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RECON for February 15, 2019RECON for February 15, 2019Bryan PopePope
2019-02-15T06:00:00Z2019-02-15T06:00:00Z

Real Estate Center Online News
According to Texas Realtors, 524,511 people moved to Texas in 2017, ranking the state second in the country for relocation activity. For the full story, keep reading today's RECON. (Photo from Center files.)
February 15, 2019

Mortgage delinquencies fall amid stable foreclosure rates

IRVINE, Calif. (Connect Media) – CoreLogic’s Loan P​erformance Insights ​Report shows that, nationally, 4.1 percent of mortgages were in some stage of delinquency in November 2018, representing a 1.1 percent-point decline year over year. 

Additionally, the foreclosure inventory rate stood at 0.4 percent, which was down 0.2 percent from November 2017 and was the lowest for any month since January 2000.

Delinquency in the Texas metros also declined year over year, with foreclosure rates remaining steady.

Texas' largest rate drop in 30-days-or-more delinquenc​y was in Houston, where it fell to 5.2 percent in November from 10.4 percent.

In Austin, the delinquency rate was 2.6 percent, the lowest of Texas' major metros and down from 3 percent.

Delinquency rates in Dallas and San Antonio were also down in November. DFW's rate fell to 4 percent from 4.6 percent while San Antonio's was down from 6.5 percent to 5.7 percent​​. 
Jim Gaines portrait on cover of outlook report
The Texas economy will cool off slightly as the housing market returns to normal in the coming year. Get the details in our exclusive 2019 Texas Housing & Economic Outlook report, written by the Real Estate Center research staff.

Welcome home: 525k residents moved to Texas in 2017

AUSTIN (Texas Realtors) – The Lone Star State ranked second in the nation for relocation activity in 2017, according to the ​20​19 Texas Relocation Report​ by Texas Realtors (formerly the Texas Association​​ of Realt​ors).

The state welcomed 524,511 new residents in 2017, fewer than the 531,966 out-of-state residents who moved to Texas in 2016. 

The net gain of out-of-state residents in Texas in 2017 fell from 87,656 in 2016 to 57,173 residents in 2017.

Residents moving to Texas from outside of the United States made up nearly half of the total inflow of residents. 

Among U.S. states, the highest number of new Texans relocated from California (63,175), Florida (33,740), Louisiana (28,700), Illinois (26,214),​​​​ and New York (20,644).

Texas ranked third in the United States for the number of residents moving out of state (467,338) in 2017. 

The most popular out-of-state relocation destinations for Texans were California (40,999), Oklahoma (32,430), Florida (31,625), Colorado (25,212), and Louisiana (17,674).

At the metro level, Los Angeles-Long Beach-Anaheim, New York-Newark-Jersey City, and Chicago-Naperville-Elgin produced the highest volume of residents relocating to Texas. Dallas-Fort Worth-Arlington had the highest number of incoming residents from out of state (230,118), followed by Houston-The Woodlands-Sugar Land (203,279).

​​​The report used data from U-Haul and the U.S. Census Bureau's 2017 American Community Survey five-year estimates.​​
#TXLand2019
Registration for our 29th Annual Outlook for Texas Land Markets on April 25-26 in San Antonio is now open! The conference provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. ​Register by Tuesday, March 26, for early-bird pricing. Don't forget to RSVP to our Facebook event to stay in the loop. 

Transwestern to start on 834K-sf distribution center 

HOUSTON (Houston Chronicle) – Transwestern Development Co. plans to break ground on the Sam Houston Distribution Center, an 833,720-sf industrial project off Fairbanks N. Houston Rd. between Fallbrook Dr. and Taub Rd.

The 60-acre site will have three buildings and additional land for added trailer storage or a build-to-suit opportunity. 

The buildings in the first phase consists of:
  • ​a 200,200-sf front-load building with a 32-ft clear height; 
  • a 494,800-sf, cross-dock facility with a 36-ft clear height; and 
  • a 138,720-sf, front-load facility with a 32-ft clear height.
Completion is planned for 2020, positioning the park to benefit from the $1.8 billion expansion of US 290 that is expected to be completed in late 2019.

Transwestern acquired the land and will develop the project with institutional investors advised by J.P. Morgan Asset Management.
Texas housing at a glance
Read the latest Texas Housing Insight report for more.

Big Alliance industrial project will have room to grow

FORT WORTH (Fort Worth Star-Telegram) – ​Developer Hillwood announced another round of warehouse construction would begin in March totaling 1.5 million sf of industrial space in the AllianceTexas development.

