While the San Antonio office market has not been as directly impacted by the national economic slowdown as other markets, it is being impacted by excess deliveries and slower absorption overall. This has led to slightly lower effective rents and a rise in vacancy rates. Previously stable markets, in general, are holding level occupancies; however, there are several pockets where the vacancy rate exceeds 20 to 30 percent. This is primarily a result of newly constructed space that is not being absorbed, rather than tenants moving out of existing office space. Many would anticipate a larger reduction in rents with the current vacancy levels, but rents have not declined to the extent one would expect in a down market, as newer buildings continue to market their space at higher rents and existing stable building owners have declined to reduce rates to any significant degree. Two transactions in particular have impacted the San Antonio market in a very positive fashion. The sale of the 150,000-square-foot 300 Concord Plaza, Tesoro’s old headquarters, to Whataburger, which is relocating its home office to San Antonio from Corpus Christi, is worth noting. This transaction subdued concerns of the impact this vacancy would have had on …
COLLEGE STATION, TEXAS — Collegiate Development Construction Services I, LLC, will build Texas A&M University’s new 250-unit student housing project in College Station. TAMU University Apartments, which is being designed to meet LEED Homes Silver standards, will be located on approximately 6.5 acres at University Drive and College Avenue. The six-building community will span 239,795 square feet and will include 293 on-site parking spaces. Amenities at TAMU University Apartments will include a commons area with picnic tables and barbeque grills, bicycle racks and a separate common laundry building. Completion is scheduled for July 2010.
SUGAR LAND, TEXAS — Tradition Senior Living, LP, has plans to develop a full-service retirement community in Sugar Land called The Tradition-Sugar Land. The resort-style project, which will be the first Continuum Care Retirement Community (CCRC) in southwest Houston and eastern Fort Bend County, will feature accommodations for both independent and assisted-living residents. Located off Highway 6 between U.S. Highway 59 and Texas Highway 90A, the gated community will be situated within Lake Pointe Town Center, a mixed-use development in First Colony. Planned Community Developers, Ltd., is the developer of First Colony, which is a 9,700-acre master-planned community in Sugar Land. Amenities at The Tradition-Sugar Land include a fitness facility with an indoor pool, limited-access garage parking, and a wireless emergency response system. Opening is planned for mid-2011.
CORPUS CHRISTI, TEXAS — Trademark Property has signed 11 new tenants to its retail and restaurant roster at La Palmera mall in Corpus Christi. P.F. Chang’s China Bistro, Grimaldi’s Coal Brick-Oven Pizzeria and Charming Charlie will open in spring 2010; VANS, Verizon Wireless, MTV Nails, Sarku Japan, Subway, Coffee Beanery, H.J. Smoothies & Creamery, and Pretzel Maker will open this fall. The mall is currently undergoing a $50 million renovation.
DALLAS — Jackson, Miss.-based EastGroup Properties has acquired a three-property distribution center portfolio located in Dallas. The properties total 227,000 square feet and are situated in the city’s Northwest submarket along Stemmons Freeway. They were constructed between 1979 and 1981, and currently have an occupancy of 87 percent by six tenants. EastGroup plans to rename them Interstate Distribution Center V, VI an VII. The seller and the acquisition price were undisclosed.
SAN ANTONIO — Marcus & Millichap has brokered the sale of the eighth floor of the Falcon Building, an office tower located at 425 Soledad St. in downtown San Antonio. Greg Gaynor of the firm’s Austin, Texas, office represented the seller, a private investor. The buyer and the acquisition price were not released.
TULSA, OKLA. — Alliant Capital has completed the $4.8 million refinancing of Executive Series, a 133-unit multifamily community located in Tulsa. The loan includes a 10-year term and a 30-year amortization schedule. Yuri Kletsman of Alliant arranged the loan on behalf of the borrower, Executive Series LLC. The lender was not disclosed.
CONROE, TEXAS — Mercan City Place Development, a division of D’Agostino Cos., has completed construction for a new 60,000-square-foot medical office building on behalf of Sadler Clinic. The project is located on a 54-acre medical campus at the intersection of Interstate 45 and League Line Road in Conroe. It consists of an urgent care center, support services and additional physician space. It is the 10th Sadler Clinic location in Montgomery County. D’Agostino and Sadler are currently finalizing plans for the construction of a second medical facility on the site. Jeff Beard of The J. Beard Real Estate Company represented both parties in the build-to-suit transaction.
DALLAS — Dallas-based Westmount Realty Capital has sold approximately 6.9 acres of land located at the Westmount Health Campus in Dallas for the expansion of the adjacent Forest Park Medical Center. Completed in March, the first phase of Forest Park Medical Center consists of a 66,000-square-foot specialty hospital. The buyer, Forest Park Realty Partners III, has the option to purchase an additional 3.8 acres for even further expansions. Sherwood Blount of Parkway Realtors represented Westmount Realty Capital Newt Walker of Newt Walker Co. represented Forest Park Realty Partners III. Westmount originally acquired the 27-acre Westmount Health Campus, located at the intersection of the North Central Expressway and Forest Lane, in 2006. After this deal, 7.5 acres of the original tract remain for sale.
PALESTINE, TEXAS — Dallas-based The Cirrus Group has closed on a $5 million loan for the construction of a new medical office building located in Palestine. The facility will be located on Willow Creek Parkway near Loop 256 and will total 28,000 square feet. It will be anchored by an ambulatory surgery center that will feature 2 operating rooms and two procedure rooms. Additional space at the facility will contain physician offices. Construction is expected to take 7 months. The project architect is Bryant Burton Kupcunas Architects and the genera contractor is Hill & Wilkinson. The facility will be operated by Springfield, Mo.-based Medical Consulting Group. Cirrus arranged the loan on behalf of the borrower, one of the company’s affiliates. The lender is Southwest Securities, FSB.