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RECON for August 18 2017RECON for August 18 2017Bryan PopePope
2017-08-18T05:00:00Z2017-08-18T20:05:00Z
​​​​ Real Estate Center Online News
Northport 35 Business Center
Pennsylvania-based Allen Distribution makes its Texas debut with a 349,425-sf industrial lease in Northport 35 Business Center. (Photo from RGA Architects website.)
August 18, 2017

Texas' major metros to add 130,000 homes in 2017

​​​​WASHINGTON (Builder Online) – ​The Dallas, Houston, and Austin metros are on pace to build nearly 130,000 new homes in 2017, according to Trulia.

These three markets make up over 10 percent of expected new construction in the U.S. this year and are all in the top five for permitting activity, along with New York and Phoenix.

Austin is also the fastest-growing new home market in the nation, relative to the historic norm. The area is set to add almost 30,000 new homes this year—more than double the historic norm at 108 percent. 

Helping Texans make better real estate decisions since 1971

Tyler Renaissance

COLLEGE STATION (Real Estate Center at Texas A&M University) – ​Tyler has been a busy area for real estate development in recent years. South on Broadway Ave. there is plenty of new commercial development. Formerly wooded areas are now major shopping venues, and the housing market is booming with single- and multifamily permits on the rise.

    

"Much of the housing activity has been in the southern half of Smith County between SH 31, which splits Tyler north and south to the county line at Bullard," said Real Estate Center ​​​Senior Data Analyst Joshua Roberson. "Communities in between, such as Flint and Whitehouse, have seen such activity as well. Residential sales in ZIP codes 75701, 75703, and 75762 have been the most active with strong year-over-year growth especially in ZIP code 75757. In 2016 the 249 home sales through the MLS were almost a 25 percent jump compared with 2015. As of second quarter this year, each of these ZIP codes was on pace to match or exceed 2016 levels."

Downtown Tyler has undergone a redevelopment renaissance. Old and derelict buildings have been revived, breathing new life in an area formerly confused for a ghost town. Money has poured into development projects near the federal courthouse, including mixed-use commercial and urban-style residential housing. Newer amenities have sprung up in the downtown area including coffee shops, microbreweries, restaurants, and art and culture venues. Downtown has become a major draw for millennials as a place to work, play, and live. Based on the most recent census bureau estimates, the downtown area contains one of the highest population concentrations between ages 25 and 34 for all of Smith County. 

"Housing outside the downtown area is also robust. ZIP code 75703, directly south of downtown, is the second most active with over 600 homes sold each​​ of the past two years," said Roberson.

For more information about Tyler housing, read the Real Estate Center's new housing report.

To read more about downtown revitalization, check out ​​our latest article, "This Old Loft: Downtown Living in Small Town Texas."​        

Tuesday is the best day of the week for just about anything, except buying and selling real estate. Real Estate Center Senior Editor David Jones explains why on our Mixed-Use blog.

Food and beverage handler makes Texas debut

​​​NORTHLAKE (Dallas Morning News) – Pennsylvania-based Allen Distribution has signed a 349,425-sf industrial lease in Stream Realty Partner's Northport 35 Business Center on I-35W.

JLL negotiated the lease. 

​​The facility is Allen's first in Texas. 

USAA acquires Bank of America Plaza

​​​​​SAN ANTONIO (San Antonio Business Journal) – USAA Real Estate Co. has bought the 1.83-acre Bank of America Plaza.

The 28-story, 530,000-sf tower at 300 Covent St., which opened in 1984, is the largest office building downtown. It was previously owned by Talcott Realty Investors and Clarion Partners.

House on sunny day
Housing affordability for both Texas and the U.S. has declined since the end of 2012. Texas remains more affordable than the nation; however, affordability in some of the state’s major metros is weakening. Read more from Center Chief Economist Dr. Jim Gaines and Research Assistant Clare Losey in their new article, "Still Affordable."

Seven office, industrial buildings get new owner

​​DALLAS (Dallas Morning News) – California-based Entrada Partners has acquired seven office and industrial buildings totaling 508,000 sf in North Texas​​.

The buildings were constructed in the 1980s and include six offices and one industrial project. The office properties are:

  • Counterpoint at Las Colinas at 8101 and 8113 Ridgepoint Dr. in Irving;

  • Sterling Tech Center at 7801, 7803, and 7805 Mesquite Bend Dr. in Irving;

  • Dallas Tech Center on West Technology Blvd. in Dallas;

  • Westwood Business​ Park III at 1805 Royal Ln. in Dallas;

  • International Corporate Park II on International Blvd. in Richardson; and

  • Valwood XII at 13701 Hutton Dr. in Farmers Branch.

