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RECON for June 25, 2019RECON for June 25, 2019Bryan PopePope
2019-06-25T05:00:00Z2019-06-25T05:00:00Z

RECON Real Estate Center
Aerial drone view of Pflugerville
Although household growth across the U.S. has slowed to a more normal pace, the nation's housing supply still falls short of demand. Get the information on the Harvard Joint Center for Housing Studies' report plus more real estate news in today's RECON. (Photo of Pflugerville from Center files.)
June 25, 2019

Dallas Fed: Texas job growth remains steady

​​​​​​​DALLAS (Federal Reserve Bank of Dallas) – Texas employment will grow 2.3 percent this year, according to the Texas Employment Forecast by the Federal Reserve Bank of Dallas. 

Based on the forecast, the state will add 292,100 jobs this year. Employment in December 2019 will reach 12.9 million.

This prediction comes after incorporating May 2019's annualized employment growth of 2.1 percent and a moderate decrease in the leading index.

“The manufacturing and mining sectors have slowed this year likely due to increased tariffs, a strong dollar, a weakening world economy, and weaker oil prices,” said Keith R. Phillips, Dallas Fed assistant vice president and senior economist. “While these two important sectors have slowed, the private service-producing and construction sectors have accelerated moderately, leaving overall job growth so far this year at the same pace as in 2018.”

For more Texas employment data, head to the Real Estate Center's website. 
Helping Texans make better real estate decisions since 1971

JCHS: U.S. housing supply falls short

​​​​CAMBRIDGE, Mass. (Joint Center for Housing Studies at Harvard University) – ​​With the nation’s economy on sound footing and incomes on the rise, U.S. household creation has returned to a more normal pace. However, housing production still falls short, according to the 2019 St​ate of the Nation’s Housing​ report from the Harvard Joint Center for Housing Studies (JCHS).​

Several factors may be contributing to the slow construction recovery, including excess supply following the housing boom, which took years to absorb, and persistent labor shortages. However, land prices and regulatory constraints on new development are the most significant factors.

According to the report, the number of homeowners rose sharply, even as the ratio of median home price to median household income rose from a low of 3.3 in 2011 to 4.1 in 2018, a sign of declining affordability. Conditions for would-be buyers vary widely across the nation.

The number of renter households fell for the second consecutive year in 2018, a stark contrast to the increases of the 12 preceding years. Nevertheless, rents are rising at twice the rate of overall inflation. 

The share of U.S. households paying more than 30 percent of their income for housing declined for the seventh straight year in 2017. Much of the progress was among homeowners, though, whose cost-burden rate declined to its lowest level this century. ​Cost-burden rates for modest-income renter households continue to rise.

JCHS expects millennials and baby boomers will continue pushing household growth, spurring demand in the remodeling market and the demand for entry-level homes. 

Rental growth is expected to be solid as well, with 400,000 additional renter households per year expected between 2018 and 2028.

Projections depend on a number of factors, including economic conditions, housing affordability, and the pace of foreign immigration. 
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published.

Historic hotel undergoing $65M renovation 

MINERAL WELLS (Dallas Business Journal) – The Baker Hotel and Spa has been purchased, and plans for a three-year, $65 million renovation are in the works.

The restored luxury resort will have 157 guest rooms, a top-floor ballroom, 22,000 sf of event space, a restaurant, lounge, coffee shop, and spa.

Opened in 1929, the property cost $1.2 million to build and has been vacant since 1972.  

The project is a public-private partnership between the city and the owners and developers, including Hunter Chase Construction and Developers, Wells Fargo Advisors, Ryan LLC, Nix Rental Homes, La Corsha Hospitality, Syndicated Contracting Services, and Thiel and Thiel.

The project has been designated in an Opportunity Zone and construction will begin immediately. 

Completion is set for 2022.​
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. 

Hines adding 577K sf in Cornerstone Industrial Park

SAN ANTONIO (Hines) – Hines is developing Corner Ridge Crossing, a 577,000-sf, four-building project within Cornerstone Industrial Park. 

The project will have two rear-load buildings totaling 198,000 sf; one 127,000-sf front-load building; and one 252,000-sf cross-dock building. 

Tenants can lease spaces ranging from 19,000 to 252,000 sf. 

Amenities will include 28- to 32-ft clear heights, ample car and trailer parking, and two points of ingress/egress. 

Groundbreaking is scheduled for July, and the first spaces will be complete by first quarter 2020. 

