Texas

Fortunes of Houston’s Industrial, Office Sectors Diverge in Wake of Hurricane Harvey

by Taylor Williams September 8, 2017

As the flooding in Houston from Hurricane Harvey begins to recede and more properties become accessible, commercial real estate firms are beginning the long, tedious process of figuring out the full magnitude of the destruction. It will likely be months before the full extent of the property damage throughout Houston is known. But the fortunes of certain classes of commercial real estate are already coming into focus. Metro Houston’s industrial market, which according to CoStar Group has experienced positive net absorption for 10 consecutive quarters, appears to be an immediate beneficiary of the storm. With recovery and restoration projects now fully underway across the metro area, demand for construction materials — wood, sheet rock, concrete — is set to rise. These products will need to be stored in warehouses and distributed throughout the metro area. This influx will likely put a dent in industrial vacancy, which rose from 5.3 percent to 5.6 percent between the first and second quarters. Rents for warehouse assets, which declined by 1 percent during the second quarter, should also rebound from the recovery effort. “On the industrial side, our people have seen a spiked level of demand that will result in more absorption,” says Tim …

September 8, 2017

Industrial Market Reports Self-Storage Texas Texas Market Reports

Texas Flirts With Oversupply of Self-Storage

by Taylor Williams September 8, 2017

Speaking to a panel of real estate professionals in the 1980s on the dangers of overbuilding during a period of economic expansion, Dallas real estate magnate Trammell Crow offered lenders in the crowd a simple proposition: “If you stop lending, I’ll stop developing.” Thirty-one years later, the nature of that relationship has manifested in the Texas self-storage market. After minimal delivery of self-storage properties in 2012 and 2013, development began to surge in 2014. The Texas Self Storage Association (TSSA) estimates that there are now roughly 6,500 facilities statewide, and local sources concur that unit growth from 2014 to the present has been somewhere in the neighborhood of 350 new facilities per year. This development boom has occurred in the face of rising land prices, high property taxes and a constricting pool of skilled labor that has driven up construction costs. Overall economic growth is contributing to the concern as well. Lenders are still lending, thus developers are still developing, betting that the pent-up demand for self-storage properties in Texas still has some gas left in the tank. The bullish perspective on self-storage appears to go beyond the Lone Star State. Tennessee-based hotel data and research firm STR, which has …

September 8, 2017

Healthcare Texas

Perardi Development to Build 42,000 SF Medical Office Asset in Metro Austin

by Taylor Williams September 7, 2017

BEE CAVE, TEXAS — Perardi Development will build Medical Towers at Bee Cave II, a 42,000-square-foot medical office property located at the corner of RM 620 and State Highway 71 in the Austin metro of Bee Cave. Scheduled to break ground later this month, the project follows the completion and pre-leasing of the 23,000-square-foot Medical Towers at Bee Cave. This second phase of the project could be completed as early as mid-December 2018.

September 7, 2017

Multifamily Texas

180 Multifamily Capital Acquires 77-Unit Apartment Complex in Arlington

by Taylor Williams September 7, 2017

ARLINGTON, TEXAS — 180 Multifamily Capital has acquired Key Largo Apartments, a 77-unit multifamily asset located at 407 Cora St. in Arlington. The property, which offers a pool and clubhouse, was built in the 1980s and will undergo complete renovations to both its interior and exterior. 180 Multifamily will rebrand the property, its fifth in Arlington’s entertainment district, as Las Palmitas.

September 7, 2017

Hospitality Texas

Civitas Capital, Atlantic Hotels Purchase 93-Room Hotel in Waco

by Taylor Williams September 7, 2017

WACO, TEXAS — A partnership between Civitas Capital Group and Atlantic Hotels Group has purchased the 93-room TownePlace Suites in Waco. The hotel is located within Legends Crossing, a 150-acre, mixed-use development near the downtown area and Baylor University. Amenities include a pool, fitness center and business center. The transaction marks the partnership’s second acquisition of a Waco hotel in the last two months.

September 7, 2017

Hospitality Texas

Marcus & Millichap Arranges Sale of 54-Room Hotel in College Station

by Taylor Williams September 7, 2017

COLLEGE STATION, TEXAS — Marcus & Millichap has arranged the sale of Comfort Suites Texas Avenue College Station, a three-story, 54-room hotel located at 2313 Texas Ave. South in College Station. Steve Swenholt, Allan Miller and Chris Gomes of Marcus & Millichap represented the seller and procured the buyer, both of which are private investors.

September 7, 2017

Office Texas

NAI Robert Lynn Negotiates 19,100 SF Office Lease in Richardson

by Taylor Williams September 7, 2017

RICHARDSON, TEXAS — NAI Robert Lynn has negotiated a 19,100-square-foot office lease at 1101 E. Arapaho Road in Richardson. Kent Smith of NAI Robert Lynn represented the tenant. L&S Mechanical, a Texas-based utilities service firm. The landlord, Sooner Management, was represented internally by Mark Jordan and Scot Florsheim.

September 7, 2017

Office Texas Top Stories

Intercontinental Real Estate Purchases Office Tower in Austin’s CBD for $119M

by John Nelson September 7, 2017

AUSTIN, TEXAS — Intercontinental Real Estate Corp., a Boston-based real estate investment and development firm, has purchased 5th + Colorado, a newly built, 18-story office tower in Austin’s central business district. The company acquired the property from the developer, a joint venture between Lincoln Property Co. and Goldman Sachs, for $119 million, according to the Austin Business Journal. Located at the corner of 5th and Colorado streets within Austin’s Warehouse District, the 179,000-square-foot office tower comprises eight levels of structured parking, nine floors of Class A office space and a lobby level with 5,822 square feet of retail space. Built in 2016, 5th + Colorado is home to companies including Indeed.com, an online job search forum; Industrious, a co-working office concept; SoftServe Inc., a Ukranian software firm; Plains Capital Bank; and Sherri Hill, an Austin-based fashion brand relocating from 9011 Tuscany Way, according to the Journal. Amenities at the office tower include on-site management and security and a fitness center with showers and locker rooms. Located at 201 W. 5th St., the office building is within walking distance of Lady Bird Lake Hike and Bike Trail, the State Capitol, Austin City Hall, the Austin Convention Center and Republic Square Park. …

September 7, 2017

Loans Multifamily Texas

NorthMarq Arranges $13.4M Acquisition Loan for Apartment Complex in Fort Worth

by Taylor Williams September 6, 2017

FORT WORTH, TEXAS — NorthMarq Capital has arranged a $13.4 million acquisition loan for Valencia Apartment Homes, a 263-unit multifamily asset located at 7301 Ederville Road in Fort Worth. The community offers a pool, laundry facility and resident clubhouse. Suzanne Jones of NorthMarq arranged the 12-year Fannie Mae loan, which features four years of interest-only payments and a 30-year amortization schedule, on behalf of the borrower, Nicholas Residential.

September 6, 2017

Multifamily Texas

HGI Sells Five Apartment Properties Totaling 1,192 Units in Dallas

by Taylor Williams September 6, 2017

DALLAS — Affiliates of Virginia-based investment firm Harbor Group International LLC (HGI) have sold five multifamily properties totaling 1,192 units in Dallas. HGI acquired the assets in 2014 as part of a 12-property, 3,100-unit portfolio. Ten of the properties are located in the Dallas area and two in Houston. With this transaction, HGI has now sold all 10 Dallas properties to three different buyers for approximately $295 million.

September 6, 2017

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