Texas Real Estate Market News: March 2007

Friday, March 30, 2007

RECON March 30, 2007

RECON

Real Estate Center Online News

March 30, 2007

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.

FROST TOWER FLIPS AGAIN

AUSTIN (Austin American-Statesman, Austin Business Journal) – In what is believed to be the biggest commercial real estate deal ever in Texas, private equity firm Blackstone Group has sold its Austin office properties to Thomas Properties Group Inc. for $1.15 billion.

Included in the sale is the 33-story Frost Bank Tower at 300 West Sixth St. The tower has changed hands three times since last September, when Equity Office Properties Trust (EOP) paid $188 million for the building, which was a state record of $354 per square foot. Last month, Blackstone bought EOP for $39.2 billion in cash (see RECON, "Battle of the Buyout").

Once the sale closes, Thomas, a Los Angeles real estate firm, will be the city’s biggest office landlord, with more than 3.4 million square feet of space.

A total of ten properties are in the portfolio, including One Congress Plaza and nearly one million square feet in northwest Austin. Together, the properties are about 82 percent leased.

Since buying EOP, Blackstone, capitalizing on strong national demand for commercial properties, has been flipping its holdings in Boston, Seattle, San Diego and other cities, often for premium prices.

Cousins Properties Inc., which built Frost Tower, currently manages the building. Holliday Fenoglio Fowler is representing Blackstone in the sale with Thompson.

X UNBOXED

LEANDER (Austin Business Journal) – The Texas X Park recreational complex has received an environmental permit from the U.S. Corps of Engineers, clearing the way for a groundbreaking on the $18 million first phase later this summer.

The permit allows the developer to affect the crossing of jurisdictional waters by as many as 22,000 square feet. The development team re-engineered its site plan and is now affecting 8,000 square feet.

Leander Capital Investors, led by Matt Tolbert, is developing the 205-acre X Park, which will include facilities for a skate park, climbing walls, BMX tracks and beach volleyball.

The BWM Group of Round Rock is overseeing site planning. The Wayne Barnes Co. is the construction manager. Grand opening is tentatively scheduled for spring 2008.

DIAB CONSOLIDATES

DeSOTO (globest.com) – Diab Group has leased 196,500 square feet of production space in Stonebridge Business Park 9 to support its U.S. operations.

Diab, based in Sweden, manufactures composite core materials used in marine, wind energy, transportation and aerospace industries. The firm's new space at 8700 Autobahn Dr. is about two miles north of its U.S. headquarters at 315 Seahawk Dr. The move will consolidate production operations currently at 1630 and 1701 Falcon Dr.

With this lease, the more than 372,000-square-foot office/warehouse, which, due to a default tenant, had been dark for two years, is now 80 percent occupied.

Boston-based TA Realty Advisors bought the building in March 2005 as part of a portfolio from Connecticut-based GE Real Estate and Champion Partners of Dallas.

Holt Lunsford Commercial in Dallas assisted in the transaction.

KINGWOOD'S LAKEFRONT PROPERTY

KINGWOOD (Marion Montgomery Inc.) – Houston-based developer Hahnfeld Witmer Davis has begun construction on Regent Square, a more than three-acre residential community that will feature 35 brownstones on the shores of Lake Houston.

Regent Square, which will be located within the 25-acre, mixed-use development Kings Harbor, will offer four floor plans ranging from 2,450 to 3,300 square feet and priced from the high $300,000s into the $500,000s.

PORT SA'S GRAND OPENING

SAN ANTONIO (San Antonio Express-News) – A $38.78 million loan from the state, a new agreement with a Mexican freight company, the start of U.S.-Mexico cross-border trucking, and the inauguration next week of a new rail-truck facility are contributing to the transformation of the former Kelly AFB into an international distribution center.

Port San Antonio will use the loan from the Texas Military Value Revolving Loan Fund to build an 89,500-square-foot air cargo hangar, an aircraft parking area, a 50,000-square-foot cargo transfer facility and additional office space.

The port and Estafeta Group, based in San Luis Potosí, will begin shipping freight by truck from small- and medium-sized companies between San Antonio and San Luis Potosí in April.

"Estafeta's massive distribution network and brand recognition makes it a great partner to have in Mexico," said Jorge Canavati, the port's marketing director. With one-day shipments from the Mexican industrial centers in Monterrey and Saltillo possible for the first time, additional freight can arrive efficiently to Port San Antonio for distribution by air, truck and ship.

San Antonio–based Titan Industrial Development is building the rail-served industrial park. The first 345,000-square-foot facility can transfer freight from docks for 23 rail cars on one side to doors for 60 trucks on the other side.

Grand opening ceremonies for the port’s East Kelly Railport (a $35 million, 61-acre development) will be held April 5.

SUITE DEAL!

SAN ANTONIO (svn.com) – Travelodge Suites, a 201-suite hotel, has been sold to Wisconsin-based Meridian Global Investments LP for $150,000 over the list price and at a 12 percent cap rate.

The 26-year-old hotel on almost four acres at 4934 Loop 410 W is close to SeaWorld, Six Flags and South Texas Medical Center. The hotel includes one- and two-bedroom suites as well as some single rooms.

Sperry Van Ness’ (SVN) Lubbock and Orlando, Fla., offices represented the seller, Texas-based SNB Hotels. SVN’s Florida office also represented the buyer, Meridian Global Investments LP.

SECONDS FOR SUGAR LAND TOWN SQUARE

SUGAR LAND (Marion Montgomery Inc.) – Planned Community Developers will begin work this summer on a Class-A office building in Sugar Land Town Square.

The eight-story building at 2150 Town Square Place will provide 185,000 square feet of office space and 15,000 square feet of ground-level retail space. It will be similar in design to Town Square’s existing office building, The Plaza, and it will feature the same amenities.

The new building is scheduled for completion in fall 2008.

PARKLAND SOLD

FORT WORTH (Star-Telegram) – Vacant state park property totaling 400 acres at Eagle Mountain Lake has been sold through the General Land Office to the Tarrant Regional Water District.

The northwest Tarrant County property, which sold for $9.6 million, has remained in the parks department inventory but closed to the public for more than 20 years.