JLL will handle leasing.

The Pointe at Valley Ranch delivers 336 units 

NEW CANEY (REBusiness) – The Signorelli Company has opened the 336-unit Phase I of The Pointe at Valley Ranch Town Center at 20290 Park Lake View Dr.

The waterfront property features one-, two-, and three-bedroom units near Valley Ranch Town Center. 

Residents have access to a ten-acre beach, pool, outdoor kitchen, fitness center, and package/concierge services. 

Signorelli will begin construction on the 120-unit second phase by the end of the year.​
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Lovette to redevelop 550K-sf post office

HOUSTON (Connect Media) – Lovette Commercial will redevelop the 550,000-sf Barbara Jordan Post Office at 401 Franklin St. into a mixed-use development.

The project will offer restaurant, retail, and entertainment space. A groundbreaking ceremony is scheduled for this month.  

The 16-acre property includes a five-story office building and two-story industrial building. 

In July 2018, a $31 million building permit was filed for renovation work at the site. 

​​OMA and Powers Brown Architecture are designing the project. 

Abilene retail center sells for $20.1M

ABILENE (REBusiness Online) – Pillar Capital Group has sold The Shops at Abilene Village, a 145,000-sf retail power center, for $20.1 million.

Anchored by Academy Sports + Outdoors, the center also houses tenants such as Burlington, Petco, Party City, and Five Below.

Nooner Holdings Ltd. acquired the asset via a 1031 exchange.​

​​​​​Stan Johnson Co. represented the seller. 
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.

NIT buys 12.8 acres at Cedar Port

​​​​BAYTOWN (REBusiness Online) – NIT Industrial LLC has purchased 12.8 acres within Cedar Port Industrial Park near Port Houston for the development of a 204,175-sf speculative industrial project. 

The project will encompass four buildings measuring between 50,250 and 51,925 sf that will feature 32-ft clear heights, dock- and grade-level loading doors, and ESFR sprinkler systems. 

Construction is slated to begin in October. 

NAI Partners represented the seller, TGS Cedar Port Partners LP. Colliers International represented the buyer and will handle leasing.​​​

Two Mansfield multifamily assets change hands

MANSFIELD (REBusiness Online) – Institutional Property Advisors have negotiated the sale of two Class A multifamily communities totaling 588 units.

Steadfast Cos. purchased the 274-unit Villaggio Apartments from Carleton Residential Properties and M.R. Development Corp. It was built in 2016 at 1701 E. Debbie Ln.

Weinstein Properties acquired the 314-unit Bex​ley on Main from The NRP Group. It was built at 751 N. Main St. in 2018. ​The property's name was changed from Main Street Lofts earlier this year.​

Both communities feature standard Class A amenities such as pools and fitness centers.
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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=285
RECON for June 21, 2019RECON for June 21, 20192019-06-21T05:00:00Z2019-06-21T05:00:00Z
RECON Real Estate Center
JP Morgan Chase lit up at night
The JP Morgan Chase Tower, the tallest building in Texas, has been sold for $627 million. Get the transaction details and more in today's RECON. (Photo from Chase Tower.)
June 21, 2019

Lone Star State sets new record low unemployment rate 

​​​​AUSTIN (Texas Workforce Commission) – Texas' unemployment rate hit 3.5 percent in May, the lowest it has been since the Texas Workforce Commission (TWC) began tracking the data in 1976. 

This breaks the previous low rate of 3.7 percent set in April 2019.

TWC Chair and Commissioner Representing Employers Ruth R. Hughs said the low unemployment rate highlights Texas' competitive economy and skilled workforce. “Our economy is thriving across multiple industries, attracting new companies every day, showing that Texas is the best state in the nation to do business.”

Last month marked the 109th consecutive month of annual nonfarm employment growth as 19,600 seasonally adjusted positions were created.

The Texas metro with the lowest nonseasonally adjusted unemployment rate was Midland at 1.7 percent. McAllen-Edinburg-Mission had the highest at 5 percent.

The mining and logging industry saw the most seasonally adjusted growth in employment from May 2018 to May 2019, growing 6.2 percent. The information industry was the only sector to see a drop in employment, falling 1.1 percent.​
Texas border econ
Wage improvements combined with declining mortgage rates boosted housing sales along the border in April. Challenges to the border communities moving forward include political uncertainty regarding immigration reform and trade, which remains an integral component of the local economies. Read our latest Texas Border Economy report for more. 

