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RECON for September 22, 2017RECON for September 22, 2017Bryan PopePope
2017-09-22T05:00:00Z2017-09-22T05:00:00Z
Real Estate Center Online News
WestStar Tower mockup in El Paso.
In today's RECON: El Paso City Council has approved a $15.2 million incentives package for the development of WestStar Tower, a 14-story downtown office building. Keep reading for more real estate news. (Photo from El Paso Inc.)
September 22, 2017

Incentives package approved for WestStar Tower

​​​​EL PASO (El Paso Inc.) – The city council has approved a $15.2 million incentives package for WestStar Tower, a planned 14-story office tower at 601 N. Mesa St.

Hunt Companies, which purchased the city block in 2014, has teamed up with WestStar bank to develop the $70 million project. 

The tower will include 200,000 sf of office and retail space, park-like green space, and 600 parking spots. 

WestStar will occupy three floors of the tower, have a commercial bank operation on the ground floor, and employ 180 at the location. Hunt Companies will also occupy three floors, bringing in 175 employees.  

Developers expect to open the tower in late 2019 or early 2020.
Hurricane Harvey flooding in Houston
Hurricane Harvey caused an estimated $125 billion worth of damage in Texas in August 2017. If you were one of the millions impacted by the storm, click here for a free resource guide that can help. It includes information on finding housing, food, employment, legal services, and tax relief following a natural disaster.

This summer strongest on record for Austin housing

​​​​AUSTIN (Austin Board of Realtors) – The 2017 Central Texas summer selling season was the strongest on record for single-family home sales and median price across the Austin-Round Rock Metropolitan Statistical Area (MSA).

In August, area single-family home sales increased 1 percent year over year, and the median home price rose 4 percent to $300,000, according to the Central Texas Housing Market Report released by the Austin Board of Realtors.

“The Austin-Round Rock MSA looks like it is moving toward a more normalized housing market," said Real Estate Center Chief Economist Dr. Jim Gaines. "Similar to what we’re seeing across the state, housing inventory levels are slowly increasing, despite continued increases in sales volume and median price. That could indicate that in the latter half of 2017, we will likely experience some slowing of the home price increases that have become common in recent years — not price decreases, as the relationship between home buying and selling activity begins to balance out.”   

Single-family home sales in Austin proper jumped 6.1 percent year over year to 927 home sales, while median price jumped 2.7 percent year over year to $361,000.

Additionally, for the fourth time this year, single-family home sales dollar volume topped $1 billion in a single month within the five-county area, an increase of 5.9 percent from August 2016.​​

Texas' pre-hurricane economy strong

​​​COLLEGE STATION (Real Estate Center) – Pre-Hurricane Harvey, the Texas economy gained 298,600 nonagricultural jobs from August 2016 to August 2017. That's an annual growth rate of 2.5 percent, higher than the nation’s employment growth rate of 1.4 percent.

According to the Real Estate Center's latest Monthly Review of the Texas Economy, the nongovernment sector added 270,800 jobs, an annual growth rate of 2.7 percent, higher than the nation’s employment growth rate of 1.7 percent in the private sector.

Texas’ seasonally adjusted unemployment rate last month was 4.2 perce​nt, lower than 4.7 percent in August 2016. The nation’s rate decreased from 4.9 to 4.4 percent.

All Texas industries except the information industry had more jobs. The mining and logging industry ranked first in job creation followed by other services; manufacturing; transportation, warehousing, and utilities; and financial activities.

All Texas metro areas except Wichita Falls, Abilene, Waco, Beaumont-Port Arthur, San Angelo, and Texarkana, had more jobs. Corpus Christi ranked first in job creation followed by College Station-Bryan, Dallas-Plano-Irving, Sherman-Denison, Killeen-Temple-Fort Hood, and Fort Worth-Arlington.

The state’s actual unemployment rate was 4.5 percent. Amarillo had the lowest unemployment rate followed by Midland, Austin-Round Rock, College Station-Bryan, and Lubbock.
Real Estate Red Zone logoHurricane Harvey caused an estimated $125 billion worth of damage in Texas late last month. If you were one of the millions impacted by the storm, our free resource guide can help. Learn more about it on this week's Red Zone podcast. Also, we revisit Texas in 1967 in the aftermath of another devastating storm: Hurricane Beulah. All this plus the latest Austin MSA housing stats, a $130 million subdivision near 'Fixer-Upper' town, and much more. Join us. (14 min. 17 sec.) 

Charles Schwab breaks ground on new campus

​WESTLAKE (Fort Worth Business Press) – Charles Schwab & Co. Inc. has broken ground on a 500,000-sf campus on 70 acres in Circle T Ranch.

Phase one of the project will include two office buildings, an amenities building with meeting space and a training center, and a parking garage. ​​The campus will house up to 2,600 employees when it delivers in early 2019. 

The contractor for the project is DPR Construction and the architect is Corgan.

Texas healthcare properties sell to MedProperties

​​DALLAS (REBusiness Online) – ​​MedProperties Holdings has acquired seven Texas healthcare properties from Harrison Street​ as part of a $230 million, 17-property portfolio totaling 620,750 sf.

