Everything is bigger in Texas, including commercial real estate. Since 2017, Texas has surpassed every other state in commercial real estate development and carved out an industry that makes up nearly $60 billion of the state’s economy and supports almost 380,000 jobs. One of the contributing factors to this expansion is the recent increase in population, with more and more professionals moving to Texas for work. The Dallas-Fort Worth (DFW) metroplex is currently outpacing the rest of the U.S. as the fastest-growing metro area. Overall, seven of the nation’s most rapidly growing cities are in Texas, including Midland, Pearland, McKinney and College Station Moreover, multiple major corporations are planning to relocate their headquarters from California to Texas. The 33 percent downturn in commercial construction in Dallas will turn around, and cities like Austin and Houston will also see greater — or at least sustained — commercial development, which will translate to heightened demand for commercial real estate. Where To Start? Given the positive industry projections and Texas’ business-friendly atmosphere, this may be a good time to step out and start a commercial real estate business. We recommend following these steps to set yourself up for success: Get Licensed Before you …
THE WOODLANDS, TEXAS — Chevron Corp. (NYSE: CVX) has entered into an agreement to acquire Anadarko Petroleum Corp. (NYSE: APC), which is based in metro Houston, in a stock and cash transaction valued at $33 billion. Chevron expects the addition of Anadarko’s assets to improve operations in several ways, such as creating a 75-mile infrastructural corridor in the Permian Basin, bolstering the company’s production in the deepwater Gulf of Mexico and elevating its presence in the midstream space. The deal will be structured as 75 percent stock and 25 percent cash. Based on Chevron’s closing stock price of $125.99 per share on Thursday, April 11, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The merger carries a total enterprise value of $50 billion via the assumption of debt. Chevron expects to be able to annually repurchase $5 billion of its stock in the coming years as a result of higher cash flow. The deal is expected to close during the second half of the year.
HOUSTON — A newly formed partnership between Walgreens Boots Alliance (NASDAQ: WBA) and Chicago-based healthcare provider VillageMD will be opening clinics next to five Walgreens stores in Houston as part of the Illinois-based retailer’s attempt to enter the primary care space. Houston-based Pinpoint Commercial will handle development and construction management for VillageMD. Each clinic will feature multiple exam rooms and education space while also housing multiple primary care doctors. The partnership expects to test the concept in other cities following the rollout of the program in Houston.
HOUSTON — HFF has negotiated the sale of Ashford on the Bayou, a 126,811-square-foot office building located in between Houston’s Energy Corridor and Westchase submarkets. The five-story property was 55 percent leased at the time of sale. Dan Miller and Johnny Kight of HFF represented the seller, RPD Catalyst LLC, in the transaction. Susan Hill and Steve Heldenfels of HFF arranged fixed-rate acquisition financing through RGA Reinsurance Co. on behalf of the buyer, Hartman Income REIT.
FORT WORTH, TEXAS — The Multifamily Group (TMG) has brokered the sale of a two-property portfolio in the Western Hills submarket of Fort Worth. Terrace on Calmont was built in 1960 and offers 127 units, and Calmont Place was built in 1982 and totals 97 units. Paul Yazbeck and Jon Krebbs of TMG represented the seller, DFW-based Bella Asset Management. The buyer was 168 Realty Group.
DALLAS — CIT Group Inc. (NYSE: CIT) has arranged a $14.8 million acquisition loan for Greenville Medical Tower, a six-story medical office building in Dallas. The property is located across the street from the 857-bed Texas Health Presbyterian Hospital Dallas. CIT’s healthcare finance team arranged the funds on behalf of a joint venture managed by Catalyst Healthcare Real Estate and Bain Capital Real Estate.
SUGAR LAND, TEXAS — CBRE has arranged a $14.2 million construction loan and $3.4 million in equity for the development of Riverstone Town Center, a 63,000-square-foot mixed-use project in Sugar Land, a southwestern suburb of Houston. The property, construction of which is underway and expected to last about nine months, will be located within the Cross Creek master-planned development. Jeff Stein of CBRE arranged 94 percent of the capital stack, including the floating-rate construction loan with a regional bank that carried a 76 percent loan-to-cost structure and a 25-year amortization schedule. The borrower was The Marcel Group, a private developer based in The Woodlands.
SAN ANTONIO — Dallas-based Westmount Realty Capital has acquired The Pointe at Ramsgate, a 300-unit apartment community in San Antonio. Built in 1975, the property offers one- and two-bedroom units averaging 682 square feet. Amenities include two pools, a fitness center, outdoor grilling area, resident clubhouse with a full kitchen and a dog park. Westmount will renovate the property’s unit interiors by upgrading the flooring, lighting, cabinetry and plumbing fixtures. Amenity spaces, as well as the signage, paint job and parking lot, will also be refreshed. The property will be rebranded Joule Apartment Homes.
GRAPEVINE, TEXAS — Construction is underway on a new, 150,000-square-foot office in the Fort Worth metro of Grapevine for Paycom, an Oklahoma City-based provider of payroll and human resources software. The groundbreaking ceremony at the 14-acre site was held on Wednesday, April 10, and the company expects to move in to its new space some time in 2020. Paycom plans to accommodate as many as 1,000 employees at the property, the developer of which was not disclosed.
ARLINGTON, TEXAS — Dallas-based STRIVE has brokered the sale of Arkansas Square, a 30,255-square-foot shopping center in Arlington. Surrouding national retailers include Walmart Neighborhood Market, Walgreens, Subway and Dollar General. Sam House of STRIVE represented the seller, a California-based investor, and procured the buyer, a locally based investor. Both parties requested anonymity.