Alliance ​Westp​ort 11, located off the SH 156 frontage road, is designed to become one of the biggest modern distribution centers in the United States. It will offer one million sf of usable space with the ability to expand to more than two million sf. 

In the Northlake portion of Alliance at I-35W and SH 114, Hillwood will build two smaller warehouses totaling 500,000 sf.
Dr. Jim Gaines, Chief EconomistLove (and economics) is in the air on this week's Real Estate Red Zone podcast! Center Chief Economist Dr. Jim Gaines joins in an exlusive interview to talk about the state of the economy. We also look at the best states for singles. Tune in for this and more.

Work starts on 210K-sf Park Place Tower

HOUSTON (Houston Business Journal) – Stonelake Capital Partners has broken ground on its 15-story office building inside the loop near the River Oaks District.

The 210,000-sf Park Place Tower will be at 4200 Westheimer Rd. within the Park Place River Oaks development. The office building is Stonelake’s third phase at Park Place.

It will have first-floor retail and a landscaped terrace on the ninth floor. The building will be surrounded by a one-acre park.

Park Place Tower will be available for occupancy in spring 2020 and is currently in negotiations with three tenants.

Dallas-based Beck Architecture designed the project. Harvey Builders is the general contractor. 
House in a magnifying glass
The Real Estate Center’s research team had its monthly pow-wow earlier this week. Naturally, much of the discussion focused on what to expect from the Texas economy this year. Overall, the outlook is generally positive but with a caveat. Read our latest blog post for more.

1.2M-sf Alliance industrial property changes hands

JUSTIN​ (Commercial Property Executive) – Transwestern Investment Group has acquired a 1.2 million-sf industrial property in Fort Worth's Alliance submarket​ from DHL Supply Chain​. 

The property includes two cross-dock buildings: a 705,955-sf asset at 1753 Chaplin Dr. and a 494,041-sf one at 15453 Wolff Crossing. 

Developed in December 2018, each building includes 36-ft clear heights and is situated north of Fort Worth close to I-35W, US 287 via SH 114, and the DFW International Airport.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Microsoft to renovate former Chevron data center

SAN ANTONIO (San Antonio Business Journal) – Microsoft Corp. plans to renovate a data center once owned by Chevron USA Inc. at 5200 Rogers Rd.

The $44 million renovation will begin in March and wrap up by the end of the year.

The renovation will add administrative offices and a 60,500-sf co-location building that can handle a capacity of 7.2 megawatts.

Corgan Associates is the design firm.​
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Cold storage industrial project underway in south Dallas

DALLAS (Dallas Morning News) – New Jersey-based Preferred Freezer Services is building a 267,000-sf cold​​ storage facility at 7750 Dynasty Dr. near Hutchins south of I-20.

This will be the company’s first facility in North Texas when it opens in late summer 2019.

The storage facility has 62-ft ceilings—double the industry standard—and 15 million cubic feet of space.

Construction costs are estimated​ to be in the $65 million to $70 million range.
Positioning for the Future graphic

The Texas Real Estate Teachers Association's 2019 Positioning for the Future Conference is set for April 4-6 at the Marriott Plaza San Antonio on S. Alamo Dr. The $200 early-bird pricing for TRETA members only ends this Friday. Non-members can attend for $350. 

Allen apartment complex to include medical offices

ALLEN (Business Wire) – Sovereign Properties is developing the $73 million Sovereign at Twin Creeks apartment community at 729 Junction Dr. 

The 366-unit development will include a resident club house, fitness center, business lounge, and resort-style pool. 

The project will also feature a 15,000-sf Class A medical office building adjacent to the community. 

Delivery is expected for late summer 2020.​​

The community is next to Sovereign ​Properties' Dolce Living Twin Creeks apartment community that opened in 2016. ​
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Class A distribution space takes to the Hillwood

AUSTIN (Transwestern) – The recently completed Southpark Commerce Center V has been bought by Hillwood.

The three-building project at 4500 S. Pleasant Valley Rd. totals 350,171 sf of Class A distribution space. 

The park offers 24-ft to 28-ft clear, rear-load design; 150-ft to 180-ft truck courts; and ample car parking. Suites are between 15,000 and 150,000 sf. 

Transwestern Development Co. sold the property, which is 50 percent leased.
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Cardone Capital secures 351-unit Class A property 

SUGAR LAND (PRWeb) – Miami-based Cardone Capital has acquired the Stella at Riverstone, a 351-unit garden-style apartment community at 4711 LJ Pkwy. 

