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RECON for June 23, 2017RECON for June 23, 2017Bryan PopePope
2017-06-23T05:00:00Z2017-06-23T05:00:00Z
Real Estate Center Online News
The Real Estate Center received four Bronze Quill Awards of Excellence last night from the Houston chapter of the International Association of Business Communicators. Awards went to Tierra Grande magazine, the Real Estate Red Zone podcast, the REC's Annual Report+Calendar, and the article “How the West Was Won: Selling of the Wagoner Ranch.” (Photo by REC photographer JP Beato.)
June 23, 2017

Texas small land sales jump 14 percent, price per acre declines in 2016

​AUSTIN (Texas Association of Realtors) – Texas small land sales volume had strong gains in 2016, while the average price per acre declined slightly statewide, according to the Texas Small Land Sales Report released today by the Texas Association of Realtors.

Texas small land sales volume jumped 14.2 percent annually to 6,992 small land tracts sold in 2016. During the same time frame, the average price per acre dipped 0.3 percent year-over-year to $5,647 an acre. The definition of a "small" land sale varies from region to region but generally is considered to be a land purchase of 200 acres or less. The exception is Far West Texas, where 500 to 8,000 acres qualifies as a small land sale.

Strong small land sales growth was evident throughout most regions, with purchases in Far West Texas, Northeast Texas, and the Austin-Waco-Hill Country experiencing annual gains of more than 20 percent. Conversely, sales in West Texas declined 20.6 percent from 2015.

As demand for such tracts continued to rise, the average size of land purchased declined. In 2016, the average size declined three acres from 2015 to 36 acres. Far West Texas and South Texas were the only regions that had declines in average price per acre, falling 64.9 percent and 3.9 percent, respectively.

"While the Texas land market remains strong, multiple factors are impacting land sales activity throughout the state," said Real Estate Center Research Economist Dr. Charles Gilliland. "Rising prices of irrigated farmland and a sluggish agricultural sector are driving up land costs in the Panhandle, and residual effects of the oil and gas downturn have slowed small land sales activity in West and South Texas. Statewide, shortages in prime land are stifling land price growth as developers consider less desirable land tracts."

For more from Gilliland on Texas land markets, listen to this week's Real Estate Red Zone podcast​.​

San Antonio sees record amount of new office construction

​SAN ANTONIO (San Antonio Business Journal) – First quarter 2017 saw a record amount of new office construction in the Alamo City, according to the latest office market report from Transwestern.

Of the 1.2 million sf of new office space under construction in the city, 738,000 was started during first quarter 2017 alone.

​​While net absorption of office space was down more than 15,000 sf in the first quarter, absorption is up almost one million sf since the same time last year. The downturn in the quarter was blamed on long-expected givebacks of Class B and C office space. The occupancy for new office deliveries in the area is​ more than 75 percent.

The report also highlighted other positives for the market. Vacancy rates fell to 14.7 percent from 15.1 percent in the fourth quarter. The city's unemployment rate stayed at 4.1 percent, lower than the national average of 4.7 percent, and the San Antonio-New Braunfels MSA saw its seventh straight year of job growth, with 3,200 jobs being added since the end of 2016.​
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'Bright economic outlook' luring multifamily investors to Metroplex

​​DALLAS (Marcus & Millichap) – Employment gains of nearly 3 percent or more since 2012 have boosted local demand for both single-family and multifamily dwellings, says Marcus & Millichap in its latest multifamily market report.

Single-family housing supply remains tight, pushing up home prices and keeping many would-be owners in apartments, the firm says.

"Strong rental demand and absorption across the Metroplex have encouraged apartment development," according to the report. "The pace of apartment completions will reach a peak this year as builders are set to bring more units online in Dallas-Fort Worth than nearly every other major metro in the country. It is surpassed only by New York City."

Absorption remains healthy, keeping vacancy historically low. With vacancy staying well below the previous nine-year average, effective rent growth remains strong throughout much of the market.​​​​
Marcus & Millichap Dallas multifamily outlook
Rural Texas landscape
REC Research Economist Dr. Charles Gilliland joins us to talk about Texas rural land market trends. We also have the latest in real estate from San Antonio, Spring, Irving, El Paso, and Dallas. All this on the latest Red Zone podcast. (13 min. 29 sec.)