The industrial property is International Corporate Park III at 900 Alpha Dr. and 500 Industrial Dr. in Richardson.

HFF arranged financing with Bank of America Merrill Lynch.

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USAA doubling North Texas workforce

​​PLANO (Dallas Business Journal) – San Antonio-based USAA is building a 150,000-sf facility next to its current Legacy Business Park operations.​​

USAA plans to employ 850 at the new building, which will double its North Texas workforce. Completion is slated for early 2019.

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.

Monogram Residential Trust sells two Houston apartments

​​​HOUSTON (Houston Chronicle) – Affiliates of Austin-based F&B Capital have purchased two apartment communities totaling 501 units from Monogram Residential Trust.

The Muse at Museum District is a 270-unit complex at 1301 Richmond Ave., and Allusion West University totals 231 units at 3810 Law St. Both properties were developed in partnership with Trammell Crow Residential.

F&B's Roscoe Properties affiliate will manage the apartments.

Downtown loft building
Almost all small towns in Texas would love to revitalize their downtowns. Lofts can play an important role in reviving neglected old buildings that have historical interest and character. Real Estat Center Research Economist Dr. Harold Hunt talks about this in, "This Old Loft: Donwtown Living in Small Town Texas."

Fort Worth, Austin medical office portfolio sold

SAN DIEGO ​​(HFF) – IRA Capital LLC has sold a three-property Class A medical office portfolio to a publicly traded healthcare REIT.

The properties total 137,686 sf and include:

  • The Center for Cancer and Blood Disorders in Fort Worth;
  • Baylor Health Center at Magnolia Greens in Fort Worth; and
  • Cedar Park Medical Center in Cedar​ Park. 

HFF marketed the fully leased properties and procured the buyer. 

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.

Mountain Creek Business Park expanding

​​DALLAS (Dallas Business Journal) – Courtland Development, in partnership with Trez Capital Texas, is adding a two-building, 150,000-sf industrial project ​​to its 590-acre Mountain Creek Business Park.

Mountain Creek 7 and Mountain Creek 8 ​will be a 54,600-sf building and a 100,360-sf building, respectively, near Mountain Creek Pkwy. and I-20.​ Completion is slated for spring 2018.

Alliance Architects is the project architect, Pacheco Koch are the engineers, and Southwest Bank is financing the construction.

Investor buys multifamily pair

​​​​FORT WORTH (REBusiness Online) – Atlanta-based Carroll Organization has acquired Century Colonial Park and Gallery 1701, two multifamily properties totaling 405 units in the riverfront area.

Built in 2009, the properties at 1800 and 1701 Rogers Rd., will be rebranded as the Trinity Residences. 

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=100
RECON for August 15, 2017RECON for August 15, 2017Bryan PopePope
2017-08-15T05:00:00Z2017-08-15T18:45:00Z
Real Estate Center Online News
Home construction.
Dallas-Fort Worth is the nation's top homebuilding market with 31,049 single-family home starts, up 4.9 percent from the year before. (Photo from Center files.)
August 15, 2017

TREC receives ARELLO communications award

​​​AUSTIN (Texas Real Estate Commission) – The Texas Real Estate Commission's (TREC)​​ redesigned website has been recognized by the Association of Real Estate License Law Officials (ARELLO) with a 2017 Communications Award. 

Launched in February 2017, the entirely new, responsive design website gives TREC license holders and Texas consumers access to the information they want and need on any device they use. ​

The award will be presented in a special “Award Winning Ideas” presentation session at the 2017 ARELLO ​Annual Conference in September.

Helping Texans make better real estate decisions since 1971

DFW nation's busiest homebuilding market

​​DALLAS (Dallas Morning News) – ​​Dallas-Fort Worth is the nation's busiest homebuilding market with 31,049 single-family home starts during the year ending with June.

According to Metrostudy Inc., that's up 4.9 percent from the 29,626 home starts last year. 

At the same time, starts of apartments and multifamily housing dropped by 11.4 percent, according to RealPage.

Houston was a close second with 27,114 annual starts, and Austin ranked eighth with 16,088 home starts.

North Texas home starts are at the highest level since the Great Recession, but they are still about 40 percent below where the market was in 2006 before the housing bust.