The Class A asset's amenities include a business center, clubhouse, athletic center, and​ swimming pool with tanning shelves and water features.

This is Cardone’s first acquisition of 2019.

'80s apartments sell to investors

DALLAS (CBRE) – Multifamily Property Group purchased the 192-unit, Class B Smith Creek apartments.

The 185,440-sf community is at 4791 W. Ledbetter Dr. and is accessible from both Loop 12 and I-35.

The complex was built in 1983 and includes two swimming pools and a clubhouse with resident lounge.

Smith Creek was 93 percent occupied at the time of sale, which was facilitated by CBRE.
Texas Association of Realtors quote about Real Estate Center
Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=248
RECON for February 12, 2019RECON for February 12, 2019Bryan PopePope
2019-02-12T06:00:00Z2019-02-12T06:00:00Z

Real Estate Center Online News
KC7 ranch photo from Icon Global Group
An El Paso oilman has purchased a 37,000-acre ranch in the foothills of the Davis Mountains for $32.5 million. Get the details on this transaction and more in today's RECON. (Photo from Icon Global Group.)
February 12, 2019

Lakeside office gets city approval, incentives

FLOWER MOUND (Dallas Morning News) – The city has approved construction of the first major office building in the Lakeside business district on Grapevine Lake.

Realty Capital Management's ten-acre Lakeside Center project includes two- and four-story office buildings near FM 2499 and Northwood Dr. 

The 138,500-sf project will be the city's largest new office development.

The city made an economic incentive agreement with the developers that will allow them to finance the project without preleasing.

Lakeside is a mixed-use development with retail, entertainment, residential, and commercial buildings.
Helping Texans make better real estate decisions since 1971

Amazon leases prime Austin real estate

​​​​​AUSTIN (Austin Business Journal) – Amazon.com Inc. is leasing nearly half of the Domain 10 tower, which is under contruction in a development that's becoming known as the city's second downtown.

The online retailer is taking 145,000 sf on four floors in the 15-story high-rise in the Domain Northside project. 

Domain 10 will have 300,000 sf of office space on the top eight floors, with parking on the first seven​. About 12,935 sf of office space is on the ground floor. Delivery is set for second quarter 2020. 

Endeavor Real Estate Group, which is developing the project with TIER REIT Inc., ​is handling leasing.

Local insurance holding company Citizens Inc. will lease 35,000 sf. Another 110,000 sf remains unleased.
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

El Paso oilman purchases Davis Mountains ranch

​​​REEVES, JEFF DAVIS COUNTIES (Dallas Morning News) – ​Paul Foster, the CEO of El Paso-based Franklin Mountain Capital, has purchased the 37,000-acre KC7 Ranch for $32.5 million.

The iconic ranch is near I-10 in the Davis Mountains. The spread, which dates from the 1890s, includes a nearly 10,000-sf lodge, a rock barn, corrals, and a second house.

Dallas-based Icon Global Group marketed the property for sale. The deal was completed in just 120 days.

Foster bought the ranch with cash out of bankruptcy from Fort Worth oilman Thomas Darden. Creditors ​​in the bankruptcy include Hitachi Infrastructure Systems (America) LLC and Hitachi America Ltd. of Japan.
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Buckhead on the Verge of Summer

​​​ROSENBERG (Buckhead Investment Partners) – Buckhead Investment Partners began construction last month on the 291-unit Verge at Summer Park at the intersection of Park Place Blvd. and August Green Dr.

Located on 15 acres in the Summer Park master-planned community, the $42 million project is a joint venture between Buckhead and Toronto-based Elevation Holdings LLC.

Monthly rents will range from $1,100 for a one-bedroom residence to $2,000 for a large three-bedroom/two-bath floor plan with garage.

Gonzalez Newell Bender Architects provided architectural design services for the project. The general contractor is Rampart Multifamily.

Leasing will begin in late summer 2019 with residents moving in shortly thereafter.

$70M reno for Horseshoe Bay, of course

HORSESHOE BAY (Austin Business Journal) – After more than two years, a $70 million renovation of Horseshoe Bay Resort and its golf courses is nearing completion.

The 7,000-acre property-wide project included the renovation of all 349 guest rooms, multiple clubhouses, and upgrades to existing restaurants and fitness facilities.

Three golf courses received a $7.5 million upgrade. New additions to the resort include the luxury Cap Rock Clubhouse, a beachside bar, a 10,000-sf Palm Pavilion, and eight pickleball courts.

Crescent Hotels & Resorts manages the property.​
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Did you know you can get notified every time one of our new economic reports is released? Check out our brand-new email notification feature to get the latest economic data sent directly to your email inbox for free. 

