratic
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omething has changed recently — for the worse. Governments seem more willing to punish companies for political opinions that clash with the politics of leaders. It’s a bad trend. It’s very likely unconstitutional. Based on laws passed in the Texas LegislaMichael ture in 2021, any Taylor company entering a state contract worth $100,000 or more must certify what I call “politically correct in Texas” stances. First, the company must pledge that it does not boycott fossil fuels. It also must swear it doesn’t refuse to do business with firearms makers and that it’s not boycotting Israel. If you attempt any of these things, forget about doing business with the state of Texas. The Texas attorney general’s office and the comptroller’s office have sent letters to companies seeking certification statements, effectively swearing they haven’t taken any of these political positions. According to a National Public Radio report, the implementation of these politically correct requirements in Texas is messy. Plenty of loopholes exist. It’s not working. Nevertheless, the intent is to bully companies into agreeing to the politics of the party in power. Contrary to Texas lawmakers’ intent, this version of business political correctness should not make conservatives happy. This should make them very, very worried, from a constitutional standpoint. This feels of a piece with Florida Gov. Ron DeSantis’ moves in the past month to
John Raoux/Associated Press
Florida Gov. Ron DeSantis’ decision to punish Disney World for its stance on the state’s “Don’t Say Gay” law should worry both conservatives and progressives.
punish Disney for its supposed pro-LGBTQ messages. I’m no First Amendment scholar, but here’s how I understand things. We start with the idea that there’s a big difference between private citizens, businesses and governments. As a quick reminder, private citizens get to say almost anything they like. They can’t incite violence or do the equivalent of yelling “Fire!” in a crowded theater for safety reasons, but most everything else — including quite offensive things — is fair game. Private-sector corporations
Official government retaliation for protected speech is a violation of the First Amendment.
and their owners and executives also get wide latitude to express political opinions, though it’s usually tempered by civil protections, such as employment laws. Companies run the risk of losing business for unpopular opinions and politics, but generally they can say or express nearly anything they want. Public officials and government entities, however, do not — and should not — have the ability to impose their own political views on individuals or companies. That’s how autocrats, on the left and the right, behave. In our pro-
market, anti-autocratic system, it’s been an important tradition that political leaders do not pressure companies to conform with their politics. In this context, the San Antonio City Council crossed the line a few years back in explicitly deciding against letting Chick-fil-A open a restaurant at the municipal airport because of the fastfood chain owners’ perceived hostility to gay marriage. If consumers want to shun its chicken sandwiches to punish Chick-fil-A for its politics, that’s their right. But when a city government imposes a political litmus test like this on a company, it’s overstepping. The left-leaning City Council rightfully reaped the whirlwind for its choice. This isn’t the right way for governments to treat private companies. Meanwhile, DeSantis has joined the trend set by Texas lawmakers of punishing corporations for their left-leaning politics. He urged the Florida Legislature to strip Disney of its special tax status because Disney signed a letter condemning the state’s so-called “Don’t Say Gay” bill. DeSantis made clear this was personal and his action retaliatory, saying, “Disney thought they ruled Florida. They even tried to attack me to advance their woke agenda.” Official government retaliation for protected speech is a violation of the First Amendment. I guess it goes to the courts next, but this is really important: Our system depends on DeSantis getting slapped down for this attempt to retaliate for political speech. Here’s how it should go. Disney gets to express any type of speech or political stance it wants. Within the bounds of employment law, of
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BI Z F EED
Brown Bag Deli outlasts pandemic to expand Brown Bag Deli, a popular Houston-based sandwich chain, is growing its Houston real estate footprint as its owners feel more confident about dining demand coming out of the pandemic. Brown Bag Deli has built a strong following over the past 20 years as a local alternative to the big-chain sandwich brand, and recently opened its first location in the Texas Medical Center. The 900-square-foot shop replaces SusieCakes, near Salata and Chipotle within the Westin at 1709 Dryden. The chain is also planning to open a 1,650-square-foot location in October just outside The Heights in the Kroger-anchored
shopping center at 11th Street and North, said Forrest Andrews, owner of Brown Bag Deli. Andrews also is anticipating construction to wrap up on a remodeled 1,450-square-foot shop at its flagship location on Westheimer and Shephard. Brown Bag’s former building there was recently demolished and will be replaced by a newer building with a similar size and layout, Andrews said. Depending on permitting, Andrews is planning the new shop to open at 2036 Westheimer this fall, he said. “We’re getting out of COVID,” Andrews said. “ I feel pretty good about it.”