The Texas facilities include:
  • Abilene Surgery Center and Hospital in Abilene; 
  • Texas Rehabilitation Hospital of Arlington in Arlington; 
  • Grand Parkway MOB in Richmond; 
  • Williams Way MOB in Richmond; 
  • Conroe Medical Plaza in Conroe; 
  • Kingwood Medical Plaza in Kingwood; and 
  • Lake Granbury Medical Center in Granbury.
CBRE represented the seller.
Hurricane Harvey recovery in Rockport, Texas.


How do you put your life back together after something like Hurricane Harvey? This week's Mixed-Use Blog post.

Local plastics exporter purchases warehouse

​​HOUSTON (Houston Chronicle) – Locally based Polymers Packaging & Warehousing has acquired a 275,000-sf warehouse at 550 Aleen St. from Aleen Street Associates.

The rail-served building will be the plastic resin company's global manufacturing and distribution facility. 

JLL represented the buyer, and Avison Young represented the seller.

Work starts on next phase of Union at Carrollton Square

​​CARROLLTON (Dallas Business Journal) – ​​High Street Residential and Olympus Property have started on the next phase of the Union at Carrollton Square.

This phase will bring 4,025 sf of street-level retail space and two four-story apartment buildings totaling 352 units. It will offer one- and two-bedroom units ranging from 381 to 1,149 sf. The first apartment homes will open in fourth quarter 2018.

The first two phases total 240,062 sf and are currently 95 percent occupied.

The project is financed by Comerica Bank and Southside Bank. JHP Architecture is the project architect. Andres Construction is the general contractor.

NRP Group developing 321 apartment units

​​​​SAN ANTONIO (San Antonio Business Journal) – The NRP Group is developing Montabella Pointe II, a 321-unit, three-story apartment community on 13 acres along N. Foster Rd.

The 271,255-sf development will include studio and one-, two-, and three-bedroom units. It will sit close to its sister community, the 144-unit Montabella Pointe.

Construction is expected to last two years.

NRP is partnering with Lido Advisors LLC and Canyon Partners Real Estate. 
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Emser Tile signs 600,000-sf lease in Pinto Business Park

​HOUSTON (Houston Business Journal) – ​​Los Angeles-based Emser Tile​​ has signed a 600,000-sf industrial lease at Pinto Business Park.

The company will relocate from its current 380,000-sf facility at 9835 Genard Rd. in fall 2018.

Ag leasing workshop in San Angelo Oct. 19

​​​SAN ANGELO (AgriLife Today) – ​​The final program in Texas A&M AgriLife Extension Service's 2017 series of Rancher Leasing Workshops will be Oct. 19. 

The workshop addresses the legal risks associated with grazing, hunting, and livestock leases, said Tiffany Dowell Lashmet, AgriLife Extension agricultural law specialist in Amarillo. The goal is to educate landowners and producers on the importance of using written leases as a risk management tool.

Attendees will receive a leasing handbook that covers legal issues, designing lease payment structures and calculating payments, and landowner liability. The book also will provide checklists and sample lease forms for negotiating lease agreements.

The workshop will be from 8:30 a.m.-1 p.m. at the Tom Green 4-H Center, 3168 N. US 67. The free program is funded by the Southern Extension Risk Management Education Center. Lunch will be provided by Ag Workers Insurance. 

RSVP at least one week before the meeting to Kim Garcia at 806-677-5626 or kim.garcia@ag.tamu.edu.
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.

Former Walmart becoming office space

​​​​​AUSTIN (Community Impact Newspaper) – PacVentures and Aquila Commercial are turning the vacant Walmart Supercenter at 8201 N. RR 620 into an office building.

The 215,000-sf project, called Preserve at 620, will be completed in April 2018. 

PacVentures purchased the property in August 2016.

Texas Land Conservation Conference Feb. 28

​​AUSTIN (Texas Land Trust Council) – The 2018 Texas Land Conservation Conference is set for Feb. 28–March 2 ​​at the Hilton Austin Airport at 9515 Hotel Dr.

The conference is hosted by the Texas Land Trust Council and presented by The Nature Conservancy. ​​

Early bird registration​ closes Dec. 8. ​​For more information, call ​512-358-1000, email tltc@iemshows.com, or visit texaslandconservationconference.com.
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Lakepointe Towne Crossing sold

​​​​​​LEWISVILLE (Disney Investment Group) – Retail Properties of America has sold Lakepointe Towne Crossing, a 196,​​630-sf retail power center at 709-735 Hebron Pkwy.

The 62 percent-occupied property is anchored by Ross Dress for Less and Party City and shadow-anchored by Super Target. 

Disney Investment Group represented the seller and procured the buyer. 

Barrington Apartments trade hands

​​HOUSTON (Marcus & Millichap Real Estate Investment Services) – ​​A local partnership has sold Barrington Apartments, a 308-unit apartment complex on 7.5 acres at 5959 Bonhomme Rd.

Built in 1981, the community offers efficiencies and one- and two-bedroom units averaging 723 sf.​

Marcus & Millichap represented the seller.
Helping Texans make better real estate decisions since 1971
Copyright © 2017, 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 Bryan Pope. 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=110
RECON for September 19, 2017RECON for September 19, 2017Bryan PopePope
2017-09-19T05:00:00Z2017-09-19T05:00:00Z
Real Estate Center Online News
Dallas office buildings
Tech and financial services companies are leading the way in the hunt for North Texas office space, according to data from JLL. Keep reading today's RECON for more. (Photo from Center files.)
September 19, 2017

Allen named second-best place to live in America

​​​​NEW YORK (Fort Worth Star-Telegram) – Allen was named the second-best place to live in the U.S. by Money. 