Work starts on 1.2 million sf logistics center

​​ARLINGTON (REBusiness) – ​​General Motors and NorthPoint Development have broken ground on Arlington Automotive Logistics Center​, a two-building, 1.2 million-sf industrial property.

Bob Moore Construction is the general contractor for the center, which will house about 1,250 employees. ​

The project is slated for completion in 2018.

DeSoto distribution hub sold, leased back

DeSOTO (Dallas Business Journal) – DW Distribution Inc. has sold its North Texas corporate campus and distribution hub to Chicago-based Brennan Investment Group in a long-term sale-leaseback deal.

​The 476,341-sf industrial facility at 1200 E. Centre Park Blvd. is valued at $21 million.

E Smith Realty Partners represented the seller.
To paraphrase a quote attributed to Mark Twain, reports of the death of America's malls may be greatly exaggerated. REC Senior Editor David Jones talks about what's being done to give new life to malls in this week's Mixed-Use Blog.

AISD sells two plots for $11.8 million

​​AUSTIN (Austin Business Journal) – ​​The Austin Independent School District has sold two plots of surplus land to RSI Communities for $11.8 million, the first of ten district properties that hit the market in October 2016.

The California​-based homebuilder will develop the land into single-family residences and has agreed to reserve 25 percent of the units for affordable housing.

The two east-side properties—32 acres at the intersection of Loyola Ln. and Ed Bluestein Blvd. and 12 acres south of E. 51st St.—went for $7.2 million and $4.6 million, respectively. 

Energy sector hiring resume, benefiting Houston multifamily

HOUSTON (Marcus & Millichap) – Rising energy prices have meant more hiring in energy-related industries, boosting demand for local ​Class B and C apartments.

In its latest multifamily market report, Marcus & Millichap says Class C vacancy remains the tightest, hovering in the high 5 percent area. As a result, effective rents for Class B and C units continue to rise, with Class C properties recording gains of more than 3 percent in each quarter since the energy downturn.

Class A apartments, specifically in western submarkets, are seeing the largest impact from energy industry cuts. Vacancy in this segment topped 10 percent in the first quarter, with some submarkets nearing 20 percent. As deliveries of luxury apartments remain elevated this year, further increases in vacancy will reduce the Class A effective rent.​​
Marcus & Millichap Houston multifamily outlook
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.

Favorable demographics driving demand for San Antonio apartments

SAN ANTONIO (Marcus & Millichap) – Favorable demographic trends and healthy job creation are benefiting local apartment operators, reports Marcus & Millichap in its latest quarterly multifamily market update.

The city's population continues to rise at a faster rate than the nation's, especially among 20-to-34-year-olds, the prime renter cohort.

"As home prices continue to rise faster than incomes, these individuals will continue to favor apartments over homeownership, placing additional downward pressure on vacancy and encouraging rent gains​," Marcus & Millichap's report said.

New apartment construction began 2017 at a slower pace than a year ago, so rental demand remains strong, pushing down the vacancy rate.

Much of the demand is occurring in the Class C segment, where vacancy has compressed to 5.5 percent over the last year. Surging Class A completions, meanwhile, have softened vacancy among these assets, pushing up the rate to 9 percent in the first quarter.

"The use of concessions to lure tenants to these buildings has increased dramatically in the last four quarters as owners seek to stabilize new properties," according to the report. "Declining deliveries will bode well for these assets this year, allowing demand to catch up with supply. As a result, the metro will experience further tightening in the overall vacancy rate for a third consecutive year."
Marcus & Millichap San Antonio multifamily outlook

Mattress Firm gets cozy in new BEDQuarters

​​HOUSTON (GlobeSt) – Mattress Firm has consolidated two corporate locations into a 130,000-sf ​building, dubbed the BEDQuarters, at 10201 S. Main St.

Architecture​ and interior design firm tvdesign designed the headquarters 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.