Medium DFW home prices are over $100,000 higher than they were ten years ago.​

For more information on the Dallas housing market and more, read the Real Estate Center's new Quarterly Housing Report.

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. 

Greenspoint Mall to be sold, redeveloped

​​HOUSTON (Houston Chronicle) – ​​A group of investors with Global Plaza Union is purchasing the Greenspoint Mall with plans to redevelop the property as a mixed-use project.

The transaction is expected to close within the next four months.

Sears, Macy's, and Dillards own their department stores at the mall independently and must agree to sell the spaces before redevelopment begins.

Fen Gao, a Chinese real estate developer with WIT Union, is the primary investor in the development, which is his first project in the U.S.

Reggie Gray, investor and president of the Houston Intercontinental Chamber of Commerce, facilitated ​the transaction.

At over one million sf, the property at 12300 North Fwy. was one of the largest malls in the region when it opened around 40 years ago. 

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. 

KDC developing Independent Bank's Craig Ranch HQ

​​​​​McKINNEY (KDC) – KDC has been selected to develop the new corporate headquarters for Independent Bank Group Inc​. in the McKinney Corporate Center Craig Ranch.

The 150,000-sf headquarters will be on 10.4 acres at SH 121 and Grand Ranch Pkwy. 

Work will start in fourth quarter this year. Approximately 400 employees will occupy the building in January 2019. ​​​

Denver developer building 252,000-sf industrial park

​​LA PORTE ​(Houston Business Journal) – Denver-based DCT Industrial Trust Inc. will break ground this month on DCT PetroPort Industrial Park, a two-building, 252,000-sf industrial park near SH 225 off Sens Rd.

DCT PetroPort will include a 163,000-sf building at 860 Sens Rd. and an 89,000-sf building at 850 Sens Rd. The larger facility is entirely preleased, and Cushman & Wakefield is marketing the park's remaining space.

The park is expected​ to deliver in April 2018.

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255 Lancaster acres slated for industrial park

​LANCASTER (Dallas Morning News) – Developer Mike Rader has purchased 255 acres west of I-45 on Pleasant Run Rd. for a new business park.​

A 1.5 million-sf building has been planned on the property, which can hold 4.5 million sf of buildings. 

The property was sold by First United Bank, formerly American Bank of Texas, which acquired the property through foreclosure during the recession. 

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.

Work starts on Ariza College Station

​COLLEGE STATION (Realty News Report) – The Woodlands-based Cypressbrook Development Co. ​​​has broken ground on Ariza College Station, a 226-unit apartment community.

The project will be just east of the SH 6 bypass off Harvey Rd.

MoPac acreage slated for multifamily development

​​​​AUSTIN (CoStar Group) – Locally based Oden Hughes has acquired 10.38 acres from Rollins Inc. for $5.6 million to develop a 350-unit, four-story apartment complex.

The site at the southeast corner of MoPac Expy. and Scofield Ridge Pkwy. has been on the market since 2009.

ECR represented the seller.

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=99
RECON for August 11, 2017RECON for August 11, 2017Bryan PopePope
2017-08-11T05:00:00Z2017-08-11T19:50:00Z
Real Estate Center Online News
The 259,009-sf Preston Plaza office property in far north Dallas is under new ownership. More in today's RECON. (Photo courtesy of CBRE.)
August 11, 2017

North Texas housing market has best July on record

DALLAS (Dallas Morning News) – Area real estate agents sold 10,545 preowned single-family homes in July—up 11 percent from a year earlier. 

That's the second highest home sales total ever in North Texas following the record 10,962 houses that traded in June. Through the first seven months of 2017, a record 61,616 houses have sold. If this pace continues, North Texas will beat the all-time high of more than 100,000 homes sold in 2016.

"Is the market going to start showing signs of returning to normal?" asked Real Estate Center Chief Economist Dr. Jim Gaines. "It will, but it looks like it will be a very slow process.

"The whole Metroplex doesn't appear to be slowing down too much," he said. "The companies that a year or two or three years ago announced moves to Dallas-Fort Worth are just now moving people in."

The median sales price last month was $250,000—9 percent higher than in July 2016. North Texas home prices are now at record levels and have increased by more than 50 percent in the last five years. 

Houses were on the market for an average of 35 days, a 3 percent increase from a year ago.

At the end of July, 22,660 homes were listed for sale in the area, up 10 percent from last year. Although the area has the largest number of properties on the market in more than five years, there was only a 2.6-month supply of houses. That's less than half of what is considered a "balanced" market.