Put a HOLT to this purchase

WACO (KWTX TV) – HOLT CAT will purchase Caterpillar’s former Waco Work Tools plant at 2000 Texas Central Pkwy.

The purchase includes 107 acres with three buildings totaling more than 170,000 sf of manufacturing, warehouse, and office space, which the company will redesign.

Work on the project is scheduled to be completed by the end of the year.

Caterpillar Inc. announced it planned to close the Work Tools facility in February 2018.

Laredo to enjoy Tailwind of 132K-sf warehouse 

​​​​LAREDO (REBusiness Online) – An affiliate of Fort Worth-based Tailwind Real Estate Equities LLC has acquired 10.5 acres for the development of a 132,000-sf warehouse. 

The building will feature 32-ft clear heights, 46 dock doors, administrative/office space, and 76 trailer parking spaces. 

The development team includes Dallas-based Gulf Corp. USA and locally based Park Avenue Construction. 

​Completion is scheduled for early 2020.
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Hines to develop 373-unit Houston residential tower

HOUSTON (Dallas Morning News) – Hines it set to develop the 46-story Preston Tower, the tallest residential community in the city.

The 373-unit luxury rental tower is being constructed in partnership with Cresset Wealth Advisors and Levy Family Partners.

Munoz + Albin designed the project.

Joint venture invests big bucks for The Luxx

SAN ANTONIO (Multi-Housing News) – A joint venture of The Preiss Co. (TPCO) and a private real estate fund has acquired The Luxx, a 694-bed student housing community.

The complex at 6023 UTSA Blvd. offers 220 fully furnished units with a mix of one-, two-, and four-bedroom floor plans.

TPCO will operate the community and invest in a multimillion-dollar renovation campaign.​
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Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=247
RECON for February 8, 2019RECON for February 8, 2019Bryan PopePope
2019-02-08T06:00:00Z2019-02-08T06:00:00Z

Real Estate Center Online News
A creek in the Bear Creek Ranch in Aledo.
JMJ Development has purchased the over 2,000-acre Bear Creek Ranch in Aledo for nearly $35 million.​ Get the details on this deal and more in today's RECON. (Photo from Ranch Connection LLC.)
February 8, 2019

REC: DFW home sales down 7.6 percent in 4Q 2018

​​​DALLAS (Real Estate Center) – North Texas home sales fell 7.6 percent to 22,402 transactions at the end of the year, according to a fourth quarter 2018 report by the Real Estate Center.

According to the report, the median home price grew 2.4 percent over the year to $260,000. 

Months of inventory for all residential properties rose 32.5 percent to 2.5 months. The Center considers a six- to 6.5-months inventory a balanced market.

Dallas-Fort Worth residential property listings increased 29.4 percent over the year to 20,627 active listings.

The single-family new construction median price decreased by .6 percent to $327,960.

Average rents for single-family homes ended the quarter at $1,695, up 2.7 percent year over year.
Outlook for Texas Land Markets logo
Registration for our 29th Annual Outlook for Texas Land Markets on April 25-26 in San Antonio is now open! The conference provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. ​Register by Tuesday, March 26, for early-bird pricing. Don't forget to RSVP to our Facebook event to stay in the loop. 

'Now that's refreshing!' $90M pours into Temple

TEMPLE (Temple Economic Development Corp.) – Niagara Bottling LLC will invest $90 million in a new bottling facility on 50 acres in the Temple Industrial Park.

The project will be divided into two phases. Phase one will include a $70 million capital investment and create 49 jobs. The second phase will be a $20 million capital investment and add 21 jobs.

Niagara will start construction on the 450,000-sf facility in March and will begin operations in fourth quarter 2019.​​
Joshua Roberson headshot next to Red Zone logo
Center Senior Data Analyst Joshua Roberson joins us on this week's Red Zone Podcast to talk about the latest data from the Texas Home Price Index. Plus, we look at a housing costs article and a technical report about renting and investing versus buying a home. Get all this and more in just 15 minutes. (15 min. 01 sec.)

Granite pays $78.4M for Eldridge Place

HOUSTON (Houston Business Journal) – Plano-based Granite Properties has purchased the 824,632-sf Eldridge Place office complex from Dallas-based TIER REIT Inc. for $78.4 million.