218,409-sf Dallas warehouse sold

DALLAS (REBusiness) – Ryan Street Developers LLC has purchased a 218,409-sf warehouse at 10848 Lunda Rd.

The property has 28-foot clear heights, eight drive-in doors, a fenced yard, and rail service.

Stream Realty Partners represented Ryan Street. Avison Young represented the seller. ​

South Side Flats by Jefferson under new ownership

DALLAS (Dallas Morning News) – Chicago-based Waterton has purchased the South Side Flats by Jefferson.

The 290-unit community is ​at 1210 S. Lamar St.
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=84
RECON for June 20, 2017RECON for June 20, 2017Bryan PopePope
2017-06-20T05:00:00Z2017-06-20T05:00:00Z
Real Estate Center Online News
San Antonio skyline
A new study finds that Texas' need for apartments is going to grow by leaps and bounds by 2030, including in San Antonio. More in today's RECON. (Photo from Center files.)
June 20, 2017

Exxon subsidiary moving 1,600 employees to Spring

SPRING (Houston Business Journal) – Irving-based Exxon Mobil Corp. will move 1,600 of its XTO Energy subsidiary employees from Fort Worth to the Houston area.

In mid-2018, 1,200 employees will move to Exxon's Springwoods Village campus. An additional 400 will follow in 2020. ​About 350 will remain in Fort Worth.

The 385-acre campus opened in 2015. ​

The company plans to sell six of the seven buildings it owns in Fort Worth.
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Hidden Resources: New Pioneer Natural Resources HQ coming

​IRVING (Dallas Morning News) – KDC is developing a ten-story office building and parking garage for Pioneer Natural Resources as part of phase one of the Hidden Ridge mixed-use development. 

Pioneer will nbsp;move more than 1​,000 people to the development on part of 100 acres west of SH 114 ​when it opens in 2019.

Duda Paine Architects, HKS, and Corgan Associates all worked on plans for the new building. Austin Commercial is the general contractor. The city has provided almost $6 million in economic incentives for the Pioneer project.

KDC and Verizon are developing the $1 billion Hidden Ridge development in Las Colinas, which will include more than two million sf of offices, hundreds of apartments, and restaurants and shops. ​

Texas needs more apartments, study shows

​​​​SAN ANTONIO (San Antonio Business Journal) ​​​– Several Texas metros will need more apartments by 2030 to keep up with demand, according to a new study.​

Dallas-Fort Worth will need an additional 266,296 units; Houston will need 214,176;​​ and San Antonio will need 53,890.

An estimated 28 percent increase in apartment availability ranks San Antonio 11th among the top 50 in terms of percent increase in demand by 2030. The area has an estimated 195,198 apartments.

The study, ​​commissioned by the National Multifamily Housing Council and the National Apartment Ass​​ociation, cited an aging population, international immigration, and declining home purchases as driving the increase in demand.​​

Nationally, 4.6 million new apartments will be needed by 2030 across all price points.
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. 

'Over' there: 1.4 million-sf mixed-use development coming

DALLAS (REBusiness) – De La Vega Development has purchased ten acres to develop OVERstreet at SEVENTYfive, a 1.4 million-sf mixed-use project at the corner of North Central Expy. and Haskell Ave.

The four-building project will include:
  • 767,000 sf of office space;
  • 150-room hotel;
  • 59,500 sf of retail and restaurant space;
  • 462,000-sf residential tower; and
  • three parking garages totaling 2,770 spaces.

Grant to address Rio Grande Basic water, agricultural challenges

COLLEGE STATION (AgriLife Today) – Researchers with the Texas A&M University System and the New Mexico Water Resources Institute were awarded a $5 million four-year grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture to address water challenges in the Rio Grande Basin.

The grant will help researchers from the Texas Water Resources Institute, Texas A&M AgriLife Research, the Texas A&M​​ AgriLife Extension Service, and the New Mexico Water Resources Institute investigate alternative water sources, new crops, management practices, and improved water conservation practices to sustain agriculture in the basin.