"The months' inventory is still really, really low," said Gaines. "A lot of properties are hitting the market and are entering the MLS system already sold. The R​ealtors have a backlog of buyers."​

For more information on the Dallas housing market and more, read the Real Estate Center's new Q​uarterly Housing Report​.

Rough collie citing in front of house.
Sure, millennials buy homes for more space or to build equity. But often they strongly consider their pets’ needs when purrrr-chasing a home. Read more in this week's Mixed-Use blog.

CBRE: Demand for Austin retail staying strong

​​​​​​​AUSTIN (CBRE) – ​​​​​​Austin retail demand remained strong throughout the first half of 2017, absorbing 372,000 sf, according to CBRE's second quarter 2017 market report.

Big box retailers such as Austin Couch Potato, Petco, and Rooms to Go all occupied large blocks contributing to positive net absorption in the central, northwest, and far northeast submarkets. As a result, occupancy increased ten basis points quarter-over-quarter, finishing well above the ten-year average of 94.4 percent.

"These healthy fundamentals have spurred more construction activity, which hasn’t been this elevated since 2013," CBRE's report said.

The majority of recent development activity is strip centers and second phases of larger projects. The largest concentration of construction is in Round Rock with eight projects totaling 217,000 sf.

The largest projects are both mixed-use developments: Plaza Saltillo in East Downtown and Belterra Village in West Austin/Dripping Springs. Both developments are focusing heavily on entertainment and restaurant tenants.​

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REOC San Antonio: Industrial space hard to fill in second quarter

SAN ANTONIO (REOC San Antonio) – ​​The local industrial market had 720,719 sf of positive net absorption in the second quarter, but REOC San Antonio called that figure "somewhat misleading."

New construction delivered the Carrier Corp building (850,000 sf) at 16407 Applewhite Rd. in the south sector.

“The considerable gain from this​​ one preleased facility concealed some sizeable vacancies,” said Kimberly Gatley, senior vice president and director of research for REOC San Antonio.

Offsetting tenant move-ins w​ere several large move-outs from warehouse facilities in the northeast sector. KLN Steel Products left nearly 211,000 sf at BAMC Heights Distribution Center. Also vacated was a combined 211,000 sf in two buildings that previously stored frac sand for drilling activity in the Eagle Ford Shale.​

Despite the conflicting activity, the market ended the second quarter in the black. However, the addition of more than 1.7 million sf of new space counteracted those gains and pushed the citywide vacancy rate to 11.8 percent compared with 10.4 percent in the previous quarter and 7.3 percent recorded in the same quarter last year.

The dominant distribution warehouse category had 641,608 sf of positive net absorption. The service center/flex market had positive 79,111 sf. The citywide vacancy rates for distribution warehouse facilities loosened to 12.6 percent compared with 11 percent last quarter while the vacancy rate for service center/flex properties improved to 8.4 percent compared with 8.9 percent.

The average cost for renting local distribution warehouse space was $4.67 per sf on an annual, triple net basis. The average cost for service center/flex space was $10.15.

Several sizeable industrial projects are moving through the development pipeline and expected to deliver nearly 900,000 sf in the coming year.

Real Estate Red Zone logoWe've got the blues in the Red Zone as we celebrate the birthday of Stafford-born music legend Robert Shaw. We also kick things into high gear with news about a new, 5,000-seat soccer stadium coming to Circuit of the Americas. After that, we have stories from Richardson, The Woodlands, Lavaca County, and more. Tune in. (12 min. 21 sec.) ​

Colliers: Houston industrial growth continues

​​​​HOUSTON (Colliers International) – Three million sf of local industrial inventory was absorbed during the first half of 2017, reports Colliers International in its second quarter market report. Almost all of that occurred during the first quarter. Second quarter absorption was close to zero, posting negative 13,100 sf​.​​

The average vacancy rate increased 20 basis points over the quarter from 5.3 percent to 5.5 percent. A little over 1.5 million sf of new product delivered during the second quarter, bringing the mid-year new inventory total to over five million sf.

There is currently 4.2 million sf under construction, and 77.2 percent is preleased.​​

The average citywide quoted industrial rental rate decreased 2.7 percent on a quarterly basis from $7.08 per sf triple net to $6.89, and it decreased marginally on an annual basis from $6.97 per sf triple net.​

Investor purchases Preston Plaza

​​​DALLAS (CBRE) – An affiliate of Tanglewood Property Group has purchased Preston Plaza, a 259,009-sf Class A office property at 17950 Preston Rd. 

