Montgomery County Home Building Still Strong

The U.S. Commerce Department reported Thursday that construction was started on 1.353 million new homes and apartments last year, down 24.8 percent from 2006. It was the second biggest annual decline on record, exceeded only by a 26 percent plunge in 1980, a period when the Federal Reserve was pushing interest rates to post-World War II records in an effort to combat an entrenched inflation problem.

Many economists believe that the current slump in housing will rival the dive in the late 1970s and early 1980s, when housing construction fell for four straight years before beginning to recover after the severe 1981-82 recession. For December, construction fell by a bigger-than-expected 14.2 percent.

In Conroe, where new home construction can be seen in numerous areas around the city, building permits for 2007 were down 29 percent from 2006. The total permits for 2006 was 854, while 607 permits were issued for 2007, according to data provided by the city's Community Development department.

The lower numbers are in fact part of the seasonal ebb and flow of home construction, according to a city official.

"Homebuilders will tell you there's a downward trend," Guy Andrews, director of community development said. "What impacts that is speculative. It's stronger than in other parts of the country. We've seen a drop in the number of permits since July, but it's cyclical. The housing market is so seasonal.
"I think it's coming back once people figure out we're not the rest of the country. Houston is still the number one economic market in the nation."
The construction ills in the rest of the country haven't spread to Montgomery, where real estate values are holding strong and construction continues without interruption.
"There's no housing glut in the area," said Norm Frank, president of the Montgomery Industrial Development Corporation. "We anticipate a good year ahead."
Hillary Dumas, vice president of LeFco, the developer of Buffalo Springs, agreed.
"Texas won't be impacted the way areas on the coasts will," she said, referring to the faltering housing market. "This area has very little of the sub-prime, lower end housing that is causing surplus inventory and a glut in other markets."
Indeed, Buffalo Springs has no inventory of finished homes available at the moment. Three houses were available a few months ago, but all sold within 60 days. Several firms are active in the community building houses, but all are custom homes for landowners, according to Dumas.
"There has been a lot of speculative building in other areas of the country which contributes to an oversupply," she said. "That is not an issue here."
The drop in construction in December was bigger than economists had been expecting and reflected weakness in all parts of the country. Housing construction fell by 30.8 percent in the Midwest and was down 25.8 percent in the Northeast and 19.6 percent in the West. The decline in the South was a smaller 3.3 percent.
Economists said the weakness showed that the housing correction was getting worse since the turmoil in financial markets hit in August.
"Builders have finally thrown in the towel," said Ian Shepherdson, chief U.S. economist at High Frequency Economics. "This is a precondition for recovery as it will eventually reduce the inventory overhang. But there is a long way to go."
For December, housing starts totaled 1.006 million units at an annual rate. In an ominous sign for the future, applications for building permits fell by 8.1 percent to an annual rate of 1.068 million units. That marked the seventh consecutive monthly decline and reflected the fact that builders have been slashing production plans in an effort to deal with a glut of unsold homes.
Many economists believe the housing sector will remain weak through this year before starting to stage a rebound in 2009.
Brad Meyer can be reached at bmeyer@hcnonline.com.

600,000 SF Retail Center Coming to Conroe

Teas Crossing

Once built, Teas Crossing will encompass 58 acres and more than 600,000 square feet of shopping space at Interstate 45 and FM 3083. One half-million square feet of the retail space will be located at the northwest corner of the intersection, with the remaining 100,000 square feet to be built on a 9-acre site just north of Conroe Marketplace.

While Read King of Houston will oversee construction and leasing of the $82 million project, the Conroe firm of Angel McIver Interests LP - the original landowner - was responsible for establishing the joint venture, said Jeff Read, company co-principle.

"We've had a relationship with them (Angel McIver) for several years," he said. "This is our first joint venture with them. I anticipate we'll be working with them on several projects after this, including a couple in Montgomery County."

Read King developed the Research Plaza shopping center in The Woodlands, but Teas Crossing will be the largest multi-tenant retail development in the company's 15-year history, Read said. With the presence of the Conroe Marketplace, which opened earlier this year, the I-45 and FM 3083 location will feature more than one million square feet of retail space, rivaling the amount of retail square footage in The Woodlands Mall.

