SAN ANTONIO — Milwaukee-based PACE Equity has provided $1.6 million in C-PACE (commercial property-assessed clean energy) financing for The Allen, a historic building located just north of downtown San Antonio. Originally built in 1928 and formerly housing a flowers and antiques shop, The Allen currently serves as the office headquarters of developer Headwall Investments and also offers traditional retail space. The redevelopment included energy-efficiency improvements, including HVAC and lighting system upgrades. The borrower was not disclosed.
PLANO, TEXAS — The Plano City Council has approved a development agreement to support the Texas Research Quarter (TRQ), a life sciences-focused innovation district. The first phase would involve redevelopment and new construction at the former Electronic Data Systems (EDS) headquarters, a 91-acre site that serves as the TRQ main campus. Plano is located approximately 20 miles north of Dallas. The development agreement provides reimbursement to incentivize investment and development within a newly created tax-increment reinvestment zone (TIRZ), which contains the TRQ properties and other parts of Plano’s Legacy neighborhood. Total project costs are estimated at $4 billion, according to the Dallas Business Journal. Future phases include additional redevelopment activity across the main campus, as well as the creation of an integrated multi-site district through development at adjacent and nearby properties. Dallas-based NexPoint, an alternative investment manager with a real estate arm, is spearheading the development. “The city council approval is just the first step in a comprehensive plan to develop the TRQ into a world-class hub for life sciences,” says Eric Danielson, managing director and head of real estate development at NexPoint. “We are committed to collaborating with the community to build a dynamic ecosystem that will drive innovation, …
By Taylor Williams HOUSTON — High occupancy rates paired with low volumes of new construction have been the prevailing narratives in many major U.S. retail markets over the past couple years, and Houston is no exception. And while that dynamic ensures healthy rent growth within stabilized properties, when paired with high construction costs and higher interest rates, the result can be growth that feels rather sluggish. According to second-quarter data from Colliers, the Houston retail market currently has a vacancy rate of 5.2 percent, a mark that has held steady for the past year. The market added about 1.1 million square feet of new product through the first six months of 2024 to go with roughly 732,000 square feet of positive absorption. The average asking rent stands at $20.38 per square foot, which represents a 3.8 percent increase relative to the second quarter of 2023. Rosy as these figures appear on the surface, they do not tell the full story of the market. Most owners cannot afford to simply sit back and let the deals come to them at rents they dictate. For although demand exceeds supply of quality space, the aforementioned macroeconomic factors are squeezing owners’ profit margins, meaning …
HOUSTON — A joint venture between Trammell Crow Co. (TCC) and Japanese developer Daiwa House has broken ground on Blue Ridge Commerce Center, a 1.3 million-square-foot industrial project in southwest Houston. The site spans 92 acres at the northwest corner of Fort Bend Parkway and McHard Road, and the development will consist of five buildings that will range in size from 153,928 to 431,017 square feet. Buildings will feature a mix of front-load, rear-load and cross-dock configurations and clear heights that range from 28 to 36 feet. Seeberger Architecture designed the project, and E.E. Reed Construction is serving as the general contractor. Sumitomo Mitsui Banking Corp. is financing the development, and CBRE has been tapped as the leasing agent. Linco Construction will undertake infrastructure improvements as part of the project, which will include new public roads, traffic signals, underground utilities, a regional storm water detention pond and public sidewalks. Completion is scheduled for summer 2025.
MESQUITE, TEXAS — Locally based developer Palladium USA has broken ground on a $79 million project in the eastern Dallas suburb of Mesquite. Palladium Carver Living will be situated on a 10-acre site and will consist of 288 apartments in one-, two- and three-bedroom layouts. A portion of the units will be set aside for individuals earning 60 percent of the area median income. Amenities will include a pool, fitness center, conference center, clubroom, dog park, computer lounge and a children’s playroom. M Arrive Architecture Group designed the property, and BBL Building Co. is the general contractor. Preleasing is slated to begin by the fourth quarter of 2025. The Mesquite Housing Finance Corp. issued $37 million in tax-exempt bond financing for the project, and Regions Bank provided more than $34 million in equity, as well as a $36 million permanent loan. Additionally, the Texas Department of Housing and Community Affairs issued $38 million in 4 percent Low-Income Housing Tax Credits.
SAN ANTONIO — Locally based developer The Lynd Group is nearing completion of Potranco Commons, a 360-unit mixed-income project in San Antonio’s Far West Side submarket. Residences come in one-, two- and three-bedroom formats, range in size from 541 to 1,355 square feet and are housed across 15 three-story buildings. Approximately 40 percent of the units are reserved for renters earning 80 percent or less of the area median income. Amenities include a clubhouse, pool, fitness center, outdoor grilling and dining stations, multiple open green spaces and a DJ booth. Lynd Group partnered with Santikos Enterprises and the San Antonio Housing Authority on the project. Move-ins began earlier this year, and the property is now 53 percent leased. Rents for market-rate units start at $1,181 per month. Construction began in summer 2022.
DALLAS — Lone Star PACE has provided $27 million in retoractive C-PACE financing for HALL Arts Hotel, a luxury hospitality property located in the Dallas Arts District. Designed by HKS Architects with interiors by Bentel & Bentel, the hotel rises 11 stories and houses 183 guestrooms and 19 suites, as well as an onsite restaurant and bar and meeting/event space. The borrower, locally based developer HALL Group, will use proceeds to recapitalize previously implemented sustainability measures at the hotel, including upgrades to the building’s envelope, electrical, plumbing and HVAC systems.
PLANO, TEXAS — Aimbridge Hospitality has extended its 248,861-square-foot office lease in Plano. The third-party hotel management firm will remain the sole occupant of HQ53, a four-story building that was developed by locally based firm Cawley Partners, for the next five years. Drawbridge Realty is the current owner of HQ53, having purchased the property from Cawley Partners in mid-2022. No third-party brokers were involved in the lease negotiations. Aimbridge first committed to being the anchor tenant at HQ53 in March 2019 via a 75,000-square-foot lease that was subsequently expanded upon.
ALLEN, TEXAS — A partnership between Dallas-based Pillar Commercial and Oklahoma City-based Hall Capital will develop One Bethany North, a 225,000-square-foot office project in the northeastern Dallas suburb of Allen. The Allen Economic Development Corp. owns, which is situated within the Watters Creek business district. The building will rise nine stories and feature a fitness center, tenant lounge and conference facilities, as well as a courtyard with pickleball courts, putting greens and other activated green spaces. The partnership purchased the sister buildings, One Bethany East and One Bethany West, which total about 320,000 square feet combined, over the past several years. Construction of One Bethany North, which has a total price tag of more than $100 million, is expected to last 18 to 24 months.
HOUSTON — MS Warehousing has preleased 212,280 square feet of industrial space in northeast Houston. The local freight management firm will be the lead tenant at First Liberty Logistics Center, a 424,560-square-foot building that is being developed on a speculative basis by Chicago-based First Industrial Realty Trust. The site spans 26.6 acres, and the building will feature 40-foot clear heights. Grant Hortenstine of CBRE and Bob Berry of Savills represented MS Warehousing in the lease negotiations. David Munson and Garrett Thomas of Cushman & Wakefield represented the landlord. OneFourTwo Design Group is the project architect, and ARCO Design/Build is the general contractor. Completion is slated for fall 2025.