PLANO, TEXAS — Florida-based investment firm CTO Realty Growth Inc. (NYSE: CTO) has purchased The Shops at Legacy North, an approximately 236,000-square-foot office and retail center in Plano, for $72.5 million. The property was built on 12.7 acres in 2007 and was 83 percent leased across its office and retail components at the time of sale. The retail portion of the property consists of 121,496 square feet and houses tenants such as Capital Grille, Seasons 52, Mexican Sugar, Benihana and Ra Sushi. The office component spans 114,936 square feet and is home to users such as Unum, Technologent, Timmons Group, BRP and Shift Digital.
AUSTIN, TEXAS — An affiliate of Miami-based One Real Estate Investment has acquired Lotus Village, a 222-unit apartment community in North Austin. Built in 2012, the property offers one-, two- and three-bedroom units with hardwood floors, individual washers and dryers and private balconies/patios. Communal amenities include a fitness center, clubhouse, business center, picnic area and a pet play area. Brad Williamson of Berkadia arranged acquisition financing through LoanCore on behalf of the buyer. The seller was undisclosed.
By Ben Reinberg, CEO, Alliance Consolidated Group of Cos. Healthcare real estate has proven to be one of the most resilient asset classes, able to bend but not break in the midst of global economic upheaval. Investors have become keenly aware of this fact, perhaps even more so during the latest downturn brought on by COVID-19. According to the 2021 U.S. Medical Office Trends report by CBRE, year-over-year investment volume for medical office properties fell 12.7 percent between the fourth quarters of 2019 and 2020. However, that’s far better than the 27.6 percent, 40.2 percent and 42.8 percent declines in investment sales volume that were respectively felt by the multifamily, office and retail sectors. Medical office buildings (MOBs) even beat out the white-hot industrial sector, which saw a 15.9 percent fall in annual investment volume last year. For developers eager to satiate this investor appetite for medical real estate, what is it that experienced buyers and newcomers to the space actually want in a healthcare asset? Ultimately it comes down to three things: location, size and use of space. Go Where the People Go “If you build it, they will come” may have worked for Kevin Costner’s cornfield baseball diamond, …
DALLAS — Locally based developer Palladium USA has broken ground on Palladium Simpson Stuart, a 270-unit mixed-income project in South Dallas that is valued at $55 million. About 90 percent (243) of the units will be reserved for households earning between 40 and 80 percent of the area median income, while the remainder will be rented at market rates. Amenities will include a resort-style pool, dog park, trails, conference room, computer lab, kids’ playroom and a fitness center. HEDK is the project architect, and BBL Construction is the general contractor. PNC Bank provided construction financing for the project, and the Texas Department of Housing and Community Affairs issued 4 percent Low-Income Housing Tax Credit equity. The first units are scheduled to be delivered in October 2022.
GRAND PRAIRIE, TEXAS — New York City-based Dwight Capital has provided a $45 million HUD-insured loan for the refinancing of Prairie Gate Community, a 264-unit multifamily property in Grand Prairie, located roughly midway between Dallas and Fort Worth. The property was built on 14.5 acres in 2019 and consists of eight three-story residential buildings, a clubhouse/leasing office and 15 garage buildings. Amenities include a pool, fitness center, media center, game room, dog park, playground and walking trails. Josh Sasouness of Dwight Capital originated the financing. The borrower was undisclosed.
HUMBLE, TEXAS — Montgomery, Texas-based brokerage firm West Star Marketing Group has arranged the sale of Airport Commerce Park, a 305,000-square-foot office flex property in the northern Houston suburb of Humble. The property is situated on 16.3 acres at 5950 Sam Houston Parkway. Fort Worth-based Fort Acquisitions purchased the property from Houston-based Redhorn Capital for an undisclosed price. Tom Clarkson of West Star brokered the deal.
LUBBOCK, TEXAS — Baltimore-based Continental Realty Corp. (CRC) has purchased South Plains Crossing, a 144,241-square-foot retail center in Lubbock, for $18.2 million. Anchor tenants at the property, which was built on 12 acres in 1996, include Hobby Lobby (70,000 square feet), alcoholic beverage providers Spec’s Wine, Spirits & Finer Foods (33,000 square feet) and Vision Mart (10,000 square feet). The seller was a partnership between Atlanta-based RCG Ventures, LLC and New York City-based DRA Advisors LLC. South Plains Crossing was 94 percent leased to 11 tenants at the time of sale.
GRAND PRAIRIE, TEXAS — Bradford Commercial Real Estate Services has negotiated the sale of Parkway Business Center, a 73,600-square-foot flex property in Grand Prairie. Shane Benner and Josh Meraz of Bradford represented the seller, a California-based entity doing business as WC Parkway Business Center LLC, in the transaction. Rich Young Jr. of Rich Young Cos. represented the buyer, a Los Angeles-based limited liability company. Parkway Business Center was 97 percent leased at the time of sale.
AcquisitionsContent PartnerData CentersDevelopmentFeaturesIndustrialMidwestNAINortheastSoutheastTexasWestern
From Hype to Hyperscalers: NAI Global Discusses Trends for Data Centers
Data centers have exploded in importance over the last year and a half. Kevin Goeller, principal, NAI KLNB, has over 21 years of experience in the field of data center development, sales and leasing, but says that, lately, exponential change is driving demand in this asset class. He spoke to REBusinessOnline about the booming need and limiting factors for data centers. REBusiness: Tell us about the sudden, increased demand for data centers. What amount of this demand is due to the pandemic driving people to work from home? What amount of the demand is here to stay? Goeller: Prior to the pandemic, we were already in an upward curve because of the added disciplines of 5G and edge data centers contributing to the already competitive growth of the hyperscalers and multitenant data centers. Data center development didn’t have the interest from institutional investors that it does today; these assets were just starting to get these institutions to chase them as a real estate discipline. Fast forward to the pandemic, which added Zoom, Microsoft Teams and other video conferencing and work-from-home needs. These put additional pressure on an already pressurized discipline, an asset class already trying to adapt and grow. REBusiness: …
AUSTIN, TEXAS — Developer Cypress Real Estate Advisors (CREA) has completed shell construction at Eastlake at Tillery, a two-building, 172,000-square-foot office project in East Austin. The development at the corner of East Cesar Chavez Street and Tillery streets is now ready for tenant build-outs. Delineate Studio served as the project architect, and Harvey Cleary was the general contractor. AQUILA Commercial has been tapped to lease Eastlake at Tillery. Construction of the building, which offers amenities such as a prep kitchen, fitness center with locker rooms and multiple outdoor workspaces, began in December 2019.