It was an eyesore and far too often the source of traffic congestion caused by entering and exiting 18-wheelers. The old Cal-Tex industrial facility, known to the community as ‘the juice plant’, spanned the entire eastern 400 block of Yale north of I-10 and served as an unwelcome entry to the distinctive charm of The Heights.
Once plans to close/relocate the business were made public, speculations swirled, but there was little confirmation or clarity around ownership, disposition or future plans for the property, until now. While significant, the property located at 402 Yale is just one component of a much larger ongoing narrative and The Leader is providing an exclusive look into the entire story.
North of I-10, the unsightly industrial building that used to house the former Cal-Tex plant served as an unwelcoming introduction to The Heights. (Photo by Stephanie Shirley)
Stephanie Shirley
The facility and adjoining buildings are being cleared for future development. (Photo by Stephanie Shirley)
Stephanie Shirley
How it Started
Around 2014, a prominent Houston real estate developer and the owner of Caspian Enterprises, Mir Azizi, was introduced to a tract of land at the northwest intersection of I-10 and Yale.
Azizi’s development firm is known for its focus on historical preservation and creative restoration. Azizi himself says he became obsessed with its potential. He was convinced that something spectacular could and should be done with the location. He envisioned something similar to Mercado de San Miguel, a historic covered market in the heart of Madrid.
“I always felt this corner commanded something extraordinary, being the gateway into The Heights,” Azizi said in a rare interview granted to The Leader. However, it became readily apparent why 337 Yale hadn’t been previously developed. In the 60s it had been leased to a fertilizer company that buried unpermitted tanks and chemicals, rendering the property contaminated and unfit for excavation.
337 Yale St. at the NW corner of I-10 and Yale is currently a Verdant location but was useless for development prior to undergoing extensive remediation. (Photo by Stephanie Shirley)
Stephanie Shirley
The property remained in a trust, its beneficiaries unable to sell, as there was little potential for anything beyond surface operations. It’s currently being leased to Verdant Tree Farms & Landscaping.
Before purchasing, Azizi had environmental evaluations done. Even though the contamination was contained and did not reach the surrounding bayous, it was still going to require significant capital outlay before it could ever be developed.
“After buying it, I spent the next decade and over $2 million dollars remediating the property,” Azizi said. While contamination clean-up was critical, development faced another obstacle. It turned out that access to the property had been choked years ago when Cal-Tex purchased some of 337 Yale’s frontage property for employee parking and storage.
“For years, I negotiated with the owners of the former Cal-Tex business, making numerous proposals, but they wouldn’t yield,” he said.
337 Yale is diagonally across the street from 402 Yale, with Cal-Tex owning some of its frontage. (Google Earth image)
Stephanie Shirley
How it Came Together
Two years prior to Azizi’s purchase, Country Pure Foods had acquired Cal-Tex Citrus, distributor of Vita-Juice and other familiar citrus brands. The acquisition of Cal-Tex gave them the opportunity to extend geographic reach and better serve their national accounts, according to their former President and CEO.
Over the next decade, Country Pure Foods struggled with the antiquated industrial site, planning to cease Houston operations altogether and relocate its employees. It was also apparent that the facility was not the best usage for a location with this proximity to downtown. In anticipation of the closure, the real estate beneath it changed hands multiple times (some a matter of public record, some not), with the property ending up in the portfolio of Blue Point Capital Partners, a top 25 equity firm. This brought Azizi’s property frontage access negotiations to a whole new level.
Azizi, an astute business man, knew that he had an edge in this economic climate. Rising property values, taxes and interest rates posed challenges for equity firms dealing in dollars and capital transitioning. Azizi made the decision to go all in with Blue Point, rather than settling for the acquisition of his frontage. In this ‘money talks’ market, he made them a deal they couldn’t refuse and purchased both the former Cal-Tex site at 402 Yale and the property impeding his.
He also agreed to leaseback the property to the plant to accommodate the timing of their planned exit strategy. Azizi now owns approximately four acres on the west side of Yale and three acres on the east. The enormity of the combined holdings and the new potential warranted a complete reassessment of his original plans.
Meet the Mystery Man
Mir Azizi was born in the Iranian province of Mazandaran, south of the Caspian Sea; hence his company’s name. He moved to America in the early seventies and obtained his citizenship in the mid-80s. He earned an undergraduate degree in civil engineering from the University of Houston and a graduate degree in Geotechnical Engineering.
“I actually practiced environmental engineering in California, which is a little different,” he clarified. “For over a decade, we provided field services for environmental companies investigating site contaminations for fuel drilling and servicing.” Engineering and the environment are important to him, but his real passion is real estate development, especially historical preservation and restoration.
Mir Azizi, Houston real estate developer and owner of Caspian Enterprises, envisions something really special for his property in The Heights. (Photo by Stephanie Shirley)
Stephanie Shirley
Among his portfolio of numerous developments, Azizi has transformed seven different historical sites in Houston.
“Not one, not two, but seven. There are things which inarguably hold value to Houstonians and need to be preserved,” he said. “I’m a huge proponent of preserving those things that have historic value to the community.”
His last restoration project, The Sanctuary Lofts, is a Houston Business Journal Landmark Award winner. It was the conversion of the historic Church of the Redeemer, near the second and third wards. The history was as interesting as the age and architecture. He shared that the church was infamous for its scandalous past. In the 70s and 80s, it evolved into a cult-like environment. Amidst allegations of sexual misconduct, coercion and mental abuse by its leadership, the church fell into disrepute.
Now a Look Forward
After the second Yale St. acquisition, Azizi recognized that the capital needed for something of this magnitude would require much deeper pockets. Development of the two locations, with a possible overhead walkway over Yale to connect them, will dictate far more time and resources than originally planned or prepared for.
As a result, Azizi said he will be looking for a buyer; but not just any buyer. He wants the property developed in such a way that it pays proper homage to the charm and history of The Heights. While future property plans obviously can’t be predicated as a sale contingency, he intends to conduct due diligence in evaluating potential buyers, saying:
“I am even open to staying on as a consultant or equity partner to help influence that.”