MAKE ROOM FOR FLUFFY

CHICAGO (PRNewswire) – Renters love their four-legged friends according to Apartments.com. More than 84 percent of respondents to a recent survey conducted by the apartment listing service own a pet. Other findings from the survey:

More than a third of respondents said that it was very difficult to find an apartment that allowed pets.
More than 85 percent of respondents currently live in an apartment property that permits pets.
Sixty-seven percent of the properties that allow pets require a pet deposit or other pet-related fee, and 28 percent of renters surveyed stated that pet deposits were preferable to pet rent fees.
Fourteen percent of pet owners said that a community's pet policy is the first thing they consider when visiting and selecting an apartment.
Of the renters that do not have pets, more than 63 percent plan to have one in the future.
More than 32 percent of renters are currently without pets because of pet restrictions at their communities.

HILLWOOD IN THE HEARTLAND

KAUFMAN COUNTY (Hillwood Residential) – Hillwood Residential has purchased the remaining 2,000 undeveloped acres of the Heartland development, a master-planned community on the outskirts of Dallas, from Mabrey & Partners LLC.

Once complete, the 2,500-acre Heartland development at the southeast corner of Hwy. 741 and I-20 will provide approximately 8,000 new homes for more than 20,000 residents, making it Hillwood's largest residential community.

LOCALS WELCOME NEW LIBRARY

TAYLOR (Austin American-Statesman, tsha.utexas.edu) – Grand opening ceremonies will be held tomorrow for the new $3.4 million public library, the first to be funded by the city.

The 25,000-square-foot building, built among large Victorian homes, is at 801 Vance St., the former site of a 1960s-era library.

City officials are also spending $1.8 million to spruce up Main Street sidewalks. Workers are replacing street lamps and traffic signals, and adding benches and trees to make the area friendlier for pedestrians.

The city, once a center of cotton production in Williamson County, has experienced most of its new development in the north, where companies such as H.E. Butt Grocery Co. and Wal-Mart Stores Inc. have built.

ARCHON MAKES A MOVE

IRVING (expansionmanagement.com) – Archon Group LP, a subsidiary of The Goldman Sachs Group Inc., will move its corporate headquarters four miles down the road to 6011 Connection Dr., which is in the Nokia campus.

The commercial real estate investment and management company will be the sole occupant of the six-story, 152,000-square-foot building, which features a three-story atrium.

SPRINGTIME FOR RAJ HADAV

BIG SPRING (Big Spring Mall) – Raj Hadav has purchased the 180,000-square-foot Big Spring Mall.

The California-based buyer plans to renovate the 27-year-old mall, which includes a Bealls, Sears, Hallmark and Blum’s Jewelers. The mall also houses a movie theater and restaurants.

Paul Johnson of Abilene brokered the transaction for Hadav. The mall's property manager is Danielle Ramirez.

TOUCH OF TUSCANY

HOUSTON (Group LSR) – Construction has begun on Serento Condominium, a Tuscan-inspired mid-rise just three blocks from the Texas Medical Center main campus.

Located at 2203 Dorrington Street, the four-story Serento will consist of 44 one- and two-bedroom units with a single-story garage at street level. It will offer seven floor plans ranging from 819 to 1445 square feet and priced from the low $200,000s to the high $300,000s. Thirty percent of the units have been sold. Construction is expected to wrap early next year.

Serento Condominium is the third mid-rise residential project developed by innerLoopCondos.com, a Houston-based company created in 2004 by Group LSR, an international real estate development company.

CALSTRS JV GOES SIENESE

HOUSTON (generalinvestment.com, globest.com) – GID Investment Advisers LLC on behalf of an affiliate, Windsor Realty Fund-V LLC (WRF-V), has purchased the 224-unit Siena luxury apartments, which has been renamed Windsor at Siena.

The four-year-old, four-story Class-A complex at 600 Studemont St. is on just over four acres in the Inner West Loop area between the central business district, Texas Medical Center and The Galleria. Monthly rents for the 95 percent leased one- and two-bedroom apartments range between $1,070 and $2,350.

WRF-V is an equity coinvestment joint venture between GID and the California State Teachers’ Retirement System (CalSTRS). Boston-based GID also owns the 24-acre Regent Square, a mixed-use development nearby on Allen Parkway. That project (see RECON 1/26/2007) will begin construction by year’s end.

Apartment Realty Advisors in Houston represented seller Internacional Realty Inc. of San Antonio.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

Tuesday, March 27, 2007

RECON March 27, 2007

RECON

Real Estate Center Online News

March 27, 2007

WATERFORD DEAL CRYSTALLIZES

PEARLAND (globest.com) – Inland American Real Estate Trust Inc. has purchased the 296-unit first phase of Waterford Place at Shadow Creek Ranch Apartments from Davis Development Inc. for $30 million.

The 16-building Waterford Place is on almost 17 acres at 200 Business Center Dr. The complex was developed last year and was 95 percent leased at sale time. It has a mix of one-, two- and three-bedroom units averaging 1,115 square feet. Average monthly rent is $1,102.

Along with the purchase, Illinois-based Inland will get the first look at the 275-unit second phase, which is currently being built.

Illinois-based Inland represented itself in the transaction, while Apartment Realty Advisors represented Georgia-based Davis Development.

TOWN BUILDERS MIXES IT UP

AUSTIN (Austin Business Journal) – Passeo Park, a 50-unit, two- and three-story condominium development, will break ground this summer at 8323 Jamestown Dr.

Town Builders LP, a local development group that includes property owner Rex Gore and Gary Bellomy, will invest just under $10 million on the nearly three-acre project near the US 183 and Lamar Boulevard intersection.

Plans include 7,200 square feet of live-work and neighborhood-oriented retail space. Town Builders is seeking a zoning change from commercial services to mixed use.

Condos will be priced from $150,000 to $250,000, with units ranging from 1,200 to 1,800 square feet.

Land Design Studio, also involved in the mixed-use Crestview Station development, is the architect of record.

ALTA'S LOFTY TOWER

DALLAS (The Dallas Morning News) – Contractor J.E. Dunn has begun excavation work for building the glass-clad, 375-unit Alta Rosewood residential tower near the southern entrance to the Dallas North Tollway.