The project, “Diversifying the Water Portfolio for Agriculture in the Rio Grande Basin,” will be led by Texas A&M AgriLife’s Texas Water Resources Institute Director Dr. John Tracy. The project will be funded as part of the USDA-NIFA Agriculture and Food Research Initiative authorized by the 2014 Farm Bill.​​
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.

23-acre industrial park slated for south Houston

HOUSTON (Houston Chronicle) – Eubanks Properties LLC is developing​ an eight-building, 23-acre industrial park on Telephone Rd. 

Cannonball Park will have a 25,000​​-sf office building and seven 20,000-sf buildings, each with 17,000 sf of warehouse and 3,​000 sf of office space. It will also include 5.9 acres of stormw​ater detention.​

Stream developing Memorial Medical Pavilion

HOUSTON (Houston Chronicle) – Dallas-based Stream Realty Partners is developing Memorial Medical Pavilion, a five-story, 101,744-sf medical building ​along the I-10 corridor in Memorial Villages.

Stream is partnering with AMD Global LLC and Diamond Realty Investments Inc., the real estate investment arm of Mitsubishi Corp.

The project will break ground in December. First move-ins will happen in early 2019.
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.

New 390-acre subdivision planned on Lake Houston​

HOUSTON (Houston Chronicle) – A 390-acre subdivision is coming to Timber Forest Dr. on the shores of Lake Houston.

The Reserve at Lakewood Pines is an expansion of Lakewood Pines Preserve, with houses priced from $203,000 to $254,000, and Lakewood Pines Estates, with homes priced from $274,000 to $393,000.

​Developers also plan a new Lakewood Pines Blvd. through the subdivision.

NetScout leases 145,000 sf for new regional office

ALLEN (Dallas Business Journal) – NetScout Systems Inc. is relocating its regional research and development office from Plano to One Bethany at Watters Creek.​​

The cybersecurity and business intelligence provider has leased the three-story, 145,000-sf building, which is part of a larger office complex, from Dallas-based Kaizen Development Partners.

NetScout plans to move its 500 employees to the new facility next summer on completion of the building.

Allen Economic Development Corp. gave NetScout the equivalent of a ten-year, 50 percent tax abatement and some additional assistance with the cost of developing the parking garage.
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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=83
RECON for June 16, 2017RECON for June 16, 2017Bryan PopePope
2017-06-16T05:00:00Z2017-06-16T05:00:00Z
Real Estate Center Online News
Austin, Texas
new research article on our website talks about how rising home prices are forcing many East Austin residents to move. What are their options, and what’s being done to provide housing for them? The authors of that article—Center Research Economist Dr. Harold Hunt and Research Assistant Clare Losey— join us on this week's Real Estate Red Zone. Click here to listen. (Photo from Center files.)
June 16, 2017

Amazon buys Austin-based Whole Foods

AUSTIN (Amazon.com) – Amazon and Whole Foods Market Inc. today announced that they have entered into a definitive merger agreement.

Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.

The grocery chain has 32 stores in Texas. Thirteen are in North Texas, ten in Houston, six in Austin, two in San Antonio, and one in El Paso.

Whole Foods’s headquarters will remain in Austin.
Helping Texans make better real estate decisions since 1971

567,830-sf El Paso industrial quartet sold

EL PASO (El Paso Times) – Dallas-based Stonelake Capital Partners has purchased four industrial buildings on the city's east side.

The buildings, which total 5​67,830 sf of warehouse and other industrial space, are at 12120 to 12170 Rojas Dr. in the Vista Del Sol industrial area. They are 59 percent leased.

Stonelake now owns 13 area industrial buildings with 1.2 million sf.​

HAR: Houston home sales heat up in May

HOUSTON (Houston Association of Realtors) – Area single-family home sales continued to outpace 2016’s record performance last month, reports the Houston Association of Realtors.

The greatest sales gains​ were among homes priced at $750,000 and above (luxury segment), followed by homes in the $150,000 to $249,999 range. May marked the seventh consecutive month of rising sales in the luxury segment.

