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RECON for July 21, 2017RECON for July 21, 2017Bryan PopePope
2017-07-21T05:00:00Z2017-07-21T05:00:00Z
Real Estate Center Online News
Bammel Business Park
HFF announced yesterday that it has closed the sale of Bammel Business Park, a five-building, Class A industrial project totaling 246,450 sf in northwest Houston. Details in today's RECON. (Photo courtesy of HFF.)
July 21, 2017

Fitch Ratings says Texas homes 'overvalued.' But are they?

NEW YORK (Forbes) – San Antonio and Austin top the list of five most overvalued housing markets in the country, according to Fitch Ratings.

Using five metrics, Fitch determined 27 percent of the 412 housing markets it tracks are overvalued, with home prices at least 5 percent above fair local value. Those metrics were nominal income growth, population growth, unemployment, change in rental prices, and change in home prices.

​The list is based on the year-over-year change in these measures for the 50 largest metropolitan statistical areas in first quarter 2017.

At number one, San Antonio's median home price was $202,600, overvalued by 18.6 percent, Fitch found. Number two Austin's median price was $286,400, overvalued by 17 percent.

However, Real Estate Center Research Economist Dr. Luis Torres said determining whether a market is overvalued is always difficult, but especially when a market's housing inventory is low.

Last month, the San Antonio-New Braunfels MSA had a 3.7-month's supply of homes for sale. Austin-Round Rock had a 3.1-month's supply. Statewide, inventory is at 4.1 months.

"We have a supply constraint issue in home construction," Torres said, "especially in the price ranges below $250,000. Nevertheless, this is obviously an important issue and one the Real Estate Center will continue to monitor. In fact, we're working on an article based on the Case-Shiller methodology ​of estimating actual prices based on fundamentals of demand andsupply, and we found some price misalignments for Texas and the four MSAs."​
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What's your funniest DIY home-improvement fail? Let us know and you'll be entered for a chance to win a $25 Home Depot gift card! Your story may also end up in our Mixed-Use Blog. Click here to share your story.

Foreign buyers scooped up over 284,000 Texas homes last year

DALLAS (Dallas Morning News) – Nationwide, the number of foreign buyers in the home market has surged to a record high in the last year, and Texas is one of their favorite destinations.

International buyers snapped up 284,455 U.S. properties—a 32 percent hike from 2016, according to the National Association of Realtors. More than 34,000 of these purchases were in Texas.

Although foreigners purchased proper​​ties nationwide, five states accounted for 54 percent of total residential property purchases: Florida (22 percent), Texas (12 percent), California (12 percent), New Jersey (4 percent), and Arizona (4 percent).

"[Realtors and others] are doing a lot of business with foreign buyers," said Real Estate Center Chief Economist Dr. Jim Gaines. "Texas represents a very nice opportunity for them. We've been the fastest growing state in the country for years."

The greatest volume of Texas' foreign home buys—about 40 percent—came from Mexican and Latin American purchasers. Asian buyers were a close second with 39 percent of the offshore acquisitions.

"The Chinese are very entrepreneurial, and Texas is a very entrepreneurial state," said Gaines. "We have a lot of Asians relocating to Texas."

Buyers from China spent the most on U.S. housing—some $31.7 billion. The largest share of their 40,572 purchases—37 percent—were in California. Texas was their second favorite U.S. home market, accounting for 11 percent of their deals.

Canadian buyers spent $19 billion on U.S. homes, followed by buyers from the United Kingdom ($9.5 billion), Mexico ($9.3 billion), and India ($7.8 billion).​
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What new Texas legislation might real estate professionals want to be aware of? REC Research Attorney Rusty Adams joins us with more on this. Also, we visit Longview, Humble, San Antonio, and North Texas, and we look back at the first lunar landing. All this and more on this week's Real Estate Red Zone. (20 min. 14 sec.)

Austin eighth best market in tech talent

LOS ANGELES (CBRE) – Austin came in ​eighth on CBRE's annual Tech Talent Scorecard, which ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent.

The Capital City was the No. 5 most concentrated large market in terms of its tech labor pool as a percentage of its total labor pool, at 7.1 percent, with a tech talent pool of nearly 69,000, an increase of 28.3 percent from 2011 to 2016.

"With a rate of 48.3 percent, Austin ranked No. 7 among the top markets for educational attainment," according to a CBRE press release. "It stands out as a strong tech job creator and tech talent attractor, with more than 5,500 more tech jobs than graduates. Austin's millennial population grew 5.5 percent from 2010 to 2015, above the U.S. average of 4.6 percent."

The city's office vacancy rate decreased 6.9 percentage points to 9.5 percent from Q1 2012 to Q1 2017, demonstrating the demand for quality office space. ​

Dallas-Fort Worth was the only other Texas market in the top ten, ranking tenth.

Other markets in the top ten include No. 1 ​San Francisco Bay Area; No. 2 Seattle; No. 3 New York; No. 4 Washington, D.C.; No. 5 Atlanta; No. 6 ​​Toronto; No. 7 Raleigh-Durham, N.C.; and No. 9 Boston.​​

Maverick Terminals signs 30-year lease with Port of Corpus Christi

CORPUS CHRISTI (Corpus Christi Caller-Times) – The Port Authority has awarded a 30-year lease to Maverick Terminals Corpus LLC, which plans to build a pipeline from the Coastal Bend to Mexico.