The 22-story tower at McKinnon and Hunt streets is the biggest residential building yet in the uptown neighborhood. A 425-space parking garage, outdoor pool and fitness center will be on the lower levels.

The more than $72 million development is a partnership between Wood Partners of Atlanta and the California Public Employees' Retirement System, or Calpers, whose investment is $11 million.

Preston Partnership architects, also of Atlanta, designed the building. The loft-style apartments with hardwood floors will be ready for residents in late 2008.

ENVELOPE COMPANY SEALS DEAL

GRAND PRAIRIE (Dallas Business Journal) – An envelope manufacturing company is building a new headquarters building at 201 E. Trinity Blvd.

Goelzer Industries Inc. will move into the more than 200,000-square-foot building in July. The Fort Worth–based company, which currently resides in a 60,000-square-foot facility at 14813 Trinity Blvd., will occupy only 120,000 square feet in the new building, leaving room for several smaller businesses.

The company bought 20 acres on which to build the facility, but it will sell five, along with a 50,000-square-foot building, to a wholesale distribution company. Goelzer will assume ownership of three speculative 12,000-square-foot buildings, which it plans to lease out.

A&A General Contractor Inc. of Dallas is the general contractor for the new headquarters. Henry S. Miller Commercial brokered the transaction.

MULTIFAMILY FUND BUYS BRIDGEPORT

DALLAS (globest.com) – The Bridgeport apartment complex has been sold by locally based DP Partners Ltd., which has owned the property for 12 years.

The 312-unit, Class-B minus complex on ten acres at 5440 N. Jim Miller Rd. has 196 one-bedroom and 116 two-bedroom units, averaging 770 square feet. The average monthly rent is just under $600.

The buyer, Multifamily Capital Appreciation Fund-2007 LLC, is a $100 million Alabama-based fund whose affiliate is Summit Asset Management LLC. Summit will assume the management duties for the 23-year-old complex, which was 94 percent occupied at the time of closing.

Hendricks & Partners in Dallas brokered the transaction.

ST. CROIX DEVELOPING AT CROSSING

AUSTIN (Austin Business Journal) – Kelly Trade Ventures LLC, a sister company of San Diego–based St. Croix, recently completed the purchase of two parcels in Round Rock and southeast Austin for projects totaling $50 million.

St. Croix will develop Centerpoint @ Colorado Crossing, a 500,000-square-foot Class-A industrial campus, on 60 acres just west of Austin-Bergstrom International Airport near Burleson Road and McKinney Parkway.

Designed by Smith Consulting Architects, phase one will include four industrial buildings totaling 263,500 square feet. Construction is expected to begin this summer, with completion slated for early 2008.

Phase two will include another 245,000 square feet of industrial and 30,000 square feet of retail space.

In Round Rock, on almost nine acres purchased from the city, St. Croix is developing Spectrum @ Crystal Park. That project totals 83,000 square feet in ten office buildings at the southeast corner of Greenhill Drive and Old Settlers Boulevard. PBS&J is acting as project engineer

CB Richard Ellis is marketing both properties, which are being built by Central Texas Tiltwall LP. Grubb & Ellis is handling retail.

HISTORIC HOUSTON CLUB BUILDING SOLD

HOUSTON (studley.com, Houston Business Journal) – Cameron Management has purchased the landmark 416,000-square-foot Houston Club Building from JPMorgan Chase & Co., which will vacate the building.

Built in 1948 by Jesse H. Jones, publisher of the Houston Chronicle in the 1900s, the building has access to the downtown tunnel system that connects several buildings and has underground retail.

Cameron Management plans a major renovation. The Houston Club has about seven years remaining on its lease, and the firm would like for the club to stay.

This is the second purchase of a downtown historic building by the firm within the last two years. Cameron acquired Esperson Buildings in December 2004 with Amstar Investment Group.

Studley, a commercial real estate services firm, assisted in negotiating the transaction and is helping JPMorgan Chase consolidate its local office space.

PARKDALE PLAZA OVERHAUL

CORPUS CHRISTI (Corpus Christi Caller-Times) – In an effort to restore life to what was once a thriving area for retailers, the 50-year-old Parkdale Plaza Shopping Center will soon be renovated to include a 203,000-square-foot Wal-Mart Supercenter.

The center at 4101 S. Staples St. will be renamed Parkdale Shopping Center, and most of its buildings will be demolished to make room for Wal-Mart. Wal-Mart spokesperson Sally Aiello said about 400 people will be employed at the Supercenter, which will feature an upgraded exterior design.

Cobb, Lundquist and Atnip represented Austin-based Quick & Company Commercial Realty Inc., the owner of Parkdale Plaza. CB Richard Ellis represented Wal-Mart.

Parkdale Shopping Center will also include a strip center that will house current tenants while leaving about 44,000 square feet of leasing space for new tenants.

Renovations on the 41-acre property are scheduled to begin later this year and be completed in early 2008.

HOME SALES LOWEST SINCE 2000

WASHINGTON, D.C. (Bloomberg) – Sales of new homes in the United States unexpectedly fell last month to the lowest level in almost seven years, dimming prospects for a quick revival in housing.

According to the Commerce Department, the supply of unsold homes climbed to its highest level in 16 years. Purchases dropped 3.9 percent to an annual pace of 848,000 last month. Economists had forecasted they would rise to a 985,000 rate, based on the median forecast in a Bloomberg News survey.

The figures were made worse by the coldest February in more than a decade, and they doused optimism from reports last week on sales of previously owned dwellings and housing starts. Some analysts read those numbers as evidence that the industry may be stabilizing, as the Federal Reserve has anticipated. Shares of homebuilders tumbled and bonds gained as traders speculated that the economy will slow further.

With a wave of foreclosures adding to builders’ woes, the Commerce Department predicts more declines in home construction that will further weigh on the economy.

“As ugly as these numbers are, they don’t reflect the tightening of lending standards, which means sales are going to get worse,” said Christopher Low, chief economist at FTN Financial in New York. “The longer it takes for housing to recover, the more the risk it could spill over to other parts of the economy.”