A total of 8,156 single-family homes sold in May versus 7,315 a year earlier, representing an 11.5 percent increase. Year-to-date, sales are 7.4 percent ahead of 2016’s volume. New listings elevated inventory levels from a 3.6-months supply to 4.1 months, the highest in nearly five years.

The single-family home median price climbed 4.4 percent to $235,000, the area's highest median price of all time. The average price rose 4.3 percent to $302,362, the second highest average ever.
Texas border picture
"Economic activity was steady along the Texas-Mexico border. The McAllen Business Cycle Index continued to climb, reaching positive annualized growth for the first time this year, and El Paso posted over 3.0 percent annualized growth for the fifth consecutive month. After sliding in the first quarter, the Brownsville Index appeared stable, ticking down just a tenth of a percent. However, falling wages dragged the Laredo index below 1.2 percent annualized growth." More on the Texas border economy in the latest edition of our Texas Border Economy report.

Austin-Round Rock home sales top $1 billion in May

AUSTIN (Austin Board of Realtors) – Single-family home sales volume had strong gains last month, while home sales dollar volume topped $1.2 billion and set an all-time high for sales dollar volume.

The Austin Board of Realtors reports that single-family home sales volume increased 9 percent year-over-year to 3,170 in the Austin-Round Rock MSA and 9.7 percent year-over-year to 993 in the City of Austin.

Coupled with rising home prices, this recent surge in home sales activity made May 2017 the highest-grossing month for Central Texas real estate in the region’s history. For the first time this year, single-family home sales dollar volume topped $1 billion in a single month within the five-county area.

The median price increased 8 percent year-over-year to $310,000 in the Austin-Round Rock MSA and 8.6 percent year-over-year to $380,000 within Austin’s city limits.

In the Austin-Round Rock MSA, active listings jumped 22 percent year-over-year to 6,972; new listings jumped 15 percent year-over-year to 4,369; and pending sales rose 7.7 percent year-over-year to 3,437.

Housing inventory increased 0.4 months annually to 2.8 months across the five-county MSA. Within the City of Austin, monthly housing inventory rose 0.2 months year-over-year to 2.1 months of inventory.​

Laredo ISD getting $35.8 million admin building

LAREDO (Laredo Morning Times) – The Laredo ISD board of trustees has approved construction of a $21.8 million administration building at the Jesus Martinez Performing Arts Center, formerly known as the Civic Center.

The 95,000-sf building will face the Cecilia May Moreno Aquatic Center.

With the original $14 million in upgrades approved in February, the total project will cost $35.8 million.
Maui beach resort
Just in time for summer vacation, REC's David Jones shares his timeshare tales and tips. Click here to read this week's Mixed-Use Blog post.

Fed increases federal funds rate by a quarter point

​WASHINGTON, D.C. (Inman News) – The Federal Reserve on Wednesday implemented a quarter-point federal funds rate hike.

The move increased its benchmark target to between 1 percent and 1.25 percent "in view of realized and expected labor market conditions and inflation," the Federal Open Market Committee said.

The decision marks the fifth hike since December 2015, when the Fed first raised rates post-financial crisis after an eight-year hiatus.

In March, the Federal Reserve governors voted to raise interest rates by 0.25 percent, to a range of 0.75 percent to 1 percent, citing a strengthening labor market and inflation running below 2 percent.​​

Dallas Hilton Woodbine fund's first buy

DALLAS (Dallas Business Journal) – Locally-based Woodbine Development Corp.'s new $85 million real estate investment fund, Woodbine Legacy Investments, has made its first purchase: the Hilton Dallas Park Cities hotel.

The 11-story, 224-room hotel at 5954 Luther Lane in Preston Center was acquired in an off-market deal.

HFF represented the seller.
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.

More apartments on the way near Irving Convention Center

IRVING (Dallas Morning News) – Locally-based apartment builder JPI has gotten funding to start another rental community in Las Colinas.

The Jefferson Eastshore apartments will be built near the Irving Convention Center and the new Music Factory entertainment and retail complex.

The 286-unit development is off the Northwest Highway and has access to DART's commuter rail line connecting DFW International Airport and downtown Dallas.