The measure, approved Tuesday, gives the company access to 41 port-owned acres on the north side of the Corpus Christi Ship Channel.

Maverick Terminals wants to build and operate a multiservice facility there, including a rail terminal, a storage structure for petroleum and petroleum products, and the new Oil Dock 20.

Under the terms of its agreement, the port would design and construct the new oil dock. Maverick Terminals would build the rail loading facility, the storage infrastructure, and the pipelines.

The 30-inch pipeline would run from Corpus Christi to Monterrey, Mexico, but would require separate federal approval.

Maverick Terminals is a subsidiary of San Antonio-based Howard Energy Midstream Partners, which also operates terminals at the Port of Brownsville and Port Arthur.

Exeter buys five-building Bammel Business Park

​​​HOUSTON (HFF) – Exeter Property Group has purchased Bammel Business Park, a 246,450-sf, Class A industrial project.

Completed in 2008, the asset on 14.1 acres at 4710-4822 N. Sam Houston Pkwy. W. consists of five one-story buildings. They have 24-foot clear height, dock-high loading doors, 200-foot shared truck court depths, and a 12.6 percent office finish. 

Tenants include Gruma Corp., Stylenquaza, and ​Motion Industries.

HFF​ represented the seller, FR/Cal Bammel. 
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Newstream developing 12-acre mixed-use

FLOWER MOUND (REBusiness) – Newstream Commercial is developing Lakeside Crossing, a 12-acre mixed-use project near Long Prairie Rd. and Lake Forest Blvd.

The development will include 100,000 sf of retail, restaurant, and office space; 15 luxury townhomes; a 134-room hotel; and 4,000 sf of meeting space. 

The development will deliver in 2019. 

Omni Barton Creek expanding

​AUSTIN (Austin Business Journal) – ​​Dallas-based Omni Hotels & Resorts plans to demolish a parking garage and other buildings at Omni Barton Creek Resort & Spa to make way for a new ten-story hotel.

The126,855-sf tower at 8212 Barton Club Dr. will include more than 100 guest rooms, an 86,625-sf conference center, 7,671-sf restaurant, and guest parking. 

The $70 million expansion will give the hotel nearly 60 percent more rooms. Construction starts this fall and should wrap up in 2019.

The 309-room Omni Barton Creek was built on 43.2 acres in 1986.​

Investor buys 15 acres near downtown Dallas

DALLAS (Dallas Morning News) – Local restaurateur​ and entrepreneur Mike Hoque has purchased around 15 acres on Corinth St​. at Cesar Chavez Blvd.

The purchase includes the shuttered Pilgrim's Pride plant, which closed in 2011.

Hoque plans to redevelop the land as a mixed-use project.
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Are you anti-social (media)? Probably not if you're in real estate. REC Associate Editor Bryan Pope talks about NAR's technology survey (and shamelessly promotes the REC's social media channels, of course) in his latest Mixed-Use Blog post.

Velocis picks up San Antonio medical office complex

​SAN ANTONIO (San Antonio Business Journal) – ​​Dallas-based Velocis has purchased Legacy Oaks, a 224,262-sf medical office complex adjacent to the South Texas Medical Center.

The seven-building, Class A complex is currently 75 percent leased by a mix of health care providers, included Baptist Health System, MEDNAX, BB&T, and the Center for Healthcare Services. It recently underwent extensive capital improvements.

Velocis plans to bring in new management and refresh the complex's leasing strategy.​​

JV breaks ground on 296-unit apartment

AUSTIN (REBusiness) – Phoenix Capital Partners Ltd. and Ardent Residential have started work on Palo Verde.

The 296-unit apartment community at US 290 and FM 1826 will​ open by second quarter 2019.​

Sorrel Fairview apartments sold

FAIRVIEW (Dallas Morning News) ​​​– Azure Partners has purchased Sorrel Fairview apartments, a 267-unit rental community at 351 Sugarloaf Trail.

Meridian Capital Group arranged $32 million in financing for the acquisition.​
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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.

https://www.recenter.tamu.edu/news/recon/?Item=91
RECON for July 18, 2017RECON for July 18, 2017Bryan PopePope
2017-07-18T05:00:00Z2017-07-18T05:00:00Z
Real Estate Center Online News
Grain elevator in rural Texas.
Foreign investors purchased 1.7 million acres in Texas over the past decade, more land than in any other state. This story and much more in today's RECON. (Photo from Center files.)
July 18, 2017

Longview housing's best June on record

LONGVIEW (Longview News-Journal) – Home sales in the area jumped nearly 13 percent from a year earlier, setting a June record.

According to the Longview Area Association of Realtors, 281 sales were closed in June, up 32 from a year ago. Active listings numbered 570, up 20.3 percent from June 2016.

The average price was $173,479, down from $179,046. Homes spent an average of 120 days on the market, up from 111. 

Worries about rising rates could be driving more buyers into the market, said Real Estate Center Chief Economist Dr. Jim Gaines.

"It could be the talk of interest rates increasing by the Fed is spurring people to come into the market and bringing demand forward," he said. "If you believe the cost of financing is going up, it spurs you to action. In the long run, increasing interest rates will cause demand to go down."

