Currently, the Houston multifamily market is in the best shape that we’ve seen in a long time. For example, rents are increasing across the board, particularly in Class A properties. In addition, occupancy is at its highest point in years. We’re still trying to backfill supply into a market that has seen historically low deliveries over the last three years, and Houston is creating serious demand for new units. We use the rule of thumb that for every six or seven new jobs created, there is demand for one new apartment. Thus, Houston has added more than 90,000 jobs in the last 12 months, which tells us that we need to add 12-15,000 units annually just to keep up with current demand. So, all in all, Houston’s multifamily market is healthy right now. There are a variety of trends impacting the multifamily market in Houston. For example, tightening occupancy and low supply are driving concessions out of both urban and suburban markets. We will see increased supply in the next 18 months, but we will be lucky to build enough product to meet demand during that time. Development capital is available for quality infill sites, but investors are still being …
HOUSTON — Construction is under way on The Sovereign, a 21-story, 290-unit multifamily development located on the old Allen House Apartments site off Allen Parkway in Houston. The development is the first phase of Regent Square, a mixed-use development. Ziegler Cooper Architects designed The Sovereign to achieve LEED Silver certification with an efficient HVAC system, pedestrian-oriented street design, bicycle parking, usage of condenser water for irrigation, green and reflective roofs, low-energy glass, electric car charging stations, trash chutes and a cardboard bundler. Amenities will include a clubhouse, fitness center, yoga room, demonstration kitchen, private dining rooms, screening room, game lounge, bar/sports lounge, resident herb and vegetable garden, Zen garden, pet spa, massage room, library, cyber lounge and a business center. The development will be reimbursed for improvements to the public infrastructure through a development agreement from the City of Houston and Tax Increment Zone 5. The Sovereign is slated for a March 2014 completion.
GRAND PRAIRIE — Colliers International North Texas has brokered the sale of the six-story, 98,928-square-foot National Health Building, located at 1901 N. State Highway 360 in Grand Prairie. Tenants of the property include the National Transportation Security Administration, National Health Corp. and FYI Television. Creighton Stark and Ben Lurie of Colliers International represented the seller, AIC Ventures, in the transaction. The buyer was Capital Commercial Investments.
DALLAS — Stream Realty has arranged the sale of a 69,000-square-foot warehouse, located at 8939 Premier Row in the Brook Hollow submarket of Dallas. Jason Moser of Stream represented the buyer, Shiva Exports, in the transaction.
HARRAH, SHAWNEE AND OKLAHOMA CITY, OKLA. — Boston Capital has invested in the construction of three affordable housing developments in Oklahoma. The properties include the 29-unit Cedar Hollow in Harrah, the 32-unit Cottage Park-Shawnee in Shawnee and the 44-unit Cross Creek Landing in Oklahoma City. The developments will be built with tax credit equity from the Low Income Housing Tax Credit program. Oklahoma City-based The Carland Group partnered with Boston Capital on the construction investment, which is expected to generate $10.2 million in local income and create approximately 155 jobs.
AUSTIN — Saladworks is opening its first restaurant in Texas at Northcross Mall on Burnet Road and West Anderson Lane in Austin. The 2,200-square-foot location is owned and operated by Clinton Wilkinson, a native of Austin. Saladworks signed its lease with the Northcross Mall owner, Northcross Property LLC.
ARLINGTON AND PLANO — Carter Validus Mission Critical REIT has acquired a two-property portfolio of fully leased data centers, located in Arlington and Plano, for $45.9 million. The portfolio includes the Atos Data Center in Arlington and the InterNAP Data Center in Plano. The Dallas/Fort Worth area is currently the sixth largest data center market in the U.S., according to the Office of Economic Development.
HOUSTON — Oak Brook, Ill.-based Inland Real Estate Acquisitions has purchased the 256,815-square-foot, two-building FedEx Center, a distribution facility located at William P. Hobby Airport in Houston, for $39.3 million. FedEx Corp. is the guarantor for both facilities, which are leased for more than 10 years to FedEx Freight and FedEx Ground.
HOUSTON — Los Angeles-based Canyon-Johnson Urban Funds has partnered with Houston-based Midway to acquire Houston Pavilions, a Class A, mixed-use project spanning three blocks and 556,000 square feet on the eastern side of downtown Houston. The buildings making up Houston Pavilions are connected throughout via sky bridges and above-ground walkways. The development includes the fully leased, 11-story regional headquarters for NRG Energy, as well as House of Blues, Forever XXI, McCormick & Schmick's and Lucky Strike. Canyon-Johnson and Midway plan to invest additional funds to revitalize the property and accelerate leasing. Ken Page, Scott Myers and Micha Van Marcke of Transwestern's Houston office represented the seller in the transaction. Transwestern was appointed as receiver for Houston Pavilions late last year after the original developer, Houston Pavilions LP, defaulted on its loan.
WEATHERFORD — Roseville, Calif.-based TRI Commercial/CORFAC has arranged the $3 million sale of a 4,098-square-foot IHOP restaurant, located at 2005 S. Main St. in Weatherford. Dine Equity Inc., owner of IHOP, guarantees the lease with 15 years remaining. Bob King of TRI Commercial/CORFAC represented the seller, WB Equities, in the transaction. The buyer was Nevada-based Floken