City of Austin median home price hits all-time high

​​​​AUSTIN (Austin Board of Realtors) – The median price of a single-family home reached an all-time high of $407,400 in the city, according to the Austin Board of Realtors (ABOR).

But at the same time, the May 2019 report shows declines in the city for both new and active listings, as well as a 3.4 percent drop in home sales. The same wasn't true, however, for the surrounding areas, which all experienced strong gains.

"A lack of middle-market housing in the City of Austin is driving demand to the suburbs," said Kevin P. Scanlan, 2019 ABOR president. "While the Central Texas housing market is healthy and thriving, Austin continues to struggle with housing options that are affordable for first-time homebuyers as the median price surpasses $400,000." 

Across the metro, 3,452 single-family homes were sold for a median price of $335,095. Sales volume totaled $1.5 billion, up 15 percent from May 2018.

There were 2.6 months of inventory in Central Texas. The Real Estate Center considers six- to 6.5-months of inventory a balanced market. ​

May 2019 Austin-Area stats

Texas top state for CRE development 

​​​​HERNDON, Va. (NAIOP Research Foundation) – Texas is the top state in the U.S. for commercial real estate development, creating and supporting 400,986 related jobs and contributing $62.2 billion to the state’s economy in 2018, according to the NAIOP Research Foundation.

The Lone Star State ranks first in warehouse/flex and retail space, beating out Florida and California. 

It is second in industrial, behind Tennessee and above Florida. Texas is also second in office space, beating out Virginia and falling short of New York.

According to the report, new development and ongoing operations of existing commercial real estate buildings created and supported 8.3 million American jobs in 2018. It resulted in salaries and wages of $325.9 billion.

Development and ongoing operations contributed $1 trillion to U.S. GDP in 2019. Work started on 532 million sf of commercial space last year with the capacity to house 1.5 million employees. 
Helping Texans make better real estate decisions since 1971

The search is over: Google confirms Austin expansion

AUSTIN (Austin Board of Realtors) – Google Inc. has inked leases in two office buildings in downtown and on the east side.

The company leased 150,000 sf at Saltillo and the entire 35-story, 723,000-sf tower known as Block 185 underway in downtown.

Around 5,000 employees can be accommodate​d in Block 185 with another 700 in Saltillo.

Google will retain its offices at 500 W. Second St., adjacent to Block 185. The company will also invest $600 million to develop a data center in Midlothian.

Employees will begin moving into Saltillo at the beginning of next year and Block 185 in 2023. 
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Texas' tallest tower trades for $627M

HOUSTON (Connect Media) – Cerberus Capital and Hines have acquired​ the JP Morgan Chase Tower at 600 Travis St. for $627 million. 

The 1.7 million-sf tower is the tallest building in Texas.

The deal also includes the adjacent 407,000-sf Chase Center, at 601 Travis St. 

New York-based Cerberus will own 90 percent of the properties, while Hines will take a 10 percent share.

The seller was Hairiri Interests, operating as Prime Asset Management. 

​Hines has been managing both properties. Colvill Office Properties is handling leasing.

Chicago investors pick up 1M-sf of offices

DALLAS (Dallas Morning News) – GlenStar and Singerman Real Estate have acquired eight buildings in the Solana Business Park on SH 114.

The office complex, called the Terrance at Solana, has six five-story, 375,000-sf buildings; a six-story, 309,000-sf facility; and a three-story, 129,000-sf building.

Built in the 1980s, the development has been for sale since last summer when it was less than 40 percent leased. Major tenants include Sabre Corp., Verizon, Goosehead Insurance, and Marsh & McLennan.​

The purchase also includes ​the Solana Fitness Club and 20 acres for additional development.

Redevelopment plans include a new conferencing center, fitness center, tenant lounge, patios, and entertainment space. The previous owners already invested about $50 million in upgrades.

HFF marketed the property on behalf of the sellers, Blackstone Group and its affiliate, Equity Office Properties.​​
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.

LNR hands building pair to Fuller Realty affiliate

HOUSTON (Houston Business Journal) – An affiliate of Fuller Realty Partners has purchased two Class B office buildings in the Energy Corridor totaling 175,700 sf.​

The buildings, called Parkview I and II, are 110,480 and 65,220 sf and are at 330 Barker Cypress Rd. and 333 Cypress Run, respectively.