Texas leads in foreign-bought agricultural land

AUSTIN (Austin American-Statesman) – Foreign investors buy more agricultural land in Texas than in any other state, snatching up 1.7 million acres over the past decade.

Foreign-owned land totals an area the size of Travis, Hays, and Williamson Counties combined and is worth about $3.3 billion. 

Canadian firms bought more than 800,000 acres over the last decade, much of it in​ timber-rich East Texas. Entities from the Netherlands, Germany, and Portugal bought a combined 600,000 acres. Other countries with a stake in Texas agriculture include Indonesia, Mexico, India, and Malaysia.​

The Lone Star State has more farms and ranches than any other U.S. state. Texas also leads the land in cattle, cotton, and hay production.

Look for more on this in a forthcoming article from Real Estate Center Research Economist Dr. Charles Gilliland. In the meantime, read his latest article, "Land, Lots of Land."

Dallas best, Houston worst in office space absorption

​​CHICAGO (RealtyNewsReport) – According to a midyear report by Cushman & Wakefield, Houston has the worst office absorption​ in the nation while Dallas has the best.

Houston had just over 1.5​ million sf of negative net absorption in the first half of 2017. More than 11 million sf of sublease space is on the market, a slight improvement over last year. The vacancy rate is above 20 percent.

On the other hand, the DFW area had three million sf of positive absorption during that same period. The vacancy rate is at 16 percent, up from 22 percent in 2011. Leasing activity totals 6.3 million sf for the first six months of the year. 

Cushman & Wakefield's research covered 87 markets across the nation.
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Sure, Chip and Joanna Gaines make it look easy, but let's face it: home-improvement projects seldom go as smoothly as we'd like. More often than not, they turn into frustrating, physically painful nightmares. They can also be funny as heck in retrospect. Click here to share your most amusing "weekend warrior" experience. You could win a $25 Home Depot gift card, and your story might turn up in an upcoming Mixed-Use Blog post.

North Texas cities best for first-time homebuyers

WASHINGTON, D.C. (WalletHub) – Four North Texas cities ranked in the top ten on WalletHub's li​st of best places for first-time homebuyers. 

McKinney, Frisco, Allen, and Richardson ranked first, second, third, and seventh, respectively, on the list. 

Laredo, though not in the top ten best places, had the lowest cost-of-living index of all ​cities analyzed.

WalletHub analyzed real estate in 300 cities of varying sizes using 23 key metrics, including housing affordability, property tax rate, and property-crime rate.

For more on North Texas housing, read our May 2017 housing report for Dallas-Fort Worth-Arlington.

Houston June home prices, sales set records

HOUSTON (Houston Association of Realtors) – Local single-family home prices and sales reached new heights last month, and the Houston Association of Realtors said 2017 is on track to be a record year for the housing market.

The greatest sales gains took place among homes priced at $750,000 and higher (luxury market), followed by homes in the $150,000 to $249,999 range. June was the eighth straight month that the luxury segment had rising sales.

A total of 8,414 single-family home​s sold in June compared with 7,771 a year earlier. That represents an 8.3 percent increase and marks the largest one-month sales volume in history. Year-to-date, home sales remain ahead of 2016’s volume by 7.4 percent. New listings pushed inventory levels from a 3.9-months supply to 4.4 months, the highest in almost five years.

The median price climbed 2.6 percent to $239,023. The average price edged up 1.5 percent to $304,155. Both figures are all-time highs.

Month-end pending sales totaled 8,363, up 18.9 percent from last year. Total active listings jumped 16.4 percent to 43,326.
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. 

Big D fourth best city for office building buys

​​​DALLAS (Dallas Morning News) – D-town is the fourth best place in the country to buy office properties, according to a new report from Ten-X research. 

First quarter 2017 office rents were at $18.62 per sf with a projected change of 2.8 percent over the next three years. Office vacancy sat at 21.6 percent in the first quarter and is estimated to hit 22.2 percent in 2020. ​

Oakland, Calif., ​​​Portland, Ore., and Sacramento, Calif., are first, second, and third​​​ on the list. Atlanta​​ ranked fifth. 

Houston and Fort Worth ranked third and fourth, respectively, on Ten-X's list of markets where investors should sell their office properties. 

Humble apartment pair under new ownership

HUMBLE (RealtyNewsReport) – Houston-based Mosaic Residential has acquired two multifamily properties from Gaia Real Estate.

Eagle Crest is a two- and three-story apartment community at 5303 Atascocita Rd. Built in 1​​999, the 168,560-sf property has 200 units.

Timberlakes at Atascocita is a 312-unit, 310,920-sf community at 18551 Timber Forest Dr. It was built in 2000.

CBRE represented the seller.

Fore! Work starts on Firewheel Golf Park senior living

GARLAND (Dallas Business Journal) – Construction has begun on Firewh​eel Senior Living Residences, a 171,572-sf upscale senior-living community near Firewheel Golf Park.

The four-story, 154-unit project is​ at 5151 N. ​​President George Bush Hwy. Co​nstruction​ will wrap up by the end of next year. 

Addison-based KWA Construction is overseeing construction. David Kirch is the architect, and Seneca Investments is providing financing.