VINTAGE AT THE COVE

AUSTIN (globest.com) – Vintage Interests LP has purchased the nearly nine-acre, five-building Beatrice Cove Park from TCC-Beatrice Cove LP.

The complex is 80 percent occupied with 30 percent of current leases set to expire in the next two years.

Vintage plans to invest $250,000 for deferred maintenance, to replace roofs, and to make cosmetic improvements to the almost 30-year-old, 119,000-square-foot, office-and-industrial complex at 2335-2415 Kramer Lane.

Holliday Fenoglio Fowler LP's Dallas office represented the seller and arranged financing for the Dallas-based buyer.

TRAMMELL, PRINCIPAL ON VERGE OF DISCOVERY

HOUSTON (Trammell Crow Company) – Trammell Crow Company (TCC) has purchased downtown’s Block 126, a site that will serve as the home for a Class-A office tower being developed by TCC and Principal Real Estate Investors.

Discovery Tower will overlook Discovery Green, the $93 million, 12-acre park that is currently under construction. The LEED-certified building is expected to contain 600,000 to 1.2 million square feet. Groundbreaking is scheduled for first quarter 2008, with completion set for first quarter 2010.

Gensler Architects is designing the building, and CB Richard Ellis is handling leasing and marketing. Cushman & Wakefield represented the parties in the transaction.

AKAL CHECKS OUT DEVELOPMENT

DALLAS (globest.com) – Local hotel franchisee Akal Corp., previously a buyer of existing hotels, is investing $25 million to develop four new hotels.

Akal’s vice president of development Bobby Singh said the high cost of buying existing hotels prompted the company’s move toward development. He said the cost of buying existing hotels is up to nearly $79,000 per room, while the cost of building hotels is only $60,000 to $70,000 per room.

Work is already underway on the 70-room La Quinta at the US 287 and Debbie Lane in Mansfield, and it will be completed in June. Construction will begin in one month on a 71-room La Quinta at Quebec Street and Loop 820 in Lake Worth. Once that hotel is about 50 percent complete, Akal will break ground on a 75-room La Quinta at US 380 and 75 in McKinney. The last to be built will be a 70-room Hampton Inn in Kilgore.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

The Woodlands E-Neighbor - March 27, 2007

THE WOODLANDS' COMMUNITY COLLECTS GOLF BALLS FOR U.S. TROOPS - Several golf facilities, local businesses and golfers are collecting used golf balls for U.S. troops in Iraq and Afghanistan as part of the Balls for Baghdad program . The collection deadline is Monday, April 9, 2007. Golf balls may be dropped off at Metro Mini Storage at 7474 Gosling Road in The Woodlands at the intersection of Gosling Road and College Park Drive (SH 242). Ray Drake , owner of Metro Mini Storage, has donated a storage room for the project.

The Balls for Baghdad program is being directed locally by golf media personality Mancil Davis , and Mark Steinbauer , golf media personality and director of golf at The Club at Carlton Woods. Metro Mini Storage, Signsational Signs, The Villager , The Clubs at Carlton Woods, Lake Windcrest Golf Club, Woodforest Golf Club , Cypresswood Golf Club and more are behind the Balls for Baghdad effort. For more information, contact Mancil Davis at 936-321-9007.

NEW RETAIL IN THE WOODLANDS CROSSING SHOPPING CENTER - Flooring America recently opened a new showroom in The Woodlands Crossing Shopping Center, directly behind the new Starbuck's . Flooring America is open Monday through Friday from 10 am until 7 pm; Saturday from 10 am until 5 pm; and closed on Sunday. For free estimates and measurements, call 281-363-1962.

Dickey's Barbecue Pit will be opening in early April in The Woodlands Crossing Shopping Center. Dickey's Barbecue Pit will offer a variety of eight different meats, sides, salads and soft-serve ice cream.

Smiles by Burgess (Larry Burgess, DDS) is expected to open in spring of 2007. St. Luke's Community Medical Center-The Woodlands will open a minor emergency clinic in the fall of 2007, and Wild Oats , an organic grocery, is expected to open in 2008. The Woodlands Crossing Shopping Center is located at the southeast corner of Woodlands Parkway and Kuykendahl Road.

SPRING HOME & GARDEN SHOW IN THE WOODLANDS - The Fifth Annual Spring Home & Garden Show will take place on Saturday, March 31, 2007 from 9 am until 7 pm and Sunday April 1 from 10 am until 6 pm at The Woodlands Waterway Marriott Hotel & Convention Center. Over 200 exhibitors will be featured. Admission is $8 for adults; $6 for seniors; and children 12 and under are admitted free.

Jost Lunstroth of Vineyard Wine Cellars will offer award-winning design ideas for proper wine storage at the show. Outdoor grills, kitchen units and top chefs preparing dishes for attendees are also attractions at the event. A customized grill by Cunningham Gas Products is pictured. For more information on the Home & Garden Show, visit www.WoodlandsShows.com .

LOCAL SPORTS CELEBRITIES SUPPORT NEW DANVILLE HOUSE RAFFLE - A trio of Houston sports celebrities (pictured left to right) -professional golfer Roland Thatcher , Houston Texans defensive end, N.D. Kalu, and former Houston Astros pitcher Doug Drabek - have announced their endorsement of the New Danville House Raffle , a major initiative now underway to raise funds to develop New Danville, Texas' first self-sustaining, master-planned community for high functioning mentally challenged adults, according to Bev Ear l, chair of the event.

The New Danville House Raffle, sponsored by The Woodlands Lions Club , will award a brand new $560,000 home in the golf course community of Grogan's Point in The Woodlands to the winner. Tickets are now on sale for $100, and may be purchased online at www.newdanville.org . Built through the generous efforts of Design Tech Homes and many contributing vendors, the 3,500-square-foot home will be completed in the early spring. The raffle drawing will take place on Saturday, July 28, 2007.