An affiliate of LNR owned the pair since November 2017, according to the Harris County Appraisal District.

Combined, the two buildings were approximately 11 percent leased at the time of sale. 

JLL Capital Markets represented the seller in the Ten-X Commercial auction. 

537K-sf distribution center sold in Tyler

TYLER (Marcus & Millichap) – Trane Distribution Center, a 536,141-sf industrial property at 1710 E. Duncan St., has sold to a private investor.

The property was built on 36.9 acres in 1949.

Marcus & Millichap marketed the property on behalf of the seller, a private investor. ​
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Hotel Sul Fiume proposed along River Walk 

SAN ANTONIO (San Antonio Business Journal) – SMS-SAR Hospitality LLC has submitted plans to the Historic and Design Review Commission for Hotel Sul Fiume, a 127,000-sf project at 202 N. St. ​Mary's St.

The 14-story, 147-room boutique hotel is planned for a site currently home to a three-story rectory belonging to the neighboring St. Mary's Catholic Church.

Plans call for the rectory to be demolished and for a new one to be built within the hotel. A first-floor restaurant and a River Walk-level cafe or retail space have also been proposed. 

The hotel has been designed by San Francisco-based Hornberger + Worstell.

GreenSpace developing self-storage facility off Kinsley Dr. 

PEARLAND (REBusiness Online) – GreenSpace Self-Storage LLC will develop a 1,000-unit facility on 2.4 acres at 2101 Kinsley Dr. 

The Class A property will offer 100,000 sf of net rentable space with both climate- and non-climate-controlled units.

Construction will begin later this year.
Texas 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=284
RECON for June 18, 2019RECON for June 18, 20192019-06-18T05:00:00Z2019-06-18T05:00:00Z
RECON Real Estate Center
David Jones accepts a gold quill award
Real Estate Center Senior Editor David Jones accepted a Gold Quill award at the International Association of Business Communicators' (IABC) World Conference in Vancouver last week. The Center's flagship publication, Tierra Grande magazine, was honored with the international award. (Photo from IABC.)
June 18, 2019

Texas fifth-best state for summer road trips

​​​​​​​​​​​WASHINGTON (WalletHub) – Texas is the fifth-best state for summer road trips nationally, according to a WalletHub study.

The Lone Star State ranked fourth in costs, seventh in activities, and 42nd in safety.

Texas was also:
  • seventh in both driving laws and lowest price of three-star accommodations;
  • eighth in both the lowest price of camping and nightlife options per capita;
  • ninth in average gas prices;
  • 12th in access to scenic byways;
  • 14th in both number of attractions and vehicle​ miles traveled per capita; and 
  • 30th in car thefts per capita.​
The rest of the top-five state rankings are North Carolina, Wyoming, Minnesota, and Virginia. 

Texas recently ranked tenth on a WalletHub ranking of the most fun states in the U.S.
Helping Texans make better real estate decisions since 1971

Accesso to occupy 200,000-sf in Austin

AUSTIN (REBusiness Online) – Accesso has signed two leases totaling 200,000 sf at Riata Corporate Park, a 61.5-acre office campus at 12331 Riata Trace Pkwy. 

Transwestern negotiated both leases on behalf of Accesso.​​

Global pharmaceutical company Allergan has leased 107,000 sf at the eight-building campus, which offers multiple fitness centers, an employee lounge, and a deli café. 

In addition, an unnamed Silicon Valley-based computer company will occupy 93,000 sf. 
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published.

CONTI picks up 350-unit multifamily

PLANO (REBusiness Online) – CONTI Organization has acquired Waterford on the Meadows, a 350-unit apartment complex on 22 acres at 1414 Shiloh Rd.

Built in 1984, the garden-style property offers one- and two-bedroom units and amenities such as three pools, a volleyball court, and onsite laundry facilities.

CONTI now owns 29 multifamily communities totaling 8,180 units across the Metroplex​​​.

The seller was California-based Steadfast Income REIT. CBRE brokered the transaction.​
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. 

Kempwood Tech Center uploads new owner 

HOUSTON (Holliday Fenoglio Fowler) – LNR Partners LLC has sold the Kempwood Tech Center at 2700-2778 Bingle Rd. to CG7600 LP.

T​​​​he 7.18-acre property consists of three Class B flex industrial warehouse buildings totaling 113,117 sf.

Home to two tenants, the one-story buildings feature between 14- and 16-ft clear heights, 30 grade-level loading doors, and varying amount of office space.

