— By Dustin Dolby, executive vice president, Colliers — During the second quarter of 2024, the San Francisco multifamily market endured high interest rates and delayed cuts. Between June and December of 2023, expectations of the Federal Reserve cutting rates spurred an increase in transactional activity following an apparent lull in the first quarter of 2023 as interest rates remained elevated. This two-peat of complacent transactions can be attributed to the looming decision concerning interest rate trajectories and its projections. Upon reaching the second quarter of 2024, we have yet to see any such cuts applied. This — along with the Federal Reserve’s consistent reluctance to cut — has resulted in a plateau of transactional volume within the San Francisco multifamily market. Development within the San Francisco submarket has faced similar stagnation. However, this can be attributed to a lengthy “shot clock” that new developments face regarding the city approval process. Because of this, projects that focus on a large percentage of affordable units have been streamlined and comprise the bulk of new developments in the market. If the Federal Reserve lowers interest rates by the end of the third or fourth quarter of this year — as anticipated in its …
WILMER, TEXAS — Owens Corning (NYSE: OC) has signed a 292,680-square-foot industrial lease in Wilmer, a southern suburb of Dallas. The Ohio-based provider of roofing, insulation and composite materials is taking space at Core45, a two-building, 1.6 million-square-foot development. According to a 2022 press release from the Wilmer Economic Development Corp. announcing the project, Core45’s two buildings span 616,000 and 1 million square feet and feature 40-foot clear heights, as well as a combined 286 dock doors, 403 trailer parking stalls and 900 car parking spaces. Ridley Culp, Luke Davis and Matt Dornak of Stream Realty Partners represented the landlord, Grandview Partners, in the lease negotiations. CBRE represented Owens Corning.
SAN ANTONIO — MLSA Ventures will redevelop the historic La Villita Assembly Hall in San Antonio into a 49,993-square-foot food-and-beverage destination. Renovations to the building, which was originally constructed in 1958, will begin during the second quarter of 2025. In addition to space for food and beverage concepts, the redevelopment will include public patios and a large outdoor bar with a beer garden. Completion is expected for 2027. Ford, Powell & Carson is the project’s architect of record, and Kopplow Construction is the general contractor. JLL is the leasing agent.
DALLAS — Dallas-based Trive Real Estate Equity Management has purchased a 57,000-square-foot industrial building on the city’s northwest side. According to LoopNet Inc., the building at 7 Justice Way was built on a 22.4-acre lot in 2023 and features three dock-high loading doors and nine grade-level drive-in doors. Giovanni Scardino and Jason Moser of Stream Realty Partners represented both the buyer and the seller, an entity doing business as HTH 9800 Stemmons LLC, in the transaction.
HIGHLAND VILLAGE, TEXAS — Memphis-based Poag Development Group has welcomed three new tenants to The Shops at Highland Village, an 359,781-square-foot retail property located near the North Texas city of Denton. Chinese restaurant Dragon House will open a 5,200-square-foot space next to AMC Theatres in October. Athleisure apparel provider lululemon has leased a 5,590-square-foot space next to The Cheesecake Factory, and wellness concept iCRYO has taken a 2,587-square-foot space adjacent to Boardroom Salon for Men. JLL manages Shops at Highland Village on behalf of Poag.
IRVING, TEXAS — Two brokerage firms, Fort Worth-based The Woodmont Co. and California-based Hanley Investment Group, have arranged the sale of Story Crossing, a 6,038-square-foot retail strip center in Irving. The center was fully leased at the time of sale to tenants such as Starbucks, T-Mobile and CBD Kratom. Russel Wehsener of Woodmont and Jeff Lefko of Hanley represented the undisclosed seller in the transaction. Compass Group represented the buyer, which also requested anonymity.
NEW YORK CITY — New York-based developer Goose Property Management has received a $68 million loan for the refinancing of Astor on Third II, a 137-unit apartment building located in the Astoria neighborhood of Queens. Astor on Third II is a newly built property that offers studio, one- and two-bedroom floor plans, as well as 17,900 square feet of retail space. Amenities include a rooftop deck, children’s playroom, fitness center, screening room, package room and resident’s lounge with a pool table, board games and kitchenette. Henry Bodek of Galaxy Capital originated the loan through Affinius Capital. Goose Management will use a portion of the proceeds to fund additional leasing costs to stabilize the property.
WALTHAM, MASS. — CBRE has brokered the sale of Gardencrest Apartment Homes, a 696-unit multifamily community located in the western Boston suburb of Waltham. Built in phases on a 34-acre site between 1949 and 1972, Gardencrest consists of 64 buildings that house a mix of traditional apartments and direct-entry townhomes with an average size of 906 square feet. Amenities include a pool, clubhouse and a fitness center. Simon Butler, Biria St. John, John McLaughlin and Brian Bowler of CBRE represented the seller, an affiliate of Virginia-based Harbor Group International, in the transaction. The team also procured the buyer, an affiliate of San Francisco-based Fowler Property Acquisition, which has rebranded the property as ReNew Waltham.
Driftwood Capital Breaks Ground on $420M Westin Hotel and Conference Center on Florida’s Space Coast
COCOA BEACH, FLA. — Driftwood Capital has broken ground on the Westin Cocoa Beach Resort, Spa, and Conference Center, a 502-room oceanfront hospitality development on Florida’s Space Coast. The $420 million project will be situated on a 15.7-acre site at 1300 N. Atlantic Ave. in Cocoa Beach and is expected to create approximately 1,800 direct and indirect jobs in the region. The property will offer the largest conference center space in the Space Coast and will plug a 160-mile gap of Marriott International hotels on the Atlantic coast. Upon completion, the Westin Cocoa Beach Resort will feature 11 food-and-beverage venues, including themed restaurants; a high-end spa; surfing wave pool; swimming pools; tennis and pickleball courts; a fitness center with cardio and weights; multiple retail options; and a multi-story parking garage to accommodate about 800 vehicles. The property will also feature 72,000 square feet of open-air venues for meetings and events, as well as 51,500 square feet of indoor space designed for gatherings and conferences. Project partners include Kast Construction and North Palm Beach, Fla.-based Driftwood Hospitality Management, which will manage the development once completed. Driftwood Capital expects to deliver the Westin Cocoa Beach Resort in summer 2027.
KEARNY, N.J. — Locally based direct lender Procida Funding has provided a $20 million construction loan for The Helio, a 69-unit multifamily project that will be located in the Northern New Jersey community of Kearny. The property will house 15 studios, 38 one-bedroom units and 16 two-bedroom apartments, as well as a 130-space parking garage, a fitness center, lounge and a rooftop deck. The borrower is an affiliate of New York City-based HA Capital Corp.