LEADERSHIP MONTGOMERY COUNTY CLASS PROJECT IN FULL SWING - The 2007 Leadership Montgomery County (LMC) class is in full production of this year's class project, HelpOurCounty.com , "Your Connection to the Nonprofit Community". LMC's 34-member class has been working continuously on the development and implementation of the website's design, funding, marketing, legal compliance, nonprofit outreach and continuance. The HelpOurCounty.com website is designed to provide resources for the entire county by linking nonprofit organizations to the business and residential community. The website is scheduled to be up and running by May 9, just 15 days prior to the class graduation on Thursday, May 24.

The Humane Society of Montgomery County is an example of just one of the county's nonprofit agencies that can benefit from the HelpOurCounty.com website. One might assume that the Humane Society would be in constant need of dog and cat food when in reality one of their greatest needs is kitten and puppy food. The Immediate Needs posting board will help better convey this message to the public. Pictured is Tessa Keel, operations manager for the Humane Society with some members of the LMC Class and a few furry friends.

CONROE ISD KINDERGARTEN ROUND-UP BEGINS - All Conroe ISD elementary school campuses will begin "Kindergarten Round-up" pre-registration from Monday through Friday, April 2-6, 2007 for students who will be entering kindergarten for the 2007-2008 school year. Students must be at least five years old on or before September 1, 2007 to enroll in kindergarten. The parent/guardian should enroll the student at the elementary campus for which the student is zoned for attendance. In order to register a child, the following items are required: birth certificate, proof of residence, the child's social security card and immunization records. For more information, call 936-709-7623 or 832-482-6623.

Over 42,000 employees work for the 1,511 businesses that call The Woodlands home.
There are 155 miles of hike-and-bike trails throughout The Woodlands.
The Woodlands is a 28,000-acre master-planned community located 27 miles north of downtown Houston.

FREE VOLUNTEER FAIR FOR THE PAVILION P ART NERS ON SATURDAY, MARCH 31 - The Pavilion Partners, the official volunteer organization of The Cynthia Woods Mitchell Pavilion, will host a free Volunteer Fair on Saturday, March 31 from 10 am until 2 pm on The Pavilion's main stage.

Attendees can get their photo taken on The Pavilion's stage; learn about the performers on a backstage tour; get a sneak peek at the 2007 performance schedule; and register to win door prizes. Attendees can also explore the volunteer opportunities at The Pavilion and the benefits of becoming a member of The Pavilion Part ners. For more information about the Fair, call Charlotte Weschler at 281-210-1122 or email her at cweschler@
woodlandscenter.org .

SPRING FINE ARTS FESTIVAL AT MARKET STREET - Market Street presents the Spring Arts Festival on Saturday, March 31 from 10 am until 7 pm. The Fine Arts Festival will showcase works of art available for purchase. Works of art by over 40 artisans who live in The Woodlands area will be displayed in Central Park in Market Street. For more information, visit www.marketstreet-thewoodlands.com .

SPRING BARK PROMISES TO BE A HOWLING GOOD TIME - The Third Annual Spring Bark is set for Saturday, March 31 at Northshore Park. The pledge walk registration begins at 7:30 am with the walk beginning at 8:30 am. Activities include free obedience classes, $15 micro-chipping, pet fur-tography, pet psychic, rescue group adoptions and more. Spring Bark is a fundraiser to support homeless animals. There will also be a food drive for animals at the entrance to Northshore Park during the event. For more information, visit www.thewoodlands
dogparkclub.org .

MEMORIAL HERMANN OFFERS FREE COLORECTAL CANCER SEMINAR - For men and women over 50 years of age, Memorial Hermann The Woodlands Hospital will offer a free colorectal cancer seminar in recognition of Colorectal Cancer Awareness Month . The seminar will take place at the hospital on Tuesday, March 27 at 6 pm in Conference Center A & B. Free colorectal take-home screening tests will be distributed at the seminar. The seminar is free, but registration is required. For reservations, please call 713-222-CARE or toll free 1-877-644-2273.

MISS LESLIE AND HER JUKE-JOINTERS SCHEDULED FOR FREE APRIL 1 CONCERT - Miss Leslie (pictured) and her Juke-Jointers will return to the Concert-in-the-Park stage on Sunday, April 1, from 6-8 pm. They describe their music as "country with a hardwood floor sound." The band members have played in the Houston area for more than 10 years with a style reminiscent of the country sounds of the '50s and '60s. To learn more about the band, visit www.miss-leslie.com . Concerts are free to the public and take place at Northshore Park . Bring your picnic baskets, lawn chairs and blankets.

REMINDER: THE WOODLANDS COMMUNITY ASSOCIATION MEETING - The Woodlands Community Association (WCA) will hold its annual meeting on Wednesday, March 28 at 7 pm at The Woodlands Waterway Marriott Hotel and Convention Center. The Honorable Judge Alan B. Sadler , Montgomery County Judge, will be the keynote speaker at the WCA meeting. The event is free and open to the public.

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Friday, March 23, 2007

RECON March 23, 2007

RECON

Real Estate Center Online News

March 23, 2007

MORTGAGE DELINQUENCIES HIT FOUR-YEAR HIGH

WASHINGTON (The Dallas Morning News) – Home loan payment delinquencies nationwide are now at the highest level in almost four years. Subprime home loans account for almost half of the current home foreclosures in Texas and nationwide, according to analysts with Freddie Mac.

With mounting foreclosures and many subprime lenders closing down, buyers who have relied on these mortgages will have a harder time finding a loan, said Freddie Mac's economist Frank Nothaft.

During the last two years, subprime mortgages have accounted for almost 20 percent of the home lending business, Nothaft said. The mortgage giant recently announced that starting later this year it will demand more income documentation and put in place tougher qualifying standards for some of the home loans it buys.

"Local builders and local Realtors should be somewhat worried that the number of potential buyers will decrease or at least shift into lower-cost submarkets as lenders start requiring equity down payments and tightening underwriting," said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University.

A slowdown in sales at the low end can spread upward in the market. If owners of entry-level homes can't find a buyer, they won't be moving up to higher-priced housing, Gaines said.

In January, Dr. Mark Dotzour, the Center’s chief economist, issued a statement reflecting concerns about the effects of subprime lending on Texas’ real estate market. His comments are available online.

EXISTING-HOME SALES RISE AGAIN

WASHINGTON (Realtor.org) – Reaching the highest level since last April and following January’s healthy gain, existing home sales rose strongly in February, according to the National Association of Realtors (NAR).