The properties are at 777, 757, and 737 N. Eldridge Pkwy. in the Energy Corridor. They consist of:
  • One Eldridge Place, a 12-story, 239,417-sf building that’s 62.1 percent leased;
  • Two Eldridge Place, a 14-story, 279,329-sf building that’s 77.9 percent leased; and
  • Three Eldridge Place, a 13-story, 305,886-sf building that’s 71.1 percent leased. 
HFF represented TIER REIT. Granite was self-represented. ​
Man and woman holding a baby in front of a kitchen remodel
Attention, Waco residents: We want your opinion about how "Fixer Upper" has affected the local housing market. Take a short four-question survey to help us tell your story.

A bear market? Not for this ranch

ALEDO (Dallas Morning News) – JMJ Development has purchased the over 2,000-acre Bear Creek Ranch from the Dixon Water Foundation for nearly $35 million.​

The property, located just 15 minutes west of Fort Worth, is near the 7,200-acre Walsh Ranch community development.

It includes stretches of prairie, limestone outcroppings along creeks, and eight stock tanks. There is also a 3,882-sf pavilion with a two-bedroom apartment on site. 
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Hammertime for Alliance industrial development

NORTHLAKE (Dallas Morning News) – A new 1.2 million-sf shipping hub for tool manufacturer Stanley Black & Decker is bringing more than 300 jobs north of Fort Worth.

The regional distribution center will be in Hillwood Properties​ Alliance Northport business park at the intersection of I-35W and SH 114.

It will open next month.

The site is near Fort Worth's Alliance Airport, BNSF Railway's Alliance Intermodal Facility, the FedEx Express Southwest Regional Hub, and the UPS and FedEx ground-shipping centers.​
TREC logoA real estate license holder may receive up to four hours of continuing education elective credit per license period for attendance in person at a February Texas Real Estate Commission meeting.   

To be eligible for the credit, you must:
  • Attend the meeting in person;
  • Attend the meeting from the start to the end of the proposed rules portion of the posted agenda;
  • Provide photo identification; and
  • Sign in and out on the class attendance roster for the meeting.

Fifty shades of an Addison Grove multifamily development

ADDISON (Dallas Morning News) – Greystar Real Estate Partners is building the 321-unit Elan Addison Grove​ within the Addison Grove project on Belt Line Rd. west of the Dallas North Tollway.

The apartment project will include a community center, resort-style pool, outdoor kitchen, and fitness center. 

Construction began in July 2018, and first move-ins will start in October of this year.

The mixed-use Addison Grove project will include a rental community, townhouses, and retail space on the 17-acre former site of a big-box retail store.
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Make peace on Miraval's 220-acre resort

AUSTIN (PRNewswire) – Hyatt brings its Miraval spa and wellness brand to 13500 FM 2769 with the opening of Miraval Austin.

Set on 220 acres overlooking Lake Travis, the resort offers 117 guestrooms, a 20,000-sf spa, state-of-the-art restaurant, and a ten-acre farm and ranch.

Guests can also enjoy daily activities such as hiking, yoga, wellness counseling, and nutrition classes.

In December 2016, Hyatt acquired the Travaasa Austin for the purpose of redeveloping the property into the Miraval Austin.

Shops lead Saginaw to Victory

SAGINAW (Fort Worth Star-Telegram) – The southeast corner of Basswood Blvd. and N. Blue Mound Rd. will soon be home to a new retail development called Victory Shops at Basswood.

Managed by the Segovia Retail Group, the development will span over 26 acres and include 19 buildings. 

Future tenants include German grocer Lidl, Chase Bank, Jersey Mike’s Subs, Chipotle, Verizon, Chick-Fil-A, Andy’s Frozen Custard, Starbucks, and Brakes Plus.

​Work will wrap up on the first buildings early this year. 
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Senior livin' kickin' it to Cibolo

​CIBOLO (PRNewswire) – Civitas Senior Living and Trepex Construction have broken ground on a 247,821-sf senior living community called The Brooks of Cibolo.

The property at 816 Bentwood Ranch Dr. will have 156 independent-living, 54 assisted-living, and 24 memory-care units. It will also feature a dog park, movie theater, restaurant, and salon.

When opened in February 2020, the facility will bring between 85 to 100 full-time jobs to the area.

A most aus-picious development

FRISCO (Dallas Morning News) – Auspire, a three building, eight-acre, office and retail project, is in the works within the 900,000-sf The Gate mixed-use development in the city’s $5 billion mile.

Dubai-based owner Invest Group Overseas and developer Ryan Cos. are partnering on The Gate, which is along the west side of the Dallas North Tollway. It is just north of the new Frisco Station and the Dallas Cowboys' Star development.
Helping Texans make better real estate decisions since 1971

Apartments planned for 24-acre Leon Valley site

LEON VALLEY (San Antonio Business Journal) – White-Conlee Development has bought 23.86 acres from Pierce Family Trust.

