ARLINGTON, TEXAS — Largo Capital, a commercial intermediary based in upstate New York, has arranged a $2.8 million acquisition loan for a retail property in Arlington. The newly constructed property was fully occupied at the time of the loan closing by a car wash operator on a 20-year lease. The borrower was an undisclosed private investor based in the Northeast. The direct lender was also not disclosed.
EL PASO, TEXAS — Akorbi, a provider of language services and workplace solutions like staffing, payroll and compliance, has signed a 10,573-square-foot office lease in El Paso. Jeff Pappas of Newmark represented Akorbi, which now operates 10 facilities including its Plan headquarters, in the lease negotiations. Will Brown and Michael McBroom of Sonny Brown Associates represented the undisclosed landlord.
By Taylor Williams Multifamily investment sales activity has been muted across major Texas markets during the first half of 2023, underscoring the unfortunate reality that even the most coveted asset classes are not immune to severe macroeconomic headwinds. Much like a year ago, the combined effects of stubborn inflation and corresponding interest rate hikes have wrought visibly negative changes to the world of multifamily investment sales. But in summer 2022, deals were still getting done at a decent clip; price disparities and depreciation were the most significant and obvious impediments to deal velocity. Today, buyers and sellers are more closely aligned on market realities as relates to price points, but many are simply not motivated to transact — at least in the short term. According to data from RealPage, in the first quarter of 2023, there were 337 multifamily transactions within the Dallas-Plano-Irving triangle, down from 510 in the first quarter of 2022. The greater Houston area saw 266 deals executed in the first quarter this year, a decline from 410 during that period in 2022, while the Austin market’s total number of transaction fell from 191 to 123 quarter-over-quarter. Multifamily sales prices responded differently to reduced deal volume from …
FORT WORTH, TEXAS — Texas A&M University has broken ground on a $150 million academic building in Fort Worth that marks the beginning of development of a larger, four-block campus. The first building will rise eight stories and house the Texas A&M School of Law as well as other academic divisions. The university is collaborating with the City of Fort Worth and Tarrant County on the project, which will feature two additional buildings. The first will be known as The Research & Innovation Building. The second, The Gateway Building, will house offices, more classroom and meeting spaces and a conference center. The law building is slated for a 2025 delivery, with full completion of the first three buildings targeted for 2027.
PLANO, TEXAS — Hospitality investment and development firm Driftwood Capital has acquired the 299-room Hilton Dallas/Plano Granite Park hotel. The accommodations include rooms with queen and king beds, as well as suites. The amenity package comprises a pool, fitness center, business center, grab-and-go mart, two onsite dining options and more than 33,000 square feet of meeting and event space. The new ownership plans to upgrade the guestrooms and meeting space and to assume management of the property. Eastdil Secured represented the seller, Granite Properties, in the transaction.
DESOTO, TEXAS — Colliers Mortgage has provided a $29 million HUD-insured loan for the refinancing of The Beacon on Westmoreland, a 194-unit multifamily property in DeSoto, a southern suburb of Dallas. The complex was completed in 2021 and consists of seven residential buildings and a leasing office/clubhouse. Amenities include a pool, fitness center, dog park and walking trails. Fritz Waldvogel of Colliers Mortgage originated the 35-year loan through a partnership with Old Capital Lending. The borrower was not disclosed.
GALVESTON, TEXAS — JLL has negotiated the sale of The Plaza at Galveston Island, a 151,905-square-foot shopping center located southeast of Houston. Built in 1970, the property was 84.5 percent leased at the time of sale to tenants such as Dollar Tree, Ross Dress for Less, Five Below, Beall’s Outlet, UPS, AT&T and Whataburger. Ryan West and John Indelli of JLL represented the seller, Harold A. Clark & Co., in the transaction. The sales price was not disclosed.
AUSTIN, TEXAS — Architecture firm Mark Odom Studio will open a 10,000-square-foot creative office at 4000 Medical Parkway in Austin. The existing structure on the site was built in 1970, and Mark Odom Studio is renovating the building with plans to occupy about half the space and lease the other 5,000 square feet. Citadel Development is the general contractor for the project. A group of local partners doing business as 4000MP Austin LLC owns the property. Completion of the renovation is slated for November.
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Underutilized Hotel Properties Present Conversion Opportunities for Multifamily, Affordable Housing
Walker & Dunlop is finding financial success while helping to provide high-demand, affordable housing in key markets by converting hotel assets into multifamily buildings. Brian Cornell, managing director at Walker & Dunlop Investment Partners (WDIP), says his firm is identifying hotels that are already built out and can accommodate market-rate multifamily use. Extended-stay hotels have the best layout for this type of conversion because their footprint already includes the floor plans and many of the amenities that multifamily residents expect. “The units are typically one-bedroom, but with some two-bedroom suites and studios,” he outlines. “This creates a variety of unit types within the existing physical build-out of the property, and these assets can operate as true multifamily without having to combine walls and do extensive capital renovations.” When it comes to location, Cornell explains, “We prefer infill locations that have strong employment drivers and a dearth of affordable housing.” Underutilized Properties, Multifamily Strategies The three investments Walker & Dunlop has done in the past two years are in the heart of commercial corridors, in areas where there are limited multifamily projects within a two-to-three-mile radius offering rents that can support an 80 percent area median income (AMI) threshold. One is …
EDINBURG, TEXAS — New Jersey-based Cronheim Mortgage has arranged an $18.3 million construction loan for Las Vilitas, a 200-unit multifamily project that will be located in the Rio Grande Valley city of Edinburg. An undisclosed regional bank provided the loan, which was structured with three years of interest-only payments followed by a 12-year term. The sponsor is locally based developer Verturo Interests. David Poncia led the transaction for Cronheim Mortgage.