The North Texas city has a population of 96,000 and a median home price of $323,676, according to Money data. Projected job growth is 17 percent, and median household income is $104,524.

There are around 232 clear days per year, and it takes 29 minutes for the average citizen to commute. The high school graduation rate is 96.9 percent.

The magazine also cited Allen’s $1.6 billion of development in 2017 and a $91 million convention center and hotel complex due next year. 

This year's Best Places to Live list focused on cities with a population of 10,000 to 100,000 to avoid the biggest cities, said Money​. 

Fishers, Ind., northeast of Indianapolis, snagged the top spot. Three other North Texas cities—No. 19 Grapevine, No. 20 Wylie, and No. 23 Bedford—cracked the top 25.

Register today for next week's CRE Summit 2017 in Fort Worth

FORT WORTH (Real Estate Center) – ​​There's still time to register for next week's Commercial Real Estate Summit 2017. The event will be Sept. 26-27 at the Greater Fort Worth Association of Realtors (GFWAR).

Planned with commercial real estate license holders in mind, this conference covers​ developments, important legal issues, and the economic setting with trends and projections for the Fort Worth area.

Ten TREC elective credits and the required TREC Legal Update 1 and 2 courses will be included in the summit.

Cost is $225 for members of the GFWAR Society of Commercial Realtors (SCM). Cost for non-SCR members is $250.

The conference is offered in cooperation with Greater Fort Worth Association of Realtors, Texas Association of Realtors, and Society of Commercial Realtors.

For more details or to register, visit the conference website​.
Helping Texans make better real estate decisions since 1971

Houston Center sells to Canadian investor for $875 million

​​HOUSTON (Houston Business Journal) – Toronto, Canada-based Brookfield Asset Management is buying Houston Center for $875 million.

​​The 4.2 million-sf office complex includes LyondellBasell Tower, 2 Houston Center, Fulbright Tower, and 4 Houston Center. The properties are on McKinney St. between Fannin and Austin Streets.​

HFF marketed the property, which hit the market in late June, on behalf of the seller, JPMorgan Chase. The deal should close in around 60 days.

Tech, financial firms leading North Texas office space hunt

​​​​​​DALLAS (Dallas Morning News) – Expanding and relocating businesses are in the market for almost 20 million sf of area office space, according to commercial real estate firm JLL.

About 40 percent of those companies are either in tech or financial services. Only 3 percent are in the energy business.

More than four million sf of deals are pending in Far North Dallas, while about three million sf are in Las Colinas. Downtown Dallas has about 1.3 million in office lease prospects, according to JLL.

JLL's tally of prospective office deals in North Texas adds up to more than twice the amount of space now being built.​
Aloe plant in front of El Paso skyline.
A tightening labor market led to robust economic activity along the Texas-Mexico border. Peso appreciation and the healthy Mexican economy stimulated cross-border trade activity. The border economies added 2,900 jobs, primarily in Brownsville and McAllen. Border housing demand continued to shift from the new home to the resale market, where inventories remained considerably lower. Read more in our latest Texas Border Economy report. (Photo from Center files.)

Industrial companies to consolidate onto 32 acres

​​​HOUSTON (Houston Business Journal) – Locally based AIV LP and Gulf Coast Modification will consolidate three existing facilities​ into a new 32-acre project on NW Lake Dr. off Telge Rd. 

The two-story, Class A office building will have more than 320,000 sf and allow for expansion of up to 700,000 sf. It will consolidate the following:
  • AIV and Gulf Coast Modification’s current 130,000-sf headquarters at 7140 West Sam Houston Pkwy.;
  • an existing 28,000-sf modification facility focusing on midstream clients; and
  • an existing 22,000 sf building that houses AIV’s automation division​.
KDW will design and build the new facility. The project is expected to break ground later this year and be complete by late 2018.​

The Nature Conservancy buys 1,800 acres in Bahia Grande

​​​​BROWNSVILLE (Brownsville Herald) – The Nature Conservancy (TNC) has purchased 1,800 acres on the north side of the Bahia Grande wetland between Brownsville and the Laguna Madre. 

This completes the acquisition​ for the wetland, said Boyd Bilhovde, manager of the Laguna Atascosa National Wildlife Refuge, which acquired 21,700 acres of the Bahia Grande in 2000.

The Bahia Grande was a thriving wetland home to a number of species of fish and wildlife until the tidal flow between it and the Laguna Madre was cut off, starting in the 1930s with construction of the Brownsville Ship Channel and continuing in the 1950s when SH 100 was built.
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. 

Apartments, retail slated for The Centre

​​FARMERS BRANCH (Dallas Morning News) – ​​Houston-based Boxer Property is adding new apartments and retail space to The Centre, an 800,000-sf office park on Midway Rd.

Developers will tear down three of the 11 office buildings and replace them with 193 rental townhomes, 70 apartments, and first-floor retail in three- and four-story buildings. ​

The Centre was built on 50 acres starting in the late 1970s. It has been owned by Boxer since 2014.