"It will become one of the most powerful regional intersections in Montgomery County," Read said. "We're looking forward to working with the Conroe community and developing a quality project that is indicative of the Conroe market."

Although Read King has not submitted its development plans with the city of Conroe or has yet to sign a lease agreement with any retailers, Jeff Read anticipates tenants will start to occupy the center sometime during the first quarter of 2008. He said the company is in negotiations with Dallas-based JC Penney to anchor the development by moving into a 103,500 square foot building.

"We hope to have an agreement very soon," he said.
Read said Angel McIver initially offered his company to participate in the Conroe Marketplace project in 2004. But Read King passed on the joint venture that eventually involved Gulf Coast Commercial of Houston.

Read King got a second chance with Teas Crossing, "and that's when we pounced on it," Read said.

"We had evaluated the market for some time, but we thought there wasn't enough retail demand," he said. "What Gulf Coast did with Conroe Marketplace convinced us Conroe and the areas north, west and east of the city are viable retail areas."
Michael McIver said Read King's decision to pass on the first project did not disqualify the company for getting another opportunity.

"We watched them and liked the way they work," McIver said. "We do not like to make hasty moves. We wanted to get the (Conroe) Marketplace up and we wanted to see the response of retail tenants."

That response, McIver said, has been "considerably better" than anticipated.
"We understand Ross (a Marketplace tenant) broke sales records," he said. "The advent of connecting FM 3083 across I-45 to (Texas) 105 has completely revamped that corridor. That lends itself to a better traffic situation."

McIver said Bleyl and Associates will serve as the project engineer, while Randy Roan Construction has been hired to complete the initial landing clearing.
"We told Read King to use local people for obvious reasons," Iver said. "As fine as the people are in Houston, you've got good, experienced companies in the Conroe area."
In addition to Teas Crossing, McIver said his company will continue to develop the 152 acres it owns between I-45 and North Frazier and south of FM 3083. Plans could include more retail, some medical and some high-end multi-family development, he said.
Conroe City Administrator Jerry McGuire termed the Teas Crossing project as "outstanding" and added that it "validates the growth trend" in Conroe, particularly on the city's north side. Montgomery County Judge Alan B. Sadler said the construction of one million square feet of retail space essentially creates a shift in which "central Conroe" moves to the FM 3083/I-45 intersection.
"I think it's one of the most exciting projects to ever hit Conroe," he said.
Howard Roden can be reached at hroden@hcnonline.com.

More High Paying Jobs for Conroe

Grant Prideco Inc is in the process of consolidating four of its U.S. drill bit manufacturing facilities into a new facility in Conroe, Texas.

Read full story ...

Search for Jobs at Grant Prideco

Conroe Tops 50,000 Residents

The fourth annual Conroe "State of the City Report" in today's Courier outlines the accomplishments of the city in 2007 and the optimistic outlook council members and city employees have for 2008.

It lists the new businesses and opportunities expected to arrive in town this year and gives numbers on the city's budget and tax revenues.
"This report shows that we are a very transparent city and we want every citizen to know where the tax dollars are going," Mayor Tommy Metcalf said. "We're growing at an average of 10 percent a year and, at the same time, we are reducing taxes."
According to the report, 46 new subdivisions were started in the past four years, contributing to the unofficial population of more than 50,000. If the rate of growth continues, by 2010 more than 60,000 people may call Conroe home.

Even though more people moving to the area, crime has dropped the past two years. Robberies decreased by 54 percent, assaults went down 34 percent, larcenies dropped 19 percent and burglaries declined 14 percent, Metcalf states in the report.
As the population grew, so did the city's budget and the quality of life - except, of course, when it comes to traffic, City Administrator Jerry McGuire said.
"Growth often puts a strain on our roadway system, but everyone has to put up with it and the end result is better," McGuire said. "With more outside companies choosing to make Conroe their headquarters, more jobs are created, which brings new families, which means more homes are built and more retail businesses come, giving residents more choices."

