Chad Thomas Hagwood of Hunt Real Estate Capital discusses growth opportunities in 2020 and the different drivers that make for a positive atmosphere, especially in secondary and tertiary markets around the country. Previously overlooked areas offer more opportunity to develop and less competition. Many secondary and tertiary markets are seeing corporate growth and increasing populations, which is driving more demand for multifamily housing. Limits on development include construction cost, scarcity of labor and shortages of materials, but uncertainty over the upcoming election is also keeping investors wary of planning too far in advance. People are waiting on the sidelines to see what happens, with some investors waiting until after November to create their four-year plans. Watch the video to hear more about what Hagwood expects to see in 2020. This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week newsletter series, followed by video interviews from MBA CREF.
DALLAS — JLL has negotiated the sale of The Union, an 866,273-square-foot mixed-use development in the Uptown neighborhood of Dallas. According to The Dallas Morning News, the property sold for $370 million. Completed by RED Development in 2018, the office tower at The Union was 94.2 percent leased at the time of sale to tenants including Salesforce, Akin Group and Weaver. Office amenities include a tenant lounge, fitness center and outdoor green space. The Union Dallas also features 85,000 square feet of retail and restaurant space anchored by a Tom Thumb grocery store and a 309-unit apartment building that was developed by StreetLights Residential. JLL represented RED Development, which will retain minority stake in the property, in the transaction. JLL also procured KB Asset Management, the investment arm of Korean conglomerate KB Financial Group, as the buyer and secured a five-year, fixed-rate acquisition loan through Goldman Sachs on behalf of the new ownership.
IRVING, TEXAS — Florida-based Benderson Development has purchased a ground-lease interest in the Pioneer Natural Resources headquarters campus in Irving for $218 million. The 1.1 million-square-foot, 10-story campus, which was developed by KDC, is located within Hidden Ridge, a public transit-served mixed-use development in the Las Colinas district. Additional terms of the deal were not disclosed.
FORT WORTH, TEXAS — Home furnishing retailer Pier 1 Imports has filed for Chapter 11 bankruptcy in federal court in Richmond, Va., according to a report from The Wall Street Journal. The filing comes about six weeks after the Fort Worth-based retailer announced that it would close some 450 stores, about half of its total store count. The company is also closing two distribution centers. Pier 1 has entered into a plan support agreement with its term loan lenders, which include Bank of America and Wells Fargo, and is pursuing a sale of the company.
AUSTIN, TEXAS — NorthMarq has arranged a $64.5 million loan for the refinancing of SXSW Center, a 13-story office building located at 1400 Lavaca St. in downtown Austin. Designed by Pei Cobb Freed, the Class A property spans 143,998 square feet and features a fitness center, bike storage and electric car charging stations. WeWork occupies three stories at the building. Jim Lemos of NorthMarq arranged the loan, which carries a fixed interest rate and a 26-year term, through Pacific Life Insurance Co. The borrower was not disclosed.
WACO, TEXAS — Dallas-based sports entertainment company Topgolf has signed a lease at Cottonwood Creek Market, a 285,000-square-foot entertainment destination in Waco that is scheduled to open this winter. Topgolf joins Cinemark, which will open a 14-screen theater, as the second of three entertainment anchors at Cottonwood Creek Market. Houston-based developer NewQuest Properties commenced site work on the project last summer, and is in talks with a bowling and dining concept to potentially serve as the third anchor. Steve Greenberg of The Retail Connection represented Topgolf in the lease negotiations. Steve Alvis represented NewQuest Properties on an internal basis.
With its unique culture, relatively low cost of living, warm weather and booming economy, Austin has emerged as one of the fastest-growing cities in the United States. As more people and companies flock to this vibrant city, the multifamily real estate market looks primed for growth from both a development and investment perspective. At its core, this real estate potential lies in the fact that the housing supply needs to keep up with a growing population of workers. According to the Austin Board of Realtors (AboR), in October 2019, the number of homes sold reached new highs, while the inventory of single-family homes reached new lows. As this gap shows, and as ABoR notes in its report, housing demand is outpacing housing stock, particularly in areas close to major employers and transit options. To remedy this problem, multifamily developers and investors can step in to build multi-unit buildings throughout Austin. Adding multifamily buildings can help tackle the housing shortage much faster than building more single-family homes, and many newcomers to Austin are young, well-paid professionals looking to rent apartments in exciting urban neighborhoods. As such, developers and investors can look to add more units in both existing high-density areas that …
HOUSTON — Canadian investment firm Western Wealth Capital has purchased Oak Grove Apartments, a 272-unit community in Houston. Built in 2004, the property features one-, two- and three-bedroom units and amenities such as a pool, fitness center, playground and a dog park. Andy Hill and Tyler Nowlin of Berkadia arranged a three-year, adjustable-rate loan for the transaction on behalf of Western Wealth Capital. The loan includes proceeds for capital improvements.
FORT WORTH, TEXAS — Dougherty Mortgage LLC has arranged an undisclosed amount of acquisition financing for Monterrey Apartments & Townhomes, a 105-unit multifamily asset in Fort Worth. The property features one-, two- and three-bedroom units and amenities such as a pool, outdoor grilling stations and a playground. Dougherty arranged the 12-year loan through a partnership with Old Capital Lending for borrower JARS Monterrey 105 LLC.
TEXAS CITY, TEXAS — Lee & Associates has negotiated a 50,000-square-foot industrial lease at 10000 Emmett F. Lowry Expressway in Texas City, located southeast of Houston near Galveston. Frank Blackwood and John Gazzola of Lee & Associates represented the tenant, Odyssey 2020 Academy Inc., in the lease negotiations. The name and representative of the landlord were not disclosed.