Brooks office duo on the way

SAN ANTONIO (San Antonio Business Journal) – JLL is developing two office buildings at the Brooks mixed-use community. 

The Waters Building will have 70,000 sf of Class A office space, the first of its kind in the area. The second will be a 40,000-sf medical office building close to Trail Baptist Hospital.

Work on the buildings should wrap up in 2018. ​​
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Local drilling manufacturer signs 200,000-sf lease

HOUSTON (Houston Business Journal) – Locally based Basintek LLC has signed a 200,000-sf lease at 713 Northpark Central Dr.

The company currently occupies 150,000 sf in the park and will move into its new space next month.

NAI Partners represented B​asintek. The landlord, Prologis​​, was self-represented.

The lease is the sixth-largest industrial deal that's closed​ in the city this year. 

El Paso investor goes shopping, buys San Antonio retail

SAN ANTONIO (REBusiness) – ​​El Paso-based Mimco Inc. has acquired 5530 Walzem Rd., a 100,000-sf shopping center.

Tenants include Melrose Clothing, Freedom Fitness, Octapharma, and Taco Bell.

RADCO buys 278 Houston units

​HOUSTON (REBusiness) – Atlanta-based The RADCO Cos. has acquired City Gate at Champions, a 278-unit, Class B apartment community on 10.6 acres at 12811 Greenwood Forest Dr.

Built in 1978, the property consists of 27 two-story buildings with units averaging 874 sf. 

The buyer will spend approximately​ $14,500 per unit on capital improvements.

​BBVA Compass provided debt and capital for the acquisition. 
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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.

https://www.recenter.tamu.edu/news/recon/?Item=90
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The Houston office market has been affected by the oil decline more than any other real estate sector in the city. According to NAI Partners, it will be the lengthiest to rebound. More info in today's RECON. (Photo from Center files.)
July 14, 2017

Lollicup pouring 200 manufacturing jobs into $50 million Rockwall plant

ROCKWALL (Dallas Morning News) – California​​-based Lollicup USA is building a $50 million, 700,000-sf plant and warehouse near I-30.

The facility will be the manufacturer's second production center. It will employ about 200.

Construction will start within the next 120 days, and t​he plant is scheduled to open in October 2018.

Lollicup makes beverage and food containers.
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NAI Partners: Houston office market will be 'lengthiest to rebound'

​​HOUSTON (NAI Partners) – The local office market has been affected by the oil decline more than other real estate sectors, and it will be the lengthiest to rebound, reports NAI Partners in its second-quarter 2017 update.

The city's overall office vacancy rate rose to 20.5 percent in the second quarter, an increase of 40 b​a​sis points quarter-over-quarter and 260 basis points year-over-year.

Net absorption remained in the red at negative 532,205 sf, adding up to 1.3 million sf of negative absorption year-to-date.

Overall occupancy continues to drop, sitting at 79.5 percent, the lowest level since NAI Partners began tracking occupancy in early 1999.

Both the citywide overall rent and leasing activity are up marginally from last quarter, but they are significantly down from a year ago.

However, despite the market slowdown, available sublease space continues to ease down slightly, and the amount of space in the construction pipeline has declined by 60 percent year–over-year.​​​​
Real Estate Red Zone logoWednesday was National Pecan Pie Day, and, while we didn't have dessert, we did serve up Texas-size portions of real estate news from North Texas, Houston, Austin, and other cities. We also gave listeners a quick update on the Texas economy and talked about a recent change to TREC's Seller's Disclosure Notice Form. All this and much more on the latest Red Zone podcast. (14 min. 00 sec.) 

New notice added to Seller's Disclosure

AUSTIN (Texas Real Estate Commission) – Gov. Greg Abbott has signed House Bill 890. This amends the Seller's Disclosure to add a general notice that a property may be located near a military installation and/or in a zone where high operational noise levels or installation-compatible use restrictions may apply. 

The notice also directs a potential buyer to a local area impact study for more information.

This notice attempts to make homebuyers aware of the large number of highly-valued military installations across Texas and the potential impact of each facility's operations on nearby housing.

​A revised Texas Real Estate Commission Seller's Disclosure Notice form containing this new requirement will be available on the TREC website by Sept.​ 1, 2017.

CBRE: Investor demand for San Antonio hotels growing

​SAN ANTONIO (CBRE) – By year-end 2017, local hotels should have a revenue-per-available-​room (RevPAR) increase of 3.9 percent, more than the national projection of 3 percent, according to data from CBRE Hotels’ Americas Research.

The RevPAR increase is the result of an estimated 1.3 percent occupancy increase and a 2.6 percent gain in average daily room rates (ADR), reports CBRE. Local market occupancy rates are forecast to range from 62.4 percent for lower-priced hotels to 70.2 percent for upper-priced hotels this year.

“With Houston’s market still in decline, and​ the Austin and Dallas-Fort Worth markets flattening out due to large hotel room supply increase, San Antonio is becoming a more attractive destination in Texas for hotel investors," said Michael Yu, senior vice president, CBRE Hotels. "A very small new hotel room supply pipeline and increasing hotel demand will help drive hotel RevPAR growth for the next few years.”

“San Antonio’s new room supply will increase by only 1.9 percent over the next 12 months, which is well below the long-term average of approximately 3.1 percent,” said Dennis Drake, senior associate, CBRE Hotels.
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The latest Outlook for the Texas Economy is now on our website. Click here to read and download the updated report.

