Texas

TD Bank: Construction Delays have Bolstered the Multifamily Market

by Jaime Lackey February 23, 2019

It may sound counterintuitive, but Gregg Gerken, head of U.S. commercial real estate at TD Bank, believes some of the challenges the multifamily development market has faced have actually benefited the market. He specifically references labor shortages and construction delays. There were concerns in some areas that too much product might come online too fast, hampering absorption and rent growth. But the recent speedbumps have allowed the pipeline to even out a bit, staggering the delivery of new units and preventing overbuilding. Demand still outpaces supply in many markets, which has led to average vacancy rates of around 5 percent and healthy rent growth. Both developers and renters can look forward to new product delivering at a steady pace in 2019. Watch the video to hear takeaways from MBA CREF and 2019 predictions from Gerken.

February 23, 2019

Leasing Activity Texas

Keurig Dr Pepper to Relocate to 350,000 SF Office Headquarters at The Star in Frisco

by Taylor Williams February 22, 2019

FRISCO, TEXAS — Keurig Dr Pepper (NYSE: KDP) will relocate its Texas headquarters from Plano to a 350,000-square-foot office space at The Star in Frisco. The build-to-suit property will serve as the company’s second headquarters alongside its current office in Burlington, Mass. Approximately 1,100 employees work in the current Plano location, which KDP has occupied since 1998. The new space is expected to be available for occupancy in 2021.

February 22, 2019

Orgill-Distribution-Center-Kilgore-Texas

Acquisitions Industrial Texas

HFF Brokers Sale of 550,000 SF Industrial Facility Leased to Orgill in Kilgore, Texas

by Taylor Williams February 22, 2019

KILGORE, TEXAS — HFF has brokered the sale of a 550,000-square-foot distribution center leased to Orgill, the world’s largest independent hardware distributor, in the eastern Texas city of Kilgore. Built in 2007 on 65.2 acres, the property is currently being expanded by almost 329,000 square feet with completion expected in mid-2019. Adam Herrin and Stephen Bailey of HFF represented the seller, Elysian Partners LLC, in the transaction.

February 22, 2019

Leasing Activity Office Texas

CBRE Hana to Open Coworking Space Within 500,000 SF Office Building in Dallas

by Taylor Williams February 22, 2019

DALLAS — CBRE Hana, the newly formed coworking subsidiary of the Los Angeles-based full-service real estate firm, will open its first space within PwC Tower at Park District, a 500,000-square-foot office building in Dallas. The space will offer private office suites, conferencing facilities and event space, and the location offers walkability to the Uptown and Arts District areas, as well as Klyde Warren Park. The space is expected to open in mid-2019.

February 22, 2019

Industrial Leasing Activity Lee & Associates Texas

Lee & Associates Negotiates 55,232 SF Industrial Lease in Metro Dallas

by Taylor Williams February 22, 2019

CARROLLTON, TEXAS — Lee & Associates has negotiated a 55,232-square-foot industrial lease at 2080 McDaniel Drive in the northern Dallas metro of Carrollton. Nathan Denton of Lee & Associates represented the tenant, Buzzballz, a provider of alcoholic beverages, in the lease negotiations. Gil Stroube and Michael Peinado of Lincoln Property Co. represented the landlord, Prologis.

February 22, 2019

Loans Multifamily Texas

BMC Capital Arranges $6.1M Acquisition Loan for DFW Area Apartments

by Taylor Williams February 22, 2019

DALLAS — Regional lender and intermediary BMC Capital has arranged a $6.1 million acquisition loan for an undisclosed retail property in the Dallas-Fort Worth (DFW) area. The non-recourse loan features a 4.7 percent fixed interest rate, a 75 percent loan-to-value ratio, a 10-year term and a 30-year amortization schedule. The borrower was not disclosed.

February 22, 2019

Industrial Market Reports Texas Texas Market Reports

E-Commerce, Distribution Users Spar for Labor

by Taylor Williams February 22, 2019

Industrial users in Texas, particularly e-commerce firms operating out of large-format distribution centers, are finding it harder and harder to staff their facilities with experienced, talented workers. Development of both speculative and build-to-suit warehouses and distribution centers has been on fire in major Texas markets over the last several years, driven by an abundance of land, exceptional infrastructure and climbing populations. According to CoStar Group, Dallas-Fort Worth’s (DFW) industrial supply grew by 3.5 percent, or roughly 30 million square feet, in 2017. That figure represents the highest single-year inventory growth in more than a decade. Approximately 21 million square feet of new space hit the market in 2018, and for 2019, CoStar forecasts that nearly 24 million square feet of product will be delivered. Houston’s supply growth has been tamer, averaging about 12.2 million square feet annually between 2015 and 2018. But the market is projected to add another 13.2 million square feet this year, per CoStar. With a couple exceptions, more than 90 percent of the new product delivered in DFW and Houston in each year between 2015 and 2018 was distribution space. The distribution building booms in Texas’ two biggest markets have occurred in the face of escalating …

February 22, 2019

Finance Insight Industrial Loans Midwest Multifamily Northeast Southeast Texas Video Western

Bellwether: Borrowing Continues as Confidence Continues

by Jaime Lackey February 21, 2019

There may be uncertainties within the market and larger economy, but Tom Turnage, vice president of Bellwether Enterprise, believes much of the activity on which 2018 hung its hat will continue. Fannie Mae and Freddie Mac are coming off record years, as are companies like Bellwether. Turnage believes the multifamily and industrial markets will remain active…but so will competition. This means borrowers and lenders must approach this year with creativity and flexibility. Both will be key to success in this lending environment. Watch the video for insights from Turnage on the lending landscape in the coming year.

February 21, 2019

Finance Insight Loans Midwest Northeast Southeast Texas Western

Berkadia: 2019 Will be a Year of Growth, Resilience

by Jaime Lackey February 21, 2019

Ernie Katai, executive vice president and head of production, and Christopher Philipps, head of small loan originations at Berkadia, believe commercial real estate lending activity will continue with steady momentum through 2019. Katai was admittedly nervous about last year’s interest rate increases, but was happy to see his worry was for naught as the commercial market took it in stride. In Katai’s experience, investors have remained active. Most are willing to accept lower returns, which won’t keep them from buying in 2019. Philipps is focused on future growth. He notes Berkadia’s intention to utilize new small balance loan programs from Fannie Mae and Freddie Mac to offer a wider spectrum of resources to current clients, while introducing a new pool of borrowers to the firm. Watch the video for more insights from Katai and Philipps.

February 21, 2019

Development Multifamily Texas

SWBC to Build 300-Unit Apartment Community in Buda, Texas

by Taylor Williams February 21, 2019

BUDA, TEXAS — SWBC Real Estate LLC, a multifamily developer with offices in Dallas and San Antonio, has acquired land in the central Texas city of Buda for the development of Royalton at Sunfield, a 300-unit multifamily community. The average unit size at the Class A property will be 908 square feet across one-, two- and three-bedroom residences. Amenities will include a pool, sunning decks, outdoor grilling areas, fitness center, dog park and package lockers. SWBC plans to begin construction, which should last about 20 months, in May. Cross Architects is handling design, and Kimley Horn is the civil engineer.

February 21, 2019

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