Total existing-home sales — including single-family, townhomes, condominiums and co-ops — rose almost 4 percent to a seasonally adjusted annual rate of 6.69 million units, down 3.6 percent from the same time last year.

David Lereah, NAR’s chief economist, said the strong gain is a bit of a surprise.

“Some of the rise in home sales may be from mild weather that brought out shoppers in December, but fundamentals have improved in the housing market and buyers see a window now with historically low mortgage interest rates and competitive pricing by sellers,” he said.

Total housing inventory levels rose 5.9 percent at the end of February to 3.75 million existing homes available for sale, which represents a 6.7-month supply at the current sales pace compared with a 6.6-month supply in January. Raw inventories peaked last July at 3.86 million, and supplies topped at 7.4 months in October.

The entire report is available online at Realtor.org.

GREEN ACRES

ROUND ROCK (impactnews.com) – Designated Tree Partners will break ground this spring on what it hopes will be the city’s first LEED-certified office complex.

Green Square will encompass more than 130,000 square feet on 13 acres off Greenhill Drive. The complex will incorporate natural light to cut energy costs, and xeriscaping and rainwater retention will be used to maintain the campus grounds.

The Williamson County Association of Realtors has committed to buying the first building in the seven-building complex, with plans to move in shortly after the complex is completed in early 2008.

NEW LEASE ON PARK

COPPELL (globest.com) – Universal Display & Fixture Co., headquartered in nearby Lewisville, has leased almost 275,000 square feet of distribution space — half of AmberPoint 4 — in the newly built AmberPoint Business Park.

The park at 200 N. Northpoint Dr. is now 50 percent occupied. Transwestern’s Dallas office represented owner Cabot Properties Inc. of Boston. Henry S. Miller Commercial represented Universal Display.

BAYOU CITY SURGES TO SIXTH

HOUSTON (Houston Business Journal) – New residents moving in from southern Louisiana following Hurricane Katrina have made Houston the sixth-largest metropolitan area in the United States, according to population estimates released by the Census Bureau.

Between July 1, 2005, and July 1, 2006, the 10-county Houston–Sugar Land–Baytown Metropolitan Statistical Area (MSA) gained more than 187,000 residents, bringing the total to almost 5.54 million. Only the New York, Los Angeles, Chicago, Dallas–Fort Worth and Philadelphia MSAs are larger.

Harris County, which grew 3.3 percent over the year, accounted for 66 percent of the area’s population growth, but three suburban counties grew faster: Fort Bend, up almost 6 percent; Montgomery, up just over 5 percent; and Brazoria, up 3.6 percent.

Look for the article “Howdy Neighbors: Katrina Boosts Texas Population” in April’s Tierra Grande magazine. It will discuss Texas’ population growth in the wake of Katrina.

TOWN CENTER COMING TO HIGHLANDS

DALLAS (The Dallas Morning News, globest.com) – Prescott Realty Group is buying three Class-C Lake Highlands apartment complexes totaling more than 1,400 units. The locally based developer will replace them with a mixed-use community.

Prescott will build the $300 million Lake Highlands Town Center, which will encompass about two million square feet, including a shopping center and office space. About 300,000 square feet of urban-style retail and more than 1,000 residential units are also planned on the 70-acre site. Also planned are a hike-and-bike trail, lakes, park areas and an outdoor amphitheater.

Architect RTKL Associates drew up the development’s master. Prescott Realty Group will oversee the project.

The 50 percent occupied complexes to be torn down are Whispering Creek, on the northeast corner of Walnut Hill Lane and Skillman Road; Sutter Woods, at the southeast corner; and Bella Palms, Sutter Woods' neighbor.

Closing is expected by May. The development’s first retail phase is expected to take about two years to complete, coinciding with the 2010 completion of DART’s light rail station.

TAKING CARE OF LOGISTICS

GRAND PRAIRIE (globest.com) – APL Logistics is renewing its lease on a 343,200-square-foot distribution center in the Great Southwest Industrial District.

The eight-year tenant has signed a three-year renewal on the center at 510 W. Trinity Blvd. The company occupies two of the park's five buildings. APL also has a lease on a 500,000-square-foot building located nearby at 610 W. Trinity Blvd.

CB Richard Ellis represented APL, while property owner ProLogis was assisted by NOL Group, APL’s parent company.

VINEYARD SPRINGS COMPLEX SOLD

SAN ANTONIO (San Antonio Business Journal) – Vineyard Springs Apartments has been purchased by California-based Triple Net Properties LLC from developer Arcanum at the Vineyard Springs Ltd. on behalf of tenant-in-common investors.

The 23-building complex, built in 2001, is 94 percent occupied with one-, two- and three-bedroom units overlooking Loop 1604 and the Hill Country.

In the last year, Triple Net, a subsidiary of NNN Realty Advisors Inc., has bought four area apartment complexes: Walker Ranch, Hidden Lake Apartment Homes, Woodbridge Apartments and now Vineyard Springs.

Financing for the purchase was arranged by Wachovia Bank.

SAN CARLOS MAKEOVER

DALLAS (globest.com) – San Carlos Associates LP has purchased the 153-unit San Carlos Apartments for more than the $6.5 million asking price.

The local condo converter plans to invest millions in rebuilding the 12-building complex at 5010 Maple Ave. San Carlos Apartments was fully occupied at the time of sale.

Sam Lewis, senior adviser for Hendricks & Partners, says the buyer will gut the buildings to renovate mechanical systems and build from the inside out so that the condos will be like new. San Carlos Associates plans to price the condos below the area's $300,000 and $400,000 bracket.

Built in 1963, San Carlos Apartments has two efficiency units, five three-bedroom units and 24 one-bedroom units. The rest have two-bedroom floor plans. Units range from 300 to 1,152 square feet. Monthly rents range between $350 and $950.

CEDAR PARK RETAIL ENDEAVOR

CEDAR PARK (Austin Business Journal) – Endeavor Real Estate Group LLC is breaking ground today on a $100 million retail center.