Austin, El Paso hotel portfolio gets new owner

​​​​AUSTIN,​ EL PASO (Holliday Fenoglio Fowler) – Bedford Lodging has sold a 244-room ​hotel portfolio to Condor Hospitality Trust.

​The 120-room Residence Inn by Marriott Austin Airport was completed in 2016 at 3201 Caseybridge Court. Completed in 2015, the 124-room Fairfield Inn & Suites by Marriott El Paso Airport is at 611 Edgemere Blvd.

HFF marketed the properties.
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. 

Partnership acquires Highland Park office

​DALLAS (Dallas Morning News) – ​​A partnership set up by Prescott Realty Group has purchased the 3100 Monticello building on the eastern edge of Highland Park.

The nine-story, 180,000-sf building was built in 1989. 

The seller, Westdale Asset Management, acquired the property in 2011.

Spirit Realty sells Energy Corridor office

​​HOUSTON (Realty News Report) – ​​Spirit Realty has sold a 137,000-sf office building to an affiliate of Gearing Capital Partners of Dallas. 

The vacant building at 16001 Park Ten Pl. will receive a multimillion-dollar redo. 

Stream Realty Partners represented the seller and will oversee property management.
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Pecan Springs multifamily community trades hands

​​SAN ANTONIO (REBusines Online) – ​​Electra America has acquired Pecan Springs, a 344-unit apartment community at 5511 Pecan Springs Rd.

Built in 2013, the 95 percent-occupied property offers one-, two-, and three-bedroom units. 

The new owner will add washers and dryers to all units and upgrade the property's exterior.

226-room Embassy Suites opens downtown

​​​AMARILLO (REBusiness Online) – ​​​NewcrestImage has opened a 226-room Embassy Suites hotel downtown.

The property has one-bedroom and studio suites, 18,000 sf of meeting space, and a 750-space parking garage.

Construction began in October 2015.
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Three-building Apex Distribution Center sold

​HOUSTON (Holliday Fenoglio Fowler) – ​​WPT Industrial Real Estate Investment Trust has purchased the three-building, 410,600-sf Apex Distribution Center. 

The 86.2 percent-leased facility is on 24.76 acres at 5750 Brittmoore Rd. and 10618-10634 Tanner Rd. Building one of the Class A warehouse facility was completed in 2005, and two new buildings were added in 2015. 

HFF represented the seller, Crow Holdings Industrial.​

Private investor buys Denton acreage

​​​DENTON (REBusiness Online) – A Texas private investor has purchased 14.7 acres at the corner of Mayhill and Mills Roads.

Vanguard Real Estate Advisors represented the buyer. 

Casa Verde Apartments change ownership

​HOUSTON (Realty News Report) – ​​Trinity Casa Verde LLC purchased the Casa Verde Apartments, a 384-unit apartment complex in north Houston at 2 Goodson Dr. near I-45 ​and Beltway 8.

Southlake-based Trinity Private Equity Group and TRI Consulting Group coordinated the acquisition of the two-story community.

CBRE arranged the sale on behalf of the seller, Goodson Avenue Investors LLC. 
Real Estate Center economic reports advertisement
Copyright © 2017, 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 Bryan Pope. 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=109
RECON for September 15, 2017RECON for September 15, 2017Bryan PopePope
2017-09-15T05:00:00Z2017-09-15T05:00:00Z
Real Estate Center Online News
Construction cranes
According to RealPage data, Dallas-Fort Worth mulitfamily permits dipped 19.8 percent in the first real sign of an apartment building slowdown. This and much more in today's RECON. (Photo from Center files.)
September 15, 2017

Texas economy knocked down, but not out, by Harvey

COLLEGE STATION – Despite the severe damage Hurricane Harvey caused along much of the Texas coast, Real Estate Center Chief Economist Dr. Jim Gaines says the state's economy should finish 2017 in good shape.

"We were looking at the state to have a really strong 2017, and we really still are for most of the state," Gaines said. "Before the storm, exports were up, the housing market was doing well, jobs were being added, and we added close to 450,000 people to the state's population, about half of whom immigrated from other countries or other states. The hurricane is going to have some impact on that."

Gaines said 2017 was projected to be another record year for home sales, with sales increasing 4 to 5 percent.

"That's probably going to flatten out," he said. "Houston accounts for about 25 percent of the state's housing activity, and that's going to slow considerably for at least two or three months. Some of that is simply because the transaction infrastructure of the title companies, appraisers, mortgage lenders, and so forth is going to be overwhelmed for at least 30 to 60 days.

"The August home sales numbers we just compiled showed Houston was down something like 26 percent, and Harvey didn't even hit until the last two or three days of the month. That tells us the market was starting to slow down anyway. The effects of Harvey are just going to exacerbate that slowdown."

Prices, on the other hand, are not going to slow down—at least not much.

"We were anticipating price increases of 5 to 6 percent before the storm," Gaines said. "Of course, we're going to lose some of the measures from the Houston area. Statistically, for the state as a whole, we're probably going to still see price increases of between 4 and 5 percent."

Gaines said the state's gross domestic product (GDP) will probably get knocked down a couple of tenths of a point from the lost productivity and output, particularly out of Houston and the coastal region.