During the last two years in the Conroe Industrial Park, more than 120 acres have been sold to companies that have brought 1, 483 additional jobs and made $456 million taxable improvements, according to the Greater Conroe Economic Development Council.

Commercial tax has contributed to the city's growing tax revenue. Between 2005 and 2007, tax revenues increased by $5.6 million. During that time, however, the property tax rate was reduced each year, McGuire said.
"We have every intention, if the revenues continue to increase, to reduce the property taxes for homeowners this year," Metcalf said.
While city officials focus on growth, they are also concentrating efforts on restoring downtown Conroe and making it a center for entertainment.
"I think a viable downtown gives people a sense of community and a gathering place," McGuire said. "We want to celebrate the history of our area."
Upcoming projects that city officials are looking forward to this year include the addition of Teas Crossing, a retail center that will include a J. C. Penney anchor store; the opening of ReedHycalog, which will employ more than 500 employees; and the completion of the renovated Del Lago resort, which is expected to attract thousands of visitors.

The Owen Theater is expected to open in downtown Conroe and will be home to The Crighton Players.

"We're very excited about where Conroe is going and the vision the mayor and council have for the city 20 to 25 years down the road," McGuire said.
For information about future Conroe plans, visit the city's website, www.cityofconroe.org, and check out the comprehensive plan, available under the Community Development section.
Lucretia Fernandez can be reached at lfernandez@hcnonline.com

Houston - Average and median single-family home sales prices are on the rise

November 2007 Sales
November Housing Numbers Show Houston Largely Resistant To National Effects Of Market Downturn
Average and median single-family home sales prices are on the rise

