DALLAS — Marcus & Millichap has brokered the sale of Quail Hollow, a 120-unit multifamily property in east Dallas. Al Silva and Mark McCoy of Marcus & Millichap represented the seller and procured the buyer, a California-based investor. The new buyer plans to upgrade the unit interiors and lease the 45 on-site self-storage units that were included in the sale.
The story of the office market in Austin’s central business district (CBD) begins in 2008. With the national economic downturn just beginning, a new, 44-story high-rise residential building had just been completed and the millennial generation was slowly starting to enter the workforce. At that time, the total inventory of office product in Austin’s CBD was approximately 8.44 million square feet. These properties posted a vacancy rate of about 12.9 percent. Several major factors would soon come to play a role in transforming the submarket from professional and typical into tech-savvy and hip. First, Facebook arrived in Austin in 2010, bringing with it an ethos of, “it’s not a job, it’s an adventure.” The social media giant quickly took 20,000 square feet at 300 W. 6th St., its largest office outside its Silicon Valley headquarters. Additional moves were precipitated in part by an increase in personal income taxes in California, which put the highest earners in the state at a combined state and federal income tax rate of 51.9 percent, among the highest in the nation. In addition, the age demographics of the 2010 U.S. population indicated that there were 13 percent more persons aged 18 to 24 in 2010 …
HOUSTON — BBVA Compass, a Birmingham, Ala.-based bank, has provided a $28.1 million loan for the refinancing of Hotel Derek, a 312-room hotel located in Houston’s Galleria neighborhood. The hotel features a 24-hour fitness center, outdoor pool, more than 10,000 square feet of meeting space and an outdoor movie theater. Colby Mueck and Scott Hall of HFF arranged the loan on behalf of the borrower, Lowe Enterprises Investors, a Los Angeles-based advisory and management firm. Lowe has invested more than $8.8 million in upgrades into the property since 2012.
SHENANDOAH, TEXAS — Urban Air Trampoline & Adventure Park will open a 37,000-square-foot venue at Sam Moon Center in Shenandoah, a northern suburb of Houston. The venue will offer trampoline activities, indoor skydiving, ropes courses, climbing walls and a café. Michael Stern of Edge Realty Partners represented Urban Air in the lease negotiations. Steve Greenberg and Kendall Isben of The Retail Connection represented the landlord, Sam Moon Group. The opening is slated for July.
HUMBLE, TEXAS — Dallas-based healthcare investment firm Caddis has acquired Atascocita Medical Center, a 30,906-square-foot medical center located in the northern Houston metro of Humble. The property opened in 2015 and is currently 94 percent leased to urgent care clinic Memorial Hermann Medical Group Pediatrics Atascocita, as well as primary and specialty care practices. Caddis also recently re-acquired the 43,119-square-foot Prairie View Medical Plaza in Flower Mound, which it developed in 2012 and sold in 2015. The seller of Prairie View Medical Center, which is 100 percent leased, was Ridgeline Capital Partners.
GARLAND, TEXAS — Lee & Associates has negotiated a 40,000-square-foot industrial lease at 850 S. Jupiter Road in the northeastern Dallas metro of Garland. Brett Lewis and Corbin Blount of Lee & Associates represented the tenant, supply chain management firm Galaxy Global Logistics. Michael Peinado of Lincoln Property Co. represented the undisclosed landlord.
HURST, TEXAS — JLL has arranged the sale of a 13,900-square-foot retail property located at 340 Grapevine Highway in the eastern Fort Worth metro of Hurst. Frost Bank owned and occupied the single-tenant property, which was purchased by Westover Hurst LLC. Pat McDowell and Todd Burnett of JLL represented Frost Bank in the sale. Mack House of The Westover Group represented the buyer. The sale includes the 2.1 acres of land surrounding the building.
DALLAS — Equinix Inc. (NASDAQ: EQIX), a data center owner and operator based in Redwood City, Calif., has agreed to purchase Infomart Dallas from ASB Real Estate Investments for $800 million. The 1.6 million-square-foot Infomart Dallas is a highly visible data center facility located at 1950 N. Stemmons Freeway near the intersection of Interstate 35 and Dallas North Tollway. Equinix is the facility’s largest tenant, representing approximately 40 percent of lease revenues. The facility houses four of eight Equinix Dallas International Business Exchange (IBX) data centers. Infomart Dallas is home to 45 tenants, including global companies such as Bank of America and Verizon Wireless. The transaction includes developable land adjacent to the facility that will allow the new ownership to potentially increase the facility’s current capacity of 11MW of power to 40MW. The capital consideration will consist of $31 million in cash and $750 million in debt securities that will be paid out to ASB over a three-year period following closing, which is expected to occur in the second quarter. (The notes will be valued at roughly $769 million when adjusted to current trading value of Equinix’s outstanding bonds.) Washington, D.C.-based ASB, a division of ASB Capital Management LLC, originally …
DENTON, ARLINGTON AND FORT WORTH, TEXAS — FourPoint Student Housing Investments has brokered the sale of a portfolio of three student housing properties totaling 815 beds in Denton, Arlington and Fort Worth. The portfolio consists of the 432-bed Midtown Denton, the 218-bed Midtown Arlington and the 165-bed Edge 55. The properties, which total 241 units, serve University of North Texas, University of Texas at Arlington and Texas Christian University, respectively. The seller of the portfolio was not disclosed. A partnership between two California-based student housing investment firms, RedBridge Capital and Juniper Ridge Partners, purchased Midtown Arlington and Edge 55 and will implement renovation programs at both properties. The buyer of Midtown Denton was not disclosed.
IRVING, TEXAS — HFF has raised $40 million in capital for the development of Phase I of DFW Commerce Center, a 1 million-square-foot industrial project being built on land owned by Dallas-Fort Worth International Airport in Irving. The overall project will consist of four buildings totaling 2.8 million square feet upon completion. Phase I will deliver a cross-dock distribution and warehouse building with 40-foot clear heights, 184 dock doors and significant overflow parking. Joe Thornton, Adam Herrin and Stephen Bailey of HFF arranged the funds on behalf of the developer, Copeland Commercial LLC. Completion of Phase I is expected to occur within 11 to 12 months of the groundbreaking, which occurred in late January.