TAYLOR
From page B6
course. For their part, consumers get to decide whether to buy more, the same or fewer of Disney’s products as a result of the company’s stances. Disney is free to be as woke or as reactionary in its public utterances as it pleases, and then it can suffer the consequences. Cancel or embrace or just appreciate princess movies for what they are — it should all be the same under the law. In a non-culture war context, this may be easier to understand. If I run an icehouse and I flip the bird to the mayor of my city, the county judge or the governor, that’s my absolute right. I’m an American, dammit! If the next
KB Homes opens new community
KB Home announced the opening of Olympia Falls, a new community planned for 400 homes in Missouri City southwest of Houston. The community, located near Lake Olympia Parkway at the Fort Bend Parkway, is about 15 miles from the Texas Medical Center. Proximity to Texas 6 and the Sam Houston Tollway make it accessible to areas such as Sugar Land and Pearland. The houses range from 1,600 to 2,900 square feet and are priced from the mid $300,000s, according to KB Home. Los Angelesbased KB Home operates in 47 markets across the U.S. The
week I get a visit from the Texas Alcoholic Beverage Commission and learn my license to serve has been revoked for no other reason than I was being rude to the powers that be, that’s retaliatory and a violation of my rights. Governments and government officials are not allowed to act like precious snowflakes. Private citizens and businesses are protected in a way that governments are not. Public officials and governments need to be circumscribed in their statements and actions. They don’t get to do and say whatever they want. That’s the whole point of the Constitution — to protect us from the government. It is not OK for a public official to opine and then try to shape the politics of a private company. It is worse still to bring the
Brown Bag Deli
Brown Bag Deli is known for its specialty breads and high-quality meats.
company builds homes in 20 communities in the Houston area.
Method Architecture grows with GSC buy Method Architecture of Houston acquired
GSC Architects to strengthen its position in Austin and San Antonio. Terms were not disclosed. The combined firm has more than 70 employees, including 12 registered architects and six interior designers across offices in Houston, Austin, San Antonio and Dallas. GSC Architects, led by principal and CEO Tom Cornelius, was founded in Austin in 1978. Method’s expertise ranges from experiential retail, breweries and mixed-use developments to industrial warehouse and hightech manufacturing facilities. GSC Architects designs mixeduse, interiors, education and science and tech spaces.
power of the regulatory state to bear on a company if it’s acting within the law. To do what DeSantis has done in Florida is to make an important move toward an autocratic state. This should be equally clear to conservatives and progressives alike. Forcing corporate allegiance to current office holders’ political stance is both anti-market and pro-autocrat. Punishing companies for their political stances is anti-American. It’s the stuff of Putin’s Russia.
Joe Raedle/Tribune News Service
Gov. Ron DeSantis urged the Florida Legislature to strip Disney of its special tax status after Disney condemned a state bill.
Michael Taylor is a columnist, author of “The Financial Rules for New College Graduates” and host of the podcast “No Hill For A Climber.” michael@michaelthesmart money.com | twitter.com/ michael_taylor
B8 MONDAY, MAY 16, 2022
TEXAS INC. | TEXASINC.COM
SPOTL I GH T By Amanda Drane STAFF W R IT E R
Less than a year after the pandemic sent Westlake Corp.’s business into free fall in 2020, it embarked on a series of acquisitions totaling nearly $4 billion — steps along the company’s path toward transformation. With the housing market booming, the Houston chemical and materials manufacturer spent $2 billion on Boral Industries’ North American building products businesses, which makes roofing, siding, decorative stone and windows. To expand into epoxies used in renewable energy technologieS, it acquired a Dutch company that supplies coatings and composites used in wind turbine blades. It bought Ohio-based Dimex, which converts recycled plastic into garden edgings you can buy at Home Depot, and Lasco Fittings, a manufacturer of polyvinyl chloride, or PVC, pipe fittings. Earlier this year, the company decided to drop the word “chemical” from its name as it expands further into material manufacturing. “Our business portfolio has evolved over the last decade, particularly in the last year when we celebrated our 35th anniversary,” Westlake CEO Albert Chao said while announcing the name change in February. The new name, he added, “will better represent the breadth of industries we serve, including housing and construction, automotive and consumer lifestyle, packaging and health care.” Now, the company is earning record profits. It made $756 million during the first quarter, three times the $242 million it made during the same period last year. Revenue increased by more than 70 percent to $4.1 billion from $2.4 billion a year ago. Chao sat down to talk about the history and development of
Westlake makes a material shift
his company, how recent world events have helped shaped it, and where it’s headed next. The interview has been edited for space and clarity. Q: Could you tell me a little bit about your company’s background and about your growth strategy over the years? A: We started in 1986 with a plant in Lake Charles, La.. We’ve grown from a single plant with 100 employees to around 16,000 employees, 100 sites around the world. We grew by acquiring plants or businesses when it fit our strategy — at the right time, the right price. When we couldn’t find assets or business to acquire that fit our strategy, we expanded our plants. Take the Geismar Plant, it was losing money. Then we said, “Ok, what is the need? Oh, it’s too small.” We built a brand new chlorine plant with caustic soda, so they’re integrated. Today, it’s one of the best plants we have. Q: What’s your vision for the company moving forward? A: We’re getting closer to consumers and are building products. We are the second largest PVC pipe manufacturer in North America and probably the largest for PVC fittings. I think we’re the largest producer in the world of flexible PVC, which protects cables that go through housing and electric vehicles. Whether it’s sidings, windows, roofing, stone, these are all branded names.