The 800,000- to 900,000-square-foot 1890 Ranch is scheduled to open its first phase in October. Tenants will include Super Target, Cinemark, Circuit City, PetSmart and OfficeMax. The center is on 85 acres at US 183A and FM 1431.

The project engineer is Bury+Partners Inc., and the architect is Nelsen Architects Inc. Both companies are based in Austin.

FOUR POINTS GROUNDBREAKING

AUSTIN (Austin Business Journal) – Workers broke ground this week on the first 275,000 square feet of office space at Four Points Centre.

Los Angeles-based Thomas Properties Group is developing the project, which includes two 100,000-square-foot, Class-A buildings with a parking garage and a smaller 75,000-square-foot tilt-wall building with surface parking. The buildings are slated for completion next spring.

The offices at Four Points Centre are part of the much larger 33-acre, master-planned development that already includes retail and multifamily components. Future phases could include up to 900,000 square feet of office or research and development space, 250,000 square feet of retail and a 250-room hotel.

According to Brett Arabie of Oxford Commercial, which is marketing the office space, the project is the first multitenant, speculative office in Austin to attempt to achieve LEED certification.

Page Southerland Page is the architect on the Four Points project and DPR Construction is the general contractor.

NEW HOME CONSTRUCTION RISES; PERMITS DOWN

WASHINGTON (The Dallas Morning News) – Nationwide construction of new homes and apartments rose 9 percent in February to a seasonally adjusted annual rate of 1.525 million units, the Commerce Department reported. Construction had fallen by 14.3 percent in January to the slowest pace in more than nine years.

However, activity remained 28.5 percent below the level of a year ago. Marking the 12th decline in the past 13 months, builders’ applications for new permits continued falling in February. Permits dropped by 2.5 percent to an annual rate of 1.53 million units.

By region, the West led the gains in construction, posting a 26.4 percent jump, which was the best showing since January 1997. Construction activity was also up in the South, increasing by 18 percent, the biggest percentage gain in that region in nearly two years.

Construction fell by almost 30 percent in the Northeast, the biggest one-month plunge in that region since December 1990, while construction fell in the Midwest by 14.4 percent after a January decline of 16.4 percent.

NEW LIFE FOR FORMER AUTO DEALERSHIP SITE

HURST (globest.com) – Dmyterko & Wright Partners has purchased the former Freeman Toyota–Mazda dealership site at Northeast Loop 820 with plans to turn it into a retail center.

The 8.25-acre tract, previously owned by Ford Motor Credit Co., will be redeveloped with an LA Fitness, restaurant and hotel. Site work is set to begin next month, and LA Fitness should open in first quarter 2008.

Bob Ginsburg, vice president for CB Richard Ellis in Dallas, which brokered the transaction, says talks are underway with several national restaurateurs for the one-acre pad site and with a hotel developer for a 2.25-acre tract. The broker says Dmyterko & Wright's plan is to own the LA Fitness building and restaurant pad and sell the hotel site.

MUELLER PROJECT GETS SETON HQ

AUSTIN (Austin American-Statesman) – Seton Family of Hospitals is moving its headquarters and 700 employees to a new office complex at the site of the former Robert Mueller Municipal Airport, which was closed in 1999.

Seton plans to move into 150,000 square feet of office space on 3.25 acres in fall 2008. The new headquarters will consolidate Seton's administrative operations in one building and include the company’s administrative, human resources, legal services, communications and marketing departments.

Catellus Development Corp., which is in charge of the Mueller project, said this commitment by Seton was key to developing the proposed town center, a community hub that will link the commercial and residential areas.

The first retail stores are open, office space is under construction and the Dell Children’s Medical Center of Central Texas opens July 1. Construction on the first homes will start this summer (see RECON, March 6, 2007).

GROUPO CONSOLIDATING OFFICES

LAREDO (Laredo Morning Times) – Groupo Galvan will consolidate two warehouses and two offices in a new distribution center facility in the El Portal Industrial Park.

The 180,000-square-foot warehouse at 11905 Conly will have more than 10,000 square feet of office space, a 46-door dock with two ramp doors, and parking capacity for 180 trailers.

Groupo Galvan, an ISO 2000–qualified firm, was founded in 1921.

Modern Construction is the general contractor of the new building. Grand opening is scheduled for next month.

REMODELED, RENAMING, REOPENING SET

EL PASO (El Paso Times) – The vacant International Hotel will soon receive an $18 million renovation and be reopened as a 210-room Hilton DoubleTree Hotel.

Jim Scherr of Hotel Don Quixote LTD, which bought the property in 2004, said construction on the hotel at 600 El Paso at Missouri streets will probably begin in June, and the tentative opening date will be February 2009.

Houston architect Keith Carlson said the building will undergo a complete transformation, including the conversion of the seventh-floor pool deck into a sunset-viewing area with a new pool.

KOHL'S COMING TO LONGVIEW

LONGVIEW (News-Journal) – The city has issued a building permit for Kohl's in the new Longview Towne Center under construction on US 259 at Hawkins Parkway.

According to the building permit, the store will include more than 97,000 square feet. The store's construction value is listed at $4 million. Towne Center developers say the department store is expected to open later this year.

Kohl's has more than 800 stores in 46 states.

DIAMOND LOCH EXCHANGED

NORTH RICHLAND HILLS (svn.com) – Local private investors have purchased the 138-unit Diamond Loch Apartment community from California-based D Loch CP LP.

The 29-year-old complex on about eight acres at 6100 Glenview consists of one-, two- and three-bedroom units. At the time of closing, the complex was 96 percent occupied and purchased as part of a 1031 exchange.

Sperry Van Ness in Fort Worth represented the seller, while DFW Homes represented the buyers.

For more information on 1031 exchanges, read the Real Estate Center's “1031 Tax-Deferred Exchanges” and “Boom With a View.”

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

Tuesday, March 20, 2007

RECON March 20, 2007

RECON

Real Estate Center Online News

March 20, 2007

MALL IN THE FAMILY

TEXAS CITY (Houston Business Journal) – A group of California investors headed by brothers Michael and Mayer Makabeh of Los Angeles have purchased the Mall of the Mainland from Triyar Cos. LLC.