JPI bought the land for the project earlier this year.

The first apartments in the Jefferson Eastshore building will be ready next year.

JPI currently has 3,874 apartment homes under construction in markets including Las Colinas, Dallas, and Richardson.​ 

West Village apartments under new ownership

DALLAS (Dallas Business Journal) – Atlanta-based apartment developer Pollack Shores acquired two apartment buildings in Dallas' West Village neighborhood.

The buildings at 3636 McKin​ney and West Village Uptown total 167,152 sf of living space. The 178 units range from 600 to 1,300 sf. The properties will be rebranded under the names Flats at The Sawyer and Lofts at The Sawyer.

The Dallas Central Appraisal District last valued 3636 McKinney Ave. at $24.7 million and 3839 McKinney Ave. (formerly West Village Uptown) at $16.5 million.
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=82
RECON for June 13, 2017RECON for June 13, 2017Bryan PopePope
2017-06-13T05:00:00Z2017-06-13T05:00:00Z
Real Estate Center Online News
Logistics Pointe Garland water tank
The Kraft Heinz Company is now the largest tenant in Logistics Pointe Garland​, leasing 260,959 sf for fulfillment and logistics. Details in today's RECON. (Photo courtesy of Westmount Realty Capital.)
June 13, 2017

Dallas, Houston among top metros for industrial transactions

​HOUSTON (Houston Chronicle) – Colliers International ranked Dallas-Fort Worth and Houston first and fourth, respectively, ​​among U.S. metros for volume of industrial transactions in first quarter 2017.

First-quarter industrial transactions in DFW totaled $710 million, according to Colliers' Industrial Market Outlook​. Industrial transactions totaled $569 million ​​​in Houston.

​​​​DFW also ranked third in net absorption (5.9 million sf).

Other MSAs ranking in the top five in transaction volume ​are San Jose ($700 million), Los Angeles ($658 million), and ​Northern New Jersey ($550 million).

In the report, Colliers said industrial was the only real estate sector to post year-over-year sales volume gains last quarter.​​​

Johnson buys 1,600 acres for master-planned community

KATY (REBusiness) – Rockspring Capital, a Houston-based investment firm, has sold 1,619 acres to Johnson Development Corp.

The new owner will develop a master-planned community on the land off US 290 and Katy Hockley Rd.

McAlister Real Estate represented the seller, and NewQuest Properties represented the buyer.
Eye on Texas Mortgage Debt link
Texans typically have lower mortgage debt compared with the rest of the U.S. They have to set aside less for housing expenses, and they pay lower initial costs and fees for mortgages, although that wasn't always the case. Read more in "Eye on Texas Mortgage Debt."

Legacy West transaction one of year's biggest in North Texas

PLANO (Dallas Morning News) – Boston-based Liberty Mutual Insurance has quietly purchased its huge high-rise campus underway in ​​​Legacy West from developer KDC.

The 1.1 million-sf complex, designed by Omniplan, includes two 19-story towers joined by a seven-level parking garage.​ The purchase also includes vacant land on the north side of the twin towers that will allow a future expansion.​

Over 4,000 Liberty Mutual workers will star​t relocating to the Legacy West complex later this year.

The Dallas Morning News reports that this​ is likely to be one of the year's largest commercial real estate transactions in North Texas​​.

Howard Energy moves into Permian Basin

​​​​​SAN ANTONIO (San Antonio Business Journal) – Howard Energy Partners is entering the Permian Basin after signing a $563 million joint venture deal with Oklahoma-based​ WPX Energy.

Under the deal, Howard Energy will develop and operate crude oil and natural gas gathering and processing infrastructure in the Delaware Basin, which is part of the Permian Basin and includes Reeves and Loving Counties.

WPX will receive $300 million upfront from Howard Energy. Howard Energy will fund the first $263 million of the joint venture capital expenditures.

Howard Energy will complete construction of an approximately 50-mile crude oil gathering system that was started by WPX. The company will also build a cryogenic natural gas processing complex with an initial capacity of 400 million cubic feet per day.
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. 

