A report t on the Houston retail real estate market reads somewhat like a 1960s newspaper headline: Low vacancy rates! Rising rent for retailers! Bidding wars and a soaring housing market! Together, these factors make the greater Houston area one of the most dynamic retail markets in North America. A Landlord’s Market Conditions clearly favor the landlords. Quality space that was renting in the low $20s per square foot during the downturn now commands rents in the $30s and in some cases the low $40s. Fierce competition for quality space is particularly intense within the range of 1,500 to 3,500 square feet. This has been forcing brokers and Realtors to get creative in discovering and closing on any available quality space for their tenants. Some are pressing landlords about space that’s set to roll over or asking which tenants may be willing to relocate. Rents are increasing largely because of high retail occupancy, which edged up from 93.3 percent to 93.5 in the Houston MSA during second quarter 2013, according to CoStar. At mid-year, net retail space absorption stood at a healthy 980,185 square feet. Yet, despite these positive signs, the Houston area’s older Class B and Class C retail …
Texas
DALLAS — Colliers International has brokered the sale of Oakbrook Plaza, a 176,872-square-foot office complex in the Southwestern Medical District of Dallas. The property, located at 1515-1575 W. Mockingbird Lane, includes a central seven-story tower surrounded by six single-story buildings. Creighton Stark and Ben Lurie of Colliers represented the seller in the transaction.
HOUSTON — Marcus & Millichap has brokered the sale of a 70,474-square-foot office property in Houston. The multi-tenant building, located at 8300 FM 1960 West, stands four stories and was fully leased at the time of the sale. Constructed in 1986, the site allows for easy access to Highway 290, Beltway 8 and Tomball Parkway. Ron Hebert and Christopher Jones of Marcus & Millichap marketed the asset on behalf of the seller, a real estate investment trust. The two also secured the buyer, a limited liability company, after fielding offers from nine different prospects.
CYPRESS, TEXAS — Private equity firm Virtus Real Estate Capital has acquired a 61,250-square-foot self storage facility in the Houston suburb of Cypress. Operated by AAA Storage since its construction in 2008, the building underwent expansion in 2012 that doubled the number of units to 417. New ownership has hired Uncle Bob’s Management to assume operations of the Class A property, which is located at 15814 Mueschke Road. The purchase represents the second self storage acquisition in Houston and the fifth in Texas for Virtus, which is based in Austin.
HOUSTON — Piedmont Office Realty Trust will develop a new 302,000-square-foot office tower in its Enclave business park in Houston’s Energy Corridor. The firm plans to break ground in March 2014 on the 11-story, Class A structure, which will be located on a 4.7-acre parcel immediately north of the 1430 Enclave Parkway building. Enclave Place will be divided into 28,900-square-foot floor plates and also include a six-level parking garage. Gensler is the project architect, PMRG is serving as project manager, and Tellepsen Builders will work as general contractor. Piedmont expects to complete the tower in the second quarter of 2015.
DALLAS, HOUSTON AND SAN ANTONIO — CBRE Capital Markets has arranged a $52.2 million refinancing loan for a portfolio of nine industrial properties in Dallas, Houston, San Antonio and Atlanta. The assets comprise 20 multi-tenant buildings totaling nearly 2 million square feet, including 19 buildings and 1.5 million square feet in Texas. The Texas properties are located in the Northwest Dallas, South Stemmons (Dallas), Northwest Houston and North Central San Antonio submarkets. The portfolio was 90 percent leased to a total of 62 tenants at the time of the sale. The five-year, floating-rate loan includes interest-only payments for the entire term. CBRE arranged the loan through J.P. Morgan on behalf of a joint venture between Sealy & Co. and AEW Capital Management.
FORT WORTH, TEXAS — Marcus & Millichap has brokered the sale of McKinney Park, a 250-unit multifamily community in Denton, a northern suburb of the Dallas/Fort Worth Metroplex. Constructed in 1999, the property is located at 191 Duchess Drive, in close proximity to Loop 288 and Interstate 35. The complex offers one-, two- and three-bedroom units, which were approximately 90 percent occupied at the time of the sale. Al Silva of Marcus & Millichap, in conjunction with the firm’s Seattle-based Tax Credit Group, represented the seller, a national owner based in Washington state. Silva also secured the buyer, a local partnership that plans renovations for the complex.
SAN ANTONIO — Developer Carter has broken ground on Tetro Student Village, a 198-unit, 590-bed student housing complex serving the University of Texas at San Antonio. The Atlanta-based firm is using a 14-foot food truck known as the Tetro Truck as a “mobile leasing center,” as it will visit nearby festivals, parks, sporting events, restaurants and bars to promote the new community. Cardinal Group Management is currently leasing units for the 2014-2015 academic year and will manage the property upon opening. Units will range from one to four bedrooms, and amenities will include a coffee shop, sports bar, fitness center, media room, swimming pool and tanning room.
SAN MARCOS, TEXAS — World Class Capital Group LLC has acquired State Flats, a 162-unit student housing community near the campus of Texas State University in San Marcos. The property, located at 1640 Aquarena Springs Drive with frontage on Interstate 35, offers one- and two-bedroom apartments in townhome and single-floor configurations. Amenities include two swimming pools, a fitness center and a sand volleyball court. World Class Capital, based in Austin, operates a commercial portfolio in 12 states.
HOUSTON — Jones Lang LaSalle (JLL) has brokered the sale of Northwest Crossing Centre, a 179,469-square-foot shopping center in Houston. Best Buy, Marshalls, Big Lots and Shoe Carnival anchor the center, which was fully occupied at the time of the sale. The property is located at the intersection of U.S. Highway 290 and Hollister Road, shadow anchored by Target and in proximity to Houston’s CBD and Galleria submarkets. George Cushing and Wendy Vandeventer of JLL marketed the property on behalf of the seller, Weingarten Realty. Jimmy Board of JLL secured 10-year, fixed-rate financing for the buyer, USA Properties.