Center's Chief Economist Tells It Like It Is

TEMPLE (Temple Daily Telegram) – Widely known for his “tell-it-like-it-is” style, Dr. Mark Dotzour told 250 Temple and Bell County residents that they — and Texas in general — are faring better than the rest of the country economically, but that the situation can always change.

“People are still wealthy; this country is still strong; but people are taking a wait-and-see attitude,” said the chief economist for the Real Estate Center at Texas A&M University. “So far, we’ve been pretty immune to what’s going on at the national level. But we have got to be careful. We’re isolated from the national problems, but we aren’t immune to them.”

Still, Dotzour liked what he saw in Bell County.

“The local real estate market here has completely avoided what’s going on at the national level. I like the looks of what’s going on here because building is off a little. That’s good because we need fewer new homes built across the nation,” Dotzour said. “Bell County is responding correctly, in my opinion, to this situation by reducing the supply of new homes. That’s healthy for the local market.”

Dotzour’s straightforward approach was especially evident as he addressed the Trans-Texas Corridor and ethanol, two highly charged issues in Bell County.

“We need a Texas corridor desperately,” Dotzour said. With a projected 13 million more people coming to Texas by 2030, he said the state needs more infrastructure to help ensure continued economic growth.

Regarding ethanol subsidies by the federal government, Dotzour said with a food crisis in 33 countries, using corn for ethanol doesn’t make sense ethically. He also said making corn ethanol is “absolutely wrecking our economy.”

“You put a third of our corn crop in the gas tank, and what happens? Corn goes up. Wheat goes up. Rice goes up. Oil goes up. The value of the dollar goes to nothing, and gasoline’s $3.50,” he said.

Young Developers in the Making

DALLAS (Dallas Morning News) – Donning hard hats and side-stepping pigeon droppings, 25 teenagers from the Irma Lerma Rangel Young Women's Leadership School toured the former Dr Pepper site on Second Ave. at Hickory St. yesterday morning. Their mission? Propose possible uses for the nearly 80-year-old building that has been vacant since 1999.

The young women were part of "This Old Building," a competition launched four years ago by the local Commercial Real Estate Women (CREW) chapter to teach young women about real estate careers.

The students came up with five plans to redevelop the 110,069-sf site.

The winning team — which consisted of Sarah Flores, Geneinde Taylor-Edwards, Tiana Riley, Aaliyah Whitmire and Koran Watson — reimagined the building as offices, art studios and a Dr Pepper museum with a "green" roof, a parking garage and a shuttle to the nearby DART station.

Allstate's $71 Million Settlement

AUSTIN (Austin American-Statesman) – A $71.3 million settlement between Allstate Insurance Co. and state regulators could affect up to 700,000 Texas homeowners.

After several years of tangling with regulators who claimed Allstate’s rates were unjustifiably high, the insurance company has settled on an agreement that includes:

• $37 million in refunds for new and renewal policies written by Allstate Texas Lloyds between Dec. 1, 2004, and April 23, 2006;
• a 3 percent rate cut for new and renewal policies written for a year starting June 2. Policyholders will get a 3 percent credit covering Aug. 20, 2007, through June 1; and 
• a freeze on premiums from June 2, 2008, to June 1, 2009. However, that provision gives Allstate an out if there are "extraordinary and unforeseen circumstances."

Allstate is the state’s second-largest home insurer.

Irving Convention Center Back On Track

IRVING (globest.com) – After nearly ten years of planning, the city’s convention and visitors’ bureau expects work to begin this summer on its $125 million convention center.

The 250,000-sf project would mark the first phase of a 40-acre development on a tract bounded by SH 114, Northwest Hwy., Las Colinas Blvd. and Fuller Dr. The center calls for 50,000 sf of exhibit space, a 20,000-sf ballroom and 20 1,000-sf break rooms.

Phase two would include a $50 million-plus concert venue with 3,500 seats.

RMJM Hillier designed the convention center to meet base level LEED certification. Austin Commercial will be the general contractor. Dallas-based Beck Group is overseeing construction and design. Philadelphia-based SMG will manage the facility.

Partnership Picks Pair of Properties

DALLAS (globest.com) – Post Investment Group LLC and Lagovent Real Estate Group LLC have purchased a two-property, 952-unit portfolio from the Frankel Family Trust.

The partners have paid almost $35 million and allocated about $1,000 per unit to upgrade the 27-year-old Wimberley Park Apartments and the 24-year-old Camelot Village. Both Class-B properties are in North Texas and are about 95 percent occupied.

Wimberley Park is on 20 acres at 800 Link Dr. in Duncanville. It has 440 units ranging from 689 to 1,018 sf. Monthly rents are $616 to $785.

Camelot Village is on 21 acres at 4200 US 80 in Mesquite. It has 512 units ranging from 606 to 1,095 sf. Monthly rents are $498 to $775.

Los Angeles–based Lagovent's Dallas team will lease and manage both properties.

Land Conference Video Now Online

COLLEGE STATION (Real Estate Center) – The hundreds of registrants at the recent 18th Annual Outlook for Texas Land Markets in San Antonio may have had to cozy up next to each other to hear experts talk about wind power, water, wildlife and other land issues, but you can catch the highlights from the comfort of your office.

Check out the Real Estate Center’s new ten-minute video, now available on the Center’s website.

JAW Equity Buys Five

HOUSTON (JAW Equity Management LLC) – JAW Equity Management LLC has purchased five area apartment complexes totaling 1,265 units. The properties will be renovated over the next four months, and four have been renamed.

The 340-unit Westbrook Place is now The Lodge, the 294-unit Waterstone is now Waterfall Park, the 252-unit Greenridge Park is now Live Oak Bend and the 155-unit Wayforest Glen is now Courtyard Manor. Also included was the 224-unit Ashford Pointe, which will keep its name.