HOUSTON — (December 18, 2007) — While much of the nation wrestles with the persistent effects of the real estate market downturn, Houston continues to hold its own when it comes to home sales and prices as the end of 2007 nears. The latest monthly housing figures compiled by the Houston Association of REALTORS® (HAR) reflect comparative stability, with area sales and pricing performance still outpacing that recorded in 2005.
Total property sales for November registered 5,772, representing a modest 10.2 percent decline compared to November 2006. Properties sold during the month totaled $1.1 billion, a 4.7 percent decrease compared to last year’s $1.2 billion in November sales. Additionally, the average single-family home price for November rose 6.4 percent from last November to $205,815, while the median home price for a single-family home increased 1.7 percent to $150,000.
“The drop in property sales, while disappointing, is not unusual at this time of year and is far from the loud thud being heard in markets outside Texas,” said Rob Cook, HAR Chairman and broker/owner of Robert D. Cook Properties. “We’re encouraged by the ongoing increase in average and median home prices, which demonstrates that Houston’s real estate market has staying power through the subprime debacle and continues to offer a sound investment opportunity as we head into 2008.”
November Monthly Market Comparison All listing categories combined, Houston’s overall housing market in November saw continued mixed results. While there were increases in both average and median sales prices on a year-over-year basis, both total property sales and total dollar volume declined. Total year-to-date property sales were down 3.9 percent.
The number of available homes (active listings) at the end of November was 52,217 properties, which was an increase of 13.3 percent versus last November and the 17th month with a year-over-year increase, after 10 consecutive previous declines. The figure was a decrease of 1,190 properties from last month, reflecting a continued slowdown in the pace of new listings. This is a positive indicator for the market, as lower inventories generally support pricing levels.
Month-end pending sales – those listings expected to close within the next 30 days – reached 4,159, which was down 5.7 percent from last year and signals another likely decline in sales next month after recent volatility in sales figures. The month’s inventory of single-family homes for November came in at 6.1 months, a slight decline from October’s 6.2-month figure and the lowest level Houston recorded since May. This compares to the November 2006 single-family homes inventory of 5.3 months.
ALL CATEGORIES
NOVEMBER 2006
NOVEMBER 2007
PERCENT CHANGE
Total property sales
6,428
5,772
-10.2%
Total dollar volume
$1,201,441,692
$1,145,032,526
-4.7%
Average single-family sales price
$193,504
$205,815
+6.4%
Median single-family sales price
$147,500
$150,000
+1.7%
Total active listings
46,071
52,217
+13.3%
Total pending sales
4,412
4,159
-5.7%
Months inventory*
5.3
6.1
+14.5%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single family Homes UpdateThe overall median price of single-family homes in November was $150,000, an increase of 1.7 percent compared to November 2006. The figure represents the eighth increase of the year and follows two consecutive flat months. The average sales price for single-family homes was $205,815 during November, up 6.4 percent versus the same period last year and the eleventh consecutive increase of 2007. It was the highest figure since August.
Houston’s current median price of $150,000 is 27.1 percent less than the national median price, which reached $205,700 in October, according to statistics released by the National Association of REALTORS®. These data continue to demonstrate the higher value and lower cost of living afforded to Houstonians.
Additionally, total sales of single-family homes in Houston in November came in at 4,863, which was 9.0 percent lower than November 2006 and the second biggest decline of 2007, though significantly less than the 16.4 percent drop observed between September 2006 and September 2007. Year-to-date sales of single-family homes remain negative this month, down 3.0 percent versus the first 11 months of 2006. The National Association of REALTORS® currently forecasts a 12.5 percent year-over-year decline in national home sales, however the Houston market is expected to fare much better.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In November 2007, existing single-family home sales totaled 3,965, which was a 9.4 percent decrease from November 2006. The median sales price for existing homes in the Houston area was $139,900, up 2.0 percent compared to the same period last year. The average sales price of $191,173 for the month represented an increase of 5.7 percent from last year’s level.
The Days on Market statistic for November held steady at 81, which was higher than the 76 days in November 2006, but remains historically low and indicates that the homes that are selling are doing so fairly quickly.
Townhouse/Condo UpdateAt $131,290, the median price in the townhouse/condominium segment in Houston rose 8.1 percent from November 2006 to 2007 and remained relatively flat compared to October 2007. The average sales price for which a townhouse or condominium sold in the greater Houston area was $162,371 last month, which was a 3.6 percent year-over-year increase.
Additionally, there was a slight downturn in the number of townhouses and condominiums that sold in November. In the greater Houston area, 489 units were sold last month versus 548 properties in November 2006, translating to a 10.8 percent decrease in year-over-year sales.
Houston Real Estate Milestones in November
On pace for second best year on record;
Second best November ever for single-family home sales;
Highest average single-family sales price for month of November.

The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 26,000 Realtors throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 53,000 properties may be found on the Internet at http://www.har.com.The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)Founded in 1918, the Houston Association of Realtors® (HAR) is a 27,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual membership trade association in Houston, as well as the second largest local association/board of Realtors® in the United States.

VillaSport Athletic Sport and Spa comes to The Woodlands

Here it comes: A 87,000-square-foot sports behemoth. On more than 12 acres. A gym, aquatic and athletic center, kiddie playground, and spa, all wrapped into one . . . membership fee. The Wal-Mart of health clubs — without the low prices, of course.

Read full story here: http://swamplot.com/spa-fitness-category-killer-stalks-the-woodlands/2007-11-13/

RECON

RECON
Real Estate Center Online News
September 14, 2007
Copyright 2007. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.

HELP FOR VETERANS

SAN ANTONIO (San Antonio Express-News) – The Veterans Affairs Department will build a new "polytrauma" rehabilitation center on the Audie Murphy VA Hospital campus.

The $67 million center is one of five nationwide designed to provide extensive rehabilitative care to veterans treated for severe injuries to more than one organ system.

The new center at Audie Murphy will work with Brooke Army Medical Center, Wilford Hall Medical Center, University Hospital, the University of Texas Health Science Center and the U.S. Army Institute of Surgical Research.

Texas is home to 1.7 million military veterans, with 180,000 veterans living in the area, according to VA statistics.

Construction on the new center is expected to begin in fiscal year 2008, which begins Oct. 1.

H-E-B REMODELING OLD ALBERTSON'S

AUSTIN (Austin American-Statesman) – H.E. Butt Grocery Company (H-E-B) will remodel three Albertson's grocery stores, adding new departments and services and up to 150 jobs.