Marie D. De Jesús/Staff photographer
“Our business portfolio has evolved,” says Westlake CEO Albert Chao.
Q: How do you decide to take over a company? A: We expand when things are available for sale. Axiall was a competitor in the U.S. and they were doing very poorly, and so we said let’s Westlake continues on B9
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From page B8 merge — it’s more synergy, economy of scale. It takes two to tango, somebody has to sell the business before we can buy it. Sometimes they are starved of capital; they’re very talented, but the company is overextended. And they start cutting expenditures, not doing research and development. It is a vicious cycle. The less they invest, the worse it gets. The worse it gets, the less money they make. And we’re able to come in and say, hey, join us. We believe in the future of the businesses we buy, and the people we have. It’s brick by brick, stone by stone, company by company. Thirty-five years is a long time. Q: What happens after you take over a new company? A: We ask: “What are you working on? What do you need? What products can we differentiate ourselves in today?” Sustainability is very important, so we ask people what can we do to recycle materials. For example, our guys built a special PVC pipe that is as strong or stronger than regular pipe but 40 percent less material. It’s lighter, it’s easier to install, and less material means less carbon footprint. We now have come up with a green, low-carbon caustic using renewable energy; we’re the first to sell low carbon caustic. We are saying we are here to build companies. Tell us what you need. Tell us what ideas you have. We spend a lot of money after we acquire companies to improve operations. And guess what? We bear fruit. Q: How are high energy prices affecting the chemical industry? A: Oil is over $100, so the fact that the rest of the world’s chemical plants use primarily naphtha, their feedstock costs
Marie D. De Jesús/Staff photographer
Earlier this year, Westlake dropped “chemical” from its name and leaned into its acquisitions to expand further into material manufacturing. Now, under Albert Chao’s leadership, the company is earning record profits.
are much higher. Whereas in the U.S. we’re blessed with an abundance of natural gas production, natural gas liquids and have very low costs. Hence, the U.S. petrochemical industry is very competitive from a feedstock point of view. And feedstock cost is a very important component of the cost to produce petrochemicals. Q: Has Westlake recovered from the pandemic? A: The pandemic hit us pretty badly. When oil went negative, all the polymers — everything — their prices dropped. Fortunately, we didn’t have to lay anybody off.
We said we think it’s temporary. Business was bad, then government started waking up and saying, wait a minute, we need essential products, we need face masks. People are buying delivery food, we need packaging. And then people start buying things on Amazon. Guess what: they’re all packaged in paper boxes. Chlorine and caustic (soda) are used to bleach the fibers. So we were blessed in the sense that people are ordering all these online deliveries, everything is packaged and shipped. Home building started going up. Home building had dropped off after the housing meltdown in 2008, so
there’s huge pent up demand. Q: What approach is Westlake taking to accommodate the energy transition? A: The demand for our products keeps on growing. On the other hand, we’ve got to reduce emissions, we’ve got to have more recycling. It’s part of our job and the consumer demands it. As an industry, we’ve got to develop technologies. We’re using hydrogen that we produce, rather than buying gas and oil using and using that for fuel. Potentially, we could get into the hydrogen business. Green hydrogen is very expensive, but technology is being
improved to reduce the investment costs, operating costs. The industry and Westlake, we are looking at studying all these areas to reduce emissions, and reuse more recycled products. And this is where we’re moving. Every investment we’re making, we’re saying what can we do to reduce emissions, and we’ll spend money — extra money — for reducing emissions. Our goal, we said, is to reduce it by 20 percent. Technology is not yet available to go to zero, so we haven’t announced zero, but we’re doing everything we can towards that. [email protected]
B10 MONDAY, MAY 16, 2022
TEXAS INC. | TEXASINC.COM
TRA N SACTI ON S
Investors home in on Houston apartments By Katherine Feser
at 2601 Repsdorph Road in Seabrook.