"Where we had anticipated GDP growth of somewhere around 3.5 or 3.6 percent, it'll probably come in at 3.3. or 3.4 percent," Gaines said. "But it's a temporary impact. We're expecting a strong bounce​back in 2018. With the reconstruction activity and the amount of capital that will probably be flowing into the state for rebuilding and remodeling, we're anticipating that the state GDP growth for 2018 will move upward a couple tenths of a point more than we otherwise would have expected. And we were already anticipating a reasonably strong 2018. But that increase is just replacing lost wealth, not truly a net growth.​"

For more from Gaines on Harvey's economic impact, listen to this week's Real Estate Red Zone podcast.​
Nominal Wage Growth, 1976 Q1 until 2016 Q3

For the past year, the U.S. labor market has moved toward full employment. This hasn’t spurred rapid nominal wage growth (Figure 1). So what's keeping nominal wages down? Center Research Economist Dr. Luis Torres has the answer in this week's Mixed-Use Blog.

Dallas shows first signs of apartment building slowdown

​RICHARDSON (Dallas Morning News) – ​​For the 12-month period ending in July, Dallas-area developers filed permits to start just under 19,000 apartments. That’s a 19.8 percent dip from a year earlier, according to data from RealPage.

Despite the decrease, the Metroplex ranks second in multifamily permits, behind only New York. Dallas and Atlanta were the only two top-ten U.S. apartment markets to see a year-over-year decline in building permits.

Apartment analysts have been forecasting a slowdown in North Texas building starts to let the market catch up with several years of dramatic construction. But that doesn't mean North Texas won't have plenty of new apartments. Almost 30,000 units are opening their doors in the area this year.

"With around 50,000 units under construction, we're still going to be delivering lots of apartments for at least another couple years," said RealPage economist Greg Willett.

Rents in Dallas-Fort Worth in July rose less than 3 percent from a year earlier. That's almost half the recent peaks of annual apartment rent growth in North Texas.
Helping Texans make better real estate decisions since 1971

August home sales dip as Harvey hits Houston market

​​​​HOUSTON (Realty News Report) – Home sales declined 25 percent in August as Hurricane Harvey knocked out hundreds of deals at the end of the month.

The Houston Association of Realtors (HAR) reported 5,917 single-family homes were sold last month, down from 7,927 in August 2016.

​When a hurricane enters the Gulf of Mexico, insurance companies restrict the initiation of new policies for homeowners, and this delays many closings. Homes that were slated for closing have to be re-inspected for flood damage, and many would-be deals collapsed after flood waters entered the homes.

The local housing market had been moving at a record pace in 2017, running at about 8 percent above last year’s sales. Even with the Harvey devastation, year-to-date home sales are still running 1.8 percent ahead of last year’s pace. 

Rental housing is strong. Single-family home leases jumped 9.4 percent while townhome/condominium leases shot up 17 percent, HAR reports.
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.

Dragon snatches production tank plant

​​​SAN ANGELO (San Angelo Economic Development) – ​​​​Dragon PES has purchased the former National Oilwell Varco facility on 19 acres at 6738 Side View Rd. 

The 117,880-sf ​​plant is expected be back in full tank production under Dragon leadership by Dec.​ 1. The Beaumont-based company will initially hire 125 employees. 

$51 million apartments sell to Bluerock

The Grand at the Dominion. Photo from MySASAN ANTONIO (San Antonio Express-News) – ​​New York-based Bluerock Real Estate has purchased the $51 million Grand at the Dominion apartment complex.

The 320-unit community was developed by Embrey Partners in 2015 at 23910 I-10.

Rents average $1,493 per month.​​

Ace Mart leases entire Schertz warehouse

​​SCHERTZ (San Antonio Business Journal) – San Antonio-based Ace Mart Restaurant Supply is leasing HPI's entire 214,536-sf warehouse at 9850 Doerr Ln.

The warehouse delivered in March and was bought by HPI in June.

CBRE represented both parties.
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California buyer picks up Dallas apartment complex

​​​​DALLAS ​​(REBusiness Online) – California-based NVTX1 Apartments LLC has purchased Mountain Valley Apartments from Mountain Valley 2002 LP.

The 312-unit community on 17.3 acres at 5875 Mount Valley Ln. was 93 percent occupied at the time of sale.

National Apartment Advisors represented the buyer. 

Waco hotel pair sold

​​​​​WACO (Marcus & Millichap) – A joint venture between Atlantic Hotels Group and Civitas Capital Group has purchased a two-property hotel portfolio near the intersection of N. I-35 and SH 6. 

TownePlace Suites is a four-story, 93-room extended stay hotel constructed in 2016 at 5621 Legend Lake Pkwy. The Holiday Inn Express & Suites is a four-story, 120-room limited service hotel built in 2014 at 5701 Legend Lake Pkwy.​

Marcus & Millichap represented the sellers, Supreme Bright Waco II LLC and Waco Lodging LLC, and procured the buyers. 
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Villages of Cypress Creek gets new owner

​CYPRESS (Holliday Fenoglio Fowler) – Hilltop Residential has purchased Villages of Cypress Creek, a 384-unit, Class A apartment community at 10300 Cypresswood ​​​Dr.

The complex includes 25 three-story buildings with units averaging 975 sf. 