In early November, San Antonio–based H-E-B will begin renovating the stores on Gattis School Road in Round Rock, in West Lake Hills and on Research Boulevard and Spicewood Springs Road in northwest Austin.

The West Lake Hills store will be gutted and reopened with a sushi bar, an area for cooking demonstrations and a Central Market Cafe on the Run, which offers prepared meals to go.

With the new stores, H-E-B will have 45 stores in Central Texas, about 8,000 employees and an annual payroll of about $250 million.

H-E-B expects to offer jobs to many of the 350 Albertson's employees and plans to hire another 100 to 150 people to staff the three converted stores.

H-E-B has about 60 percent of Central Texas' grocery market, followed by Wal-Mart with 23 percent and Randalls with 7 percent.

FOR MANSFIELD'S AMUSEMENT

MANSFIELD (Dallas Business Journal) – Harvest Family Entertainment has begun construction on Hawaiian Falls/Mansfield, a 14-acre water park at Heritage Parkway and SH 360.

The $10 million water park, which includes 12 waterslides, a football field–sized wavepool and a "lazy river," is a joint venture between Hawaiian Falls, the Mansfield Park Facilities Development Corp. and the city.

The city will own the park and Hawaiian Falls will operate it under a 40-year lease. The park will employ about 200 people. It is expected to attract about 150,000 guests per year and increase the local economy by about $5 million annually.

Harvest Family Entertainment has codeveloped and managed 17 water and amusement parks in Arizona, California, Hawaii, Missouri, Mississippi and Texas.

Hawaiian Falls/Mansfield is expected to open next Memorial Day.

MOTORCADE BEGINS

PHARR (McAllen Monitor) – Frank Smith Motors, including McAllen’s flagship Toyota dealership, will begin relocating to a 19-acre facility on Expressway 83 next month.

The company’s old headquarters on Second Street in McAllen will host an expanded used car selection as well as its Isuzu dealership, said company president Roland Smith. The entire Toyota/Scion dealership will be at the new location by years’ end.

The new facility will follow the new Toyota dealership design and will include a La Palatera restaurant.

COME CHAT WITH GAINES

COLLEGE STATION (Real Estate Center) – If you plan to attend the Austin Realty Roundup next Wednesday, stop by the Real Estate Center’s booth (number 726) between 11 a.m. and noon to visit with Dr. James Gaines, research economist with the Center.

Gaines will also be a keynote speaker at the conference.

SOMERSET SOLD

TEXAS CITY (Reliant Property Group) – Reliant Property Group has purchased the 200-unit Somerset Place Apartments from Continental Somerset Corporation.

Reliant plans to renovate and reposition the 23-year-old complex.

Houston Income Properties Inc. represented the Houston buyer. Redstone Bank provided financing. Continental Somerset was represented in-house.

KBS GOES CORPORATE

PLANO (McDaniel & Co.) – KBS Real Estate Investment Trust (KBS REIT) has purchased Plano Corporate Center I and II from Lincoln Property Company.

The two-building, more than 308,000-square-foot, Class-A office complex at 2201 and 2301 West Plano Parkway is 87 percent leased.

The more than 153,000-square-foot Plano Corporate Center I was built in 1999, and the almost 155,000-square-foot Plano Corporate Center II was built in 2001. Each three-story building is on a ten-acre site. Major tenants are FedEx Kinko’s and UnitedHealthcare.

KBS Capital Advisors, which oversees KBS REIT, was self-represented. Jones Lang LaSalle of Dallas represented the seller. Transwestern Commercial Services will handle leasing, while PM Realty Group will manage the property. Both companies are based in Dallas.

PARK CENTER II PROGRESSING

PLANO (Dallas Morning News) – Construction is about to begin on Park Center II, a 196,000-square-foot office building being developed by Heady Investments.

Designed by ANPH Architects, Park Center II will be built on about eight acres between the Dallas North Tollway and Parkwood Boulevard. Offices will lease for around $25 per square foot.