The property includes five plots and sits near the intersection of Grissom Rd. and Timberhill.

White-Conlee took out a $26.6 million loan for the purchase. The company plans to build a multifamily complex.

Richardson office attracts investment duo

RICHARDSON (Dallas Morning News) – Pillar Commercial teamed up with Ascent Real Estate Advisors of New York to buy the 2703 Telecom Pkwy. building near the Bush Turnpike.

The 121,420-sf building was constructed in 1997 and is leased to Hill & Wilkinson, XPS Solutions, and Bestway.

The seller was a private family investor.
Texas Association of Realtors quote about Real Estate Center
Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=246
RECON for February 5, 2019RECON for February 5, 2019Bryan PopePope
2019-02-05T06:00:00Z2019-02-05T06:00:00Z

Real Estate Center Online News
Three student workers working in their office
Texas A&M University student workers (from L to R) Kyle Brann ('20), Lauren Adams ('19), and Stephen Magee ('19) are hard at work researching and writing stories for RECON and NewsTalk Texas. Stories are published on the Real Estate Center's news feed every weekday. (Photo by Center Photographer JP Beato III.)
February 5, 2019

Texas fifth in LEED Green buildings

​​​WASHINGTON (U.S. Green Building Council​) – For the first time since 2016, Texas has landed on the U.S. Green Building Council's (USGBC) annual list of the top ten states for LEED (Leadership in Energy and Environmental Design) buildings. 

The Lone Star State ranked fifth, certifying 277 buildings total over 88.4 million gross sf (GSF) in 2018. That is 3.52 GSF of LEED-certified space per resident. 

Although Texas ranked fifth in GSF per capita, it was behind only California in total square footage (112.4 million gsf).

USGBC ranked states by gsf per capita. Other states in the top ten are:
  • No. 1 Illinois, 5.31 GSF per capita;
  • No. 2 Massachusetts, 5.3 GSF;
  • No. 3 Washington, 4.25 GSF;
  • No. 4 New York, 3.76 GSF;
  • No. 6 Colorado, 3.39 GSF;
  • No. 7 Hawaii, 3.31 GSF;
  • No. 8 Virginia, 3.17 GSF;
  • No. 9 California, 3.02 GSF; and 
  • No. 10 Maryland, 2.92 GSF.
Washington D.C. had the highest GSF per capita at 61.74. However, it was not included in the rankings as it is a federal district rather than a state. 

Nationally, 2,886 commercial projects were LEED-certified in 2018.
Buying a home is typically the largest investment a household makes. One alternative is to rent a home and invest any savings from renting in something else. To see what factors go into making the best choice, read our latest technical report, "Purchasing a Home versus Renting and Investing."

Houston first in 2018 construction employment growth

​​​​​​ARLINGTON, Va. (Associated General Contractors of America) – Houston-The Woodlands-Sugar Land added ​19,400 construction jobs in 2018, more than any other metro, according to a report from the Associated General Contractors of America (AGC). ​That's a growth rate of 9 percent.

Dallas-Plano-Irving ​followed closely behind, growing by 12 percent, or 17,700 construction jobs, from December 2017 to December 2018.

Abilene (-300 jobs) and Wichita Falls (-200 jobs) were among the metros with the largest losses, both seeing a 7 percent decrease in construction employment.

Construction employment grew in 273 out of 358 metro areas between December 2017 and December 2018, declined in 37, and was unchanged in 48.

The largest percentage job gain occurred in Weirton-Steubenville, W. Va.-Ohio (28 percent, 500 jobs).

Anaheim-Santa Ana-Irvine, Calif. (-2,800 jobs, -3 percent) had the largest job loss. Lawrence-Methuen Town-Salem, Mass.-N.H. (-9 percent, -300 jobs) had the largest job loss by percentage.
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Registration for our 29th Annual Outlook for Texas Land Markets conference on April 25-26 is now open! Register by Tuesday, March 26, for early-bird pricing. Don't forget to RSVP to our Facebook event to stay in the loop. 

Three's not a crowd for new EPISD megaschool

EL PASO (KFOX TV)– Construction kicked off on the city’s newest public school, which will combine three El Paso Independent School District schools into one.

Lincoln Middle School at 500 Mulberry Ave. will be the new home for the roughly 2,000 students currently attending Roberts Elementary, Bond Elementary, and Lincoln Middle School, hosting students from pre-K to eighth grade.

