ROUND ROCK, TEXAS — Matthews Real Estate Investment Services, a California-based brokerage firm, has negotiated the sale of a 270-unit self-storage facility in the northern Austin suburb of Round Rock. Life Storage operates the facility at 506 McNeil Road, which was originally constructed in 1980 and totals 28,450 square feet of net rentable space. Austin McLeod of Matthews represented the undisclosed seller in the transaction. The buyer and sales price were also not disclosed.
IRVING, TEXAS — Rocktop Technologies, a provider of AI-driven financial valuation services, has subleased 15,883 square feet of office space at the Toyota Music Factory in Irving. According to LoopNet Inc., the property at 370 W. Las Colinas Blvd is a six-story, 166,698-square-foot complex that was originally built in 2018. Kevin McGee and Zach Stevens of NAI Robert Lynn represented the sublessee in the lease negotiations. The name of the sublessor and building owner were not disclosed.
SPRING, TEXAS — California-based brokerage firm Hanley Investment Group (HIG) has arranged the sale of a 14,490-square-foot retail building in the northern Houston suburb of Spring that is net leased to Walgreens. The building was constructed in 2001 and is an outparcel to a Kroger-anchored shopping center. Kevin Fryman, Garrett Wood and Ed Hanley of HIG, in association with ParaSell Inc., represented the seller, a Houston-based private investor, in the transaction. Melissa Gerber Brams of Gerber Realty represented the Louisiana-based buyer. Both parties requested anonymity.
AUSTIN, TEXAS — RBC Wealth Management has signed a seven-year, 11,710-square-foot office lease in southwest Austin. The financial services firm is taking space at the 124,405-square-foot Building II at Uplands Corporate Center. Ricky Whiteley of Cushman & Wakefield represented the tenant, which plans to take occupancy by the end of the year, in the lease negotiations. Matt Frizzell and Kevin Granger, also with Cushman & Wakefield, represented the landlord, San Francisco-based Drawbridge Realty.
BAYTOWN, TEXAS — Fidelis Realty Partners has broken ground on the redevelopment of San Jacinto Mall, a regional shopping mall located roughly 25 miles east of Houston in Baytown. Dubbed San Jacinto Marketplace, the current phase of development will include 500,000 square feet of retail and restaurant space alongside Pelican Green, a public green space. The development in total is expected to span 105 acres and include residential, hospitality and office components upon completion. Fidelis originally purchased 40 acres of the mall property, which opened in 1981, in July 2015 with a goal of owning 100 percent of the land for redevelopment. This process took Fidelis six years, with the final buildings — which were occupied by JCPenney and Macy’s — acquired by the locally-based firm in 2021. The mall officially stopped operations in 2022, and Fidelis concurrently signed an agreement with the City of Baytown to pay $3.5 million as compensation and reimbursement as the project is being redeveloped. A timeline for the development was not announced, but Fidelis notes that the property will be home to somewhere between 15 and 20 restaurants with 10 major leases currently being negotiated. “We have been faced with a number of challenges …
By Taylor Williams In the eyes of some commercial brokers, especially those who represent tenants, there actually is such a thing as too little vacancy. When markets are running super-hot, meaning demand is far outstripping supply, tenants have minimal options and often end up paying premiums just to be able to secure space. That’s great for landlords — to a point — because markets can only bear so much rent growth in so much time before tenants start looking for workarounds to physical occupancy. Enter the Dallas-Fort Worth (DFW) industrial sector, which has been on fire for the past seven-plus years. Explosive volumes of new deliveries, frenetic paces of absorption, stiff competition for space, record levels of rent growth and a national coming-out party as an undeniable Tier 1 market have all been hallmarks of this activity. But such torrid paces of growth were never really sustainable in perpetuity, and although both the supply and demand sides of the market have cooled, the slowdown in some ways reflects a return to healthier dynamics. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements …
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C-PACE Maintains Appeal in Lower Interest Rate Environment
The Federal Reserve’s decision to begin aggressively hiking the federal funds rate in 2022 threw the commercial real estate market into turmoil. Property investors found it difficult to refinance much cheaper short-term loans that were often used to renovate or develop properties. However, the interest rate spike greatly enhanced the viability of commercial property assessed clean energy (C-PACE) financing, a type of loan that becomes an assessment that borrowers pay along with their tax bill. The program emerged more than a decade ago and generally pays for energy, water and seismic resiliency upgrades in new construction and rehabs, including retroactively. As a result, developers embraced C-PACE as they sought ways to pay down debt to secure new financing or loan extensions and modifications. Sponsored: A smarter way to finance your next CRE project – PACE Loan Group Now that the Federal Reserve has reversed course with its 50-basis-point federal funds rate reduction in September — and with Wall Street anticipating additional rate cuts before the end of the year — will C-PACE demand start to cool? Don’t count on it, says Rafi Golberstein, founder and CEO of PACE Loan Group, a direct lender of C-PACE financing based in Minneapolis, Minn. …
FORT WORTH, TEXAS — Google has signed a 1.1 million-square-foot industrial lease in Fort Worth, according to reports from multiple news outlets, including Dallas Morning News and the Dallas Business Journal. The latter publication reports that the building is located within Majestic Silver Creek Business Park, a 520-acre development on the city’s west side that is owned by California-based Majestic Realty. The DBJ also reports that the deal is part of a larger initiative in which the California-based tech giant pledged to invest $1 billion in Texas markets to support its cloud infrastructure and data center operations.
DENTON, TEXAS — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has negotiated the sale of Gateway at Denton, a 696-bed student housing property that serves students at the University of North Texas. Built in 2005, the 228-unit complex is located within a half-mile of campus and features a mix of two-, three- and four-bedroom floor plans with complete bed-bath parity. Units range in size from 816 to 1,360 square feet. Amenities include a newly renovated clubhouse, three pools with cabanas, outdoor grilling and dining stations, basketball court, fitness center and a computer lab. Peter Katz and Drew Kile of IPA represented the seller, Los Angeles-based MJW Investments, in the transaction and procured the buyer, Vesper Holdings.
PROSPER, TEXAS — Dallas-based developer SWBC has broken ground on The Royalton at Prosper, a 270-unit multifamily project that will be located on the northern outskirts of Dallas. The site is adjacent to SWBC’s The Royalton at Creeks of Legacy development, which also totals 270 units and is currently in lease-up. Units at the new property will come in one-, two- and three-bedroom floor plans, and select residences on the first floor will have private yards and direct-access garages. Amenities will include a clubhouse with a business center, 24-hour fitness center and a resort-style pool with cabanas and grilling stations. Cross Architects is designing the project, and Carleton Cos. is serving as the general contractor. The first units are expected to be available for occupancy next summer.