STAFF W R IT E R
Capital Square announced the acquisition of Alta West Alabama, a 304-unit apartment complex at 3623 W. Alabama near River Oaks and Greenway Plaza. Developed by Atlantabased Wood Partners, Alta West Alabama opened in early 2021. Amenities include a resort-style swimming pool, fitness center, sky lounge with kitchen, coworking spaces and pet spa. The acquisition was made through Capital Square’s CS1031 Houston Apartments DST affiliate, which seeks to raise $56.5 million in equity from investors. Nashville-based Healthcare Realty Trust purchased the Pinnacle Professional Building, a 76,781-square-foot medical office building at 129 Vision Park Blvd. in Shenandoah, for $36.25 million. The building is 100 percent leased to a diverse mix of tenants, according to Healthcare Realty. The seller was Med Men LLC. The acquisition brings Healthcare Realty’s portfolio to 12 medical office buildings totaling more than 783,000 square feet in the Houston market, including eight buildings totaling 516,000 square feet in The Woodlands area. The Praedium Group, a real estate investment firm based in New York, acquired the 380-unit Lenox Clear Lake apartments at 15500 Middlebrook Drive from OHT Partners. Completed in 2021, Lenox Clear Lake features traditional units and two-story townhomes, two resort style pools, poolside cabanas with flat
Culture-Based Interiors Group, an office furnishings and interiors company, leased 11,949 square feet at 1050 N. Post Oak Road. Alex Taghi and Holden Rushing of NAI Partners represented the tenant. Charles McGahren of Silver Street Capital represented the landlord. Ideal Steel renewed a 66,500-square-foot industrial lease at 5900 Brittmoore Drive. Jake Wilkinson and Darren O’Conor of NAI Partners represented the tenant. Brad Berry and Ryan Wasaff with the Welcome Group represented the landlord, Welcome Industrial Sub 20.
American Landmark Apartments
American Landmark Apartments has acquired the 293-unit H6 Apartments near Texas 6 and Interstate 10 in the Energy Corridor and renamed it Neo at Ten.
screen TVs, a pet spa, dog parks, a coworking business center with private workspaces, fitness center, package lockers with cold storage capability and covered boat or car storage. Tampa-based American Landmark Apartments acquired the 293-unit H6 Apartments at 14805 Grisby Road in the Energy Corridor. Built in 2016 with units ranging from 475 to 1,444 square feet, the property near Texas 6 and Interstate 10 has been renamed Neo at Ten. A private equity firm based in Ohio has purchased three
apartment properties from Three Pillars Capital Group, a private equity firm in Houston, for a total of $56 million. The properties consist of Pine Lake Village, a 96-unit property at 1325 Greens Parkway ($12.1 million); Green Tree Place Apartments, a 196-unit complex at 700 Dunson Glen Drive ($22.6 million), and Ridge Point, a 168-unit property at 2700 Westridge St. near NRG Park ($21.3 million). Since acquiring the properties over the last three years, Three Pillars has completed upgrades such as vinyl plank floors, granite counters, new appliances and light-
ing. Next Level Urgent Care opened a 3,000-square-foot clinic at 101 Winding Way St. in Lake Jackson providing urgent care services for chronic and acute illness, fractures, lacerations, contusions and other non-life-threatening injuries. It is the Houston-based company’s 24th area location. Wealhouse Capital has refinanced a 10-property, 2,549unit apartment portfolio across Arizona and Texas. The loans, totaling $372.6 million, were arranged by JLL Capital Markets in Phoenix. Locally, the portfolio included Bar Harbor
Onpoint Contracting leased 1,950 square feet at Mills Road Service Center, 11115 Mills Road. Mickey Brown of Bernell & Associates represented the landlord, MJD Trust. David Gerber of Gerber Realty represented the tenant. InGRIT leased 4,570 square feet of office space located at 3200-3400 Research Forest Drive, The Woodlands. Elena Bakina of Colliers represented the tenant. Greg Usher of Cypressbrook Co. represented the landlord, Vista Woodlands Partners. Dermagenesis Skin and Body Care leased 2,148 square feet at 11200 Westheimer. Andreina Landis of Fathom Realty represented the tenant. Donna Svec represented the landlord, Hartman Income REIT. [email protected] twitter.com/kfeser
TEXAS INC. | TEXASINC.COM
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RETA I L WRA P
Rosati’s Pizza debuts drive-thru By Katherine Feser STAFF W R IT E R
Shipley Do-Nuts leased 1,800 square foot at the Ralston Retail Center off Beltway 8 and John Ralston Road in Humble. Neha Abassi of Friedman Real Estate represented the landlord. Rosati’s Pizza opened a location at 4150 FM 1488 in The Woodlands/Conroe area. Established in Chicago in 1964, Rosati’s Pizza is a family pizzeria serving Chicago style pizza, pasta, wings, sandwiches, salads and appetizers in 15 states. The new Montgomery County location, the first in the chain with a drive-thru and the fourth overall in Texas, is operated by franchisee Michael Grosiak. Ross Dress for Less signed a lease with NewQuest Properties for 22,106 square feet in Fort Bend Town Center II, a retail project under construction at Texas 6 and Fort Bend Tollway in Missouri City. Andrew Alvis and Bob Conwell of NewQuest Properties represented the landlord. Matt Reed of Shop Cos. represented the tenant. Olive Garden has leased 7,932 square feet in Fort Bend Town Center II in Missouri City. Andrew Alvis and Bob Conwell of NewQuest Properties represented the landlord. Grant Walker and Brad Kilbride of Lee & Associates - Houston represented the tenant. Brilliant Earth, a digital-first jewelry company specializing in ethically sourced fine jewelry, expanded to Houston with a new showroom at Montrose Collective. Headquartered in San Francisco and Denver, Brilliant Earth has 18 showrooms including other Texas locations in Dallas and Austin. The new showroom at 888 Westheimer
Rosati’s Pizza
Rosati’s Pizza opened a location at 4150 FM 1488 in The Woodlands/Conroe area, the chain’s fourth in Texas and first drive-thru.
