IRVING, TEXAS — Locally based developer KDC has broken ground on an 850,000-square-foot office campus in Irving’s Las Colinas district that will serve as the new regional headquarters for Wells Fargo. The campus will consist of two 10-story, 400,000-square-foot buildings and a connecting parking garage, as well as various open green spaces, all on a 22-acre site. The San Francisco-based bank is consolidating its regional real estate footprint and expects to employ about 3,000 people at the campus, inclusive of the hiring of 650 new staffers. Completion is slated for late 2025.
TEXAS — Blueprint Healthcare Real Estate Advisors has negotiated the sale of seven skilled nursing facilities totaling 564 beds in Central and East Texas. The assets on average were built in 1969 and had an average licensed capacity of 80 beds per facility. Blueprint positioned the deal as an opportunity for an incoming owner or operator to acquire an established skilled nursing portfolio and integrate the facilities into an existing regional portfolio. The buyer was a regional owner-operator. The seller and sales price were not disclosed.
DALLAS — Glenstar Properties has completed the multimillion-dollar renovation and expansion of Premier Place, a 457,900-square-foot office building located at 5910 N. Central Expressway in North Dallas. Glenstar acquired the property, which was originally built in 1985, in late 2019. The project expanded the lobby, renovated the conference room and added a 3,000-square-foot space for an indoor/outdoor tenant lounge with a coffee and cocktail bar. Premier Place also features a 62,000-square-foot LifeTime Fitness facility on the sixth and seventh floors. Five new tenants have signed leases since the completion of the project.
BAYTOWN, TEXAS — Philadelphia-based development and investment firm BG Capital will develop a 281,849-square-foot cold storage facility in the eastern Houston suburb of Baytown. The facility will be situated on a 30.7-acre site within TGS Cedar Port Industrial Park. The site can also support the development of a second building, which would expand the total footprint to about 547,000 square feet. New Jersey-based cold storage operator FreezPak Logistics has committed to operating the facility, which will house a range of temperature-controlled spaces to accommodate operations such as storage, processing, packaging and distribution. Construction is scheduled to begin before the end of the month.
DALLAS — Single-family homeowner and property management firm Invitation Homes has signed a 50,000-square-foot office lease at Lincoln Centre, a 1.6 million-square-foot campus in North Dallas. Lincoln Centre recently underwent a multimillion-dollar renovation, and the property now offers amenities such as a food hall, lobby lounge, coffee bar, fitness center, conference facilities, a working mothers’ room and a wine lounge. Matt Schendle, Clint Madison and Zach Bean of Cushman & Wakefield represented the landlord, Nuveen Real Estate, in the lease negotiations.
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Higher Interest Rates Cause Affordable Housing Values to Return to Old Norms
Rising interest rates dinging commercial real estate and multifamily assets have plunged low-income housing tax credit (LIHTC) properties back into reality, especially those coming to the end of their 15-year compliance periods. “There were some huge profits made in the affordable housing space over the last two or three years,” says Cliff McDaniel, a managing director with Lument, which is representing Harmony Housing in the $1.4 billion sale of its affordable housing portfolio to the Michaels Organization. “We sold a lot of properties for $60,000 a unit or even $120,000 a unit, and the debt was $40,000 a unit. But the mania over that type of profitability is over, and values are going back to where they were before.” Up until about five years ago, the phrase “huge profits” and “affordable housing” would rarely if ever have occurred in the same sentence. Or even in the same story. Prior to that, affordable housing properties typically had very little value at the end of their initial 15-year compliance periods, and limited partners who provided equity to the project by buying tax credits routinely agreed to sell their interest to the general partner for a nominal fee. At that point, the …
ARLINGTON AND GRAND PRAIRIE, TEXAS — Locally based development and investment firm M2G Ventures has sold a portfolio of three industrial buildings totaling approximately 445,000 square feet in the central part of the Dallas-Fort Worth metroplex. The portfolio spans a combined 27.6 acres. Two of the buildings totaling roughly 345,000 square feet are located in Grand Prairie, and the third building totals 100,129 square feet and is located in Arlington. The buyer was New York-based Mavik Capital Management. The portfolio was fully leased at the time of sale to tenants such as civil aviation firm CAE, Home Zone/Alpha Furniture and Rent-A-Wheel/Rent-A-Tire. Stephen Bailey, Dustin Volz, Dom Espinosa and Zach Riebe of JLL represented M2G Ventures in the deal.
FORT WORTH, TEXAS — Dallas-based developer Corsair Ventures will build The Stanley at Chisholm Trail, a 350-unit apartment community in Fort Worth. The site at the corner of Chisholm Trail Parkway and West Risinger Road spans 22 acres and is located on the city’s southwest side. Designed by HEDK Architects, The Stanley at Chisholm Trail will offer studio, one-, two- and three-bedroom units with an average size of 865 square feet. Residences will be furnished with stainless steel appliances, quartz and granite countertops, walk-in closets and private balconies/patios. Amenities will include a pool, fitness center, coworking lounge, game area, pet spa and a package delivery system. Construction is slated to begin in the first quarter of 2024, and leasing will commence in the second quarter of 2025.
SAN ANTONIO — A partnership between OCI Development, Atlantic Pacific Cos., Opportunity Home San Antonio and Bank of America has completed Vista at Interpark, a 64-unit affordable housing project in San Antonio. Vista at Interpark is located near San Antonio International Airport on the city’s north side and houses one-, two- and three-bedroom units that are reserved for households earning 60 percent or less of the area median income. Amenities include a fitness center, business center and onsite laundry facilities. Rents start at $225 per month for a one-bedroom apartment.
DALLAS — Tom Thumb, a division of Idaho-based grocer Albertson’s, will open a 50,000-square-foot store at The Shops at Redbird in Dallas. Located on the city’s southwest side and owned by locally based developer Russell Glen Co., The Shops at Redbird is a mixed-use redevelopment of the former Southwest Center Mall. Construction is scheduled to begin late this year and to be complete in summer 2024. Russell Glen is also constructing 30,000 square feet of adjacent neighborhood retail and restaurant space.