​​Built in 1986 and renovated in 2015, the asset is 91 percent leased to tenants including Sovereign Bank, Slater & Matsil, the Ayco Company, and Progressive Casualty Insurance. ​

Tanglewood represented the buyer, TPG Preston Plaza LP. CBRE represented the seller, Caddo Holdings. 

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Stratus developing H-E-B-anchored project in Aggieland

​​​COLLEGE STATION (REBusiness Online) – ​​Stratus Properties Inc. is developing Jones Crossing, a 258,000-sf mixed-use project on 72 acres at the intersection of Harvey Mitchell Pkwy. and Wellborn Rd.

The retail component will be anchored by a 106,000-sf H-E-B. The company expects to break ground this quarter and open the H-E-B store in mid-2018. ​

Work starting this year on Legacy South Office Center

​​PLANO (Dallas Business Journal) – ​​Locally based Heady Investment, in partnership with Scott Beatty and the Beatty family, will develop the 210,000-sf Legacy South Office Center.

Construction on the seven-story building on 4.4 acres at the southwest corner of Tennyson Pkwy. and the Dallas North Tollway is slated to begin by the end of the year.

The office building, which is Heady's eighth in the Legacy area, should be ready for occupancy in February 2019.

Jack O'Brien & Associates is the project architect, and Ed Henry & Associates is the general contractor.

Stillwater National Bank is providing the construction financing for the project. Randy Heady & Company Realtors Inc. will lease the building.​

Jordan Realty Advisors negotiated the venture.

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.

Austin kicking things into high gear

​​AUSTIN (Austin American-Statesman) – Professional soccer will return to the capital in 2019 after a three-year absence​ with a rebranded United Soccer League (USL) franchise playing in a new 5,000-seat stadium at Circuit of the Americas.

The stadium will be between the Austin 360 Amphitheater and the circuit's grand plaza.

Although cost estimates for the stadium haven't been disclosed, USL venues with similar capacities have $5 million to $10 million price tags, not counting land acquisition.

This will be the only American soccer stadium on the grounds of a motorsports facility.

The city's USL team will no longer be known as the Aztex. FC Austin is a strong candidate for the franchise's new name, but team officials will take suggestions in the coming months.

Olympus buys, rebrands Frisco apartment community

​​FRISCO (REBusiness Online) – Fort Worth-based Olympus Property has acquired Boulevard at Frisco Square, a 28​2-unit luxury apartment community at ​​​​​​​​6255 Frisco Square Blvd.

​The company will rebrand the property, which was built in 2009, as Olympus Boulevard effective immediately.​​​

More Regulations, More Days to Close article artwork
Center research reveals that Dodd-Frank regulations extend the time it takes to complete a home sale transaction by one week. Read our new article "More Regulations, More Days to Close" on our website.

20-story M-Line Tower opens

​​DALLAS (REBusiness Online) – ​​High Street Residential has opened M-Line Tower, a 20-story, mixed-use development at 3200 McKinney Ave. 

The property’s 261 apartment homes are a mix of studio, one- and two-bedroom units ranging from 581 to 2,511 sf. It also offers 11,636 sf of ground-floor restaurant space.​

$83 million tower pair slated for San Antonio

​​​​SAN ANTONIO (San Antonio Business Journal) – Austin-based Teeple Partners is developing a two-tower mixed-use project on 1.4 acres next to City Hall. 

Tentatively named Kallison Square, the 21-story development along Dolorosa, Nueva, and S. Flores Streets will feature a residential/retail tower and an office tower.

The shops and offices will be around 45,000 sf​​, while the residential side will have 305 units. A ​​​six-story parking garage will sit below the towers.

The $83 million project has been granted an $8 million tax incentive package.

Freeman Audio Visual facility delivers

​​​​DALLAS (Alliance Architects) – Work has wrapped up on Freeman Audio Visual's new 201,172-sf facility within Trammell Crow Co.'s I-30 Business Park.

The building includes approximately 43,000 sf of office space, with the remainder devoted to warehouse and storage.

Trammell Crow developed​ the project, which was designed by Alliance Architects. FCL Builders was the general contractor for the shell building, and Fast-Trak Construction provided construction services for the interior portion.

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.

GM supplier doubles North Texas industrial space

​​​​GRAND PRAIRIE (Dallas Morning News) – Flex-N-Gate Corp. has purchased a 430,188-sf industrial building on 20.7 acres at 1950 Bardin Rd. from Mohr Capital.