supports the brand’s digital channels, enabling customers to visualize products and create their own rings. The company was founded by Beth Gerstein and Eric Grossberg. The Galleria, a property of Simon Property Group at 5085 Westheimer, announced several new retailers. Recently opened stores include the first Texas locations for Arabian Oud fragrances, Beach Bunny swimwear and Savage x Fenty, an inclusive brand of lingerie designed by singer Rihanna. Others include new to Houston locations for Blenders, a sunglasses retailer from San Diego, Offline by Aerie activewear, Blue Nile Diamonds and Zwilling J. A. Henckels, a
maker of kitchen knives, scissors, cookware and flatware. Coming soon are: Amorino Gelato; Capital One Café, a first-to-market concept for Houston combining banking, coffee and pastries; Forward, a new to Houston wellness clinic; Psycho Bunny, a new to Houston menswear brand that debuted in New York in 2005; Steepologie, a specialty tea store for its first Houston location; and Sugar Factory Express for its Houston debut; Reset by Therabody, a wellness center planning its first Texas location. Playa Azul Restaurant & Oyster Bar leased 4,400 square feet at Steeplechase Landing, 4635 Southwest Freeway. Gustavo Lopez of Resolut
RE represented the landlord. Marble Slab Creamery/ Great American Cookie leased 2,000 square feet in the Shops at Cypresswood at 19507 Interstate 45 North in Spring. Sarah Thobae of Weitzman represented the landlord. Kristen Barker of Wulfe & Co. represented the tenant. Uncle Sharkii Poke Bar leased 750 square feet on the tunnel level at downtown’s Pennzoil Place, 711 Louisiana. Rick Gutierrez of Resolut RE represented the tenant. Tyler Garrett of Transwestern represented the landlord. Xfinity leased 2,300 square feet in the Easton Commons Shopping Center, at 8542 Texas
6 North. Bunny McLeod and Katherine Wildman of Wulfe & Co. negotiated the lease. Smoothie King leased 1,401 square feet at The Grand at Aliana, 10505 W. Grand Parkway South, Richmond. Eric Broussard of Resolut RE represented the tenant. Cole Schillne of Orion Property Group represented the landlord. Redzone Training Center leased a 9,360-square-foot gym space at 6560 FM 1960. Nancy Golden of Beeson Properties represented the landlord, KNA Partners. George Montes of Cypressbrook Co. represented the tenant. [email protected] twitter.com/kfeser
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After domestic setbacks, Mexico’s president seeking an international role Mexico’s president, Andrés Manuel López Obrador (aka, AMLO) was in Cuba last Sunday, where he reaffirmed Mexico’s ties with Cuba and railed against the injustice of the American embargo. In parallel, he negotiated agreements to buy a Cuban vaccine for children and to contract for 500 George medical workers Baker to come to Mexico. The visit to Cuba was at the end of a trip that included stops in Guatemala, Honduras, El Salvador and Belize. In Cuba, in his new, self-assigned role as a regional leader, AMLO characterized the Organization of American States as an American lackey. He called for a new organization based along the lines of the European Union. AMLO’s seeking an international role for himself comes on the rebound from a series of setbacks in his domestic agenda. In early April, he was unsuccessful in establishing a legal requirement for a midterm presidential recall because not enough voters participated. For the requirement to be adopted, he needed 40 percent of registered voters; only 20 percent showed up. On Easter Sunday, AMLO forced a vote in the lower house of Mexico’s Congress on his proposed constitutional amendments to undo market reforms to the nation’s energy sector and return control to the state. After a 12-hour brawl among legislators, the late-night vote
billion exceeds, by half, the earlier estimate of $8 billion. His fanciful purchase of the Deer Park refinery in January cost taxpayers $1.5 billion, of which $500 million was borrowed.