HFF marketed the property in conjunction with Ten-X on behalf of the seller. Garver Real Estate handled the acquisition for the buyers.
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New owner making a splash at Schlitterbahn

​​​​​​SAN ANTONIO (San Antonio Business Journal) – Sandusky, Ohio-based Cedar Fair Entertainment C​o. is purchasing two Schlitterbahn-branded waterparks in New Braunfels and Galveston for $261 million.

Cedar Fair will also buy Schlitterbahn's closed Kansas City, Kan. water park for an additional $6 million.​

The deal is expected to close in the second quarter. ​
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.

176 Irving units change hands

IRVING (CBRE) – EBEX Irving Apartments LLC has purchased Hidden Village, a 176-unit multifamily community at 1901 W. 5th St.

The buyer purchased the asset because of the location half a mile from downtown, which has historically had high apartment occupancy.

Hidden Village was 96 percent occupied at the time of sale.

CBRE Capital Markets' Investment Properties represented the seller.​
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Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the 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=283
RECON for June 14, 2019RECON for June 14, 2019Bryan PopePope
2019-06-14T05:00:00Z2019-06-14T05:00:00Z

RECON Real Estate Center
Rendering of Life Time's development
Life Time Inc. is developing a $130 million mixed-use project near the intersection of Six Pines Dr. and Lake Front Circle. It will have a fitness-coworking facility and multifamily units. Details are in today's RECON. (Photo from Life Time Inc.)
June 14, 2019

Texas home sales hit new high

​​​COLLEGE STATION (Real Estate Center) – Texas surpassed a record-high 30,000 home sales in April 2019 as lower mortgage rates and the healthy labor market spurred demand across the price spectrum, according to the Real Estate Center's latest Texas Housing Insight report. 

Robust demand pulled Texas' average days on market down to 60 days.

The recent spurt of demand pushed prices upward after a relatively calm start to the year. Pricing pressures picked up but held well below peak growth levels.​

The Texas median home price increased $2,000 to $238,000, surpassing 4.1 percent year-over-year ​​growth for the first time since October. While still increasing, home prices are no longer soaring at double-digit levels as in 2017. 

Austin and Dallas maintained the highest median price at $303,800 and $288,800, respectively, but remained on a flat trajectory. The Houston ($241,250) and Fort Worth ($237,100) medians maintained steady year-over-year growth at 2.2 and 3 percent, respectively, while San Antonio ($227,300) posted 4.3 percent growth.

According to the report, Texas' robust economy and population growth support a favorable outlook​.​
To say subprime mortgages single-handedly caused the Great Recession of 2006-07 would be over-simplifying things, but certainly they were a key culprit. More than ten years later, many Texans are still feeling their residual effects. Read "Lingering Effects of Subprime Lending" for more.

Cedar Fair's $261M Schlitterbahn splash

NEW BRAUNFELS, GALVESTON (Community Impact Newspaper) – Cedar Fair has purchased two Schlitterbahn properties for $261 million.

The deal included the 70-acre original waterpark in New Braunfels with a resort featuring 221 rooms, and Schlitterbahn Waterpark Galveston.

The two parks hosted 1.2 million guests in 2018 and generated revenues of approximately $68 million.

With the purchase, Cedar Fair will have 15 parks, more than 2,000 rooms at six parks, more than 600 luxury RV sites at four parks, and two marinas.

Tenet Healthcare signs 372K-sf lease

FARMERS BRANCH (Dallas Business Journal) – Tenet Healthcare Corp. is moving its downtown headquarters to Farmers Branch.

Currently occupying 220,000 sf in Fountain Place, the company has ​signed a long-term lease for the entire 372,000-sf International Plaza I at 14201 N. Dallas Pkwy.

Taconic Capital acquired the 13-story building and the International Plaza II next door in 2018 and is currently improving the pair.

​​​Cushman & Wakefield marketed the property for Taconic. Tenet Healthcare was represented by Younger Partners.

Tenet employees will move into the building in phases beginning at the end of the year.
Russ Peterson and Hayley Rieder recording podcast
Behind a real estate development is a large team of professionals pitching in to make the project a success. According to Dr. Russ Peterson of Mays Business School, developers are the quarterback, calling the plays and leading their team to a development touchdown. Tune in to this week's podcast to learn what it takes to become a developer and how data can help. 