The GM supplier currently leases 186,344-sf of industrial space at 2400 Centennial Dr. in Arlington. ​

3900 San Clemente office building sold

DALLAS (Holliday Fenoglio Fowler) – Menlo Equities has purchased 3900 San Clemente​​​, a 251,143-sf office building, from HPI Real Estate. ​​​

Completed in 2008, the Class A​ facility is on 9.9 acres at 3900 N. Capital of Texas Hwy. It is 91 percent leased to tenants including Samsung, VMWare, and Maxim Integrated. 

HFF marketed the property on behalf of the seller, procured the buyer, and secured acquisition financing.

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=97
RECON for August 8, 2017RECON for August 8, 2017Bryan PopePope
2017-08-08T05:00:00Z2017-08-08T05:00:00Z
Real Estate Center Online News
The 200,000-sf New Central Library will open in October in downtown Austin. Details in today's RECON. (Photo from the Austin Public Library website.)
August 8, 2017

Capital City scales new heights

AUSTIN (Austin American-Statesman) – ​​The Capital's skyline will get a little taller with a 62-story, 850-foot-tall downtown skyscraper.

The mixed-use tower at 600 Guadalupe St. will include 300 luxury apartments, more than half a million sf of office space, and ground-floor retail space. 

Lynd Development Partners and Lincoln Property Co. are developing ​the tower, which will eclipse the 52-story Austonian and the 58-story Independent. Gensler designed the project.

The project will be built on 1.6 acres bounded by West Sixth, West Seventh, Guadalupe, and San Antonio Streets, now home to an Extended Stay America hotel. 

Developers are submitting plans to the city in the near future, and groundbreaking is expected in the next nine to 12 months.​

Mormon church buys Raytheon's CityLine campus

RICHARDSON (Dallas Morning News) – ​Property Reserve Inc., a real estate arm of the Church of Jesus Christ of Latter-Day Saints, has purchased Raytheon Corp.'s new CityLine office campus from developer KDC.

KDC completed the three-building, 500,000-sf office complex on Bush Turnpike east of Plano Rd. in 2016. The four-story office campus cost nearly $100 million to develop.

​​Almost ​​1,700 Raytheon​​​​​ workers ​​occupy the buildings on a long-term lease running through 2026. 

CBRE marketed the buildings.​​

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Partnership acquires San Antonio medical office portfolio

​SAN ANTONIO (REBusiness) – ​​A partnership between Artemis Real Estate Partners, Ackerman & Co.,​​ and MLL Capital has purchased a four-building, 423,411-sf medical office portfolio.

The buildings include:
  • ​​The 128,578-sf Santa Rosa Professional Pavilion in the central business district;
  • The 123,324-sf Rosa Verde Tower, also in the central business district; and 
  • Northwest Towers I and II, which total 171,509 sf within the South Texas Medical Center.​​
​​CBRE represented the seller in​ the transaction. Cushman & Wakefield represented the buying entity, which will invest $27 million in renovations to the portfolio. 

Intellicenter trades hands

HOUSTON (HFF) – Insite Commercial Real Estate has purchased Intellicenter, a 160,407-sf Class A office property within the three million-sf ​​Westway Park​​ office campus​.

Completed in 2007, the LEED Silver three-story property is on 12.8 acres at 4650 Westway Park Blvd​. It is fully leased to The Travelers Indemnity Co. and Cameron Village LLC. Cameron's lease for 25 percent of the building expires in October.

HFF marketed the property and procured the buyer. 
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Ad valorem seminar early registration
ends tomorrow

COLLEGE STATION (Real Estate Center) – If you haven't registered for the Real Estate Center's 31st Annual Legal Seminar on Ad Valorem Taxation, you still have time to get the early registration rate.

Cost for the popular seminar is currently $500. After Aug. 9, cost goes up to $530.

The seminar is Aug. 30–Sept. 1​​ at the Hyatt Regency Hotel in San Antonio. Attendees will learn about the latest legal issues in ad valorem taxation, gain insight into how public policies are developed, understand current economic trends, and examine appraisal practices.

For details, visit our website​.​
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Kaizen breaks ground on NetScout campus

​​​ALLEN (REBusiness) – ​​Kaizen Development Partners has broken ground on NetScout's 145,000-sf regional research and development office in One Bethany at Watters Creek.​​​​​​​

Massachusetts-based NetScout will relocate more than 500 employees to the Class A property in summer 2018. 

