THE WOODLANDS, TEXAS — Houston-based brokerage firm Cypressbrook Co. has negotiated the sale of a 39,000-square-foot office building located on Houston’s northern outskirts in The Woodlands. According to LoopNet Inc., the property was built in 1981. John Hornbuckle of Cypressbrook, along with Rick Hazard of Realty Services Group, represented the seller, Woodmark Capital, in the transaction. Will Austin of Bridge Commercial represented the buyer, Milner Properties.
TEXAS CITY, TEXAS — Marcus & Millichap has brokered the sale of Smart Self Storage, an 281-unit facility in Texas City, about 45 miles southeast of Houston. The facility was built in and totals 29,549 net rentable square feet across 204 climate-controlled and 77 non-climate-controlled units. Dave Knobler, Jon Danklefs, Ray Kang and Brad Weigel of Marcus & Millichap represented the seller, a limited liability company, in the transaction. The team also procured the buyer, a publicly traded REIT. Both parties requested anonymity.
SAN ANTONIO — South Carolina-based investment firm Blaze Capital Partners has acquired Sage Stone Oak, a 150-unit active adult community in San Antonio. The property was built in 2020 on a 7.5-acre site on the city’s north side. Units come in one- and two-bedroom floor plans and range in size from 829 to 1,172 square feet. Residences feature granite countertops, individual washers and dryers and private balconies/patios. Amenities include a pool, clubhouse, fitness center, library, media and game room and two dog parks. The seller and sales price were not disclosed.
CONROE, TEXAS — Grace Management has broken ground on The Lakes at Woodhaven Village, a 115-unit active adult complex in Conroe, located about 40 miles north of Houston. The project, which is being developed on a five-acre plot adjacent to the 2,000-acre Grand Central Park master-planned community, is slated for a spring 2024 completion. Project partners include developer Padua Realty Co. and affiliated construction company Dorado Builders, Investwell Architects, Lizabeth Jones Interior Design and Jordan & Skala Engineers.
MANSFIELD, TEXAS — Rethink Healthcare Real Estate, a New York-based investment firm, has purchased a 36,101-square-foot emergency hospital located in the southern Fort Worth suburb of Mansfield. Emerus operates the facility, which opened about seven years ago. Rethink acquired the property in a joint venture with global investment management firm Heitman. An affiliate of First Citizens Bank provided acquisition financing for the deal, which was arranged by BlackBirch Capital.
KINGWOOD, TEXAS — SVN | J. Beard Real Estate has arranged the sale of a 25,669-square-foot office building located at 1710 W. Lake Houston Parkway in Kingwood, about 30 miles north of Houston. The two-story building was originally constructed in 2007. Jeff Beard of SVN | J. Beard Real Estate represented the seller, Woodforest National Bank, in the deal. Bonnie Pfrenger, also with SVN | J. Beard, represented the buyer, an entity doing business as Fire King Holdings LLC.
By Willy Walker, CEO of Walker & Dunlop Fed’s Recent Mistakes In a recent Walker Webcast, “Most Insightful Hour in CRE with Dr. Peter Linneman” part of our ongoing webinar series, renowned economist Dr. Linneman and I discussed his views on monetary policy, inflation and what the economic and commercial real estate landscape looks like for 2023. Throughout the past year, the Federal Reserve has been raising the federal funds rate faster than we have ever seen. This, of course, has led to a drastic increase in the cost of borrowing, the likes of which haven’t been seen in decades. In just one year, the effective federal funds rate has increased from 0.08 percent in February 2022, all the way to a target range of 4.5 to 4.75 percent in February 2023. This has led many to believe that the Fed has considerably overshot where rates should be since the market wasn’t given ample time to react to each rate hike. This rapid increase in interest rates has reduced lending activity in terms of new loans, leading to a sharp decline in demand for real estate, as well as major price corrections. Additionally, the rapid rise in borrowing costs has …
GARLAND, TEXAS — Dallas-based Anthem Development has received $63 million in construction debt and joint venture equity for a 340-unit multifamily project in Garland, a northeastern suburb of Dallas. The community, named Lofts iThirty, will consist of five four-story buildings with two pools, two fitness centers, a pet park, coffee bar, game room and outdoor kitchens. Construction is set to begin this summer and to be complete in 2025. Los Angeles-based Nova Capital arranged the financing through Bank OZK and secured an undisclosed, institutional investment firm as the joint venture equity partner.
FORT WORTH, TEXAS — Mississippi-based developer EastGroup Properties has broken ground on a three-building, 351,000-square-foot industrial complex in North Fort Worth. The project represents Phase II of Basswood 35, a seven-building, 882,000-square-foot development. The buildings will span 89,741, 130,750 and 130,750 square feet and feature front- and rear-load configurations. Method Architects designed the project, and Talley Riggins is serving as the general contractor. Halff Associates is the civil engineer, and NAI Robert Lynn is the leasing agent. Construction is slated for a fourth-quarter completion.
MONTGOMERY, TEXAS — Northmarq has arranged a loan of an undisclosed amount for the refinancing of Town Creek Storage, a 251-unit self-storage facility in Montgomery, about 60 miles north of Houston. The facility was built in 2017. Matt Franke and Michael Borden of Northmarq arranged the fixed-rate loan, which was structured with a five-year term and a 25-year amortization schedule. The borrower and direct lender were not disclosed.