HFF marketed the property for ​the seller and secured an acquisition loan on behalf of the new owner.

Partnership acquires North Texas apartment asset

​​​LEWISVILLE (REBusiness Online) – A partnership between Citymark Capital and CAF Capital Partners​ has acquired Villas of Vista Ridge.

The 323-unit multifamily community is at 351 SH 121 Bypass. 
Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, 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 Bryan Pope. 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=108
RECON for September 12, 2017RECON for September 12, 2017Bryan PopePope
2017-09-12T05:00:00Z2017-09-12T05:00:00Z
Real Estate Center Online News
Houston skyline.
According to CBRE, 4.2 percent of Houston's office buildings suffered damage from Hurricane Harvey, and one of every six multifamily units were flooded. More information in today's RECON. (Photo from Center files.)
September 12, 2017

Texas home sales activity grows in first half 2017

AUSTIN (Texas Association of Realtors) – ​​Texas home sales volume, home prices, and listings activity had strong gains in the first half of the year, according to the 2017 Texas Real Estate Midyear Report released by the Texas Association of Realtors.

Texas home sales jumped 5.5 percent compared with the first six months of 2017, with 166,256 homes sold throughout Texas between January and June 2017. Texas home prices also continued to rise steadily in the first half of the year. The median sales price increased 7.7 percent from the prior year to $221,800.

Real Estate Center Chief Economist Dr. Jim Gaines cautioned that Hurricane Harvey will likely negatively impact housing market statistics for the remainder of 2017.

"Houston's housing market accounts for roughly 25 percent of the Texas housing market," said Gaines, "and it could take months before the Houston area enters the recovery phase and a few years before the impacted communities fully recover."

This is only the second time in three years that Texas housing inventory levels have surpassed four months, although this is still well below the six to 6.5 months of inventory the Center considers a balanced housing market.

Texas homes spent an average of 58 days on the market—approximately the same length of time on the market as in the first half of 2017.
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CBRE assesses Harvey's impact on Houston CRE

​​​​HOUSTON (CBRE) – Fewer than 40 office buildings—4.2 percent of the city's stock—suffered damage from Hurricane Harvey, according to a CBRE report. 

The majority of the warehouse and distribution center market weathered the storm without major damage. CBRE said to expect a spike in demand for warehouse space from building supply companies, charities, and consumer-goods distributers. ​

Most retail damage is limited to neighborhood and strip centers in the hardest hit submarkets. Still, displaced retailers looking for space face a tight market. Retail sales will increase, especially for vehicles, home-improvement goods, furniture, and appliances, said CBRE.

One of every six multifamily units in the area—up to 100,000 apartments—were flooded. Occupancy rates will rise, and concessions for new renters will be curtailed amid the rise in demand.

In other metros struck by hurricanes in recent years, hotel occupancy increased by an average of 15 percent for the four months following the storms. Texas stands to see a 4.4 percent gain in revenue per available room rather than the 3.5 percent that was previously forecasted.​
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2017 looking like big year for El Paso home sales

COLLEGE STATION (Real Estate Center) – El Paso is on its way to having another big year for home sales, according to the latest Real Estate Center housing data.

Residential sales in El Paso County were at their highest in 2016 with over 7,100 sales, but 2017 may exceed that count. Second-quarter year-to-date (YTD) sales have already surpassed sales for the same period last year.

"El Paso is sprawling to the east along both SH 180 and now along US I-10," said ​Center Senior Data Analyst Josh Roberson,​ who writes the Center's monthly and quarterly MSA housing reports.

"For the past few years, ZIP code 79938, where Loop 375 meets SH 180, has been one of the county’s heaviest hitters for home sales activity," Roberson said. "After an enormous year in 2015, with over 1,500 sales, 2016 sales leveled off at 1,350 followed by Q2 2017 YTD sales of almost 700."

Meanwhile, to the south along I-10, ZIP code 79928 has picked up a lot of steam over the past couple of years and may soon be the county’s new hot spot, Roberson said​. Second-quarter 2017 YTD sales there totaled 645, which is already 65 percent of 2016’s year-end sales.

East El Paso Home Sales Trends graph

For both ZIP codes, almost half of MLS sales in recent quarters were categorized as single-family new construction sales with a median price of $170,000 and a median size of 1,700 sf.

West El Paso is also growing at a stable pace. Compared with the city's eastern boundaries, housing sales in this area come mainly from homes in more established neighborhoods and therefore rely more on repeat home sales. There has, however, been a recent uptick in new construction single-family sales. Within ZIP codes 79932, 79911, 79912, and 79835, new homes have been selling throughout 2017 at a median price of $225,000 and a median size of 2,000 sf.

Building permits for single-family dwellings are up as of 2Q 2017 YTD compared with the same period in 2016. Roberson said rising permit counts could be a signal that El Paso’s wave of new construction may continue into the near future.

In addition, El Paso’s economy has benefited greatly from the state’s uptick in trade across the border, which in turn could help sustain the area’s demand for housing. For more details about the border economy, including El Paso, read the Center's report, Texas Border Economy​.​​

For more on El Paso's housing market, check out the Center's second quarter 2017 and July 2017​ housing reports.
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. 