Balfour Beatty is the general contractor on the project, which was designed by BOKA ​​​Powell. ​
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. 

H-E-B-anchored retail center sold

​​​ATASCOCITA (HFF) – ​Westwood Financial Corp. has purchased Market at Lake Houston, a 101,791-sf retail center on 13.9 acres at 7402 FM 1960 E.

Completed in 2002, the retail center is fully leased to national and regional tenants, including H-E-B, Sally Beauty Supply, Payless ShoeSource, GameStop, VIP Nails and Spa, Five Guys, Market Cleaners, Leslie’s Swimming Pool Supplies, and Subway.

HFF marketed the property on behalf of the seller and worked on behalf of the new owner to secure acquisition financing​​ as part of a larger portfolio. 
Outlook for the Texas Economy

"The Texas economic expansion advanced, leading the country in first quarter GDP and employment growth. Despite volatile energy prices, oil and gas production boomed amid Texas technological advantages. A weakened dollar stimulated Texas exports. Texas crude oil exports nearly tripled relative to 2015 as a result of the lifting of the oil export ban. Potential headwinds to the Texas economy include further decreases in energy prices and trade uncertainty, especially with Mexico." Read more in our latest Outlook for the Texas Economy. Click picture to open.

Talos developing 300-unit community along Trinity River

FORT WORTH (Cushman & Wakefield) – ​Talos Holdings is developing The View of Fort Worth, a 300-unit community along the Trinity River.

The three-story luxury midrise​ on Northside Dr. near I-35W will​ include one-to-three-bedroom floorplans. ​Talos expects to break ground this month and have units ready for occupancy by late 2018.

The View of Fort Worth was designed by Dallas-based BGO Architects, with interiors by Imagine Design. ​​​CBG Building Co. is the general contractor. Lincoln Property Co. will provide management services.

Cushman & Wakefield arranged construction​​​ financing through Endeavor Real Estate Partners.

A second phase could eventually​ add 200 units.​

New Central Library books it downtown

​​​AUSTIN (Austin Business Journal) – The $125 million New Central Library will open on Oct. 28 at 710 W. Cesar Chavez St. after more than four years of construction.

The 200,000-sf building replaces Faulk Central Library at 800 Guadalupe St., which will reduce services starting Aug. 14 and close permanently Sept. 15. 
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CMC opens second Texas multifamily project

DALLAS (REBusiness) – CMC Commercial Realty Group has opened Modena, a 230-unit apartment complex at 8275 Walnut Hill Ln.

Bob Moore Construction was general contractor on the five-story project, which is CMC's second multifamily development in Texas. 

Preserve at Fredericksburg gets new owner

SAN ANTONIO (San Antonio Express-News) – Huebner TX Owner LP has purchased the $57 million Preserve on Fredericksburg apartment complex from a partnership affiliated with Crow Holdings.

​​The complex, which opened in 2009, is on 25.5 acres at 10422 Huebner Rd. near Fredericksburg Rd. and includes 376 units across 35 buildings. 

Huebner TX Owner is a partnership linked to Carlyle Group and Cortland Partners. 
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=96
RECON for August 4, 2017RECON for August 4, 2017Bryan PopePope
2017-08-04T05:00:00Z2017-08-04T05:00:00Z
Real Estate Center Online News
Wind farm west of Amarillo
Texas produces a third of the country's crude oil, nearly a third of its natural gas, and more than a fourth of all the wind power generated in the U.S., according to the U.S. Department of Energy. More on this in today's RECON. (Photo of wind farm west of Amarillo by REC Senior Editor David Jones.)
August 4, 2017

Austin office rents hit record high

AUSTIN (Austin American-Statesman) – Despite slightly slower economic growth in the Capital City area, office rents hit record highs in the second quarter, according to a new report from Cushman & Wakefield.

Gross rents for Class A office space in Central Texas were $39.19 per sf per year in June, an all-time high and a jump of almost 7.8 percent from the previous June.

Rents for top-tier space downtown also hit a record, averaging $54.11 a sf per year.

The occupancy rate for Class A space averaged 89.3 percent, down a notch from 90.4 percent in June 2016.

Austin-Round Rock had a 2.8 percent year-over-year employment growth rate in June, according to the Real Estate Center's latest Monthly Review of the Texas Economy​. That put the MSA just ahead of the state as a whole.
National Curb Appeal Month
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What's the Ruckus? New lofts near UT

AUSTIN (REBusiness) – Work has wrapped up on The Ruckus Lofts, a 165-bed student-housing property near the University of Texas at Austin.

