DALLAS — Locally based affordable housing developer and operator Palladium USA has completed Palladium Dallas Stemmons, an 87-unit mixed-income property located at 2440 Southwell Road on the northwest side of the city. The affordable housing units are reserved for renters earning between 30 and 60 percent of the area median income. Amenities include a pool, dog park, hiking trails, conference room, computer lab, kid’s playroom and a fitness center. HEDK designed the project.
By Chip Colvill, executive vice president, Cushman & Wakefield Like many U.S. cities in the post-pandemic world, Houston’s office sector faces a long road to recovery. Historically, office demand follows office job creation — and job growth has been a bright spot of the Houston economy in 2022. Unfortunately, the U.S. economy seems to be slowing, and the outlook remains highly uncertain. Odds of a recession have risen; inflation and wage pressures remain elevated, and higher interest rates are impacting various parts of the economy, including commercial real estate. Throughout the United States as well as in Houston, the correlation between job growth and office demand is tenuous, given that many businesses are still recalibrating workplace strategies to allow remote and hybrid work schedules. However, new jobs — even more flexible, hybrid jobs — will necessitate various types of workspaces, including demand for office and flexible office space. Newer office buildings across Houston have thrived despite the market’s elevated Class A vacancy rate of approximately 26 percent. Each new quarter of data continues to confirm the flight-to-quality trend and the existence of a bifurcated office sector between older and newer office product. Higher-quality and newer office space is dominating as …
AUSTIN, TEXAS — A joint venture between Houston-based Hines and New York-based investment firm Galesi Group will develop a 1.7 million-square-foot industrial park in northeast Austin. The site at the corner of Harris Branch Parkway and Parmer Lane spans 150 acres. Powers Brown Architecture is designing the project, the first phase of which will consist of three buildings totaling 315,000 square feet. A construction timeline was not disclosed.
DALLAS — Chicago-based brokerage firm Triad Real Estate Partners and Worldwide Commercial have arranged the sale of McCallum Communities, a 419-unit multifamily property in North Dallas. The property offers one- and two-bedroom floor plans and amenities such as a pool, fitness center, playground and outdoor grilling and dining areas. A Texas-based private investment firm sold the property to a New Hampshire-based owner-operator for an undisclosed price.
DALLAS — Locally based investment firm WindMass Capital has recapitalized The Elise, a 341-unit apartment community in East Dallas. Specifically, WindMass Capital received a $7.6 million preferred equity investment from Miami-based multifamily owner-operator Pensam and refinanced the property’s existing debt with an undisclosed lender. Built in 1987, The Elise features one- and two-bedroom units and amenities such as a pool, fitness center and onsite laundry facilities.
SAN ANTONIO — Locally based developer Koontz Corp. has broken ground on The Savoy Apartments, a 300-unit multifamily project located at the 10.4-acre site of the former Royal Fiesta movie theater in San Antonio. Savoy will offer one- and two-bedroom apartments, as well as two pools, landscaped courtyards and a dog park. Garcia + Associates is the project architect, and Pape-Dawson is the civil engineer. Koontz Corp. is also serving as the general contractor. Construction is expected to be complete before the end of 2024.
ODESSA, TEXAS — Marcus & Millichap has brokered the sale of a 54,678-square-foot industrial building located at 8100 N. County Road W. in the West Texas city of Odessa. According to LoopNet Inc., the single-tenant property was built on 5.6 acres in 1959 and features 29-foot clear heights. Adam Abushagur and Davis Cagle of Marcus & Millichap represented the seller, a private investor, in the transaction. Additional terms of sale were not disclosed.
FORNEY, TEXAS — Houston-based developer Lovett Industrial has broken ground on Innovation Ridge Logistics Park, a 1.1 million-square-foot speculative project in the eastern Dallas suburb of Forney. The development will consist of an 817,538-square-foot cross-dock facility, a 175,092-square-foot single-load building and a 145,020-square-foot single-load structure. Ware Malcomb designed the project, and Alston Construction is serving as the general contractor. Kimley-Horn is the civil engineer. Simmons Bank provided construction financing, and Cushman & Wakefield is the leasing agent. Completion is slated for September 2023.
CEDAR HILL, COLLEYVILLE AND DENTON, TEXAS — JLL has negotiated the sale of a portfolio of three self-storage facilities totaling 1,743 units that are located in the North Texas cities of Cedar Hill, Colleyville and Denton. The portfolio totals 201,850 net rentable square feet. Brian Somoza, Steve Mellon, Matthew Wheeler, Adam Roossien and Jake Kinnear of JLL represented the seller, a joint venture between Chicago-based investment firm Harrison Street and Advantage Self Storage, in the transaction. The team also procured the buyer, Texas-based investment firm HPI.
MCKINNEY, TEXAS — Southern California-based investment firm Buchanan Street Partners has purchased Jefferson Terrace, a 354-unit apartment community located north of Dallas in McKinney. The unit mix comprises 209 one-bedroom residences, 115 two-bedroom apartments and 30 three-bedroom units. Amenities include a pool, fitness center with yoga and spin studios, clubhouse and resident lounge, game room, dog park, putting green and outdoor grilling and dining areas. Locally based firm JPI developed and sold Jefferson Terrace, which was 94 percent occupied at the time of sale. Tom Kenny of Bellwether Enterprise Real Estate Capital arranged a $56 million acquisition loan through an undisclosed life insurance company on behalf of Buchanan Street Partners.