CB Richard Ellis Inc. represented the seller, Whittaker Lauderdale Group. Lifestyles Realty represented JAW Equity Management, which will manage the properties.

Infrastructure Focus at ULI Luncheon

SAN ANTONIO (Urban Land Institute) – Infrastructure issues will be the focus at a luncheon sponsored by the Urban Land Institute (ULI) Tuesday, May 20, in San Antonio.

Ed McMahon, ULI’s senior resident fellow for sustainable development, will present the findings of “Infrastructure 2008: A Competitive Advantage,” the second of ULI’s annual reports on international infrastructure. A copy of the report will be provided to all attendees.

The luncheon will be held from 12 p.m.–1:30 p.m. at the Hotel Contessa Ballroom at 306 W. Market St. Preregistration is $35 for ULI members, $60 for nonmembers. Costs will increase after May 15. For more information, visit ULI’s website.

Behringer Under Contract for One City Centre

HOUSTON (RealtyNewsReport.com) – Behringer Harvard has signed a contract to buy the 31-story One City Centre in downtown Houston in a deal that will be worth more than $100 million.

Holliday Fenoglio Fowler is marketing the 610,000-sf office property, which is at 1021 Main St. and is 95 percent occupied.

Transwestern handled leasing and marketing efforts for the seller, Broadway Partners.

Alamo City Ecosystem Restoration Contract Awarded

SAN ANTONIO (San Antonio Business Journal) – Laughlin-Thyssen Inc. has been awarded a $23.4 million contract to begin ecosystem restoration along the eight-mile Mission Reach portion of the $220.4 million San Antonio River Improvements Project.

The Houston-based civil general contractor will begin work at Lone Star Blvd. and continue downstream 1.2 miles to just below where the water from the San Antonio River connects to San Pedro Creek. Work will include construction of a pilot channel, a 1.2 mile pedestrian trail, picnic tables, benches, trash receptacles and drinking fountains.

The federal government is contributing $9.1 million to the project. The San Antonio River Authority, the City of San Antonio and Bexar County will fund the remaining $14.3 million for Laughlin-Thyssen's contract.

The U.S. Army Corps of Engineers and its contractors will break ground on the Mission Reach project June 2 at Roosevelt Park.

BNSF Purchases Logistics Hub Acreage

DALLAS (Dallas Morning News) – A unit of Fort Worth–based Burlington Northern Santa Fe Corp. (BNSF) has purchased 198 acres at the Dallas Logistics Hub in Lancaster and Dallas, with an option to buy 164 more acres.

Officials with the rail company did not comment on what the land would be used for, but the property provides more than 9,000 feet of rail frontage and represents a portion of the 2.5 miles of BNSF track frontage within the Dallas Logistics Hub.

Metroplex Good Place to Build Equity

DALLAS (Dallas Morning News) – When it comes to building equity, the Metroplex is among the top five markets expected to do well over the next four years. Or so says the Center for Economic and Policy Research and National Low Income Housing Coalition.

According to the center’s recent study, a person who buys a house priced at 75 percent of the median for the DFW area could gain more than $80,000 in equity four years from now.

Mark Dotzour, chief economist with the Real Estate Center at Texas A&M University, said that while the study confirms the relative strength of the Texas housing market, he would advise against using the projections of any study as the basis for homebuying.

"I hope they are right, but my guess is they might be overstating it a little bit," Dotzour said.

Inner Loop Gated Community Planned

HOUSTON (Houston Chronicle) – Locally based McCord Development is planning a 62-home gated community on 11 acres in the city’s Inner Loop.

Willowick Place at River Oaks, which has been designed by Memphis-based Looney Ricks Kiss, will replace the Willowick Court Townhomes. Lots will average more than 5,500 sf.

Tyler Technologies' New Office Space

LUBBOCK (Lubbock Avalanche-Journal) – Dallas-based Tyler Technlogies Inc. expects to break ground in September on a 75,000-sf office building on the city’s west side. The building — the first of two — is intended to provide more space for the company’s INCODE software development division.

The three-story building will be built on 7.5 acres near NTS Communications off 53rd Street at Chicago Ave. The land was purchased from McDougal Cos.

The building will eventually house 350 INCODE employees on 50,000 sf. The remaining space will be available for leasing.

Tyler estimates the building will cost more than $12.7 million. A second building of equal size will likely be built within the next eight to ten years.

Stars Shine on McKinney

McKINNEY (globest.com) – A $5.5 million bond approved by the city last week will help cover the cost of the Dr Pepper StarCenter, an 85,000-sf hockey and sports complex that will be leased to Dallas Stars owner Hicks Sports Marketing Group.

The $11.5 million to $13 million complex is slated to be built on just over seven acres near Stacy Rd. and Hwy. 121 in Craig Ranch, a 2,500-acre master-planned community being developed by Craig International. Plans include two 1,700-sf ice rinks, eight locker rooms and a professional hockey teaching center.

Dallas-based Hicks Sports will pay $40,000 in rent per month for the first five years the center is open and $45,000 a month for the next 15 years. The center will be open for public use at least 174 hours each month.

GNL Buys Ridglea Bank Building

FORT WORTH (Holliday Fenoglio Fowler LP) – GNL Properties has purchased the 181,601-sf Ridglea Bank Building.

Located at 6300 Ridglea Place, the 12-story office building is currently 98 percent leased.

The Dallas office of Holliday Fenoglio Fowler LP represented the seller, a partnership between Dallas-based Cawley Partners and New York–based Greenstreet Real Estate Partners. HFF also arranged acquisition financing for GNL Properties through GE Real Estate.