Needlessly worse off
Camilo Freedman/Bloomberg
Mexican President Andrés Manuel López Obrador has conditioned his attendance at the Ninth Summit of the Americas in Los Angeles on the inclusion of Cuba, Venezuela and Nicaragua.
was 275-223, a majority win for AMLO’s party and its allies but short of the two-thirds majority that was needed to amend the constitution. Within hours of their vote, AMLO retaliated. At his Monday morning news conference, the president characterized the lawmakers who did not support his bill as “traitors to their country.” At the end of March, U.S. Climate Envoy John Kerry, accompanied by American executives with investments in the energy space, met with AMLO in Mexico City. The
president waved away warnings that his proposed constitutional amendments would trigger litigation under the U.S.-Mexico-Canada trade and investment agreement. Among the executives was Tim Duncan, CEO of Houston’s Talos Energy. It was the Talos-led consortium that in mid-2017 made the largest oil discovery in Mexico in a generation with its well Zama-1. Since then, almost everything has gone sideways, to the consternation of investors and oil producers in Mexico. The five years that would
have brought Zama’s 160,000 daily barrels into production in 2022 were wasted in a soap opera of regulatory, economic and political malpractice. In mid-2021, Mexico’s national oil company, Pemex, was designated as the operator of the Zama area. In the meeting, AMLO urged Duncan to continue to find investor funds for the development of Zama. The challenge of funding AMLO’s energy projects extends to his pet refinery project at Dos Bocas, where the latest cost estimate of $12.5
Coming up in June, is the Ninth Summit of the Americas in Los Angeles, where the heads of states of the democratic nations in the hemisphere will meet. AMLO has conditioned his attendance on the inclusion of Cuba, Venezuela and Nicaragua. It is unthinkable that authorities would invite those notably undemocratic states to accommodate AMLO’s demands; yet AMLO cannot be ignored. His support is essential in preventing another immigration crisis on the border. About the exclusion of countries from the summit, AMLO has a point: the flows of people, natural resources and manufactured goods — amen, illegal drugs — from the excluded countries affect the regional economy. To pretend otherwise is yet another painted face of cancel culture. About his energy polices, in contrast, he has been consistently in error: His rhetoric, the bad-faith negotiations of Pemex with Talos and the Kafkaesque rulings by regulators have paralyzed foreign investment. Mexico’s energy security is needlessly worse off today than it was when he took office. George Baker is the publisher of Mexico Energy Intelligence, a Houston oil industry newsletter. @Energia.com
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LEGAL NOTICE Choice Partners (CP) a division of Harris County Department of Education (HCDE), is a national cooperative that will be accepting proposals in response to the following Request for Proposals (RFP): • RFP 22/045KN Online Marketplace for Products Proposals are due Tuesday, June 28, 2022 @ 2:00pm central time. Interested proposers may go to www.choicepartners.org and register to download the solicitation or call 713.696.1337. MWBE, SBE, and HUB vendor participation is encouraged. It is HCDE policy not to discriminate on the basis of race, color, national origin, gender, limited English proficiency or handicapping condition in its programs.
Notification of Planning Meeting Notice is hereby given that Harris County is seeking input for the development of a Method of Distribution (MOD) for $750,000,000 in Community Development Block Grant - Mitigation (CDBG-MIT) funds from the Texas General Land Office and U.S. HUD. Written and oral comments regarding the development of a county MOD will be taken at a planning meeting scheduled for: Thursday, May 19, 2022, at 1:30 pm to 2:30 pm at the Harris County Community Services Department (HCCSD) office located at 9418 Jensen, Houston, Texas, 77093. Additional written input regarding the planned use of the CDBG-MIT funding will be accepted by Harris County by May 30, 2022, 5:00 pm, via mail to Attn: HCCSD Planning Section, 13105 Northwest Freeway Suite 400, Houston, Texas 77040 or by email to [email protected]. Harris County will provide for reasonable accommodations for persons attending Harris County functions. Requests from persons needing special accommodations should be received by Harris County staff 48-hours prior to the function. The public hearing will be conducted in English and requests for language interpreters or other special communication needs should be made at least 72 hours prior to a function. Please call 832-927-4700 or email [email protected] for assistance or additional information about this posting.
