LEVELLAND, TEXAS — The City of Levelland has broken ground for the construction of a new $8.6 million industrial rail park. The 300-acre development will include 18 lots ranging in size from 2 to 20 acres. All lots will have direct access to the rail line. Four tenants have already expressed interest in the park, including Project Gorilla, Independent Electric, Eco Blue and Tex-Rail Commodities. Completion is scheduled for 2010. The project is being funded by $3.3 million in federal stimulus funds, $1.5 million from the Levelland Economic Development Corp. and $3.8 million in local bonds.
The abundance of completed units delivered to the market has had the biggest effect on the Dallas/Fort Worth multifamily sector. From September 2008 to September 2009, almost 15,000 units were completed in the Metroplex — nearly double the 7,600-unit annual average during the previous 5 years. Occupancy in the Dallas area dropped 0.2 percent to 89.8 percent during the third quarter of 2009, its lowest point since early 2005. However, occupancy for newer product held steady, while occupancy in older product tiers has suffered. The 1990s-era properties were the only product age category to achieve occupancy of more than 90 percent in the quarter, posting 92.4 percent occupancy. During the third quarter, 2000s-era product posted an 89.4 percent occupancy rate, and 1980s-era product posted an 89.8 percent occupancy rate. MPF Research forecasts that occupancy will drop 170 basis points to 88.1 percent in the next 12 months, given the huge stock of new deliveries expected to hit the market. New construction deliveries will also cause rents to drop further while rent concessions are expected to increase. One planned construction project is the redevelopment of the historic Continental Building downtown. The Dallas City Council approved $17 million in tax increment financing …
HOUSTON — A joint venture that includes Behringer Harvard has acquired The Eclipse, a luxury multifamily community located in Houston's Energy Corridor. The property contains 330 units and is located at 1725 Crescent Plaza. Community amenities include a club room, a swimming pool, a business center, a fitness center, a theater and a game room. The joint venture that purchased the property consists of one of Behringer Harvard's investment vehicles, Behringer Harvard Multifamily REIT I, and PGGM Private Real Estate Fund, which is an investment fund for large Dutch pension funds. As part of the transaction, the joint venture paid off the asset's construction loan and took full control over its ownership.
DALLAS — Dallas-based Ashford Hospitality Trust has procured $145 million in non-recourse financing for the refinancing of five of its hotel properties. The portfolio totals 1,460 rooms and includes four Hilton hotels in California, Virginia, Florida and Oregon, and a Hilton hotel located in California. The financing package carries a 6-year term and includes a first mortgage provided by Prudential and a mezzanine loan provided by Wheelock Street. The loan was arranged by Hodges Ward Elliott. Proceeds will be used to retire a $75 million loan maturing next year and a $65.2 million loan maturing in 2011. The loan also provides $4 million for capital improvements to be completed over the next 2 years. Two Hilton-branded hotels located in New York and Michigan that were formerly included in the portfolio are now unencumbered.
SAN ANTONIO — Marcus & Millichap has brokered the sale of Broadstone Ranch, a 252-unit multifamily community located in San Antonio. Situated on 13.63 acres at 5803 UTSA Blvd., the property serves as an off-campus housing option for the nearby University of Texas – San Antonio. Broadstone Ranch consists of 132 one-bedroom units, 84 two-bedroom units and 36 three-bedroom units. Amenities include a resort-style swimming pool. Will Bathrop of Marcus & Millichap's Dallas office and Ryan Epstein of the firm's San Antonio office represented the seller, San Francisco-based McMorgan & Co. The buyer was Brass Real Estate Funds and the acquisition price was not disclosed.
BURLESON, TEXAS — Encore Multi-Family, a division of Encore Enterprises, has commenced development of Encore at Alsbury, a new transit-oriented multifamily project located in the Fort Worth suburb of Burleson. The 12.25-acre property will feature 200 units. Also to be constructed is a 6,183-square-foot clubhouse that will feature a pool, a fitness center, a business center, a coffee bar and a game room. The project is being built within Burleson's new transit-oriented development district, which will link the city to Fort Worth through a commuter rail line. Groundbreaking is expected to occur in January, with completion scheduled for the first quarter of 2011. The project architect is Dallas-based JHP Architecture.
OWASSO, OKLA. — Stan Johnson Co. has completed the sale of a 14,820-square-foot, freestanding retail building located in Owasso. The building is situated at 11605 N. 135th East Ave. and was built this year. Walgreens has a 25-year lease to occupy the property. Brad Pepin of Stan Johnson Co. and Allen Klippel of CB Richard Ellis represented the buyer, an individual investor participating in a 1031 exchange. Ken Hedrick and Jerry Hopkins, also of Stan Johnson Co., represented the seller, a merchant Walgreens developer.
DALLAS — West Dixon Holdings has purchased a 21,000-square-foot flex office/warehouse property located in Dallas from B.J. Elkins. The building is situated on 1.05 acres at 2425 Arbuckle Court and contains three loading docks. Dan Spike of Dallas-based Henry S. Miller Brokerage represented the buyer. Nathan Denton and Hanes Chatham of Lee & Associates Dallas/Fort Worth office represented the seller. The acquisition price was not disclosed.
HOUSTON — Cadence McShane Construction Co. has completed two new industrial buildings at ClayPoint Distribution Park in Houston. Building 2 is a 98,324-square-foot facility and Building 3 is a 200,850-square-foot facility. Both buildings include numerous sustainable features, including the recycling and re-use of existing on-site asphalt during the build, a reflective roof, double-glazed windows and irrigation-free landscaping. As part of the project, Cadence McShane also completed sitework, utility and roadway improvements within the industrial park. The project architect was Seeberger + Associates. The developer of ClayPoint Distribution Park is Weingarten Realty Investors.
AUSTIN, TEXAS — RLA Real Estate has brought on a new partner in its ownership of a two-building, 80,476-square-foot industrial complex located in Austin. RLA was previously the sole owner of the property but decided to bring on an equity partner to help facilitate the refinancing of the property's mortgage. Asset Management Consultants (AMC) provided $2 million in equity to help procure a new loan and will retain an ownership stake. RLA and AMC formed a new joint venture ownership group named AIP Todd Lane LLC. An affiliate of AMC will serve as the managing member and RLA will continue day-to-day operation of the property. The industrial complex is located at 4109-4111 Todd Lane and was 92 percent occupied at the time of closing.