SmartAsset: Austin, Midland among best housing markets

NEW YORK ​(SmartAsset) – Austin and Midland have once again landed on SmartAsset's list of the top five best housing markets in the nation.

The Austin-Round Rock metro took the number two spot for the third year in a row, behind only Boulder, Colo. Austin-Round Rock saw a 267 percent housing market growth in the past 25 years. ​

Midland also landed in the top five for the third time. It took the number five spot this year and last, ranking fourth in 2015. The metro grew 213 percent from 1992 to 2016. 

Three other Texas metros ranked in the top 25. Houston-The Woodland-Sugar Land grew 158 percent in the last 25 years, ranking 17th. Odessa ranked 19th with 182 percent growth, and San Antonio-New Braunfels ranked 25th with 147 percent growth.

Non-occupants bought nearly 40 percent of Dallas homes

DALLAS (Dallas Morning News) – Flippers, investors, developers, and builders purchased nearly 40 percent of homes sold in the area last year, according to Attom Data Solutions. 

"That's the highest share of purchases going to nonowners in Dallas since 2000," said Daren Blomquist, economist with Attom Data. "The long-term average for the City of Dallas is about 25 percent, and this was way above that average."

Nationwide, about a third of home and condo sales went to investors or other nonoccupant buyers last year.

For more on the DFW housing market, check out the Real Estate Center's ​​latest housing market report.
Real estate is hot. With so much talk about who is selling what to whom and where, it should come as no surprise more Texans are signing up to become real estate agents. Real Estate Center Senior Editor David Jones talks about the nearly 145,000 Texas licensees on our Mixed-Use blog.

Applications being accepted for 2015 flood relief funding

​​AUSTIN (Texas General Land Office) – Texas Land Commissioner George P. Bush encourages communities affected by 2015 floods to ​apply for Community Development Block Grants for Disaster Recovery (CDBG-DR) funds to pay for long-term housing and infrastructure recovery projects.

These newly available funds will be administered by the Texas General Land Office's Community Development & Revitalization program to help disaster-impacted communities rebuild homes and infrastructure. They will also allow communities to implement mitigation efforts to better prepare for future disasters. Affected counties are home to nearly 21 million people.

The U.S. Department of Housing and Urban Development (HUD) has awarded Texas $59.6 million in disaster recovery funds for 2015. Of the 116 Texas counties impacted by the 2015 floods, four were identified by HUD as "Most Impacted" and received separate funding allocations. Eligible entities in the other 112 counties can now submit applications for $25.6 million in recovery funding. Eligible entities include cities, counties, and local housing authorities in the impacted areas.

​The awarding of the funds will be based on scoring and ranking of submitted project applications. Entities may submit a maximum of three applications; only two of the three may be for infrastructure projects. GLO-CDR will accept project applications for 120 days following the announced release date of July 13.

For more information regarding eligibility and application process, please visit TexasRebuilds.org.

Work to start on Pinnacle Oaks phase one

SAN ANTONIO (San Antonio Business Journal) – ​​ALC Partners and Pruitt Realty will break ground next month on Pinnacle Oak​s, a $100 million, 450,000-sf business park.

The 21-acre, four-phase park will include three Class A office buildings and a flex office at 4830 N. Loop 1604 W., called the Pinnacle Oaks Tech Center. The 80,532-sf, single-story buliding will be the first phase of the project.

Phase one will be completed by the end of first quarter 2018.

RVK Architects, Pape-Dawson Engineers Inc., and RC Page Construction will work on the first phase. Pruitt Realty will handle leasing.
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.

Community Health Systems sells Weatherford hospital

WEATHERFORD (Fort Worth Business Press) – Nashville, Tenn.-based HCA Healthcare is purchasing the Weatherf​ord Regional Medical Center from subsidiaries of Community Health Systems Inc. 

The 103-bed hospital is at 713 E Anderson St. The transaction is expected to close by the fall. 

Davis Development to build 600-plus-unit rental community

​​​ALLEN (Dallas Morning News) – Georgia-based Davis Development ​​is developing a more than 600-unit rental community east of US 75 on Montgomery Blvd.

The almost 11-acre Montgomery Farm project will have two five-story buildings with 363 and 252 units. 

Dallas-based architect​ Humphreys & Partners designed the building. 
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.

River Walk hotel, condos sold for $14.2 million

​SAN ANTONIO (REBusiness) – ​​GrayStreet Partners has sold the Hotel Valencia and Retail Net Leased Condos for $14.2 million.

An out-of-state private investor purchased the asset at 105 E. Houston St. near the River Walk. It is leased to Valencia Group.  

The Mansour Group at Marcus & Millichap brokered the deal. 
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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.

https://www.recenter.tamu.edu/news/recon/?Item=89
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NAHB Chairman Granger MacDonald meets with Real Estate Center researchers.
Leaders from the National Association of Home Builders met with Real Estate Center researchers today. Among them was Chairman Granger MacDonald (center), a Kerrville homebuilder. (Photo by REC photographer JP Beato.)
July 11, 2017

North Texas leads the nation in office building

DALLAS (Dallas Morning News) – DFW topped the country in office leasing in second quarter 2017.