It will be renamed after the late University of Texas – El Paso basketball coach Don Haskins.

Existing classrooms will be renovated to use for elementary school grades. New middle school classrooms, gym, library, fine arts classrooms, and administrative offices will also be constructed.

The $44.2 million project is expected to open in fall 2021.
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DFW home prices growing slower than national average

​​​​​​DALLAS (Dallas Morning News) – North Texas home prices were up 4 percent over the year in November but continue to lag nationwide increases.

The Dallas-Fort Worth price gain was slightly below the nation's 5.2 percent rise in the latest Standard & Poor's/Case-Shiller Home Price Index.

Home prices in North Texas are now growing at about half the rate they were a year or two ago.

However, with the latest increases, DFW home prices are now almost 50 percent higher than they were during the Great Recession.

North Texas home sales slowed significantly in the final months of 2018, and the region was the only major Texas metro area with a drop in total home sales last year. Sales were down 2.4 percent from 2017's record level.

In the last year, the housing inventory has grown almost 25 percent, and the average days on market has risen more than 20 percent.
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Austin office absorption ends year at nearly 900K sf

​​​​​AUSTIN (Transwestern) – The city ended the year with over 70.2 million sf of office space across 997 buildings in its inventory, according to ​Transwestern's​ January 2019 Office Marke​tWatch report​.​

Citywide net absorption was at 897,481 sf, and lease activity was over 5.2 million sf. 

The vacancy rate remained below 15 percent throughout 2018. Direct occupancy and total occupancy ended the year at 93.4 percent and 92.5 percent, respectively.​

According to the report, 59 office properties totaling nearly seven million sf sold ​for $1.9 billion.​​ That's an average price per sf of $331.

The average net rent was $26.43 per sf. Class A, B, and C rents were at $31.41, $22.72, and $17.79, respectively.​
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

'Quad' pro quo—'60s era development changes hands

DALLAS (Dallas Business Journal) – Stream Realty Partners has purchased The Quadrangle, a mixed-use project in the heart of Uptown, from American Realty Advisors.

The new owner plans to renovate the 194,322-sf property, which is on four acres at the corner of Routh and Laclede Streets.

The development was built as a series of shops in 1966 when the Uptown area was a stretch of single-family homes. It was redeveloped in the 1980s to include the eight-story office tower that stands there today.

American Realty Advisors purchased the property in 2006 and put it on the market in 2017.
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Rice Management has its 'Ion' historic Sears building 

HOUSTON (CultureMap Houston) – Rice University announced the construction details of the historic Sears building's transformation into The Ion.

Construction on the 270,000-sf building will begin in May and conclude by the end of 2020. 

The building will serve as a coworking space, provide resources for entrepreneurs and startups, host events, and offer retail space for restaurants and entertainment amenities.

Rice Management Company is leading the project. Station Houston has been named as the programming partner and will have a major presence in the hub.​
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Holdin' on for Hope Tower

LUBBOCK (EverythingLubbock.com) – Covenant Medical Center will start construction on its new Hope Tower mid-February.

The 220,000-sf building will sit on the site of the old hospital at 3615 19th St. It will have 89 beds with room for 60 more.

Construction on the $125 million project is expected to last two years.
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Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
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RECON for February 1, 2019RECON for February 1, 2019Bryan PopePope
2019-02-01T06:00:00Z2019-02-01T06:00:00Z

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According to the National Association of Realtors, pending home sales fell across the nation in December. Get the details in today's RECON. (Photo from Center files.)
February 1, 2019

The FM 646 overpass is falling down, falling down

​​​DICKINSON (Houston Chronicle) – Major changes are coming this spring to the intersection of FM 646 and I-45, and while the work is projected to make a positive impact on traffic flow, it will cause traffic delays in the short term.

Demolition of the FM 646 overpass over the interstate, slated for March 2019, is part of a plan to “flip” how traffic flows at that intersection. 

East-west traffic on FM 464 will be closed for six months. TxDOT is seeking to reduce the number of overpasses spanning I-45 to improve traffic flow and help in hurricane evacuations.

The project will be done in two phases. 

Phase one will involve the demolition of the overpass, construction of the northbound main-lane I-overpass, and reconstruction of the intersection and frontage roads.

The second phase will include reopening the intersection to east-west traffic and reconstruction of access roads on the southbound main-lane overpass.

The entire $232 million process is expected to take six months with east-west traffic expected to reopen in the fall. 
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Pending U.S. home sales dip in December

​WASHINGTON (National Association of Realtors) – ​​Pending home sales declined across the country in December, according to the National Association of Realtors (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 2.2 percent to 99, down from 101.2 in November.

