RECON for November 8, 2019RECON for November 8, 2019Bryan PopePope

RECON Real Estate Center
Welcome to Texas sign along highway
​​​​According to 2018 U.S. Census Bureau data, top migration inflows into Texas came from either highly populated coastal states like New York, Florida, and California or adjacent states like Oklahoma and Louisiana. What does this mean for Texas? Read today's RECON for the details on this story and more. (Photo from Center files.)
November 8, 2019

U.S. Census Bureau: Californians still flock to Texas

​​​​​​COLLEGE STATION (Real Estate Center) – According to 2018 U.S. Census Bureau data, top migration inflows into Texas came from either highly populated coastal states such as New York, Florida, and California or adjacent states like Oklahoma and Louisiana.

Last year, just over 86,160 moved to Texas from the Golden State. After accounting for migration outflows from Texas to California, the net migration between the two states still favors Texas by almost 50,000. Migration from Florida was a distant second with about 37,270 making the move to Texas (net migration was less than 15,000).

The sudden uptick of California migrants follows the passing of the Tax Cuts and Jobs Act of 2017 (TCJA), which holds many implications for residents living in high-tax states. Part of that legislation caps the deduction limits of state and local income taxes at $10,000 where formerly there was no limit.

The TCJA also reduced the mortgage interest deduction limit on new home purchases, which many real estate professionals initially believed would have a negative impact on housing activity, particularly for high-end homes. 

According to Real Estate Center Senior Data Analyst Joshua Roberson, that does not appear to be the case in Texas. Sales for luxury homes (priced at or above $1 million) expanded greatly in 2017, 2018, and so far into 2019. 

While high-income homebuyers may miss out some on the mortgage interest deduction, the net effect from other aspects of the bill may have been enough to provide a net positive impact for the luxury housing market. 

For the full article, read Josh's Mixed-Use blog post, "Taxes, tariffs, and Texas migration."
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Ross to build 2M-sf distribution center in Brookshire 

​​​​BROOKSHIRE (Houston Business Journal) – Ross Stores Inc. will build its new two million-sf distribution facility about a mile south of I-10 just across from the Uplands at Twinwood Business Park in southern Waller County.

The distribution center will make Ross the county’s largest employer, bringing 1,300 full-time jobs to the area.

The Waller County Economic Development Partnership agreed to a 40 percent tax reduction on the new building and a 20 percent tax reduction on the center’s equipment. 

The Waller County Road Improvement District agreed to provide assistance in expanding the roads leading into and out of the site of the new distribution center.

The deal includes a road reimbursement agreement with Ross that will allow the final leg of Kingsland Blvd. to be completed between Jordan Ranch Rd. and Woods Rd.

Road expansions will also widen Woods Rd. from two lanes to five lanes and Kingsland Rd. from two lanes to four lanes. 

The distribution center will​ open in 2021.
Podcast 438: Limiting liability with a brokerage business entity
Personal liability risk comes with being a broker, but there are ways to reduce it. Real estate attorney and former Texas Real Estate Commission General Counsel Kerri Lewis joins us on our latest podcast to elaborate on that plus talk about broker succession planning. Take a listen.

Victory! Uptown Dallas hotel sold

DALLAS (JLL) – The W Dallas Victory Hotel, a 252-room hotel in Uptown's Victory Park​, has been sold to a partnership between HN Capital Partners and Dunhill Partners, Inc.

The 33-story hotel is on 1.65 acres at 2440 Victory Park Ln. Amenities include a restaurant, lobby bar, terrace bar, pool and pool deck, and 10,800 sf of meeting and event space.

Victory Park contains 5,700 ​residences and 2.6 million sf of Class A office space.​

JLL marketed the property on behalf of the seller, Estein USA. It also acquired financing through Starwood Property Trust.​
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

LA developer turning condos into office, residential tower

AUSTIN (Austin American-Statesman) – Los Angeles-based Karlin Real Estate has purchased the 112-unit Railyard Condominiums at 201 E. Fourth St. for $104 million.