​​​Net office leasing in the area totaled 1.4 million sf in the last quarter, according to a new report from Cushman & Wakefield. Charlotte, N.C.​, was second with ​1.1 million sf net leasing. Seattle (940,000 sf), Raleigh-Durham, N.C. (718,000 sf), and Nashville, Tenn.​​ (667,000 sf) rounded out the top five.

​Through the first six months of 2017, expanding and relocating businesses have net leased almost three million sf of DFW office space. That's about 15 percent less than last year's first-half numbers.

Midyear, North Texas was also one of the country's top office construction markets with more than six million sf of construction. The region was second only to New York City with 9.5 million sf of office construction.

Nationally, more​ than 16 million sf of new office space opened its doors in the second quarter.​​
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Houston office market among country's greenest

HOUSTON (Houston Chronicle) – ​​For the second year in a row, Space City has ranked fourth among U.S. cities with the most green office space, according to a study from CBRE and the Netherland's Maastricht University. 

Certified green buildings accounted for 53 percent of the area's overall office space at the end of 2016. The buildings hold an EPA Energy Star label, a U.S. Green Building Council LEED certification, or both. 

Chicago claimed​ the top spot among 30 cities tracked, with 66 percent of its space certified as green, according to the Green Building Adoption Index. 

San Francisco ranked second with 62 percent, Atlanta third with 55 percent, and Minneapolis fifth with 51 percent. 

Across the nation, the study found 10.3 percent of all buildings surveyed are Energy Star labeled, representing 31.7 percent of total commercial office space. It found that 4.7 percent of buildings were LEED certified by the U.S. Green Building Council, representing 18.7 percent of the total space.​

TOBY or not TOBY: Four Texas commercial buildings honored

​​​​NASHVILLE (Building Owners and Managers Association) – Four Texas properties were among the 15 to receive TOBY Awards at the 2017 Building Owners and Managers Association (BOMA) International Conference.

TOBY (The Outstanding Building of the Year) Awards are the commercial real estate industry's highest recognition honoring excellence in commercial building management and operations in specific categories of building size or type.

The following Texas properties won:
  • HESS Tower in Houston (corporate facility category). The property is managed by CBRE ​and owned by HT Houston Portfolio LP.
  • One Shell Plaza in Houston (renovated building category). Hines Interests LP manages the property. It is owned by Busycon Properties​ LLC.
  • ​The Summit at Lantana in Austin (suburban office park low-rise category). The property is managed by HPI Real Estate Management and owned by 7171 SW Parkway Associates LP.
  • The Addison in Dallas (100,000-249,999 sf category). The property is managed by Holt Lunsford Commercial and owned by AD Addison LLC.
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. 

DFW home sales, prices, set record in June

DALLAS (Dallas Morning News) – Last month, a record 11,638 preowned​ houses changed hands in the area, up 13 percent from a year ago and the largest number ever in a single month.

Through the first six months of 2017, real estate agents have sold 51,627 houses through their Multiple Listing Service, which is 5 percent more than in the first half of 2016.

North Texas home prices also hit a high point in June. The median sales price for a single-family home was $256,000, 8 percent ahead of where it was in June 2016, according to data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information System. 

"I think Dallas will set another record for all of 2017," said Dr. James Gaines, chief economist with the Real Estate Center. "The market is still very strong and it isn't backing off much."

Gaines said worries about rising mortgage costs may be putting pressure on the summer homebuying market.

"It could be the talk of interest rates increasing by the Fed is spurring people to come into the market and bringing demand forward," he said. "If you believe the cost of financing is going up, it spurs you to action."

There are signs that the lack of supply of homes for sale in the area is easing. At the end of June there were 11 percent more houses listed for sale with agents in North Texas than a year earlier, with nearly 22,000 houses on the market. However, that still amounts to only a 2.6-month supply of preowned homes available for purchase.​

The average time it took to sell a house dropped to just 36 days in June, down 5 percent from a year earlier, according to​ data from real estate agents.

LED manufacturer leases 140,695 sf in Prologis Park

HOUSTON (REBusiness) – Ohio-based LSI Industries has leased 140,695 sf of industrial space within Prologis Park–West by Northwest.

​​The lighting manufacturer will operate out of a 264,461-sf building at 14902 Sommermeyer Rd.

JLL represented LSI in the lease negotiations.​

Rainier acquires Wheatland Towne Crossing

DALLAS (REBusiness) – Rainier​​ Realty Investments has acquired Wheatland Towne Crossing, a 207,669-sf retail center at 2525 W. Wheatland Rd.,​​​ near the intersection of I-20 and US 67. 

Shadow ​anchored by Target and ALDI, the property​ was 92 percent leased at the time of sale to tenants including Party City, Office Depot, PetSmart, and Dollar Tree.

Metropolitan Capital Advisors arranged a $23 million, floating-rate bridge loan on behalf of the new owner. 
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. 

Lubbock investor wrangles Cowtown multifamily asset

FORT WORTH (REBusiness) – A Lubbock-based investment​ firm has purchased Meadow Ridge, a 484-unit apartment community at 3001 W. Normandale St. 

The buyer will upgrade the property, which was built in 1981. 

Marcus and Millichap represented the seller in the transaction.