Lincoln Ventures developed the seven-story building at 2502 Nueces St. Motivado Group Inc. was the general contractor.​
Texas turns on the crude oil spigot
How did the Texas economy change when Congress ended the 40-year export ban on crude oil? Find out on this week's Mixed-Use Blog.

Texas nation's top energy producer, consumer

HOUSTON (Houston Chronicle) – ​​​​The Lone Star State produces and consumes more energy than any other state in the nation. 

Texas produces 41 percent more energy than it consumes and is a leading net exporter of energy, according to the U.S. Department of Energy. It produces a third of the country's crude oil, nearly a third of its natural gas, and more than a fourth of all wind power generated in the U.S. Texas also is the nation's leader in crude oil refining.

Demand for power in Texas grows every year as the state's population continues to grow, according to the Electric Reliability Council of Texas (ERCOT). It recorded an all-time peak in power demand in August 2016 of 71,110 megawatts. One megawatt is enough to power 200 homes on a hot Texas day.

Texas broke its July record when demand hit 69,525 megawatts around 4 p.m. on July 28, ERCOT reported.

Penn Virginia buying 19,600 Eagle Ford acres

LAVACA COUNTY (San Antonio Express-News) – Penn Virginia Corp. is buying 19,600 acres in the Eagle Ford Shale oil field from Devon Energy for $205 million.

The land is adjacent to acreage Penn Virginia already holds.

The cash deal will close by the end of September with an effective date of March 1, 2018.
Dictionary of Real Estate Terms
The ninth edition of the Dictionary of Real Estate Terms is now available from Barron's and through online booksellers. Two of the authors are former REC Chief Economist Dr. Jack Friedman and former REC Research Economist Dr. Jack Harris.

186-acre medical district coming to Valley Ranch

​​THE WOODLANDS (REBusiness) – Signorelli Co. is developing Vivacity, a 186-acre medical district within the 1,400-acre Valley Ranch master-planned community.​

Vivacity will include​​ 2.5 million sf of health, wellness, and life science facilities. Houston-based CHI St. Luke's Health is the development's first tenant.

Work starts on 287,000-sf shopping center

MONT BELVIEU (REBusiness) – Fidelis Realty Partners has broken ground on Mont Belvieu Marketplace, a 287,000-sf retail center at the intersection of FM 3180 and Langston Blvd.

An 87,000-sf H-E-B store will anchor the property, which is scheduled to open in early 2018.  ​
Real Estate Red Zone microphonesThe latest edition of our Texas Border Economy report is now online. Two of the report's authors—Research Economist Dr. Luis Torres and Research Assistant Wesley Miller—are in the Red Zone to talk about it. We also bring you news from Plano, El Paso, DFW, College Station, Austin, Corpus Christi, Pasadena, and Kilgore. Oh, and you'll find out what fell from the sky and astonished the people of Gage Ranch in Brewster County in 1946. (17 min. 24 sec.)

Lewisville retail center sold

LEWISVILLE (REBusiness) – Dallas-based LRIC Properties LLC has acquired Valley Square Shopping Center, a 106,573-sf retail center at 722-724 W. Main St.

The property was 93 percent leased at the time of sale. Tenants include 24 Hour Fitness, Chipotle Mexican Grill, T-Mobile, and Sherwin Williams.

Weitzman represented the seller, a Florida-based investment firm, in the transaction.  ​
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Oak Cliff sees largest lease in years

​​​​DALLAS (Dallas Business Journal) – Erect-A-Line Inc. has tripled its area footprint with a 115,000-sf industrial lease at 3912 W. Illinois Ave. in the Oak Cliff neighborhood.

The company will move from its roughly 36,000-sf operation into the expanded space next February.

Lee & Associates represented both the tenant and the landlord, Illinois Capital Partners.

This was the largest lease that has occurred in Oak Cliff in years, says Ken Wesson of Lee & Associates.​
Texas affordable housing by the numbers

ATCAP acquires Houston industrial trio

HOUSTON (HFF) – ATCAP Partners has purchased two assets composed of three industrial warehouse buildings totaling 101,635 sf from TA Realty.

The properties include 3300 Claymoore Park on 2.25 acres in the northwest industrial submarket, and 9362 and 9366 Wallisville Rd. on 4.05 acres in the northeast industrial submarket.

The buildings are fully leased. HFF represented the seller in the transaction.
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=95

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