Garland industrial park gives Kraft Heinz a squeeze

​​​​​​​GARLAND (Pharr PR) – The Kraft Heinz Company is now the largest tenant in Logistics Pointe Garland​, leasing 260,959 sf for fulfillment and logistics, including 90,000 sf of cold storage.

​​​​​CBRE represented both the tenant and the owner, Westmount Realty Capital.​

Logistics Pointe Garland, a three-building, 1.1 million-sf complex at 2600 McCree Rd., was built as a large-scale grocery distribution center.​

UTSA breaks ground on science, engineering facility

​​​SAN ANTONIO (REBusiness) – The University of Texas at San Antonio broke ground on the first phase of its $95 million Science and Engineering Building.

Designed by Alamo Architects and TreanorHL​​, the four-story, 153,000-sf building is the largest constru​ction project in the school's history.

Slated for completion in May 2020, the project is funded primarily by tuition revenue bonds approved during the 2015 Texas legislative​​ session.
Built in Texas link
The comparative advantage of Texas manufacturing lies in capital-intensive, energy-related, and high-skill industries. Learn more in "Built in Texas: What's Happened to Manufacturing Employment?"

Lynd picks up 11-property multifamily portfolio

SAN ANTONIO (MultifamilyBiz) – Lynd has acquired 2,405 multifamily units across 11 properties around the state.

Most of the assets are in Dallas, with others in Houston, Midland​​, Odessa, and El Paso.

The buyer plans to improve the properties and their operations and increase rents to market standards.

GM expanding at former Six Flags Mall

​ARLINGTON (Fort Worth Star-Telegram) –​ The 1.2 million-sf industrial renovation​ planned for the former Six Flags Mall site will house a major expansion of the local General Motors operation​​.​

Called the Arlington Logistics Center, the expansion will include two warehouses built by NP Arlington Industrial LLC and leased to General Motors.

The facility at the northeast​​​ corner of SH 360 and E. Division St. will be delivered by December 2018. It will accommodate​​​ 1,800 employees.

Cabana Beach San Marcos under new ownership

SAN MARCOS (REBusiness) – The Preiss Co. has acquired Cabana Beach San Marcos, a 744-bed student housing property at 1250 Sadler Dr. near Texas State University.

The company plans to upgrade 144 units and renovate the clubhouse.​​​​​​​
Land, Lots of Land link
Texas rural land markets increased overall. Market trends in regions differed. Details in "Land, Lots of Land," available here.
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.


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https://www.recenter.tamu.edu/news/recon/?Item=81
RECON for June 9, 2017RECON for June 9, 2017Bryan PopePope
2017-06-09T05:00:00Z2017-06-09T05:00:00Z
Real Estate Center Online News
June 9, 2017

CoreLogic: Dallas home prices up 8 percent in April

DALLAS (Dallas Morning News) – Area home sales prices were up more than 8 percent in April from a year earlier, marking one of the largest such home price gains in the country, according to a new CoreLogic report.

Nationally, prices were 6.9 percent higher than a year ago, the report said. CoreLogic predicts U.S. home prices will increase more than 5 percent in the coming year.

The median sales price for area houses was just over $246,000, higher than the national median sales price, according to real estate agents.​​

TWDB approves $355 million for water, wastewater improvement projects

AUSTIN (Strategic Partnerships) – The Texas Water Development Board (TWDB) approved $355 million to help pay for upgrades to water​ and wastewater systems throughout the state.

Of that, $23 million will go toward rural projects.

Those receiving financial assistance from TWDB are: 
  • Angelina and Neches River Authority: $1.5 million for improvements to wastewater system; 
  • City of Dallas, which also includes Dallas County, Denton, Collin, Ellis, Tarrant, and Kaufman Counties: $330 million to help pay for upgrades to water and wastewater systems;
  • Greater Texas Utility Authority on behalf of Tom Bean in Grayson County: $135,000 for a water-supply project;
  • Rogers in Bell County: $4.8 million for water and wastewater improvements; 
  • San Juan in Hidalgo County: $2.3 million to pay for providing first-time wastewater service to some residents; and
  • $16.7 million to Vinton in El Paso County to fund wastewater system upgrades.
Real Estate Red Zone logoREC Research Attorney Rusty Adams joins us to discuss a real estate legal issue of grave concern. We also take you to Dallas, Sherman, Pflugerville, Bryan, Victoria, Mansfield, and McAllen for some of the week's biggest Texas real estate stories. All this and more on the latest Red Zone podcast. (19 min. 08 sec.) 

