Looking back five years ago to the outset of 2009, new construction was the hot topic in the San Antonio office market. In 2008, 12 new office buildings were completed, adding approximately 1.5 million square feet to the market. That equated to a 6 percent increase in existing office inventory, with the new product concentrated in the key Northwest and North Central office submarkets.Of course, new development slowed considerably as the recession set in and wore on. Fast-forward to 2013, and as of press time the San Antonio office market only added 166,630 square feet of new product. The good news, though, is that San Antonio metro employment suffered much shorter and shallower losses than other metro areas as a result of the Great Recession. What’s more, the recovery from these losses has been sharp, with nearly 58,000 jobs added since local employment hit its lowest point in 2009, or approximately three new jobs for every one lost in the local downturn.One-third of these new jobs (or about 19,000) were created in office-using sectors such as finance, insurance and engineering. As a result, the office market is recovering, led by Class A space. The rapid decline in Class A vacancy …
Texas
THE WOODLANDS, TEXAS — The Howard Hughes Corporation and its subsidiary The Woodlands Development Company will break ground this quarter on a new 303-room full-service luxury hotel in The Woodlands. Located on Waterway Square, a one-acre plaza with water feature, the as-of-yet unnamed project will overlook the Woodlands Waterway district, which connects The Cynthia Woods Mitchell Pavilion and The Woodlands Mall. The hotel will feature a fine dining restaurant, pool deck with connected bar and 24,000 square feet of meeting space. Completion of the property is slated for mid-2015.
MESQUITE, TEXAS — Marcus & Millichap has brokered the sale of Meadowcreek Shopping Center, a 22,812-square-foot retail property in the Dallas suburb of Mesquite. Constructed in 1986 on 2.82 acres at 1515 E. Kearney St., the center was 73 percent occupied at the time of the sale, with 65 percent of the leasable area under triple-net leases. Tenants include Convenient Food Mart, Curves, Centerstage Dance, Ebenezer Home Health and L. Karen Wilde DDS. Philip Levy of Marcus & Millichap marketed the property on behalf of the seller, a private investor. Lisa Estrada, also of Marcus & Millichap, secured and represented the buyer, another private investor.
HOUSTON — NAI Houston has arranged a 38,070-square-foot warehouse lease in southwest Houston for Tool Mart Inc., a distributor of mechanical, plumbing and electrical tools for contractors. The facility, located at 13721 S. Gessner Road, is within the Beltway Crossing Business Park. John Ferruzzo and Chris Kugle of NAI Houston represented the tenant in the negotiations. Justin Robinson of Stream Realty represented the undisclosed landlord.
HOUSTON — Full-service commercial real estate company Levey Group has leased 18,300 square feet of warehouse space in Houston to RIEX Co. LP, a manufacturer of fasteners, sealing products and construction supplies. Located at 8850 N. Sam Houston Parkway West, the facility is part of the Sam Houston Business Park, which includes three tiltwall facilities. Joseph Smith of CBRE represented the Levey Group in the negotiations, while Nick Peterson of NAI Houston represented tenant.
DALLAS — Investment firm Karlin Real Estate has provided a $7.2 million loan to DFW Economy Industrial LLC for the refinancing of a three-property industrial portfolio in the Dallas/Fort Worth Metroplex. The assets total 268,000 square feet and include two buildings in Arlington and one in Mesquite. The properties, all of which include incubator and office space, were collectively 88 percent leased at the time of the closing. DFW Economy Industrial purchased the portfolio in 2006. Karlin Real Estate, an affiliate of private investment firm Karlin Asset Management, is based in Los Angeles.
CARROLLTON, TEXAS — CBRE has brokered the sale of Hebron Heights Market, a 10,000-square-foot shopping center in the Dallas suburb of Carrollton. Located at 1008 W. Hebron Parkway, the unanchored property was fully leased at the time of the sale to tenants including Dunkin Donuts/Baskin Robins, Bahama Bucks, Wing Town, Chiro One Wellness Center and Quiznos. Jennifer Pierson and Beth Pierson of CBRE represented the seller, an affiliate of the Tabani Group. Jet Set Commercial purchased the asset.
THE WOODLANDS, TEXAS — The J. Beard Real Estate Company LP has arranged a 10,000-square-foot lease for Conversio Health LLC at Research Forest Lakeside in The Woodlands. The tenant, a service provider for patients with chronic conditions, will occupy part of Building 4 in the larger 10-building mixed-use complex, located on 77 acres overlooking Lake Woodlands and in close proximity to The Woodlands Mall and Interstate 45.Lindsey McKean of J. Beard represented Conversio in the negotiations. James Warmack of Warmack Investments represented the Research Forest Lakeside.
SPRING, TEXAS — Newcor Commercial Real Estate has arranged a 8,700-square-foot office lease for James Construction Group in the Houston suburb of Spring. The single-tenant property is located on 1.35 acres at 21755 Interstate 45 North, in close proximity to the interchange of I-45 and Grand Parkway, as well as the new Exxon Mobil campus. Rob Banzhaf of Newcor represented the landlord, Jefferson Bank Trust, and also negotiated a lease termination on behalf of the existing tenant, Terminix. Joe Gallini of the Gallini Group represented the James Construction Group.
DESOTO, TEXAS — Colliers International has brokered the sale of Pecan Crossing, a 236-unit multifamily complex in the Dallas suburb of Desoto. Located at 1225 E. Pleasant Run Road and in close proximity to I-35, the property offers one- to three-bedroom apartments plus tennis courts and two swimming pools. Bob Helterbran, Mark Freeman, Teresa Lowery and Jeff Sherman of Colliers represented the seller, Pecan Crossing Apartments LLC, in the transaction. A Japanese private investor purchased the asset and is planning minor renovations in the coming year.