Texas

HUD Section 232 Summary Statistics - Fiscal Year 2019

HUD Lean Lenders Reflect on Memorable Year for Seniors Housing

by Sarah Daniels February 10, 2020

Despite enduring a federal government shutdown for 35 days that temporarily put a crimp in loan processing, the HUD/FHA Section 232 mortgage insurance program used to finance seniors housing properties rallied to post a solid performance in fiscal year 2019. The volume of loans closed during the 12-month period that started Oct. 1, 2018 and ended Sept. 30, 2019 totaled $3.7 billion. That’s up from $3.6 billion the prior fiscal year. The HUD/FHA Section 232 program — more commonly referred to as the HUD Lean program — helps finance nursing homes and assisted living facilities, as well as board and care facilities. The Lean process developed by HUD in 2008 is a methodology based on the Toyota model to increase efficiency by reducing waste. In short, the goal is to eliminate historical inefficiencies in the processing and approval of HUD loan applications. Dissecting the data Although the government shutdown that occurred in late December 2018 and January 2019 resulted in the program’s loan count dropping from 317 to 288 on a year-over-year basis, the average loan amount increased 14 percent during the same period to reach a record high of nearly $13 million. “This was driven not only by some …

February 10, 2020

Acquisitions Retail Texas

JLL Negotiates Sale of 417,167 SF Market Heights Shopping Center in Central Texas

by Taylor Williams February 7, 2020

HARKER HEIGHTS, TEXAS — JLL has negotiated the sale of Market Heights Shopping Center, a 417,167-square-foot regional lifestyle center in the Central Texas city of Harker Heights. Built in 2008, the property sits on 62.2 acres and was 89.4 percent leased at the time of sale. Tenants include Cinemark, Dick’s Sporting Goods, Barnes & Noble, Ross Dress for Less, Old Navy, Petco, Ulta Beauty and Bed Bath & Beyond. Adam Howells of JLL represented the undisclosed institutional seller in the off-market transaction, and procured the buyer, Direct Retail Partners. Mark Brandenburg and Tim Jordan of JLL arranged a four-year, floating-rate acquisition loan for the buyer through Bayview Asset Management.

February 7, 2020

Development Retail Texas

CJ Development Buys 42.6 Acres in Metro Houston for Commercial Project

by Taylor Williams February 7, 2020

RICHMOND, TEXAS — Locally based builder CJ Development has purchased 42.6 acres at Grand Parkway and West Bellfort Street in the northern Houston suburb of Richmond for a commercial project that will be named Grand Center at Long Meadow Farms. The company previously purchased an adjacent 15-acre tract, creating a total of 58 acres for the new development. The project will feature a 46,000-square-foot retail center, and other tracts will be sold to individual buyers for various uses. Retail tenants that have committed to the center include Members Choice Credit Union, Spring Creek BBQ, Pet Suites, Service First and 7-Eleven. Chris Bergmann Jr. of JLL represented the undisclosed seller in the disposition of the land. Alan Chodrow of Chodrow Realty Advisors represented CJ Development. NewQuest Properties is handling leasing of the project.

February 7, 2020

Development Industrial Texas

United Equities to Develop Phase II of Beltway-225 Business Park in Metro Houston

by Taylor Williams February 7, 2020

PASADENA, TEXAS — United Equities will develop Phase II of Beltway-225 Business Park, an industrial project that fronts Beltway 8 in the eastern Houston suburb of Pasadena. Phase I of the project delivered 85,500 square feet, and the first two completed buildings of that phase have been leased to Cooper Valves (21,000 square feet) and PTR Holland Maritime (18,500 square feet). Travis Land and Michael Keegan of NAI Partners represented United Equities in both lease negotiations. Phase II of the project, a construction timeline for which was not released, will include two tilt-wall buildings totaling 46,000 square feet.

February 7, 2020

Leasing Activity Office Texas

Occidental Signs 91,986 SF Office Lease Expansion at Three Greenway Plaza in Houston

by Taylor Williams February 7, 2020

HOUSTON — Occidental Petroleum Corp. has signed a 91,986-square-foot office lease expansion at Three Greenway Plaza in Houston. The energy giant now occupies more than 972,000 square feet at the 52-acre Greenway Plaza campus, which serves as its U.S. headquarters. Brandon Clarke, Charles Gordon, Steve Hesse and Ryan Roth of CBRE represented Occidental in the lease negotiations. Rima Soroka represented the landlord, Parkway, on an internal basis.