536-unit Arborstone apartments sold

​DALLAS (REBusiness) – Arborstone, a 536-unit apartment community at 6500 S. Cockrell Hill Rd., has been sold.

The property, built in 1985, will undergo renovations.

Marcus and Millichap represented the seller. ​​
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.

Renaissance Hotel at Legacy West opens

​​​PLANO (REBusiness) – Marriott has opened the Renaissance Dallas at Plano Legacy West Hotel, a 304-room hospitality asset at 6007 Legacy Dr.

Developed by locally based Sam Moon Group, the hotel has an on-site Asian fusion restaurant, an indoor-outdoor lobby bar, pool, fitness center and luxury spa, and 26,000 sf of meeting space​.

Gramercy Center office campus changes hands

DALLAS (Dallas Morning News) – Locally based ATCA Partners has purchased the Gramercy Center, a two-building office campus ​​at 18583 ​​N. Dallas Pkwy.

The 256,357-sf office campus was built in 1998. The seller, Austin-based Cap Ridge Partners, acquired the property in 2013. 

JLL brokered the sale. 

MEI Rigging and Crating signs 227,000-sf lease in Houston

HOUSTON (REBusiness) – MEI Rigging and Crating LLC has signed a 227,000-sf industrial lease at 6501 ​Navigation Blvd.​​

NAI Partners represented the landlord, Quasar Navigation Ltd., in lease negotiations. B&C Capital represented MEI. 
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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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A 14-story Class A office building at 1700 West Loop South in Houston has been sold.
Virginia-based Lingerfelt Commonwealth Partners has entered the Houston market with the purchase of a 14-story Class A office building. Details in today's RECON. (Photo from Lingerfelt Commonwealth Partners' website.)
July 7, 2017

AmazonFresh delivering warehouse in Houston

HOUSTON (Houston Business Journal) – Seattle-b​​​ased Amazon.com Inc. is leasing 110,956 sf in Fallbrook Pines Distribution Park for its AmazonFresh grocery delivery concept.

The company plans to move into the space by the beginning of 2018. Many of the employees will be delivery drivers or otherwise nontraditional warehouse employees. 

Fallbrook Pines Distribution Park is a 117-acre multiphase industrial park developed by Trammell Crow Co. and Clarion Partners in 2014. 

CBRE: El Paso industrial market 'challenging' for users

EL PASO (CBRE) – An industrial market expert with CBRE says the local industrial market is showing the strongest fundamentals he's seen in his 15-year career, but there are challenges ahead.

"Low vacancy in the face of strong demand is driving rental rates higher," said Christian Perez Giese, CBRE senior vice president and director​. "We will need to see some new speculative construction soon as we are quickly running out of space for new tenants or those that need to grow.

“It is a challenging market for industrial users in El Paso today. Rental rates are on the rise, and there is simply a declining supply of warehouse and light industrial space across town. Tenants looking for spaces under 100,000 sf are going to have a very hard time today, and they better be prepared to pay a higher rent than they have grown accustomed to in the past ten-plus years."

Other local market observations from CBRE:
  • El Paso absorbed more industrial space in Q2 2017 than the four previous quarters combined.
  • Vacancy decreased 80 basis points (bps) quarter-over-quarter and 70 bps year-over-year.
  • The Northeast and Central submarkets saw asking rent increases. The market average decreased by $0.05 per sf since Q1 2017 and $0.03 per sf year-over-year.
  • A speculative development and a build-to-suit lease broke ground in Q2 2017, the first of their kind in the current cycle.​
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New legislation adds flexibility for RSCs

​​​AUSTIN (Texas Real Estate Commission) – Gov. Abbott has signed HB 2279, amending Chapter 1303, which regulates residential service companies (RSC), the providers of home warranty services.

According to the Texas Real Estate Commission, the bill "accounts for the difference between RSCs that insure all of their outstanding risk through a third party insurance company and those that maintain a funded reserve. The bill simplifies certain regulatory requirements for fully insured RSCs and streamlines the contract and rate-filing requirements for RSCs that are​​​ already licensed in Texas."

The bill, which takes effect Jan. 1, 2018, clarifies the agency’s jurisdiction, enhances confidentiality provisions currently in statute, and increases certain consumer protections. 

NY investor makes first Austin purchase

AUSTIN (Austin Business Journal) – New York City-based Praedium Group LLC has acquired the Fox Hill Apartments, a 288-unit community on 33 acres ​at 8800 US 290.

Fox Hill was built in 2010 and features one-, two-, and three-bedroom units with an average rent of $1,202. 

​​The seller, Bluerock Residential Growth REIT, purchased the ​property in 2015 for a little more than $38 million through a joint venture.

The deal is the first in the area for Praed​ium Group, which plans to upgrade parts of the community.
Real Estate Red Zone logoWe once again empty out the mail bag and respond to questions from the Real Estate Center's constituents. This month's questions: past due taxes on vacant land, appealing a property appraisal, and finding certified inspectors in Texas. Also, we bring you the latest real estate news from Huffman, Austin, Houston, Schertz, College Station, Pasadena, and Bee Cave. All this in this week's Red Zone podcast. (16 min. 03 sec.) 

