GRAND PRAIRIE, TEXAS — Dallas-based Proterra Properties has purchased four acres in Grand Prairie, located roughly midway between Dallas and Fort Worth, for the development of a 110,000-square-foot office and warehouse building. The property will be able to accommodate one or two tenants and will feature 32-foot clear heights, 30 dock doors, 130-foot truck court depths and an ESFR sprinkler system. Completion is slated for 2022.
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Small-Balance Multifamily: Sizable and Resilient
While new-builds and top-of-the-line, large-scale developments typically attract the most buzz in the multifamily world, the vast majority of apartment properties in the United States have fewer than 100 units. These smaller properties play a vital role in delivering affordable and workforce rental housing inventory to the U.S. population. While the commercial real estate industry may refer to this sector of the multifamily market as “small,” make no mistake, “small” multifamily is not insignificant or inferior — it’s sizable and resilient. As other commercial real estate sectors paused during COVID-19, smaller multifamily properties and small-balance lending thrived. What does the future hold for this market? The Small Multifamily Market Defined The small multifamily market is highly fragmented with no clear definition of what constitutes “small” among capital sources. Generally, market statistics define the “small” multifamily sector by at least one of two measures: Unit count between five and 99 units; and/or Principal loan balance at origination between $1 million and $10 million[1] Strong Demand and Operating Fundamentals While the pandemic negatively impacted many areas of commercial real estate, with offices, retail shops and hotels largely shuttered across the U.S., the multifamily market remained resilient. Despite the past year’s challenges, multifamily …
AUSTIN, TEXAS — Dallas-based Dalfen Industrial has acquired 146 acres in northeast Austin for the development of an approximately 1 million-square-foot project. The development will be located at the site of the former Manor Downs horse racetrack, about eight miles from the downtown area and 10 miles from Austin-Bergstrom International Airport. The project will consist of six buildings that will range in size from 70,000 to 365,560 square feet and will feature 32- to 36-foot clear heights. Construction is scheduled to begin in the third quarter of next year.
HOUSTON — Berkadia has arranged the sale of two multifamily properties totaling 646 units in Houston’s Heights neighborhood. The first property is the 337-unit 15th Street Flats, which was built in 2021 and features one- and two-bedroom units ranging in size from 638 to 1,273 square feet. The second community is the 309-unit Heights Waterworks, which was constructed in 2020 and offers one- and two-bedroom floor plans ranging in size from 600 to 1,265 square feet. Chris Curry, Todd Marix, Jeffrey Skipworth, Joey Rippel and Chris Young of Berkadia represented the seller, Alliance Residential, in the transaction. In addition, Mitch Sinberg, Matt Robbins and Brad Williamson of Berkadia arranged an undisclosed amount of acquisition financing on behalf of the borrower, Florida-based Cardone Capital. Cincinnati-based Eagle Realty Group provided the six-year loan, which was structured with three years of interest-only payments at a fixed rate and a floating rate thereafter.
SAN ANTONIO — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has negotiated the sale of Axis at The Rim, a 308-unit apartment community located within The Rim master-planned development in San Antonio’s Forest Crest neighborhood. Built on 10.5 acres in 2016, the property offers studio, one- and two-bedroom units and amenities such as a pool, fitness center and a courtyard. Will Balthrope and Drew Garza of IPA represented the seller, Chicago-based Sherman Residential, in the transaction. The duo also procured the buyer, an affiliate of Treeline Multifamily Partners Ltd.
DALLAS — Good Sportsman Marketing, a designer and distributor of branded hunting accessories, has signed a 494,238-square-foot industrial lease at Passport Logistics Center in Dallas. The development spans 1.2 million square feet across three buildings and is located on the city’s north side. Blake Kendrick and Charles Brewer with Stream Realty Partners represented the landlord, Brookfield Properties, in the lease negotiations. Sarah Ozanne, also with Stream, represented the tenant.
DALLAS — Regent Properties, a Los Angeles-based investment firm with roughly $1.8 billion in assets under management, will open a second headquarters office in Dallas. New and existing members of the corporate team, as well as senior investor relations and other investment personnel, will relocate to the new office at 2000 McKinney Ave. Regent CEO Eric Fleiss also said that the company plans to acquire “a significant amount of high-quality office product in the Sun Belt region,” in the coming months.
HOUSTON — Los Angeles-based PCCP LLC has funded a $70.7 million acquisition loan for Millennium High Street, a 340-unit apartment community in the River Oaks area of Houston. Built in 2013, the property consists of four residential buildings, a parking garage and 26,304 square feet of retail space on a 6.3-acre site. The unit mix comprises 229 one-bedroom residences, 91 two-bedroom apartments and 20 three-bedroom units with an average size of 901 square feet. Units feature stainless steel appliances, contemporary countertops and individual washers and dryers. Amenities include a pool, fitness center, dog park and a rooftop lounge. The borrower was Miami-based Galium Capital. The seller was a partnership between The Dinerstein Cos. and Coventry Real Estate Advisors that also developed the property. Millennium High Street was 93 percent occupied at the time of the loan closing.
DENTON, TEXAS — CBRE has negotiated the sale of Denton Crossing 3 and 4, two newly built industrial buildings totaling 525,332 square feet in the North Texas city of Denton. The first building spans 398,442 square feet and was fully leased at the time of sale, while the second structure totals 126,890 square feet and was vacant at the time of sale. The properties, both of which were built in 2020, feature 32- to 36-foot clear heights, ESFR sprinkler systems and immediate proximity to Interstate 35. Randy Baird, Jonathan Bryan, Ryan Thornton and Eliza Bachhuber of CBRE represented the seller, Scannell Properties, in the transaction. The buyer was James Campbell Co., an investment firm based in Hawaii. The sales price was not disclosed. The new ownership has tapped Dallas-based Holt Lunsford Commercial to lease Denton Crossing 4.
MCKINNEY, TEXAS — JLL has arranged the sale of Logistics Center at McKinney, a 431,710-square-foot industrial property located in the northern Dallas suburb of McKinney. The development consists of two rear-load buildings totaling 129,914 and 301,796 square feet. Dustin Volz, Stephen Bailey, Dom Espinosa, Zach Riebe and Pauli Kerr of JLL represented the seller, Atlanta-based Core5 Industrial Partners, in the transaction. Thor Equities Group purchased the property for an undisclosed price.