Funds partner on business parks - Houston Business Journal:

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An affiliate formed by Houston-based ProTerra and Stratford Co. is moving forward with a proposed projec called West TenBusiness Park. The 463 acresx assembled by the partnership in Katy contains the same site of a similard project previously under consideration by theWolff Cos. ProTerraa and Stratford also jointly acquiredd nearly 880 acres in Baytownb for a largeindustrial project. is also involved in the deal (see While both funds focus onland investments, Stratford bringsx more financial resources to the table. The Dallas companyh is spending money froma $400 milliomn investment fund, with as the largestt institutional investor.
ProTerra has raiseed $35 million from individuap investors since the fund was launched nearlyg two years ago by John his son Joe Moody and Jim The fund still has 60 percent availablwefor investment. Stratford does not typicallyu co-invest on deals, but made an exceptiomn for ProTerra. “I think a lot of John says Kevin Watson, Stratford’s director of investment in “His business philosophy and his approacjh to people and the business are very similar to The two principals were brought together by Mark Gibsoj of Holliday FenoglioFowler LP, who helpes set up Stratford’s investment fund and was familiae with Moody’s fund.
The resultt was a partnership that has produced two and is expected to generate more transactionws inthe future. The first orderr of business for Pro-Terra and Stratford is developmentr of West TenBusiness Park. The deed-restricteed business park will occupy 463 acres on the northh side ofInterstate 10, about halfway between FM 1463 and Pedersoh Road. A big chunk of the acreag was formerly controlled by David the developer behind the Park10 (see “Wolffv roaming east to Katy,” Nov. 16, David Hightower, executive vice president for Wolfft Cos.
, says the firm passed on the propertyu becauseit wasn’t suited for immediate vertical development, somethint Wolff looks for when launching a project. “Wse worked real hard on it,” says Hightower. “Itt became apparent that it wasn’t going to fit in with our businesss model.” Wolff had purchased 54 acres from ownetJohn Beeson, and declined to exercise an optionh for Beeson’s other 272 acres. ProTerra and Stratford took titlre to the 326 acres amonthu ago, buying out Wolffg and Beeson. Terms of the dealss were not released. “It is the best tracy of land outthere that’s not being developed,” says Beeson of Beesom Properties.
The property is adjacent to 137 acres ProTerrw acquired inMarch 2008. That land has been flipped into theStratforx partnership, giving the owners a total of 463 acres for West Ten. Stratforcd is the majority owner with a 64 percent staker inthe deal. The owners will bring water and sewere tothe property. They are also working with the City of Katy and the to construc Cane Island Parkway throughthe site, and exit ramps from