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RECON for October 6, 2020RECON for October 6, 20202020-10-06T05:00:00Z2020-10-06T05:00:00Z
RECON Real Estate Center
Texas A&M and Medistar Corp. have broken ground on the half-billion-dollar Innovation Plaza near the Texas Medical Center in Houston. The three-tower project will be finished by 2024. Keep reading today's RECON for the details on this story and more. (Image from the Texas A&M University System.)
October 6, 2020

Texas’ manufactured housing outlook positive, demand strong

​​​COLLEGE STATION (Real Estate Center) – Texas’ manufactured housing industry continued to ramp up production in September as new orders and sales volume maintained a steady climb, according to the latest Texas Manufactured Housing Survey (TMHS).

"The manufactured housing industry is providing a product that is increasingly attractive to many homebuyers, especially those looking to migrate outside of urban areas," said Real Estate Center Research Economist Dr. Harold Hunt.

Supply-chain disruptions and contractions in the labor supply, however, prevented production at full capacity and contributed to a large increase in backlogs.

A combination of robust demand and supply-side constraints have translated to higher sale prices, but the price of raw materials has also elevated in recent months. Lumber prices in particular have spiked since March and may remain elevated in the aftermath of the forest fires on the West Coast. Manufacturers, however, anticipate inflationary pressures to subside by the end of the year.

"Manufactured-home shipments generally decline in September, but the TMHS indicates that plant production expanded," according to Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). "That's good news and means plants are ramping up as we move into October, typically their most productive month. Quoted deliveries are extending well into 1Q2021, so materials shortages are the most pressing concern on factory manager's minds, but it hasn't slowed them down yet."

The ongoing COVID-19 pandemic has generated significant uncertainty throughout the economy, but housing manufacturers remained optimistic about business activity and the overall outlook heading into fall. This confidence has led to higher capital expenditures and preparations for further investment early next year.

The Real Estate Center and the TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry.
Texas Weekly Leading IndexThe Texas Weekly Leading Index increased for a third straight week. The overall trend indicates that economic activity continues to improve and the state's economy is on the path to recovery. The pace of the recovery continues to be hindered by the incomplete reopening of the economy and future uncertainty regarding the pandemic. Prospects for the state economy's reopening and recovery took another hit the week ending Sept. 26, as the number of new cases registered an uptick for a second straight week, reversing previous weeks' downward trend. Read our latest COVID-19 Impact Projections on Texas Economy report.
Houston says 'Howdy!' to Innovation Plaza
HOUSTON (Houston Business Journal) – The Texas A&M University System and Medistar Corp. have broken ground on the university's $500 million campus near the Texas Medical Center.

Texas A&M Innovation Plaza is on five acres at the corner of Holcombe Blvd. and Main St. ​It includes an existing tower and two new ones.

Discovery Tower is an 18​​​​-story existing office building at 1020 Holcombe Blvd. Texas A&M purchased the building in 2017 for $145 million. It will house the two-degree EnMed program, which allows students to turn a master's degree in engineering and a medical degree. Following renovations, opening is set for later this year.

Life Tower is a 19-story, 714-bed student housing tower. Texas A&M medical students and Prairie View A&M University nursing students have priority in the tower. Opening is set for June 2022. 

The 17-story, 485,000-sf Horizon Tower ​will be built atop a 13-story, 2,800-spot parking structure at 6929 Main St. It will include science, clinical, biomedical, technology, and office uses. Delivery is set for January 2024. JLL is handling leasing.

The campus will also feature a plaza, retail, and dining. 

Harvey Builders is building Life Tower and Horizon Tower. 

Medistar is developing the public-private partnership​​​​, which will total $401 million in private investment. American Triple I Partners is part of the financing team. 

Completion is slated for 2024.
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$561M mixed-use development coming to Government Hill

​​SAN ANTONIO (San Antonio Heron) – GrayStreet Partners and Midway are developing Broadway East, a 1.6 million-sf mixed-use development.

The multi-phased project will be on more than 20 acres at the intersection of Broadway and Pearl Pkwy. within the Government Hill neighborhood. ​

It will be built over the next ten years and​ include multifamily housing, retail and hospitality space, offices, and outdoor plazas. 

Phase one​ will include office and retail space and a 380-unit multifamily complex.
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

Second gypsum plant planned for Sweetwater

​​SWEETWATER (Connect Media) – Georgia-Pacific is building a gypsum wallboard production facility at FM 1856 and I-20​​. 

The $285 million plant is Georgia-Pacific's second in Nolan County and will be adjacent to the exiting facility.

​Construction will begin immediately with startup set for late 2022. Once operational, the plant will employ 120 full-time workers. 

With the new project​, the company will retire its Quanah facility​ in North Texas.
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. 

Residential community opens on Lewisville Lake

​​​​​OAK POINT (Dallas Morning News) – ​Taylor Morrison Homes has opened South Oak, a 230-home residential community on Lewisville Lake south of US 380.

Homes will range from 1,700 to 3,300 sf. They will be priced from $312,990 to $424,990.

Amenities include a clubhouse with resort-style pool, fitness space, walking trails, and community pond with fishing.

The community is within the​ Little Elm Independent School District. 
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University of the Incarnate Word expanding its Brooks campus

​​​SAN ANTONIO (San Antonio Express-News) – University of the Incarnate Word (UIW) has purchased seven buildings on 23.5 acres at Brooks, a 1,308-acre mixed-use development. 

The properties will house the university's health professions programs.  

Four of the buildings are currently occupied by the UIW School of Osteopathic Medicine. Two are vacant, and one is leased to another tenant.

216-unit Springs at University Drive trades hands

​​​BRYAN (REBusiness Online) – CEG Multifamily has purchased Springs at University Drive, a 216-unit apartment complex at 4050 Eastchester Dr. 

The property has studio and one-, two-, and three-bedroom units. Rents range from $896 to ​$1,701 per month. 

Amenities include a pool and fitness center. 

Institutional Property Advisors represented both the buyer and the seller, Continental Properties.
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.

344-room luxury hotel planned for downtown Austin

​​​AUSTIN (Austin Business Journal) – Turnbridge Equities is planning a 344-room luxury hotel at 617 Colorado St. 

The 17-story building ​will include 119,400 sf of hotel space and 4,800 sf of public amenities. 

Turnbridge is currently seeking a downtown density bonus to build the hotel. 

Baskervill is the project architect. Design Workshop is the landscape architect.

Houston office, warehouse building under new ownership

​​​HOUSTON (REBusiness Online) – DLAC Ventures LLC has purchased a 21,261-sf office and warehouse building on 1.3 acre​s at 3367 N. Sam Houston Pkwy. W. 

The property has two conference rooms​, executive offices, a gym, and two kitchen areas. 

Newcor Commercial Real Estate represented the seller, NOCNIR LLC. Avison Young represented the buyer.
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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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