Work starts on two-building Pasadena industrial park

​​​​​​​PASADENA (McDaniel & Co.) – Clay Development & Construction Inc. has begun construction on Energy Commerce Phase II, a two-building, 334,360-sf warehouse and distribution property at 607 and 615 E. Sam Houston Pkwy. ​​​​​S.

The first facility is a 101,400-sf rear-load building with a 28-foot clear height. The second is a 232,960-sf warehouse/distribution, cross-dock facility with 32-foot clear height.

Phase II sits on 5.8 acres in Energy Commerce Business Park, a 45-acre deed-restricted business park in the Port of Houston submarket.

Phase I, completed in 2016, includes two buildings totaling 287,560 sf. It is 70 percent leased to DNA Motoring, Safelite, Cintas First Aid & Safety, Applied Industrial Technologies, JGB Enterprises, HMT, and Southern Dock Products.

In 2015, First Industrial Realty Trust Inc. acquired Energy Commerce Business Park Phase I from Clay.

NAI Partners will handle sales and leasing. Trustmark Bank is providing construction financing.

Texas took a record $5 billion beating from hailstorms in 2016

SAN ANTONIO (San Antonio Express-News) – ​​Hailstorms caused $5 billion in insured losses to residential property last year, shattering the previous record set in 2015 of $1.9 billion, according to the Insurance Council of Texas.

Three April hailstorms in San Antonio and Bexar County accounted for more than $2 billion of last year’s total figure for the state, the Council said. An April 12, 2016, storm in the area alone caused $1.4 billion in​ insured losses—the most ever for any single hailstorm in the state.

Texas’ hail-related losses last year were also the most of any other state.​ According to Verisk Insurance Solutions, Texas insurers paid out an average of more than $850 million a year between 2000 and 2013 for hail damages caused to insured property, easily ranking the state as number one in this category. 

When factoring in residential damage from wind and hail damage to vehicles, total 2016 losses top $7.5 billion. Vehicle damage exceeded $1.1 billion last year, more than twice as much as in any other year, according to the Texas Department of Insurance.

The previous high for wind and hail damage to residential property and vehicles in Texas was $5.4 billion, set in 2008.​
First issue of Tierra Grande magazine, 1977, with newspaper clippings from The Bryan-College Station Eagle
Lordy, lordy, look what's 40! Starting Tierra Grande probably seemed like a no-brainer in '77. It wasn't. Real Estate Center Associate Editor Bryan Pope talks to Senior Editor David Jones about how the magazine has changed over the years in this week's Mixed-Use Blog.

Modera Spring Town Center sold

​​​​​SPRING (RealtyNewsReport) – Abbey Residential Services Inc. purchased the 396-unit Modera Spring Town Center apartment community at 21801 Northcrest Dr. 

The property was developed in ​2014.

​Berkadia represented the seller, Mill Creek Residential. 

JV developing The Residence at Oakmont

​BRYAN (REBusiness) – ​​​​Parkcrest Builders Ltd. and Parkgreen Living LLC are developing The Residence at Oakmont, a 256-unit Class A apartment community at the intersection of Boonville Rd. and Pendleton Dr.

Mason Joseph Co. Inc. has closed a $29.5 million loan​ for the construction and permanent financing of the property.

HUD provided the nonrecourse loan, which offers a fixed interest rate for the 18-month construction period and subsequent 40-year term.​
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.

Stonecrop inks 114,515 sf lease in Garland

GARLAND (REBusiness) – Stonecrop Technologies LLC has leased 114,515 sf of office/warehouse space at 3901 W. Miller Rd. 

CBRE represented Stonecrop. NAI Robert Ly​nn represented the landlord.

New man on Campus at Arboretum

AUSTIN (HFF) – Vanderbilt Partners and True North Management Group LLC have purchased The Campus at Arboretum, a 318,534-sf Class A office campus.

The 16.5-acre property includes five buildings at 10415 Morado Circle, 10814 Jollyville Rd., and 10431 Morado Circle.

Completed between 1986 and 2000, the three-story buildings are 97 percent leased to tenants like BMC Software Inc., vAuto​ Inc., Freese and Nichols Inc., and Trion Worlds Inc.

HFF marketed the property on behalf of the seller, DivcoWest.​ HFF also procured the buyer and arranged acquisition financing.​
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.

Investor enters Houston market with Uptown office buy

​​​​​​HOUSTON (Houston Business Journal) – Virginia-based Lingerfelt Commonwealth Partners entered the local market with the purchase of a 14-story Class A office building. 

Bridge Investment Group sold the 272,941-sf property at 1700 W. Loop S. for $52 million.

Avison Young will handle leasing. The property is currently 81 percent occupied.

Criterion starts on Fort Worth mixed-use project

FORT WORTH (Dallas Business Journal) – ​​Dallas-based Criterion Property Company LP has started work on River East, a 322,019-sf mixed-use project at 2900 Race St.

The multimillion-dollar project will include 181 apartments ranging from 600 to 1,331 sf. 

Along with the apartments, River East will include:
  • 4,000 sf of working space;
  • 3,000 sf of retail space;
  • a 2,200-sf fitness studio; and 
  • 13,500 sf of live-work spaces ranging from 700 sf to 2,500 sf.
​​Civitas Capital Group of Dallas is an investor behind the project. PlainsCapital Bank provided senior financing to get the project started. 
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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