RECON for November 27, 2018RECON for November 27, 2018Bryan PopePope

Real Estate Center Online News
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MIdland stood tall last month, ranking first in Texas job creation. Read more on the Texas economy in today's RECON. (Photo from Getty Images.)
November 27, 2018

WSJ: Dallas housing market cooling

PLANO (Wall Street Journal) – "Dallas' once-vibrant housing market is sputtering," reports today's edition of the Wall Street Journal.

​The paper reports builders in Frisco's high-end neighborhoods are cutting new-home prices by up to $150,000. Earlier this month, one street had $4 million worth of unoccupied new homes.

"Even though the economy in [Dallas] has boomed, home prices have grown much faster than wages, and buyers have been straining to afford homes," reported the Journal.

"We have this huge affordability crisis," said Ted Wilson, principal at local consulting firm Residential Strategies. "With mortgage rates going higher, we're hitting a ceiling."

New and existing home sales in Dallas-Fort Worth fell 3.6 percent year over year in October, according to Real Estate Center data. Meanwhile, median home price growth slowed to less than half the pace of a year ago.

This spud's for you: New style for traditional Texas rural land sale

HARTLEY COUNTY (Global Ag Investing) – ​​Real Estate Investment Trust Gladstone Land has purchased​ a 3,667-acre potato farm in Hartley County for $8.5 million. Hancock Agricultural Investment Group was the seller.

The farm, which primarily grows chip potatoes, includes 2,200 acres of irrigated land with 12 wells and 13 pivots on site. Currently, it's leased to national agribusiness company CSS Farms LLC.

Both the buyer and the seller were institutional investors, uncommon for Texas land transactions. This was an investment-grade, income-producing land transaction based on CRE investment analysis principles, said Kyle Amos with Highfield Farm Asset Services LLC, which served as the broker.​

This deal is Gladstone's first investment in Texas farmland and brings the company's portfolio to 84 farms totaling 72,444 acres across ten U.S. States.
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Lubbock or leave it: 'Historic' hotel approved

LUBBOCK (Lubbock Avalanche-Journal) – The city has approved a $12 million building permit for the Cotton Court hotel at 1610 Broadway.

The 117,259-sf hotel will have 169 rooms, a restaurant, and rentable venue space.

The Valencia Group is developing the hotel. The company specifically designs properties to reflect the city’s history.

The developer will break ground on the Cotton Court in early 2019. Delivery is expected in the first half of​​ 2020.

Where's Weir's wares? High-rise to furnish historic retail site

DALLAS (Dallas Morning News) – Developers are pushing ahead on a high-rise office and retail building on Knox St.

The new tower would replace the existing Weir's Furniture Store at 3219 Knox St., near the eastern edge of Highland Park.

Weir's Furniture's owners and Dallas developer Four Rivers Capital have teamed up on a building that would house a new Weir's store plus additional merchants.

The developers have filed building permits for $72 million in construction totaling more than 600,000 sf.

The project will start in the first half of next year.

Weir's Furniture opened its doors in the late 1940s and is still owned by the founding family.
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. 

Modern meets ranch-style homes in rural Texas

CANYON LAKE (Community Impact Newspaper) – Meyer Ranch, a new residential development, is coming to SH 46 and South Cranes Mill Rd.

The development will have about 1,600 45x100-f​t lots​, which will enhance affordability in an area where one-acre lots are more common. Prices will start in the mid $200,000s.

Construction will begin on the initial model homes during first quarter 2019. The first homes will be available for purchase in the second quarter.

The development will also feature more than 200 acres of open greenbelt space, including hiking trails, parks, and sports fields.

Randolph Todd Development is developing the property. 
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. 

Texas job growth up 3.1 percent year over year in October

COLLEGE STATION (Real Estate Center) – Texas job growth continues to exceed that of the U.S. According to the Real Estate Center’s latest Monthly Review of the Texas Economy​, the state gained 384,800 nonagricultural jobs from October 2017 to October 2018, an annual growth rate of 3.1 percent, higher than the nation’s employment growth rate of 1.7 percent.

The nongovernment sector added 384,200 jobs, an annual growth rate of 3.7 percent, also more than the nation’s employment growth rate of 2 percent in the private sector.

Texas’ seasonally adjusted unemployment rate in October 2018 was 3.7 percent, lower than the 3.9 percent rate in October 2017. The nation’s rate decreased from 4.1 to 3.7 percent.

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

All Texas metro areas except Victoria had more jobs. Midland ranked first in job creation followed by Tyler, Houston-The Woodlands-Sugar Land, Austin-Round Rock, Sherman-Denison, and Dallas-Plano-Irving.

The state’s actual unemployment rate in October 2018 was 3.5 percent. Midland had the lowest unemployment rate followed by Amarillo, Odessa, Austin-Round Rock, College Station-Bryan, Lubbock, San Angelo, and Sherman-Denison.​
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Grocery giant breaks ground on biggest warehouse yet

SAN ANTONIO (Rivard Report) – H-E-B has broken ground on a 1.6 million-sf warehouse at the corner of E. Houston St. and Foster Rd.

The new warehouse will create 600 to 700 jobs.

It will handle primarily dry groceries for the area and across Texas when it is completed in 2020.

No other plans have been announced for the 871-acre site.
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

The place: East Texas. The project: self-storage.

LONGVIEW (Longview News-Journal) – Houston-based Longview Development LLC will transform the shuttered Kmart building on 11 acres at 1100 McCann Rd. into a self-storage facility.

Work will start in early 2019 on the climate-controlled Simply Stor It and will wrap up by the end of the first quarter. Plans call for ​500 to 600 storage units with drive-through access into the building.

Tyler-based Boone & Boone Construction will convert the 105,000-sf building, which has been vacant since the retailer closed in March 2016.

​The project is valued at $1.6 million.

An apartment complex is also planned for the tract.

To kill an old office complex near Mockingbird Station

​​​​​DALLAS (Dallas Business Journal) – Chicago-based ConvexityProperties has filed building permits totaling $84 million for a 600,000-sf mixed-use development near Mockingbird Station.

The eight-acre retail and residential development at 6080 N. Central Expressway will be called The Crossing.

The plan includes 500,000 sf of high-rise and low-rise apartments and 90,000 sf of street-level retail and restaurant space with a central plaza.
Archer Western Construction is the general contractor.

The property—currently home to two office buildings—is north of the DART Mockingbird Station and across the highway from Southern Methodist University.

Convexity and Houston-based Triten Real Estate Partners bought the two-building office portfolio in 2015.
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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 Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

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