RECOMMENDATION: Approve and authorize the Marketing Agreement between the City of Houston, TX, and Newmark Real Estate of Houston, LLC to assist with the marketing of Parcel QY22-007, located at 12606 Cityscape Avenue, Houston, TX 77047.
SPECIFIC EXPLANATION: The City owns a vacant lot that was acquired in 2022 with CDBG-DR funds under General Land Office (GLO) Contract No. 21-134-000-C788 between the City and the GLO for the Harvey Single Family Development Program consisting of approximately 14.946 acres, located along the east line of Highway 288 frontage road and west line of Cityscape Avenue, south of east Orem Drive and more commonly known as 12606 Cityscape Avenue, Houston, Texas 77047 (Parcel QY22-007). The City faced several challenges with the property development, prompting the GLO to notify the City of its intent to recapture the funds used to purchase the Property.
The City desires to sell the Property to satisfy the indebtedness to the GLO. The General Services Department (GSD) has canvassed all City departments with land needs and has determined that the property is not needed for City purposes. Section 253.014 of the Texas Local Government Code provides the City with the option to contract with a broker to sell City-owned property. It was determined that listing the property with a broker who will actively market the property to developers, investors, builders, and end users may yield an earlier, higher return to the City as opposed to a sealed bid sale.
On April 10, 2024, by Ordinance 2024-0225, City Council approved a Marketing Agreement with CBRE, Inc. to market the property. This agreement expired December 31, 2024, pursuant to its terms. The requested action allows the City to enter into a new marketing agreement for this property.
On February 26, 2025, by Ordinance 2025-0152, City Council approved a Marketing Agreement with Newmark Real Estate of Houston, LLC to market the property. This agreement expired June 30,2025, pursuant to its terms. The requested action allows the City to enter into a new marketing agreement with Newmark Real Estate of Houston, LLC for this property.
Therefore, GSD recommends that City Council approve and authorize a new Marketing Agreement between the City of Houston, TX, and Newmark Real Estate of Houston, LLC to assist with the marketing of Parcel QY22-007.
SCOPE OF CONTRACT AND FEE: The proposed Real Estate Marketing Agreement will commence on the date of the countersignature by the City Controller and terminate at the earlier of (a) 11:59 pm on the 28th of February 2026 or (b) upon closing and funding of the City’s sale of the property. Under the terms of the Agreement, Newmark Real Estate of Houston, LLC will perform the following tasks: (1) gather relevant information and develop marketing material; (2) list or advertise the property in appropriate publications, websites, etc.; (3) install agreed-upon signage on the property; (4) identify and target qualified prospects; (5) respond to information requests concerning the property; (6) assist with the City’s sale process; and (7) provide periodic progress reports to the City.
The City will pay a one-time fee of 3% of the sales price of the property, or 4% if the purchaser is represented by another broker other than Newmark Real Estate of Houston, LLC. The sale of the property will be conducted in accordance with all applicable state and city laws and will require final approval by City Council.
The Office of Business Opportunity reviewed the Real Estate Marketing Agreement and determined that the level of MWSBE availability would produce minimal MWSBE participation. Therefore, the Office of Business Opportunity has approved a 0% MWSBE goal.
PROPERTY LOCATION: 12606 Cityscape Avenue, Houston, TX 77047
FISCAL NOTE: There is no impact to the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department
DIRECTOR’S SIGNATURE/DATE:
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Micheal C. Nichols
Housing and Community Development Department