NOTICE OF PUBLIC HEARING ON PROJECT CONCERNING STUDEMONT SPACEWAY PARK The City of Houston proposes to sell a 0.2600-acre park site known as Studemont Spaceway to the adjacent developer, BKR Memorial who will repurpose the site as part of the Buffalo Heights mixed use development project, (the “Project”). The City Council of the City of Houston will hold a public hearing on the Project, beginning at 9:00 a.m. on Wednesday, May 25, 2022, in Council Chambers, Second Floor, City Hall, 901 Bagby, Houston, Texas. Persons wishing to speak at this public hearing should reserve time by calling the City Secretary’s office at 832-393-1100 before 8:30 a.m. on May 25, 2022. CITY OF HOUSTON, TEXAS By: Pat Jefferson Daniel, City Secretary
NOTICE OF APPLICATION TO ESTABLISH A BRANCH OFFICE Notification is hereby given that VeraBank, N.A., 201 W. Main Street, Henderson, Texas 75652, will file an application with the Comptroller of the Currency on May 16, 2022, as specified in 12 C.F.R. Part 5 for permission to establish a branch office at 200 River Point, Suite 100, Conroe, Texas 77304. Any person wishing to comment on this application may file comments in writing with the Director for District Licensing, 500 North Akard Street, Suite 1600, Dallas, Texas 75201 or [email protected] within 30 days of the date of this publication. The public may find information regarding this application, including the date of the end of the public comment period in the OCC Weekly Bulletin at www.occ.gov. Requests for a copy of the public file on the application should be made to the Director for District Licensing. Date: May 16, 2022 Announcing that: I, Oscar Lopez from Torrance, California who resides in 7650 Montglen Dr. Houston. TX. 77061, will engage in civil marriage at the Cartorio Extrajudicial 3rd Zona in Sao Luis/MA. Brazil. This announcement is to satisfy the Brazilian laws and to confirm that there are no impediments to this marriage.
ATTENTION DIRECT AND INDIRECT HOLDERS OF, AND PROSPECTIVE HOLDERS OF, STOCK ISSUED BY TALEN ENERGY SUPPLY,LLC: On May 10, 2022, the United States Bankruptcy Court for the Southern District of Texas (the “Court”), having jurisdiction over the chapter 11 cases of Talen Energy Supply, LLC (“Talen”), and its debtor affiliates (the “Debtors”), captioned as In re Talen Energy Supply, LLC, et al., Case No. 22-90054 (MI) (the “Chapter 11 Cases”), entered an interim order establishing procedures with respect to transfers in the beneficial ownership (including directly or indirectly) of, and claiming a worthless stock deduction with respect to the beneficial ownership of, the membership interests in Talen (“Talen Stock”) and options to acquire beneficialownershipofTalenStock. In certain circumstances, the Stock Procedures restrict transactions involving,and require notices of the holdings of and proposed transactions by, any person, group of persons, or entity that either (i) is a Substantial Stockholder of the Talen Stock or (ii) as a result of such a transaction, would become a Substantial Stockholder of the Talen Stock or would result in the deconsolidation of Talen from the Talen Energy Corporation consolidated group for U.S. federal income tax purposes or (iii) claims by any Majority Holder of a worthless stock deduction under section 165 of the Internal Revenue Code with respect to the beneficial ownership of Talen Stock (a “Worthless Stock Deduction”). For purposes of the Stock Procedures, a “Substantial Stockholder” is any person or entity (within the meaning of applicable U.S. Treasury regulations, including certain persons making a coordinated acquisition) that beneficially owns, directly or indirectly,at least 4.75% of the outstanding Talen Stock as of the Petition Date and a “Majority Holder” shall mean any person that either (i) beneficially owned at any time since December 31, 2018 at least 47.5% of the outstanding Talen Stock, or (ii) would be a“50-percent shareholder” (within the meaning of section 382(g)(4)(D) of the Tax Code) of Talen Stock if such person claimed a Worthless Stock Deduction on its federal income tax return at any time on or after the Petition Date. Any prohibited acquisition or other transfer of, or claim of a Worthless Stock Deduction with respect to, Talen Stock (including options to acquire beneficialownershipofTalenStock)willbenullandvoidabinitioand mayleadtocontempt,compensatorydamages,punitivedamages,or sanctionsbeingimposedbytheBankruptcyCourt. In addition,as part of a final order,the Debtors have requested approval of additional claims procedures that set forth certain future circumstances under which any person,group of persons,or Entity that has acquired,or as a result of a proposed transaction would acquire,beneficial ownership of a substantial amount of claims against the Debtors can be required (i) to file notice of their holdings of such claims and of such proposed transaction, which transaction may be restricted, and (ii) upon a subsequent order of the Bankruptcy Court, after notice and hearing, to sell, by a specified date following the confirmation of a chapter 11 plan of the Debtors, all or a portionofanyclaimsacquiredduringtheChapter11Cases. The Stock Procedures, as approved on an interim basis and as requestedonafinalbasis,areavailableonthewebsiteoftheDebtors’ Court-approved claims agent, located at https://cases.ra.kroll.com/ talenenergy, and also on docket of the Chapter 11 Cases, Docket No. 119,whichcanbeaccessedviaPACERathttps://www.pacer.uscourts. gov. PLEASE TAKE FURTHER NOTICE that the final hearing on the motion shall be held on June 8, 2022, at 3:30 p.m. (Prevailing Central Time) and any objections or responses to the Motion shall be in writing,filed with the Court,with a copy to chambers,and served upon (i) proposed attorneys for the Debtors,Weil,Gotshal & Manges LLP (x) 767 Fifth Avenue,New York, New York 10153 (Attn: Matthew S. Barr, Alexander Welch, and Katherine Lewis) and (y) 700 Louisiana Street,Suite 1700,Houston,Texas 77002 (Attn: Gabriel A. Morgan and Clifford Carlson), and (ii) the Office of the United States Trustee for the Southern District of Texas, and (iii) the attorneys for any statutory committee of unsecured creditors appointed in these cases;in each case so as to be received no later than 5:00 p.m.(Prevailing Central Time)onJune3,2022. PLEASE TAKE FURTHER NOTICE that the requirements set forth in the Stock Procedures are in addition to the requirements of Bankruptcy Rule 3001(e) and applicable securities, corporate, and other laws, and do not excusenon-compliancetherewith. A direct or indirect holder of, or prospective holder of, Talen Stock that may be or become a Substantial Stockholder should consult theStockProcedures. Dated: May10,2022, Houston,Texas BYORDEROFTHECOURT
ANYONE KNOWING the whereabouts of BETHIA CAFFERY KILLINGSWORTH, please contact JOSEPH A. TABB, ATTORNEY AT LAW, (337) 828-0454, 111 Wilson St., Franklin, LA. PUBLIC NOTICE Effective May 16, 2022, Dr. Karina Cañadas will no longer be affiliated with Texas Children’s Hospital and Baylor College of Medicine. Requests for medical records may be submitted by calling 832-8241634.