Life Time starts on $130M Woodlands development 

THE WOODLANDS (Houston Business Journal) – Life Time Inc. will soon break ground on a $130 million mixed-use project near the intersection of Six Pines Dr. and Lake Front Circle.

The development will be anchored by a 140,000-sf fitness-coworking facility. The 50,000 sf of coworking space will be on the top floor.

A 420-unit multifamily project will be next door. Mill Creek Residential is working on that portion. 

Construction will begin late this summer. The fitness facility will deliver in early 2021. The residential piece will finish in early 2022, with preleasing starting in 2021.​
Outlook for Texas Economy graphicEntering the ninth year of the business cycle expansion, Texas' economic activity remained healthy and diverse. Crude oil prices trended upward, and payroll employment grew at a steady pace, and unemployment remained historically low. Low interest rates supported commercial investment and pushed housing sales to a record high. Political tension, trade uncertainty, and a slowdown in the global economy present the greatest challenges. More in our latest Outlook for the Texas Economy report. 

60K-unit affordable housing plan approved in Austin 

AUSTIN (KVUE News) – The city council has approved a plan to​ build 60,000 affordable housing units across the city.

This goal came out of their housing blueprint which aimed to build a total of 135,000 units.

The affordable housing will be spread out across the ten districts, specifically looking in areas with easy access to public transportation and increased gentrification.

Districts six and ten will have the most affordable housing units with about 8,000 units apiece. Districts four and nine will have the least with about 3,000 units each.

​Completion is projected for 2027.​​
Helping Texans make better real estate decisions since 1971

Three-property multifamily package sold in DFW

ARLINGTON (Marcus & Millichap) – MacDonald Realty Group has sold a three-property multifamily portfolio totaling 532 units to three separate sellers.

Madera Residential purchased the 168-unit The Rochester, which was built in 1980 at 2604 Furrs St.

The 228-unit Aspen Woods at 2910 S. ​Collins St. was purchased by Sentinel Peak Capital. The buyer has renamed it​ The District on Collins.

Obsidian Capital purchased the 136-unit Cobble Hill. The property at 6050 Oakland Hills Dr. was built in 1983.​​​​​

Marcus & Millichap marketed the properties, collectively called The MacDonald 3 Value-Add Portfolio.

The properties all closed within 30 days of one another and will undergo multi-million-dollar renovations to common area amenities, building exteriors, and unit interiors.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

668-unit Avana Eldridge trades hands 

HOUSTON (Multi-Housing News) – Greystar has purchased the 668-unit Avana Eldridge at 1415 Eldridge Pkwy. from AMLI Residential.

The 26.6-acre property consists of one-, two-, and three-bedroom apartments with floor plans ranging from 643 to 1,575 sf. 

Amenities include two pools, a fitness​ and business center, tennis court, and clubhouse. 

The community was 93.4 percent occupied in April, according to Yardi Matrix data.
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.

Independent Bank moves into new Craig Ranch headquarters

McKINNEY (Dallas Morning News) – Independent Bank has moved 400 employees into its new headquarters in the Craig Ranch development at SH 121 and Grand Ranch Pkwy.

The 165,000-sf, six-story building is the first phase of a 400,000-sf campus that will include an outdoor plaza and walking trails.

Developer KDC started building the $52 million project on ten acres in late 2017.

Architect SmithGroup designed the building. Rogers O'Brien Construction was the general contractor.​​​
Subscribe to RECON if you haven't already. Click here to go to our website.
If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

335-unit Edge & Stone underway in the wilderness 

SAN ANTONIO (San Antonio Business Journal) – Thompson Realty Capital has started construction on Edge & Stone, a 335-unit multifamily complex at 24625 Wilderness Oak. 

The 22-acre gated community will have studio and one-, two-, and three-bedroom floor plans. It is next to Tuscany Heights Elementary School.

Amenities will include a resort style pool and fitness center. Designed by Cross Architects, the project will deliver by ​early 2020.
Texas 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=282
RECON for June 11, 2019RECON for June 11, 2019Bryan PopePope
2019-06-11T05:00:00Z2019-06-11T05:00:00Z

RECON Real Estate Center
The Tribute at the Rim, a 380-unit community in The Rim development in San Antonio, has been sold. Keep reading today's RECON for the details on this transaction and more. (Photo from Passco Cos.)
June 11, 2019

Texas tenth-most fun state in U.S.

