“Are we there yet?” seems to be the big question with the Dallas/Fort Worth office market. The most likely answer is no, there is still tough times ahead. The Dallas/Fort Worth (DFW) Metroplex refused to participate in the recession for most of 2007 and 2008, but the fourth quarter of 2008 started a down trend that has so far continued in the first quarter of 2009. Sales volume is down, rental rates are down and vacancies are up. National annual sales volumes for office properties peeked at nearly $208 billion in 2007 to be followed by a drop of 75 percent in 2008 according to Real Capital Analytics. Sales volume for office investments held up slightly better in the Dallas market decreasing only 65 percent in 2008 as the credit markets began tightening. The rental rates and vacancy percentages held up much better in the DFW Metroplex than did the national averages. According to CoStar DFW hit its high vacancy rate in mid 2003 around 18 percent. Since that time it has steadily dropped with 2007 and 2008 remaining fairly stable at slightly above 16 percent. In 2007 and 2008 the Metroplex added 11,278,582 square feet of new office space …
SAN BENITO, TEXAS — Dallas-based RightQuest will break ground this summer for the Villages at Paseo Real, a two-phase multifamily project located on 18 acres along Paseo Real Highway in San Benito. The Class A community will contain 260 one-, two- and three-bedroom units with rents ranging from $600 to $950. Amenities will include a business center, a fitness center, a clubhouse with a media center, a resort-style swimming pool, a playground, covered parking, storage units and laundry facilities. The second phase of development will possibly include small-shop retail space along Paseo Real Highway. The first units are expected to be available for occupancy by summer 2010. RightQuest is developing the project on behalf of the owner, Brownsville, Texas-based Villages of Paseo Real LP. The project architect is San Antonio-based B&A Architects. The San Antonio office of Capstone Real Estate Services will provide leasing and property management services. Construction financing was provided by IBC Bank.
DEER PARK, TEXAS — Construction is advancing for the first component of Deerwood Glen, a 150-acre business park located at 4400 Highway 225 in Deer Park. The first structure, a two-story, 88,000-square-foot office building, is under construction and scheduled for completion in August. The Class A building is already half pre-leased to an undisclosed anchor tenant. Phased construction of the park will continue over the next couple of years and will ultimately total more than 1 million square feet of Class A office and warehouse space. The project is being developed by Houston-based Clay Development & Construction. Leasing of the project’s four office buildings is being handled by John Pruitt, Jessica Ochoa and John Simons of CB Richard Ellis.
MOUNT PLEASANT, TEXAS — Philadelphia-based Binswanger has brokered the sale of a 162,290-square-foot industrial building, located at 1106 Industrial Blvd. in Mount Pleasant. The facility includes up to 27-foot clear ceiling heights, truck loading capability and rail access. Binswanger represented the seller, Mastercraft. The buyer, Pace Shave, plans to use the facility as a regional distribution center. The acquisition price was not disclosed.
HOUSTON — Charlotte, N.C.-based Grandbridge Real Estate Capital has arranged $7.1 million in construction and mezzanine financing for Corinthian Village Senior Living, a 124-unit affordable senior housing project located in Houston. The project will be the latest phase of the Corinthian Pointe master-planned development. Of the project’s 124 units, 40 of those will be reserved for low-income residents. Amenities will include an activity room, a fitness center and a clubhouse. Completion is scheduled for 2010. The financing package was arranged by Grandbridge’s Jim Kirkpatrick on behalf of the borrowers, George E. Johnson Development and Corinthian Pointe Senior Living Corp. The financing includes a $6.4 million construction loan provided by Trustmark National Bank and a $700,000 mezzanine loan provided by The United Methodist Foundation of the Texas Annual Conference. In addition, the city of Houston provided $3.37 million in HOME funds for the project.
BEAUMONT, TEXAS — Springfield, Mo.-based John Q. Hammons Hotels & Resorts has held the grand re-opening for the Holiday Inn Hotel & Suites – Beaumont Plaza, located at 3950 I-10 South in Beaumont. The hotel was damaged last year by Hurricane Ike, but remained open during that time as an emergency shelter for displaced workers of the area’s major corporations. The hotel subsequently under went a $7.5 million renovation. Improvements to the 8-story hotel included exterior construction such as signage, landscaping and building repair; fresh paint and vinyl in interior common areas, hallways and the hotel’s 22,000 square feet of convention space; storm damage repairs to the hotel’s 253 rooms and suites; and the construction of a new lobby bar in the atrium.
HOUSTON — Houston-based Holliday Fenoglio Fowler (HFF) has been tapped to market a 52-property shopping center portfolio for sale. The seller is Macquarie DDR U.S. Trust Inc., which is controlled by a joint venture between Macquarie Capital Advisors and Developers Diversified Corp. The portfolio contains shopping centers located in 20 states. It totals 12.5 million square feet and has an average occupancy of 88.5 percent. Major tenants include Walmart, BJ’s Wholesale Club, Bed Bath & Beyond, T.J. Maxx, Kohl’s and Dick’s Sporting Goods. As of December 31, 2008, the portfolio was valued at approximately $1.9 billion. HFF’s John Pelusi, Barry Brown, Doug Hazelbaker and Lynn De Marco will lead the sales team. The portfolio can be subdivided to suit the needs of a buyer.
MCKINNEY, TEXAS ¬— Ag-Power, a farm equipment dealership, has selected Arlington, Texas-based Bob Moore Construction to build a new sales and service center in McKinney. The 60,000-square-foot building will be located on North Central Expressway; it will replace the company’s current McKinney dealership. Bob Moore Construction is serving as general contractor; Dallas-based NCA Partners will serve as project architect. Groundbreaking is slated for this month, with completion expected in February 2010. Ag-Power is one of the state’s leading John Deere dealers. It also carries equipment from Stihl and Honda Power Equipment.
FORT WORTH AND WOOD COUNTY, TEXAS — The Fort Worth office of Sperry Van Ness/Summit Realty has completed the sale of two skilled nursing facilities located in Texas. The first property is an approximately 100-bed facility located in Fort Worth, and the second property is an approximately 80-bed facility located near Tyler in Wood County. Both properties have received extensive upgrades in the past few years. Robyn Jackson of Sperry Van Ness represented both undisclosed parties in the transaction. The seller is based out of Denton, Texas, and the buyer is headquartered out-of-state. The acquisition price was not released.
HOUSTON — Two retailers and a restaurant have held their grand openings within three different Houston shopping centers owned by Centro Properties Group. Melrose has opened a 10,800-square-foot location within Northwood Shopping Center, located at the corner of Eastex Freeway/Route 59 and Aldine Mail Road. Beauty Empire 15 has opened an 8,050-square-foot location within Huntington Village, located at the intersection of Bissonnet Street and Dairy Ashford Road. Finally, Subway has opened a 1,357-square-foot restaurant at Mount Houston Square, located at the corner of Eastex Freeway/Route 59 and West Mount Houston Road.