Free well-water testing offered in Victoria County

​​VICTORIA (AgriLife Today) – ​AgriLife Extension, Virginia Tech, and the Rural Community Assistance Program are offering free well-water testing to private well users who were affected by Hurricane Harvey.

Area residents can pick up water sampling test kits at the temporary office of AgriLife Extension in Victoria County at 259 Bachelor Dr. Instructions will be included with the kits. Well owners must pick up the kit, take the sample, and return it to the office on Sept. 21 from 8 a.m. until 11 a.m.​

Kits are limited and will be distributed on a first-come, first-served basis. ​Water quality results will be confidential and will be emailed or mailed to residents’ homes.

Private water-well owners whose wells flooded from the recent rains should assume their well water is contaminated until tested, according to Dr. Diane Boellstorff, Texas A&M AgriLife Extension Service water resource specialist, College Station.

“You should not use water from a flooded well for drinking, cooking, making ice, brushing your teeth, or even bathing until you are satisfied it is not contaminated,” Boellstorff said.​

To learn about well decontamination, read Decontaminating Flooded Water Wells and Shock Chlorination of Wells.

Fort Worth workshop to review legal protections for landowners

​​FORT WORTH (AgriLife Today) – A Sept. 29 workshop will guide landowners through the legal aspects of protecting their property under a range of circumstances.

Conservation easements, estate tax planning, fencing law, and condemnation strategy ​are all part of an agenda that includes speakers from the Texas A&M AgriLife Extension Service, Texas A&M University School of Law Program in Natural Resource Systems, and Texas Land Conservancy.

The workshop will be from 9:45 a.m. to 3:15 p.m. at the Texas A&M University School of Law, 1515 Commerce St., Fort Worth.

The $10 event is intended for landowners, real estate professionals who specialize in ranch land, and anyone who provides land management consultation.

RSVP at 325-650-3520 or by email at tomecek@tamu.edu.

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Work starts on affordable housing subdivision

​​​SAN ANTONIO (San Antonio Business Journal) –​​ The San Antonio Housing Authority (SAHA) ​​broke ground on Blueridge Homes, an affordable housing development at W. 26th and NW 27th Streets off W. Poplar St.

The development will feature 40 single-family homes ranging from three to five bedrooms. Prices will start at about $120,000. SAHA will deliver just five homes for now and order another five soon. 

The first homes are being built on Villa Arboles, where the former Mirasol subdivision used to be. ​

Blueridge is one of four affordable subdivisions that SAHA is building on the west side.

629,439-sf distribution center delivers in Dallas

​​​DALLAS (REBusiness Online) – ​​Nevada-based Dermody Properties has completed the first phase of Logisticenter at Dallas, a two-building industrial park​​ on 61.7 acres at Bonnie View Rd. and Logistics Dr.

Phase I delivered a 626,439-sf distribution center with 36-foot clear heights, 111 loading docks, 262 parking spaces, and 136 trailer stalls. The center is expandable to 1.1 million sf.

MYCON General Contractors handled construction.​
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Firm acquires 25 Denton County acres, begins cleanup

​​​​​​​DENTON COUNTY (Fort Worth Business Press) – Maersk Inc. has sold 25 undeveloped acres just north of Justin to J&B Construction.

The site has roughly 200 feet of frontage along FM 156 near FM 1384. J&B has started cleanup as the first step in redevelopment. The company plans to subdivide the land and sell development tract​s once remediation is done. 

J&B acquired mineral rights as part of the deal. Bradford Commercial Real Estate Services represented the seller.

Park planned for Legacy West

​​​PLANO (Dallas Morning News) – The city ​has purchased more than seven acres on the west side of Communications Pkwy. north of Legacy​ Dr. to build a small park.

Legacy West developer Karahan Cos. sold the property for nearly $10 million.

The city hopes to fund park improvements with a bond program, said Robin Reeves, director of Plano's parks department.​​
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Copyright © 2017, 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 Bryan Pope. 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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Apartment construction
About 31,800 apartments will be added to the Metroplex this year, according to Marcus & Millichap's latest quarterly market update. More in today's RECON. (Photo from Center files.)
September 8, 2017

Harvey could impact national, state, Houston economies well into 2018

NEW YORK CITY (Wall Street Journal) – Hurricane Harvey will distort measures of the U.S. economy in weeks and months ahead, and it could be well into 2018 before the storm's effects have fully washed out of the economic data.

Before Harvey, Texas was on track for a 14 percent increase in housing starts this year, according to Real Estate Center Chief Economist Dr. Jim Gaines.

In 2016, Houston alone accounted for about 4 percent of the nation's permitted housing. All that activity will grind to a halt as builders wait for construction sites to dry out, assess the market and compete for construction workers to rebuild and repair the city.

Gasoline prices spiked due to disruptions to oil refineries in the Houston area. The national average gas price was $2.66 a gallon on Wednesday, according to AAA, up from $2.35 a month ago.
Mail CallHow long should you allow wood to dry before putting up new sheetrock following a flood? Where's the best place to market a Texas ranch these days? These are just two of the questions we answer on this week's "mail call" episode. We also have information that might come in handy as you recover from Hurricane Harvey, plus CoreLogic's latest housing market update from DFW. Listen to the latest Red Zone podcast. (15 min. 20 sec.) 