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BUS I NESS CALEN DA R MONDAY
environment. Registration: houston.org/events.
JS101 Work Teams — A Weekly Accountability Group:
Architecture Center Houston: The Architecture of Bees, an exhibit by architect and beekeeper Wendy Heger, opens May 18 and will be on view through Aug. 26. Information: www.aiahouston.org.
2-4 p.m. Registration: JS101.org/workshops. E-mail 101: Class hosted by Fort Bend County Libraries. 7-8 p.m., Missouri City Branch Library, 1530 Texas Parkway, Missouri City. Information: www.fortbend.lib.tx.us.
Transportation Club of Houston:
TUESDAY How to Fund Your Business: Webinar hosted by SCORE. 10 a.m.-noon. Learn about the various sources of funds in the marketplace, the best place to start, what lenders look for and the key ingredients for success when borrowing money. Registration: www.houston.score.org. Houston's Export Ecosystem: Houston Area Resources for Exporters in the Post-COVID Era: Hosted by the Greater Houston Partnership. 8-10 a.m., Partnership Tower. Information: www.houston.org/events. National Business Development Association: Networking happy hour. 5:30-7 p.m., The Rustic, 1836 Polk. Information: nbda.co/events. The Art of Marketing Yourself to People: Hosted by JS101. 10 a.m.-1 p.m. Registration: JS101.org/workshops. MS PowerPoint 2016 Survival Basics: Class hosted by Fort Bend County Libraries. 10:30-11:30 a.m., University Branch Library, 14010 University Blvd., Sugar
Michael Wyke/Contributor
The Greater Houston Partnership will provide an update on Houston’s global economy on Wednesday. Land. Information: www.fortbend.lib.tx.us. Alternatives to MS Word: Class hosted by Fort Bend County Libraries. 10 a.m.-noon, George Memorial Library, 1001 Golfview, Richmond. Learn about various word-processing software options. Information: www.fortbend.lib.tx.us.
WEDNESDAY State of Houston’s Global Economy: Event hosted by the Greater Houston Partnership. 10:30 a.m.-1:30 p.m., Omni Hotel, 4 Riverway. Patrick Jankowski, the Partnership’s senior vice president of research, will offer insights on the Houston region's leading international trade partners and other data. Philipp Carlsson-Szlezak, global chief economist at Boston Consulting Group, will provide a broader view of the global business
Luncheon. 11:30 a.m., Monument Inn, 4406 Independence Parkway, La Porte. Speaker: Walter Sánchez, general manager global supply chain at Chevron Phillips Chemical.. Information: www.transclubhou.org. Resume Editing: Hosted by JS101. 10 a.m.-noon. Registration: JS101.org/workshops.
THURSDAY LinkedIn Company Research and Job Boards: Hosted by JS101. 10 a.m.-noon. Registration: JS101.org/workshops. Computers 101: Class hosted by Fort Bend County Libraries. 11 a.m.-noon, First Colony Branch Library, 2121 Austin Parkway, Sugar Land. Information: www.fortbend.lib.tx.us. MS PowerPoint 2016 Survival Basics: Class hosted by Fort Bend County Libraries. 6:30 p.m., Sugar Land Branch Library, 550 Eldridge, Sugar Land. Information: www.fortbend.lib.tx.us.
FRIDAY The Seven Habits of a Job Search: Hosted by JS101. 10 a.m.-1 p.m. Registration: JS101.org/workshops.
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