DALLAS — Locust Park Capital, a New York City-based investment banking and capital advisory firm, has arranged a $3 million loan for the refinancing of a retail property in Dallas that is net-leased to CVS. Kenneth Lee of Locust Park Capital originated the five-year loan, which carried a fixed 4.95 percent interest rate and a 30-year amortization schedule, on behalf of the undisclosed borrower.
If you want to understand the state of Texas’ retail market as of the first quarter of 2019, just look at the numbers. In terms of jobs, Texas is on track to add 191,000 net new jobs this year, according to the Federal Reserve Bank of Dallas. Much of that growth will be in our major metro markets of Austin, Dallas-Fort Worth (DFW), Houston and San Antonio. In Austin, for example, unemployment stood at an extremely low 2.7 percent as of March 2019. DFW’s rate is a healthy 3.3 percent; Houston’s is 3.7 percent and San Antonio’s is 3.1 percent. All of these rates are considered strong. Population growth is a big driver of retail demand and in terms of this metric, all of our major Texas metros are national leaders. The country has only 11 cities with 1 million people or more within city limits. Three of those — Dallas, Houston and San Antonio — are in Texas. And by 2020, Austin is on track to be the fourth. This healthy job and population growth are big drivers for our retail markets. Plus, near-record-low development at a time of steady demand is driving expanding concepts to lease in existing …
AUSTIN, TEXAS — Cushman & Wakefield has acquired the office operations of office brokerage and management firm Peloton Commercial Real Estate. The acquisition does not affect Peloton’s other offices in Dallas, Fort Worth and Houston. Under the terms of the deal, 40 Peloton employees, including partners Kevin Granger, Brian Liverman and Matt Frizzell, will join Cushman & Wakefield in the firm’s Austin office. Andrew McDonald, president of Cushman & Wakefield’s west region, cited Peloton’s intimate knowledge of a fast-growing market as an asset to C&W’s business, which will continue to serve both startup and established corporate office users and investors.
ROCKWALL, TEXAS — SWBC Real Estate, a multifamily developer with offices in Dallas and San Antonio, has begun construction of The Royalton at Rockwall Downes, a 295-unit multifamily community in Rockwall, a northeastern suburb of Dallas. The Class A property will be situated on 21 acres adjacent to Rockwall’s Technology Business Park near Interstate 30. Floor plans will consist of one-, two- and three-bedroom units averaging 1,006 square feet. Units will feature hardwood-style flooring, stainless steel appliances, walk-in showers and granite countertops in kitchens and bathrooms. Residents can enjoy amenities such as a pool and spa, fitness center with a spin studio, jogging trails, a dog park and a clubhouse. Construction is expected to last 20 months, and leasing is scheduled to begin in June 2020. Plano-based Cross Architects is the project architect. G&A Consultants is the civil engineer, and Jordan Foster Construction is the general contractor.
TULSA, OKLA. — National industrial investment firm Reich Bros. has acquired a 228,000-square-foot heavy manufacturing facility in Tulsa. The property, which is situated on 67 acres near Interstates 44 and 244, formerly served as the main manufacturing and warehousing location in the market for SPX Heat. The facility is also located near Tulsa International Airport and Amazon’s 600,000-square-foot distribution center that is currently under construction. The site comprises a 160,000-square-foot warehouse, a 40,000-square-foot fabrication building and a 28,000-square-foot office building. The seller and sales price were not disclosed.
FRISCO, TEXAS — VanTrust Real Estate, a development firm with five offices across the country, has topped out The Offices Two at Frisco Station, a 210,000-square-foot project located north of Dallas in Frisco. The Class A building is located within the 242-acre Frisco Station mixed-use development that wraps around The Star, a 300-room Omni Hotel and various retail and restaurant establishments. HKS is the project architect, and Manhattan Construction is the general contractor. Kimley-Horn is the civil engineer, and Cushman & Wakefield is handling marketing and leasing. The opening is slated for October.
SUGAR LAND, TEXAS — MARCEL, a privately owned development firm based in The Woodlands, has broken ground on a 68,785-square-foot office and retail property in Sugar Land, a southwestern suburb of Houston. The property, which will be located adjacent to Johnson Development’s Riverstone master-planned community, is slated for a spring 2020 completion. Approximately 41,785 square feet will be dedicated to retail and restaurant uses, while 27,000 square feet will be earmarked for office uses.
Development of new office space in the McAllen-Edinburg-Mission metro area rarely happens on a large scale. This ensures that the market remains steady, if unspectacular, assuming the fundamentals during both expansions and contractions do not change. According to CoStar Group, the metro’s office vacancy rate currently stands at 6 percent, while the average asking rent sits at $20.44 per square foot. Modest vacancy compression and rent growth are forecast for the coming years, with the vacancy and average asking rents expected to hit 4.2 percent and $21.30 per square foot, respectively, by 2023. Throughout the Rio Grande Valley (RGV) region as a whole, office market growth is largely confined to McAllen and Edinburg. There is one signature project — Rio Bank’s new corporate headquarters in McAllen — that will serve as a barometer of how well the market can large additions of quality space. According to local newspaper The Valley Morning Star, the 125,469-square-foot project carries a price tag of $20 million. Construction began in January 2018 and is slated to open either late this year or early in 2020, with the namesake tenant expected to occupy about a third of the space. Per local sources, the property, which is …
FRISCO, TEXAS — Keurig Dr. Pepper will host a groundbreaking ceremony today for its new headquarters campus at The Star, the Dallas Cowboys’ 91-acre hub in Frisco. The company is relocating from its current office in Plano, where approximately 1,100 employees work. The new space will measure roughly 350,000 square feet and is expected to be available for occupancy in 2021, according to local media reports.
DALLAS — CBRE has negotiated the sale of Treymore Eastfield, a 196-unit apartment community located at 2631 John West Road in East Dallas. Utah-based Peak Capital Partners purchased the property from Dallas-based developer Carlton Laprada Ltd. for an undisclosed price. Chris Deuillet and Chandler Sims of CBRE’s Dallas office, along with Jeff Kunitz and Alex Medeiros of CBRE’s Seattle office, brokered the deal on behalf of the seller. According to apartments.com, Treymore Eastfield, which was built in 2001 and was 93 percent occupied at the time of sale, includes amenities such as a pool, fitness center, resident clubhouse and a playground.