Texas Bound for Fast Recovery?

NEW YORK (Forbes.com) – Texas’ four major metros are in the top ten fastest-recovering cities nationwide, according to Forbes magazine.

Forbes ranked San Antonio the second fastest recovering city in the country, Austin the third, Dallas–Fort Worth–Arlington the sixth and Houston–Sugar Land–Baytown the eighth.

The magazine attributed their relatively quick recovery to San Antonio’s and Austin’s high number of municipal jobs, Dallas’ thriving technology industry and Houston’s energy sector, as well as the state housing market’s ability to remain stable while other states’ markets crashed.

“Texas didn’t have as big of a boom,” said Dr. Jim Gaines, research economist at the Real Estate Center at Texas A&M University. “So we’re not having anywhere near the kind of bust.”

El Paso and McAllen-Edinburg-Mission were also placed within the 100 fastest-recovering MSAs, ranking 43rd and 48th, respectively.

Forbes ranked the country’s 100 largest MSAs according to each area’s September unemployment rate and foreclosures, gross metropolitan product, home prices and sales rates.

Greenhaven First LEED Silver

McKINNEY (globest.com) – The 216-unit Greenhaven is the first multifamily garden apartment complex to receive LEED Silver certification from the U.S. Green Building Council.

Greenhaven is expected to reduce residents’ carbon emissions by 280 tons per year and reduce their water usage by 900,000 gallons per year.

Sustainable design elements include Energy Star–certified appliances, windows, ceiling fans and light bulbs, programmable thermostats, duct tightness testing and low-volatile organic compound paints used inside the units. Energy costs will amount to approximately $1.6 billion during the next 20 years.

Developer FORE Property Co. opened the Class-A complex at 8690 Virginia Pkwy. just weeks ago. Greenhaven includes one-, two- and three-bedroom units ranging from 675 to 1,362 sf; rents range from $699 to $1,299 per month.

Texas' Existing Home Sales Climb, Prices Inch Up

TEXAS (Real Estate Center, Realtor.org) – A total of 19,347 existing single-family homes were sold in Texas last month, a 15 percent increase from October 2008, according to MLS data compiled by the Real Estate Center at Texas A&M University.

The median price rose 1 percent to $143,300 during the same period, and the state finished the month with a 6.9-month inventory of existing homes.

Here is how select Texas cities fared in October (data current as of Nov. 24, 2009):

Additional home sales data for these and other major Texas cities are available on the Center's website.

At the national level, the National Association of Realtors reported this week that single-family home sales rose 9.7 percent to a seasonally adjusted annual rate of 5.33 million in October from a pace of 4.86 million in September. That was 21.4 percent above the October 2008 pace. The median price was $173,100 in October, down 6.8 percent from a year ago.

Barclays Capital Controlling Crescent

DALLAS (Dallas Morning News) – Barclays Capital has purchased control of Fort Worth–based Crescent Real Estate Equities LP assets, which include the Uptown Crescent complex and the Trammell Crow Center and Fountain Place towers downtown.

Morgan Stanley sold control of the Crescent properties along with over 30 others across the country when it was unable to meet a $2 billion payment to Barclays this month.

Crescent is not the sole owner of the Dallas assets, however. A JP Morgan Chase & Co. subsidiary controls 60 percent of the Crescent complex, and the parent company has a 76 percent share of the Trammell Crow Center and Fountain Place.

The Few, the Proud: Last Friday's Giveaway Winners

COLLEGE STATION (Real Estate Center) – Eagle-eyed readers familiar with our Market Reports had a definite advantage on Friday's annual report giveaway question, which asked for the population density of Wichita Falls in 2008. 

The contest drew its fewest responses so far, but those who responded did so quickly, and their answers were right on the money.

The first ten to provide the correct answer — 55.9 people per square mile — were Skip Preble, Tony Hager, Kathy Smith, Marty Chrisman, John Fields, David Stewart, Gordon Alexander, Gregory J. Collins, Kim Rivera and Martin E. Garza. Congratulations! Your annual reports are on their way.

Today's question will require some digging: According to our website, which Texas MLS had the biggest percentage increase in existing home sales between October '08 and October '09? (Hint: The answer may not be on the chart in today's issue.)

Send your responses to bpope@mays.tamu.edu. Be one of the first ten to respond with the correct answer and we'll send you an annual report. Don't forget to include your mailing address.

Of course, online contests may not be your thing. If not, you can always purchase our annual report  for $4.95 through our online store while supplies last. It comes with a 12-month calendar featuring scenic Texas photographs taken by Real Estate Center staff members.