31,800 new apartments projected for Metroplex in 2017

​​DALLAS (Marcus & Millichap) – About 31,800 apartments will be added to the Metroplex in 2017, projects Marcus & Millichap in its latest quarterly market update. Last year, that number was 18,800.

This​ year, new supply will outpace the strongest rate of absorption since 2010, and vacancy will increase to 4.9 percent.

Despite that rise, Marcus & Millichap reports that vacancy will remain tight, and the average effective rent will increase to $1,102 per month, a 7.2 percent increase. Last year, rent grew 4.7 percent​.
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Strong household formation stimulating Austin apartment demand

​​​​​​AUSTIN (Marcus & Millichap) – New household formation continues to strengthen, keeping demand for local apartments steady. Marcus & Millichap projects that about 11,800 units will be delivered this year, an increase from the previous two years.​

Though development is slowing in southern submarkets, East Austin and Pflugerville/Wells Branch are set to receive more than 1,000 units over the next two years.​

Other projections for 2017:
  • Supply will outweigh demand this year as 8,820 units are absorbed, pushing the vacancy rate up to 6.2 percent.
  • The average effective rent will increase 3.5 percent to $1,225 per month. Last year, it increased 2.9 percent.
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North Texas home prices up 6.9 percent in July

​​DALLAS (Dallas Morning News) – Area home prices for July were up 6.9 percent in the latest annual comparison by CoreLogic, just slightly ahead of the 6.7 percent nationwide gain.

"Home prices in July continued to rise at a solid pace with no signs of slowing down," said Frank Martell, president and CEO of CoreLogic. "The combination of steadily rising purchase demand along with very tight inventory of unsold homes should keep upward pressure on home prices for the remainder of this year."

North Texas home prices have risen by more than 40 percent in the last four years. The median price of a preowned ho​me in the area is now at a record high of more than $250,000.

CoreLogic forecasts that nationwide home prices will rise by 5 percent in the next year.

If you want more information about the North Texas housing market, read the Center's latest quarterly housing reports.

The Center's latest Texas Housing Insight is on our website.
Whether you're a builder, buyer, or seller, our Texas Housing Insight has what you need know about the latest housing market trends. You can read the full report on our website.

Flooding, stormwater management meeting Sept. 12 in Houston

HOUSTON (AgriLife Today) – A one-day meeting on stormwater management will be held Sept. 12 at the Trini Mendenhall Community Center, 1414 Wirt Rd.

The meeting, from 9 a.m. until 4 p.m., will be conducted by the Texas Coastal Watershed Program, part of the Texas A&M AgriLife Extension Service and Texas Sea Grant.

“As we rebound from Harvey’s destructive flooding, we have a unique opportunity to approach stormwater in a new way,” said Celina Gauthier Lowry, AgriLife Extension associate and meeting organizer.

The day is especially pertinent for elected officials and community leaders and structured for information sharing and asking questions about specific issues, especially rebuilding stormwater infrastructure in the wake of Hurricane Harvey, she said.

Registration is $75 and includes four presentations and lunch. To review the speakers and agenda, and to register, go online​ or call 979-845-2604. ​Continuing education credits are available from the American Planning Association and the Texas Floodplain Management Association.

Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Downtown skyscraper goes for $119 million

​​​AUSTIN (Austin Business Journal) – Intercontinental Real Estate​ has purchased the 5th+Colorado office tower for $663 per sf — a total of nearly $119 million, according to Real Capital Analytics.

The 18-story tower at 201 W. Fifth St. was developed by Lincoln Property​ Co. and delivered in 2016.

Lincoln and Goldman Sachs sold the property. Eastdil Secured handled the deal.
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German logistics company signs north Houston lease

​​​HOUSTON (Houston Business Journal) –​​​ DHL signed a three-year lease for a 128,924-sf distribution facility at 16607 Central Green Blvd.

Cushman & Wakefield represented both DHL and the landlord, Atlanta-based Industrial Developments International Co.

This is the German logistics company's second area expansion in 2017. Earlier this year, DCT Industrial Trust Inc. broke ground on a 222,000-sf facility​ for DHL. 

HGI sells 1,192-unit Dallas multifamily portfolio

​​DALLAS (REBusiness Online) – Affiliates of Virginia-based Harbor Group International LLC (HGI) sold five ​multifamily properties totaling 1,192 units.

HGI acquired the assets in 2014 as part o​f a 12-property, 3,100-unit portfolio. Ten of those properties are in North Texas, and two ​​are in Houston. ​​
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Office warehouse pair sells

​​​HOUSTON (The J. Beard Real Estate Company) – Northwest Real Estate Holdings LLC has sold two​​ office warehouse facilities.​

The buildings include 119,675 sf on 16.7 acres at 12450 and 12452 Cutten Rd. They will be occupied by Downhole Technology LLC, a subsidiary of Schoeller-Bleckmann Oilfield Equipment.

J. Beard Real Estate Company represented the buyer. Cushman & Wakefield represented the seller​. 

Ventana at Valwood under new ownership

​​​​FARMERS BRANCH (REBusiness Online) – Ventana at Valwood, a 265-unit apartment community at 14221 Heritage Circle, has been sold.

It was built in the 1960s and renovated in 2007.​​​

ARA Newmark brokered the sale. 

Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, 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 Bryan Pope. 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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