​​​WASHINGTON (WalletHub) – Texas is the tenth-most fun state in the nation, according to a WalletHub study. 

The Lone Star State ranked ninth in nightlife and tenth in entertainment and recreation. It was fifth in most fitness centers per capita.

Texas tied for first with California, Florida, and New York for most restaurants per capita. It also tied for the top spot with California​ and New York for most movie theaters per capita.

However, Texas has the fifth-worst access to national parks. 

The rest of the top ten are California, Florida, New York, Washington, Colorado, Nevada, Minnesota, Pennsylvania, and Oregon.

Texas fell three spots from seventh in 2018. For more about what attractions the state has to offer, check out a Real Estate Center Mixed-Use blog about last year's rankings. ​​
business people at conference tableRural land management isn’t just big business—it’s family business. At least it can be for Texans hoping to teach heirs how to manage substantial real estate holdings. In such cases, business structures can be a practical option. Read more in "Leaving a Legacy: Limited Partnerships, LLCs, and Corporations," a Tierra Grande digital first article by Center Assistant Research Economist Dr. Erin Kiella.

644K-sf Baytown logistics center breaks ground 

BAYTOWN (Connect Media) – Avera Cos. and AEW Capital Management have broken ground on Cedar Port Logistics, a 643,951-sf, rail-served speculative building in the Cedar Port Industrial Park.

The 40.8-acre development off SH 99 and east of FM 1405 will be served by the Union Pacific and BNSF railroads.

The building can be expanded to 760,400 sf. It offers a 36-ft clear height, 185-ft truck court, and outside storage. 

NAI Partners will handle leasing.
the economic impact of a typical home sale in Texas

Passco acquires Tribute at the Rim

​SAN ANTONIO (Multi-Housing News) – Passco Cos. has bought Tribute at the Rim, a 380-unit community at 5810 Worth Pkwy.

The eight-acre property consists of one-, two-, and three-bedroom apartments in a three-story and a four-story building completed in 2017.

Amenities include a pool, fourth-floor lounge, fitness center, conference room, and an electric charging station.

According to Yardi Matrix data, the community was 95.5 percent occupied in April.

JLL represented the seller, Kairoi Residential.
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published.

618K-sf industrial lease signed in metro Dallas

CARROLLTON (REBusiness Online) – Steelcase Inc. has signed a​ 618,000-sf industrial lease at 1050 and 1150 Luna Rd.

The company will occupy the entire space in Atlanta-based Core5 Industrial​ Partner's facility, which features 32- to 36-ft clear heights. It will move in this summer.

​Steelcase plans to hire approximately 400 seasonal employees this year. The company recently acquired manufacturing space in Plano.

NAI Robert Lynn and NAI Puget Sound negotiated the transaction.
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. 

Sugar Land approves 316K-sf tax abatement project

SUGAR LAND (Community Impact Newspaper) – The city council has approved a tax abatement agreement with Johnson Development Associates to construct two industrial buildings off Gillingham Lane between Jess Pirtle and W. Airport Boulevards.

The buildings will total 315,892 sf across 18 acres. The developer will invest about $11.6 million and benefit from a tax reduction of 35 percent over ten years.

The buildings should be fully leased by March 2021.
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JV sells Westwood Business Park

FARMERS BRANCH (Commercial Property Executive) – A joint venture between TriGate Capital and Finial Group has​​​ sold Westwood Business Park, a 227,709-sf industrial facility at 1801 Royal Ln.

The 17.8-​acre property has 12 one-story buildings with 14-ft clear heights, 76-ft truck court depth, and 2,000 sf of retail space. 

Property Advisers Realty represented the seller. Finial Group will handle leasing and management of the property.
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.

386-unit project tops off at Hughes Landing 

THE WOODLANDS (REBusiness Online) – The Howard Hughes Corp. has topped off Two Lakes Edge, a 386-unit multifamily project within its Hughes Landing development.

Units will consist of studio, one-, two-, and three-bedroom floor plans averaging 997 sf. 

Amenities will include a sports lounge, coworking space, individual storage units, fitness center, and a pool. 

Completion is slated for spring 2020, with preleasing set​ to begin by end 2019.
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145K-sf distribution center sold in DFW

GRAND PRAIRIE (REBusiness Online) – JLL Income Property Trust has acquired a 145,000-sf distribution center five miles south of Dallas-Fort Worth International Airport.

The Class A property is fully leased to Fruit of the Earth until January 2027.
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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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