Timbercreek Construction Begins

DALLAS (Dallas Morning News) – By this time in 2011, the corner of Northwest Hwy. and Skillman St. will be occupied by Trammell Crow Co.’s 40-acre Timbercreek Crossing shopping center, the largest North Texas retail project begun this year.

Construction begins this week on the two-story, 320,000-sf building that will house Walmart, Sam’s Club and a parking garage.

Developers will break ground next year on a 104,000-sf JCPenney.

An additional 60,000 sf of shops and restaurants will also be built, and most of the development is slated to open by late 2011.

Timbercreek Crossing replaces almost 1,100 apartments that were demolished last year.

Ordinance Could Change Inspection Codes

AUSTIN (Austin Business Journal) – A proposal to adopt the 2009 International Energy Conservation Code and require housing starts to undergo energy inspections has been sent to the city council.

The proposed law would mandate testing for every single- or two-family unit by outside contractors. The current rule requires only a sampling of similar new housing by the same builder to be tested.

Multifamily complexes and attached buildings would still undergo testing of a random sample of units.

The ordinance would increase the minimum sf for requiring a check of heating, ventilation and cooling equipment for new commercial buildings from 5,000 to 10,000 sf, costing owners 25 to 50 cents per sf.

The proposal was recommended 5-0 by the Building and Fire Code Board of Appeals on Nov. 4 and recommended 5-1 by the Mechanical Plumbing and Solar Board 13 days later. It will most likely go before the city council in the new year.

The 2009 international energy code is a national code; statewide adoption is required to receive federal stimulus funds.

Bobcats' Academic Center Approved

SAN MARCOS (Austin Business Journal) – Texas State University System regents approved the design of a $47.7 million undergraduate academic center at Texas State University–San Marcos on Friday.

The 130,000-sf building at Guadalupe and Wood Streets will house the psychology, political science and sociology departments, as well as various university programs.

The center is slated for opening during the spring 2013 semester after a fall 2012 completion.

Federal Funding Goes to Wastewater

AUSTIN (Austin Business Journal) – The Texas Water Development Board has loaned $31.8 million of stimulus funding to the City of Austin to finance wastewater system improvements.

The city has proposed that the money be spent to construct aeration facilities and on upgrading treatment equipment at the Hornsby Bend Bio-Solids Management Facility.

Portions of each project are considered “green” by the U.S. Environmental Protection Agency.

7-Eleven Makes Dallas More Convenient

DALLAS (Convenience Store News) – Convenience store retailer 7-Eleven will add over 75 stores to the Metroplex's existing 266 in the next three years.

New stores will be concentrated in Dallas, Tarrant, Collin, Denton and Rockwall Counties and represent an investment of $50 million.

Local growth will include new development, leases, acquisitions and conversion of other retail outlets, as well as sites in shopping centers and downtown buildings. Converting or acquiring existing stores will account for approximately half of the growth, while 10 percent will be ground-up development and the remainder will be leased.

The company will add 550 stores nationwide over the next three years and spend $160,000 to $180,000 per store remodeling 3,000 locations.

What Do New Licensees Need to Know?

COLLEGE STATION (Real Estate Center) – Perhaps you're just getting started in the real estate business, or perhaps you know someone who is. In either case, this week's edition of the Real Estate Red Zone podcast is for you.

Real Estate Center Research Assistant Beth Thomas draws from her years of experience as a real estate broker to share tips that can help those new to the business get started on the right foot.

Also, hosts Bryan Pope and Edie Craig cover the latest real estate stories from around the state.

And don't forget to check out last week's Red Zone podcast if you haven't already. Just in time for deer season, Center Attorney Judon Fambrough joined us to talk about changes to regulations governing deer lease management.

To subscribe to the free podcast, just click on the RSS feed found on the podcast page. If you have an iTunes account, you can have the Red Zone downloaded automatically to your iPod and listen to it anywhere.

We Stand Corrected

COLLEGE STATION (Real Estate Center) – Referencing updates to Minerals, Surface Rights and Royalty Payments in the Nov. 10 issue of RECON, we incorrectly stated that “limestone, caliche, surface shale, building stones, sand, gravel and water cannot be reserved or conveyed.”

According to Judon Fambrough's report, “The term minerals or oil, gas and other minerals does not include limestone, caliche, surface shale, building stones, sand, gravel and water regardless of whether the water is located on the surface or in the ground. These substances belong to the surface owner unless they are specifically mentioned in the reservation or grant.”

Happy Thanksgiving!

COLLEGE STATION (Real Estate Center) – The Real Estate Center will be closed Thursday and Friday in observance of the Thanksgiving holiday.

RECON will not be published Friday, but we will resume our normal publication schedule next Tuesday.

Until then, we wish you and your family a happy and safe Thanksgiving.