The 70,694-sf, two-block site will be redeveloped in​to a 1.7 million-sf campus with a 47-story office tower and a 51-story office and residential tower. 

The $1,471 per-sf deal is believed to be a record for downtown land.

The Railyard was built in 1983 as an apartment complex and converted to condominiums in 1999.
Map showing Texas Quarterly Apartment Report's 2019 forecast for DFW, Austin, San Antonio, and Houston
The apartment market outlook for the rest of 2019 appears to be positive for the major Texas MSAs due to the strength of the U.S. and Texas economies. Learn more by reading the Real Estate Center's new Texas Quarterly Apartment Report, available online now. This quarterly report summarizes important economic indicators that help discern apartment real estate trends in Texas' major metros. 

Construction begins on East Quarter high-rise in Dallas

DALLAS (Dallas Morning News) – Todd Interests have started construction on the East Quarter high-rise, a 17-story mixed-use tower on downtown's eastern edge.

Part of the ten-block East Quarter development, the project will include 25,000 sf of retail space, 200,000 sf of office space, and 336 apartments.

Merriman Anderson Architects designed the building. Andres Construction is the general contractor.

Completion of the retail and office space is set for first quarter 2021. The apartments will deliver in second quarter 2022.
market viewer screen shotTexas Realtors' MarketViewer tool helps members and their clients quickly understand the market statistics in their area. This powerful tool is a member benefit available exclusively to Texas Realtors and local Realtor associations in Texas. Data are compiled and analyzed through a research agreement between Texas Realtors, the Real Estate Center, and all MLSs across the state. 

Shell Oil sells 28 acres to City of Houston for detention basin 

​​​HOUSTON (Houston Business Journal) – City officials have agreed to buy a 28-acre research property at 5521 Gasmer Dr. from​​ Shell Oil Co.

The property will be used to build a new detention basin that will help to prevent homes in the Westbury neighborhood from being flooded.​​

As a result, the planned Levitt Pavilion concert venue will be moved from along S. Post Oak Rd. to the Shell site. 

Relocating the pavilion will allow the city to expand the existing detention area near the intersection of S. Post Oak Rd. and Gasmer Dr.

The city also agreed to lease 6.4 acres back to Shell through December 2020.

The Bowen towers over The Domain 

AUSTIN (Austin Business Journal) – Stonelake Capital Partners has started building The Bowen, a 19-story high-rise luxury apartment building at the intersection of Alterra Pkwy. and Gracie Kiltz Ln.

The 340-unit, Class A building will be on 2.4 acres on the south side of The Domain mixed-use development.

It will be the tallest apartment building in the project. 

Amenities will include a pool, fitness center, terraces overlooking the city, and concierge service.

Stonelake will begin leasing​​​ in late 2021. ​
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Construction starts on Phase II of Regent Square 

HOUSTON (REBusiness Online) – GID Development Group has broken ground on Phase II of Regent Square, a mixed-use project at W. Dallas St. and Dunlavy St. near Buffalo Bayou Park.

Designed by Boston-based CBT, the second phase will consist of 50,000 sf of retail space, a 600-unit apartment building, and activated community space. 

The retail space will be available for occupancy by first quarter 2021, and the residential component will deliver by third quarter 2021.

Phase I of the project was completed in 2014. Arch-Con is the general contractor, and JLL is handling leasing of the retail space.

NYC buyer picks up $36M Plano office building

PLANO (Dallas Morning News) – Innovatus Capital Partners has taken out a $36.2 million loan from CIT Bank to purchase the 236,000-sf Park Center.

Built in 1999, the five-story office building at 2400 N. Dallas Pkwy. was sold by TA Realty, who had owned it since 2013.

The building is more than 95 percent leased to tenants including Learfield IMG C​​ollege, QBE America, Forescout Technologies, and Capital Title of Texas.

Cushman & Wakefield represented the seller.

Lincoln Property Co. will provide property management and leasing services. 
Texas Realtors quote about Real Estate Center
Copyright © 2019, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

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