Year-over-year contract signings fell 9.8 percent, marking the 12th straight month of annual decreases. 

"The stock market correction hurt consumer confidence, record high home prices cut into affordability, and mortgage rates were higher in October and November for consumers signing contracts in December," said NAR Chief Economist Lawrence Yun.

Pending home sales in the S​outh—the region which contains Texas—fell 5 percent to an index of 109.7 in December. That's 13.5 percent lower than a year ago.
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ExxonMobil breaks ground on Beaumont expansion project

BEAUMONT (Houston Chronicle) – ExxonMobil began construction in January on an expansion to its refinery after reaching a final investment decision.

The expansion, expected to start up in 2022, will increase the refinery's capacity by 65 percent, or 250,000 barrels per day.

When complete, the refinery will be among the nation’s largest.

The Irving-based company expects to create 1,850 jobs during construction of the expansion and add 40-60 permanent jobs once complete.

The expansion is part of more than $20 billion ExxonMobil has invested in growing its manufacturing presence on the Gulf Coast.

It ​plans to triple its production in the Permian Basin by 2025 and spend more than $2 billion on transportation upgrades.
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There's a new housing project InTown

ADDISON (Dallas Morning News) – InTown Homes is constructing 170 townhouses in its new Addison Grove project on Belt Line Rd. near Midway Rd.

The two- and three-bedroom townhomes will be priced from the mid-$300,000s and will be constructed in the style of brick row houses. They will range from 1,300 to 3,400 sf.

The community is part of a more than 17-acre project that was previously occupied by a vacant discount store.

The townhouses and three small parks join an apartment and retail building on the way at the property.

Houston-based InTown Homes currently has eight communities in the Dallas area, including locations in Plano, Oak Cliff, and in the medical district near Maple Ave​.
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A 1 and a bunch of 0's: 1M-sf data center sold

PLANO (Dallas Morning News) – NTT Data has sold its one million-sf North Texas data center campus to a California-based GI Partners.

The office and tech complex is at 2300 W. Plano Pkwy. near Bush Turnpike.

NTT Data will lease back the property on a long-term basis.

NTT Data acquired the sprawling complex in 2016​ when it bought the former Perot Systems IT services operation from Austin-based Dell in an over $3 billion deal.

Medistar to deliver 48-story Innovation Tower 

HOUSTON (REBusiness Online) – Medistar Corp. will develop Innovation Tower, a 48-story mixed-use project within the Texas Medical Center.

Phase I will deliver 476,500 sf of medical and life science office space, a 1,700-space parking garage, and retail and restaurant space. 

Phase II will include either 410 luxury residential units or additional medical and life science office space. 

Construction is expected to begin toward the end of the third quarter. Transwestern will handle leasing of the project.
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Triumph of the sales

​​​​​FORT WORTH (Fort Worth Business Press) – Triumph Group Inc. is selling Triumph Fabrications to Arlington Capital Partners. 

The 145,000-sf Fort Worth facility is at 7445 E. Lancaster Ave. and last reported an employee count of about 150. ​

Other operations included in the agreement are in Hot Springs, Ark.; Phoenix; San Diego; and Shelbyville, Ind.

Triumph also has manufacturing facilities in Arlington and Grand Prairie.

Crescent Communities building a Novel in River Oaks

HOUSTON (Houston Business Journal) – Crescent Communities is building Novel River Oaks, a 330-unit luxury apartment complex.

It will feature 14,000 sf of ground-floor retail and restaurant space.​

The project is on 3.4 acres at 2511 Willowick Rd., which is the site of the former Georgian senior community.  

Delivery is expected for the second half of 2020.
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Floridays forays into DFW multifamily

GARLAND (Commercial Observer) – Floridays Development has landed a $35.6 million loan from Orix to develop the Northside at the Woodlands apartment complex.

The 300-unit high-end project will sit on 15 acres at 4221 Arapaho Rd.

Floorplans will range from 580-sf one-bedroom units to three-bedroom apartments​ as large as 1,250 sf. 

The Carlton Group brokered the loan deal.

Industrial breakout continues in north Fort Worth

FORT WORTH (Dallas Morning News) – Dallas-based​ Stream Realty Partners will start construction next month on an industrial park on SH 114 in northern​ Tarrant County.

The 66-acre Northwest Commerce Park will include over one million sf across three buildings. It will be west of I-35W and north of the Alliance Airport.
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Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
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