Everest buys Houston medical office portfolio for $58 million

​​HOUSTON (RealtyNewsReport) – Everest Medical Properties, in conjunction with a pension fund, has acquired three medical office properties in Fort Bend County near Houston, for $58 million.

The portfolio of fully leased medical office properties includes Memorial Hermann Surgical Hospital and Physicians Pavilion in Sugar Land and UT Physicians facilities in Sugar Land and Richmond.

Institutional Property Advisors (IPA) Healthcare procured the buyer and represented the seller, a partnership including physicians and executives previously affiliated with Richmond Bone & Joint Clinic.

Encore breaks ground on Southtown apartments

SAN ANTONIO (San Antonio Business Journal) – Dallas-based Encore Enterprises Inc. broke ground Wednesday on a major residential development near the city's Southtown district.

The 330-unit Encore SoFlo, which will be near S. Flores St. and Cesar Chavez Blvd., will have 5,000 sf of retail space and a parking garage.

The project team includes Encore, Greystar, the city, and Bexar County.

​Completion is scheduled for December 2018.​
Lunar real estate picture
"Talk about out-of-this-world real estate. Would you believe millions of earthlings have bought land on the moon? According to the Lunar Embassy, more than 400 million acres of the moon have been sold worldwide. Among the buyers are former U.S. presidents and movie stars." More on this from Senior Editor David Jones on this week's Mixed-Use Blog. Click here to read.

Construction starts on Amarillo hotel campus

​​AMARILLO (REBusiness) – ​​A 300-room, three-hotel hospitality campus is in the works at the intersection of I-40 and S. Soncy Rd.​

​The first property, a 94-room Tru by Hilton hotel, will open in mid-2018. Construction of Hyatt- and Marriott-branded hotels will begin by the end of this year. 

NewcrestImage is the developer.
Texas housing stats infographic

Japanese chemical giant leasing Bayport Logistic Park buildings

PASADENA (RealtyNewsReport) – Kuraray America, part of a large Japanese chemical corporation, has signed a long-term lease for 465,851 sf in two build-to-suit buildings in Avera Companies' new Bayport Logistics Park.

Once they're built, the two facilities will cover 30.5 acres in the northern portion of the 185-acre park.

One building will have a 36-ft clear height, a feature that RealtyNewsReport says is virtually nonexistent in the southeast submarket.

Cushman & Wakefield represented both Kuraray and the landlord.​​
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.

Freddie Mac: 30-Year FRM drop continues

McLEAN, Va. (Freddie Mac) – Freddie Mac's latest Primary Mortgage Market Survey showed the 30-year fixed rate mortgage (FRM) dropping for the fourth consecutive week and hitting its lowest level in nearly seven months.
  • The 30-year FRM averaged 3.89 percent with an average 0.5 point for the week ending June 8, down from last week when it averaged 3.94 percent. A year ago at this time, it averaged 3.6 percent.
  • The 15-year FRM averaged 3.16 percent with an average 0.5 point, down from last week's average of 3.19 percent. Last year, it averaged 2.87 percent.
  • Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.11 with an average 0.5 point, the same as last week. It averaged 2.82 percent a year ago.​
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.

McCarthy crafting Museum of Fine Arts phase II

HOUSTON (REBusiness) – McCarthy Building Cos. Inc. has broken ground on Phase II of the campus expansion of the Museum of Fine Arts.

Phase II includes the construction of the Nancy and Rich Kinder Building, a 243,632-sf gallery for modern and contemporary art. It will also include a 200-seat theater, street​-level cafe, restaurant, and a 115-space underground parking garage.

Completion is slated for late 2019.
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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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