Crow Financial Partners LP arranged construction financing for the project with Stillwater National Bank. Henry Building Inc. is the general contractor.

The building is scheduled to open in October 2008.

METROPLEX APARTMENT BOOM

DALLAS (Dallas Morning News) – Since the beginning of the year, developers have obtained permits to bring almost 7,000 apartments to the Metroplex. Among those projects:

* Houston-based Hanover Co. has two apartment towers totaling almost 500 units under construction in Uptown.
* Wood Partners has begun work on Alta Lake Shore Lofts, a 341-unit complex at 800 Lake Carolyn Pkwy. in Las Colinas.
* Construction begins Monday on Wood Partners’ Block 1500, a 309-unit, four-story complex west of the Victory complex on Stemmons Freeway.
* Wood Partners plans to break ground in January on a 340-unit complex near Eldorado Parkway and the Dallas North Tollway in Frisco.

PANHANDLE'S LUXURY LIVING

LUBBOCK (Lubbock Avalanche-Journal) – A $60 million luxury hotel and conference center received the go-ahead from the city council earlier this week.

The complex will be built at Sixth Street and Avenue X. The developer is Garfield Traub Corp., a hotel developer based in Dallas and managed by Gal-Tex Hotel Corp.

At 15 stories and 306 rooms, the hotel will be the city’s largest. It will include laboratory and classroom space for Texas Tech’s restaurant, hotel and institution management program. The conference center will contain 50,000 square feet.

The city is pitching in $11.4 million collected from the hotel's property taxes, hotel-motel tax and 1 percent of gross room revenues. About $11 million in grants also has been collected to pay for the center, and Plains Capital Bank is providing $30 million financing.

Groundbreaking is scheduled for Sept. 26.

BELTWAY LAKES CONSTRUCTION BEGINS

HOUSTON (Realty News Report) – Construction has begun on the first phase of Beltway Lakes, a LEED-certified office project along SH 249 and Beltway 8.

The first phase, which includes a 165,000-square-foot, six-story building and a parking garage, is part of a six-building, master-planned office complex owned and developed by Radler Enterprises Inc.

Yancey-Hausman Interests is codeveloping and marketing the first building of Beltway Lakes, which was designed by Morris Architects and is being built by D.E. Harvey Builders. Construction financing was provided by Sterling Bank.

ELLMAN PURCHASES ONE SUGAR CREEK

SUGAR LAND (globest.com) – Ellman Cos. has paid Unilev Capital Corp. $60.5 million for the almost 529,000-square-foot, Class-A One Sugar Creek Place.

Ellman plans to renovate the 25-year-old office building at 14141 Southwest Frwy. Work is slated to begin in early 2008 and take about 18 months to complete.

The Unocal Building, as it is known locally, is leased entirely to Houston-based Chevron Corp. through March 2010.

The California-based seller was represented by M.M. Stapper Co. Commercial & Investment Real Estate and International Realty Concepts Inc., both of Houston. Phoenix-based Ellman was represented by Amcal Southwest LLC, also of Arizona. Ellman will assume leasing and management duties.

DIVCOWEST BUYS FULLY LEASED AMD

AUSTIN (globest.com) – DivcoWest has purchased the 215,500-square-foot AMD 312 Building from Washington-based Burleson Investments LLC.

The two-story, Class-B-plus office building is on nearly 19 acres of Lockheed Martin Corp.'s former one million-square-foot campus at 6800 Burleson Rd.

AMD 312 is leased to Advanced Micro Devices until May. Once the lease lets up, DivcoWest will upgrade the 25-year-old building.

DivcoWest was self-represented in the transaction.

HEAVY LIFTING FOR ABC&P

HOUSTON (Yancey Hausman) – ABC&P LLC has purchased a 110,000-square-foot manufacturing facility from Petrosin Properties Belmas Inc.

The property, a heavy manufacturing facility with various overhead cranes ranging in capacity from 20 to 250 tons, is on more than 12 acres at 122221 Almeda Rd.

Yancey Hausman represented, the buyer, while Colliers International represented the seller.