IRVING, TEXAS — Lee & Associates has arranged a 64,134-square-foot industrial lease expansion in Irving. According to LoopNet Inc., the building at 3250 Story Road W was originally built in 1997 and totals 96,200 square feet. Nathan Denton of Lee & Associates represented the tenant, Reliant Air Conditioning, in the lease negotiations. Steve Trese and Wilson Brown of CBRE represented the Landlord, Prologis.
FORT WORTH, TEXAS — Discount retailer AW Outlet has purchased a 23,879-square-foot building located at 6680 W. Freeway in Fort Worth for its newest store. The building sits on a 1.7-acre parcel within a larger shopping center that is anchored by grocer Albertsons. Michelle Caplan and Matthew Rosenfeld of Weitzman represented the undisclosed seller in the transaction. Sarah Lamb of DB2RE represented AW Outlet.
SAN ANTONIO — Dallas-based developer Palladium USA has broken ground on a $75 million multifamily project in San Antonio. The development will be situated on an 18-acre site on the city’s south side and will feature 288 units in one-, two- and three-bedroom floor plans. Amenities will include a pool, fitness center, conference center, dog park, business center, children’s playroom and clubroom with a mini kitchen. Cross Architects designed the community, and Brownstone Group is the general contractor. Palladium has partnered with the San Antonio Housing Trust Public Facility Corp. (SAHTPFC), which issued $35 million in tax-exempt bonds to finance the project. PNC Bank provided $33 million in equity and more than $30 million in long-term debt. The Texas Department of Housing and Community Affairs provided $36 million of 4 percent Low-Income Housing Tax Credits. Preleasing is set to begin in winter 2025.
AUSTIN, TEXAS — Four Hands has signed a 570,489-square-foot industrial lease near Austin-Bergstrom International Airport on the city’s southeast side. The locally based distributor of high-end furniture will occupy the entirety of Airport Logistics Center Building 2, which is part of a larger 92-acre development. Ace Schlameus and Kyle McCulloch of JLL represented the landlord, Dallas-based Dalfen Industrial, in the lease negotiations. Chad Marsh of Endeavor Real Estate Group represented the tenant. The deal marks the largest industrial lease in Austin this year, according to the brokerage teams.
ADDISON, TEXAS — Bank of America has renewed its full-building, 553,779-square-foot office lease at Hallmark Center I in the northern Dallas metro of Addison. The lease term is 10 years. Rhett Miller and Matt Wieser of Stream Realty Partners represented the landlord, The RMR Group, in the lease negotiations. Andy Leatherman and Bret Hefton of JLL in Dallas represented Bank of America, which signed its original lease to be the building’s sole occupant in 2013. Bank of America has also preleased half the space at Parkside Uptown, a 500,000-square-foot office building in Dallas that is under construction.
DALLAS — A partnership between Pacific Elm Properties and Mintwood Real Estate is nearing completion of Peridot, a 291-unit apartment property located within the 1.3 million-square-foot Santander Tower mixed-use development in downtown Dallas. Peridot occupies 11 of Santander Tower’s 50 floors and offers one- and two-bedroom units ranging in size from 700 to 1,300 square feet. Residential amenities include a pool, dog park, fitness center, game lounge and a pickleball court. Santander Tower also houses a boutique hotel and Class A offices. Rents start at roughly $2,400 per month, according to Apartments.com.
GRAND PRAIRIE, TEXAS — Younger Partners has arranged the sale of a 32-acre multifamily development site in Grand Prairie, located roughly midway between Dallas and Fort Worth. The site is located at the northwest corner of Lake Ridge and Great Southwest parkways. John St. Clair and Davis Willoughby of Younger Partners represented the undisclosed seller in the transaction. The buyer was multifamily developer JPI.
By Emin Aboolian, senior vice president of underwriting, iBorrow It is not a shock to anyone in the industry to say that the commercial real estate market this year has been challenging and expected to experience further turbulence. The hoped-for interest rate cuts from the Federal Reserve have not yet happened. Price expectations from sellers have remained too optimistic due to the historic low interest rate environment that defined the capital markets for more than a decade. Investors with robust capital buckets continue to sit on the sidelines waiting for price corrections. The wall of impending maturities keeps getting closer — and seemingly larger. The “extend and pretend” approach from large lenders has pushed some maturities out but has not addressed the underlying debt-to-income ratios that these struggling commercial properties face. In summary, no matter what segment you are in — retail, office, industrial or multifamily — 2024 has been a tough year so far and is expected to carry into 2025 until sellers are forced to transact. So why do we think these clouds are going to clear generally, with the Texas market in particular pulling ahead in its recovery? Broadly speaking, the real estate sector is a victim …
HOUSTON — Edge Capital Markets has arranged the sale of Southwest Corporate Center, a 525,580-square-foot office and healthcare property in Houston. The 39-acre site at 9700-9702 Bissonnet St. is located on the city’s west side and includes 8.6 acres of undeveloped land for future expansion. Texas Children’s Pediatrics, the State of Texas and DIRECTV are the anchor tenants at the property, which was originally built in 1975 and renovated in 2020, according to LoopNet Inc. Micha van Marcke and Chace Henke of Edge Capital Markets represented the undisclosed seller in the transaction. The buyer and sales price were also not disclosed.
INEZ, TEXAS — Marcus & Millichap has brokered the sale of a portfolio of two self-storage facilities totaling 483 units in Inez, located in southeast Texas. Inez Storage and Beck Road Storage span a combined 11 acres and consist of 10 buildings that house 214 climate-controlled units, 258 drive-up non-climate spaces and 10 covered parking spaces. Dave Knobler and Mixson Staffel of Marcus & Millichap represented the seller, a private investor, in the transaction. The duo also procured the buyer, a California-based family trust. The sales price was not disclosed.