February 7, 2020

Loans Multifamily Texas

LMI Capital Arranges $8M Acquisition Loan for Houston Apartments

by Taylor Williams February 7, 2020

HOUSTON — LMI Capital, a Real Estate Capital Alliance (RECA) member, has arranged an $8 million bridge loan for the acquisition of a 150-unit apartment community in the Houston area. The loan was structured with an 80 percent loan-to-value ratio and 2.5 years of interest-only payments. The financing includes proceeds to fund a capital improvement program. Brandon Brown of LMI Capital placed the loan on behalf of the undisclosed borrower. The lender and property name were also not disclosed.

February 7, 2020

Market Reports Retail Texas Texas Market Reports

Entertainment Users in Texas Embrace Flexibility

by Taylor Williams February 7, 2020

Retail landlords want to fill space, especially given that large gluts of it have been returned to market as store closures have accelerated, a move that has coincided with entertainment users that want to expand their footprints. But the logistics of bringing entertainment concepts into retail spaces — particularly vacated junior or big box spaces — are very complicated. This holds particularly true for entertainment concepts that involve movies and bowling. Ceiling heights and column spacing, for example, prevent many spaces from being repurposed cost-effectively for entertainment uses like bowling alleys and theaters. In addition, lease terms for these deals are often based on traditional retail metrics like sales per square foot. According to Howard Samuels, president of California-based advisory and brokerage firm Samuels & Co., there is a strong disconnect between entertainment uses and conventional retail real estate that has yet to fully integrate experiential uses or “location-based entertainment (LBE).” “Entertainment retail as a backfiller of boxes is a misnomer,” says Samuels, whose firm specializes in entertainment transactions. “Those users typically don’t want fixed walls and need higher ceiling heights. Most location-based entertainment concepts are very challenging to design, develop, open and operate. These concepts have very specific criteria …

February 7, 2020

Acquisitions Company News Multifamily Texas

Cushman & Wakefield to Acquire Dallas-Based Pinnacle Property Management Services

by John Nelson February 6, 2020

CHICAGO AND DALLAS — Cushman & Wakefield has entered into a definitive agreement to acquire Pinnacle Property Management Services LLC, a Dallas-based apartment management firm. With more than 169,000 units across 839 properties in its operational portfolio, Pinnacle is the third-largest multifamily property management firm in the United States. The firm’s client list includes institutional, private and foreign investors; financial institutions; pension funds; private partnerships; sole owners; and government housing groups. The acquisition will boost Chicago-based Cushman & Wakefield’s management division across 20 key U.S. markets, increasing its overall portfolio to 869 million square feet in North and South America. Rick Graf, president and CEO of Pinnacle, will lead the Americas Multifamily Property Management platform for Cushman & Wakefield. The acquisition is subject to customary closing conditions, including antitrust approvals.

February 6, 2020

Acquisitions Multifamily Texas

High Street Residential, Principal Sell New High-Rise Apartment Tower in Plano

by John Nelson February 6, 2020

PLANO, TEXAS — High Street Residential and Principal Real Estate Investors have sold The Kincaid at Legacy, a 25-story upscale apartment tower located at 7200 Dallas Parkway in Plano. Boston-based Intercontinental Real Estate Corp. purchased the 300-unit high-rise for an undisclosed price. CBRE represented the sellers in the transaction. Built in 2018, Kincaid at Legacy offers one-, two- and three-bedroom units that range in size from 677 to 4,500 square feet. The property features 14,500 square feet of amenity space, including a resort-style pool, water features, fire pits, fitness center, resident lounge with media screening room, entertainment kitchen, conference rooms, business center, complimentary Wi-Fi, bike storage, concierge services and an amenity deck on the seventh floor with a second pool and two dog parks. In 2016, Intercontinental bought the adjoining Legacy Tower office building from Trammell Crow Co., parent company of High Street Residential.

February 6, 2020

Acquisitions Loans Office Texas

JLL Brokers Sale of 2900 Weslayan Office Building in Houston’s Greenway Plaza District

by John Nelson February 6, 2020

HOUSTON — JLL has arranged the sale of 2900 Weslayan, a six-story boutique office building located at the corner of Weslayan and West Alabama streets in Houston’s Greenway Plaza submarket. Houston-based Griffin Partners, using its investment vehicle Griffin Partners Office Fund III, purchased the 136,698-square-foot office building from Madison Marquette. Dan Miller and Katherine Miller of JLL represented the seller in the transaction. The office building was nearly 82 percent leased at the time of sale, including to retailers Baggy’s Grill, Apteek Pharmacy and Results Physiotherapy. Wally Reid, Cameron Cureton and John Ream, also with JLL, secured a three-year, floating-rate acquisition loan through Frost Bank on behalf of Griffin Partners. Janie Snider and Lee Moreland of Griffin Partners will manage 2900 Weslayan internally. The new ownership has retained Madison Marquette to lease the property.

February 6, 2020

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