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ICE looks to juice Texas real estate holdings over protests of local leaders

Plus, Scott Everett’s S2 begs investors for cash, TPG emerges as Harwood’s recapitalization partner and more Texas real estate news this week

The warehouses at 950 North I-45 & 542 SE Loop 410 and Harwood's Gabriel Barbier Mueller

It’s not just the blue states: Some local leaders in the Lone Star State are turning a cold shoulder to their federal colleagues with U.S. Immigration and Customs Enforcement. 

The federal agency, currently under fire for its hand in civilian killings in Minneapolis, reportedly bought a 1-million-square-foot warehouse in the Dallas suburb of Hutchins, with plans to turn it into a detention center, the Washington Post first reported in December. 

The facility would be able to hold up to 9,500 people, rattling a city with a population under 8,000. Hutchins Mayor Mario Vasquez told local ABC affiliate WFAA that he’s opposed to the plan, saying warehouses in the town of 8,000 “are for storage, not for holding people.”

“Who wants an ICE facility in their backyard?” he asked rhetorically when pressed about his opposition. 

ICE hasn’t confirmed the purchase, but the Clergy League for Emergency Action and Response said the transaction and location, at 950 North I-45, are an open secret, D Magazine reported

Elsewhere in the Texas Triangle, ICE is eyeing a 640,000-square-foot warehouse in San Antonio, the San Antonio Business Journal reported. The warehouse has been unoccupied for almost three years. The source that confirmed ICE is considering the property at 542 SE Loop 410 also told the outlet that the agency is scouting property in McAllen, on the U.S.-Mexico border.. 

Bexar County Commissioner Tommy Calvert vowed to fight the purchase. 

“These facilities are a front for more nefarious things to come if we don’t stop them,” he said in a statement to the San Antonio Business Journal. 

There’s no record of a transaction, but the rumors come amid a flood of reports that ICE is juicing up its real estate holdings across the country. 

Holes in S2’s shield against syndicator crash out

When Scott Everett launched the largest private REIT in 2024, the move was hailed by the industry as a clever escape hatch from the all-too-familiar syndicator crash out that took down his peers. Everett’s creative maneuvering, however, may not be bearing out as hoped: He was hitting up investors for a cash infusion earlier this month. The firm issued a capital call under threat of a fire sale that would wipe out 60 to 75 percent of investors’ equity in the properties, The Promote reported. It asked investors for $70 million in preferred equity. 

TPG emerges as Harwood’s recap partner

After an office buying spree that started in the fall (you heard it here first), San Francisco-based private equity firm TPG finally announced its role in the struggling Uptown landlord’s signature mixed-use district. In a Jan. 29 release, TPG said it’s kicking off its Harwood District presence by pumping cash into renovations for three properties. Gabriel Barbier-Mueller’s Harwood, which lost two other properties to foreclosure last year, retained a minority interest in the portfolio. 

T. Boone Pickens ranch has new owner 

A 12,000-acre Panhandle ranch formerly owned by the late oil magnate T. Boone Pickens, traded last month, closing a choppy chapter in the property’s history. The seller, a group of investors that includes Midland oilman Bailey Peyton and Georgia-based J. Bradford Smith, landed in a legal squabble in 2024 over naming rights at the ranch. The suit was resolved in April when Peyton and Smith agreed not to use the Mesa Vista name in their marketing. Public records show an entity owned by Southlake businessman Tim Cummings purchased the property. 

St. Regis penthouse shatters Houston records

Anyone questioning whether Houston has enough demand for the luxury condos in the pipeline can eat their words. Penthouses at Satya’s upcoming St. Regis condo project are selling like hotcakes; there’s only one left, and it’s listed for $14.5 million or $3,100 per square foot – the highest price per square foot in the history of Houston condo sales.

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Homeland Security Secretary Kristi Noem, Majestic Realty’s Ed Roski and Hutchins Mayor Mario Vasquez with the warehouse at 950 North I-45, Hutchins, TX
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Dallas-area warehouse may become ICE’s mega-detention center
S2 Capital's Scott Everett
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Harwood’s Gabriel Barbier-Mueller and 2727 North Harwood
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Satya's Sunny Bathija with renderings of St Regis renderings
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