GREENVILLE, TEXAS — Marcus & Millichap has arranged the sale of a 41,684-square-foot industrial building in Greenville, located northeast of Dallas. The property was built on 5.2 acres in 1980, expanded in 2007 and is leased to Martin Saddlery, a provider of equestrian accessories. Adam Abushagur of Marcus & Millichap represented the seller, a private investor, in the transaction. The buyer and additional terms of sale were not disclosed.
DALLAS — JLL has provided Freddie Mac loans for four multifamily properties totaling 1,489 units north of Dallas. The new loans refinance acquisition loans the borrower, an affiliate of Orion Residential Advisors, originally received in 2016. The properties in the portfolio are Orion McKinney, a 453-unit community located in McKinney; Orion McCord Park, a 416-unit community located in Little Elm; Orion Prosper, a 312-unit community in Prosper; and Orion Prosper Lakes, a 308-unit community, also located in Prosper. The assets were completed between 2008 and 2012 with an average unit size of 883 square feet across the portfolio. The properties feature communal amenities such as pools, fitness centers, outdoor entertaining areas and club rooms. “The refinance was critical to our long-term strategic plan for the portfolio,” says Dan Gumbiner, Orion president and CEO. “We were determined to complete the transaction despite the current environment,” referring to the COVID-19 pandemic. Mona Carlton and Kristopher Lowe of JLL represented the borrower in the refinancing loan transaction. JLL also provided the acquisition loans that the new transaction refinances. HFF, a JLL company and Freddie Mac lender, will service all four loans, which feature 10-year terms and fixed interest rates. Deerfield, Ill.-based Orion specializes …
By Cody Payne, senior vice president, Colliers International. As strong job growth over the past decade has brought more and more investors to Texas, many of these buyers have looked to office product due to the appealing going-in returns that the property type offers. In addition, many cross-product owners look at office investing to make higher returns outside of their current portfolios. As buyers look toward the office market, there are many factors that need to be considered before making an informed decision. Along with these basic considerations, the impacts of COVID-19 on real estate investing are also important to understand when looking at an office deal. The Dallas-Fort Worth (DFW) market in particular has experienced an influx of cross-product buyers from other asset types such as retail, multifamily and self-storage during this cycle. The higher rate of return is the primary catalyst behind their motivation to purchase office investments. All asset classes are different and so are their opportunities, whether immediate or long-term. Understanding what sets office apart from other types of commercial investments is key to a successful operating strategy. Hidden Costs of Ownership One important factor to consider when buying office properties is that there are many …
AUSTIN, TEXAS — Texas gyms, offices and manufacturing facilities for nonessential goods may begin reopening at reduced capacities on Monday, May 18, pursuant to Texas Gov. Greg Abbott’s executive order outlining steps of the state’s economic restart. Operators of each of these facilities may reopen at 25 percent of their total listed occupancies. Offices with 20 or fewer employees can reopen with up to five staffers onsite should that number be greater than 25 percent of their total workforce. In addition, locker rooms and showers are to remain closed at gyms and exercise studios. This phase follows the permitted reopenings of salons and barbershops that went into effect on Friday, May 8. As of this morning, Texas had reported about 48,000 cases of COVID-19, according to data from Johns Hopkins University.
COLLEGE STATION, TEXAS — Berkadia has provided $31.7 million in Freddie Mac permanent financing for The Junction at College Station, a student housing community located about five miles from Texas A&M University. The property consists of three-, four- and five-bedroom cottages and townhomes. Amenities include a pool, volleyball court, clubhouse, fitness center, business center and shuttle service to campus. Thomas Genetti of Berkadia arranged the 10-year loan on behalf of the undisclosed borrower.
TEXARKANA, TEXAS — Marcus & Millichap has brokered the sale of a two-property, 571-unit self-storage portfolio operated by Pennsylvania-based REIT CubeSmart in Texarkana, a city located near the Texas-Arkansas border. Dave Knobler and Charles LeClaire of Marcus & Millichap represented the seller, a Florida-based limited liability company, in the transaction. A California-based buyer purchased the portfolio, which consists of 85,656 net rentable square feet, for an undisclosed price.
HOUSTON — Locally based limited liability company 215 Westheimer LLC has broken ground on a 13,200-square-foot mixed-use project in Houston’s Montrose area. The first floor will feature retail and restaurant space, and the second floor will offer both traditional and medical office space. Identity Architects is designing the project, and Davis Commercial Real Estate is handling leasing. Construction is expected to be complete by the end of 2020.
DALLAS — WorldPac Inc., a wholesale distributor of automotive parts, has signed an 11,092-square-foot industrial lease renewal at 2939-2391 Irving Blvd. in Dallas. Canon Shoults, Maddy Canty and Harrison Putt of Holt Lunsford Commercial represented the landlord, Entrada Partners, in the lease negotiations. Robin Dodson of Cushman & Wakefield represented the tenant.
PLANO, TEXAS — J.C. Penney Co. (NYSE: JCP) has filed for Chapter 11 bankruptcy protection in a bid to strengthen its finances through an extensive debt restructuring. The company filed on the evening of Friday, May 15 in the U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi. The Plano-based retailer has secured $900 million in debtor-in-possession financing from its existing first-lien lenders that is expected to knock several billion dollars off its total debt load. J.C. Penney, a company with a 118-year operating history, said that it would disclose in the coming weeks the number and locations of which stores would be closing. Currently, due to the coronavirus pandemic, about 40 of J.C. Penney’s approximately 850 U.S. stores are open, with another dozen or so offering curbside pickup only. In mid-March, the retailer began furloughing workers at its supply chain and distribution centers in response to the outbreak of COVID-19. Furloughs of store associates and corporate staff followed two weeks later. “While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to …
SAN ANTONIO — Austin-based Sabot Development will build Elmira at Myrtle, a 325-unit multifamily project in San Antonio that will also contain 14,000 square feet of ground-floor retail and restaurant space. Plans currently call for an elevated pool in addition to other unspecified amenities. Gensler is the project architect, and Cadence McShane is the general contractor. Construction is expected to begin in the first quarter of 2021.