On account of the diverse local economy and a tech employment base in high demand by global firms, the Austin industrial market has realized a recovery that should sustain continued rent growth with a healthier inventory delivery schedule over the next 24 to 36 months. Austin has added nearly 105,000 jobs during the economic recovery through May 2013, bringing total employment 9 percent above its previous peak in late 2008. The unemployment rate, at only 5.4 percent in May, is more than 200 basis points below the national average of 7.6 percent. The broad tech sector expansion, including new facilities underway for Apple and Samsung, and the strong housing market are driving robust growth in construction employment, while all three areas represent key supports for industrial tenant demand. On the heels of record net absorption in 2012 of 2.1 million square feet — an annual total not experienced in more than 15 years — industrial vacancy in Austin has fallen to 12.5 percent, a low not seen since the market’s peak in 2007. An important differentiating factor for the market today versus the 2007/2008 cycle is the limited amount of construction. When vacancy rates fell to 11 to 12 percent …
Texas
CONROE, TEXAS — Jones Lang LaSalle (JLL) has brokered the sale of Montgomery Plaza, a shopping center totaling 304,867 square feet in Conroe, approximately 40 miles north of Houston. Academy Sports & Outdoors, Big Lots, Conn’s Appliances and Petco are among the tenants of the property, which was 95 percent leased at the time of the transaction. George Cushing and Wendy Vandeventer of JLL represented the seller, Weingarten Realty. American National Insurance Co. purchased the asset.
CORPUS CHRISTI, TEXAS — Institutional Property Advisors (IPA) has brokered the sale of Baypoint Resort, a 350-unit multifamily property in Corpus Christi. The complex, built in 1998 on 30 acres, offers one- and two-bedroom floor plans and amenities such as volleyball courts, two swimming pools, a business center and fitness center. Located at 1802 Ennis Joslin Road, the apartments are in close proximity to Corpus Christi Bay. Will Balthrop and Scott Lamontagne of IPA, a multifamily brokerage division of Marcus & Millichap, represented the seller, an East Coast REIT. An acquisition firm based in Austin purchased the property.
ADDISON, TEXAS — Powell Realty Advisors has brokered the sale of Airport Plaza, a 30,660-square-foot property with multi-tenant flex space near Addison Airport, approximately 15 miles north of downtown Dallas. The building, which was 73 percent leased at the time of closing, features bay depths of 50 and 60 feet, grade-level rear doors and 14-foot clear heights. Located at 4500 Ratliff Lane, the property allows for easy access to both Addison Road and Dallas North Tollway. Robert Powell of Powell Realty Advisors represented the buyer, 3MN LLC, in the transaction. Dan Avnery of Retail Realty represented the seller, Indus Partners.
SUGAR LAND, TEXAS — Q10 | New York Realty Advisors (Q10NY) has secured a $4.1 million first mortgage loan for a freestanding location of Best Buy in Sugar Land, approximately 23 miles southwest of downtown Houston. The property, owned and managed by a Midwest real estate family, is located at 16980 Southwest Freeway. The terms of the loan include 10 years at a fixed interest rate of 4.75 percent with a borrower option for a five-year extension. Jeanne Cronin of Q10NY originated and placed the loan through a Texas bank.
HOUSTON — Mesa West Capital has provided alliantgroup with a nearly $85 million non-recourse first mortgage for the purchase of 3009 Post Oak Blvd., a recently completed 302,000-square-foot office building in the Galleria submarket of Houston. alliantgroup, which has pre-leased 125,000 square feet of the facility, purchased the property from Skanska Commercial Development. The building, which is pre-certified LEED Platinum, will also house tenants Datacert, Skanska and Becker Financial. David Aaronson and John Fenoglio of CBRE arranged the financing through Mesa West’s Core Debt Fund.
TYLER, TEXAS — Contractor Hill & Wilkinson has broken ground on The Village at Cumberland Park, a new 750,000-square-foot retail project of developer The Retail Connection. The property is located at the corner of Loop 49 and South Broadway in Tyler, slightly less than 100 miles east of Dallas. National brands such as Bed Bath & Beyond, TJ Maxx, Petco, Studio Movie Grill and Osh Kosh have already signed leases at the development. Hodges & Associates is serving as architect on the project, which is expected to open in summer 2014.
FORT WORTH, TEXAS — KDC, a development and investment firm headquartered in Dallas, has completed a broadcasting and multimedia news facility totaling 75,000 square feet at The CentrePort Business Park in Fort Worth. NBC 5/KXAS-TV will occupy the property, which will operate on a 24-7 basis and features an on-site fitness facility and cafeteria. Corgan Associates Inc. acted as project architect, and Adolfson & Peterson Construction worked as general contractor. Gary Collett and Matt Heidelbaugh of Cushman & Wakefield provided brokerage services.
SHERMAN, TEXAS — BMC Capital has arranged a $4.3 million loan for Post Oak Crossings, a 176-unit multifamily property in Sherman, approximately 10 miles from the state border with Oklahoma. Located at 3301 Heritage Parkway, the apartment community offers one- and two-bedroom floor plans as well as amenities such as a swimming pool, clubroom and spa. The terms of the loan include a five-year term at a fixed rate of 3.9 percent and a 25-year amortization schedule. Brian Gramlich of BMC’s Dallas office arranged the loan through one of the firm’s correspondent banking relationships.
PLANO, TEXAS — NorthMarq has arranged a $13.9 million refinancing loan for Preston Creek Shopping Center, a 79,770-square-foot neighborhood retail center in Plano. The property comprises six buildings located at 8300-8412 Preston Road. Current tenants include Pei Wei Asian Diner, Mi Chula’s Good Mexican and Ultimate Pilates. NorthMarq arranged the non-recourse, fixed-rate loan through a CMBS lender.