The 15-year-old, 780,000-square-foot mall on Emmett F. Lowry Expressway, off I-45, is the first Texas acquisition — and the largest purchase to date — for the Makabehs, who own a majority stake in the property.

Mall of the Mainland is one of five local malls put up for sale late last year by Triyar. Among the tenants are Dillard's, Macy's, Palais Royal and Sears.

TYLER'S LOOP ATTRACTS ARIZONA BUYER

TYLER (Tyler Morning Telegraph) – An Arizona private investment firm has purchased 543 contiguous acres for developing a mixed-use community between Loop 323 and Lake Bellwood.

"Middle-sized markets like Tyler often get overlooked by large institutional investors, but I know Tyler is a great town and I asked them to come look. Once they visited, they were sold," said Eric Davis, president of TierraStar Real Estate in McKinney, which helped facilitate the sale for the owners, Westchase Land Development and Martin Heines. Davis is also a former vice president of the Tyler Economic Development Council.

OMNI, RENAISSANCE HOTELS SOLD

AUSTIN, HOUSTON (Austin American-Statesman) – Walton TCC Hotel Investors of Delaware will pay $550 million for the 375-room Omni Austin Hotel and six other properties, including the Renaissance Houston hotel.

The seller, Fort Worth–based Crescent Real Estate Equities Co., had announced earlier this month that it was putting all of its holdings in Austin and a few other cities up for sale to match a revised business strategy.

The Omni is the latest in a series of sales which have put almost every major hotel in downtown Austin in new hands or under new brands in the past 18 months.

ROUNDTABLE SERIES COMING TO HOUSTON

COLLEGE STATION (Real Estate Center) – The Real Estate Roundtable Speaker Series will present “The Front Edge of the Real Estate Boom” Wednesday, April 18, from 11:30 a.m.–1:30 p.m. in Houston.

The guest speaker will be Dr. Mark G. Dotzour, chief economist and director of research at the Real Estate Center at Texas A&M University.

The seminar, which costs $65 and includes lunch, will be held at the InterContinental Hotel, 2222 West Loop South. To register, go to http://recenter.tamu.edu/register.

FORMER OPERATIONS CENTER SOLD

HOUSTON (globest.com) – Griffin Partners of Houston, in partnership with Urdang Capital Management of Pennsylvania, has purchased the high-rise known in the 1980s as the operations center for First City National Bank.

The 85 percent leased, 795,000-square-foot, Class-A building at 1301 Fannin St. was purchased for $114.5 million from the San Diego–based Shidler Group and Angelo, Gordon & Co.

Major tenants are ExxonMobil Corp., AIM Management Group and JPMorgan Chase Bank.

Eastdil Secured's San Diego office represented Shidler and New York City–based Angelo, Gordon & Co. Griffin Partners, which will lease and manage the building, represented itself.

CEDAR PARK LAND BOUGHT

CEDAR PARK (Austin Business Journal) – Dennis McDaniel, cofounder of Merit Texas Properties LLC, has purchased 129 undeveloped acres that includes 2,700 square feet of frontage on the new 183A tollway.

The firm purchased the land in partnership with a commingled fund managed by Strategic Capital Partners, a real estate investment management company based in Chicago.

OFFICE BUILDINGS PLANNED FOR NORTHWEST AUSTIN

AUSTIN (Austin Business Journal) – Two major real estate companies are planning to break ground later this year on new buildings along US 183.

Trammell Crow Co. will develop Pecan Park Place, a 266,000-square-foot, four-story, two-building office development on 24 acres under contract on the south side of the intersection of US 183 and RR 620.

Bury+Partners is handling the civil engineering for Pecan Park, and Studio 8 is the architect.

Just down the road, Cousins Properties Inc.’s Austin office is planning Research Park Plaza V, the last piece of the campus that already includes more than 620,000 square feet in four buildings.

UPGRADE FOR EXPO PURCHASE

IRVING (globest.com) – The Expo Group LP has purchased a 210,000-square-foot office/warehouse from Invesco Real Estate.

The 27-year-old building, which is on ten acres at 5931 W. Campus Circle Dr., contains 30,000 square feet of office space, which Expo Group plans to overhaul. The company will also make minor upgrades to the warehouse area.

The local trade show display company will move its operations into the building toward the end of the year.

Holt Lunsford Commercial Inc. in Dallas represented locally based Invesco.

MERITEX BUYS PORTWALL

HOUSTON (globest.com) – Meritex Enterprises has purchased a 205,000-square-foot industrial building on the city's northeastern side from Denver-based Argus Realty Investors LP for $10.4 million.

The Class-A Portwall building, built in 2000 at 200 Portwall St., is 100 percent leased for the long term to two tenants.

Grubb & Ellis Co. in Houston represented the Minnesota-based buyer.

SMA COMES TO LAS COLINAS

IRVING (globest.com) – SMA Equities has purchased a Class-A office building in Las Colinas from Connecticut-based Cornerstone Real Estate Advisers, an affiliate of Massachusetts Mutual Life Insurance Co.

The Overlook at 251 O'Connor Ridge Blvd. encompasses more than 95,500 square feet and is 92 percent occupied. Transwestern retained leasing duties, bringing the Bruning law firms, now at 3102 Maple Ave. in Dallas, to the three-story building’s top floor. The lead tenant is Darling International Inc.

Cornerstone owned the 22-year-old building, which sits on almost five acres, nearly a decade.

STANLEY TOOL WORKS COMPLEX SOLD

WICHITA FALLS (Times Record News) – The vacant, former Stanley Tool Works building has been sold by the company to local developers Bobby Schaaf and Paul Clark, plus Harry Patterson, Gary Mehan and other investors.

The 182,000-square-foot building on 75 acres in Wichita Falls Business Park, off US 287, has 8,000 square feet of office space. Parking is spread over six or seven acres.

Stanley Tool Works purchased the Ingersoll-Rand tool plant here in 1984 and closed its operation in 2002. The investors plan to "retrofit the building, spit-shine it and make it look brand new," said Bobby Schaaf. Work is expected to take between two and three months.

PREMIUM OUTLET BREAKS GROUND

CYPRESS (globest.com) – Chelsea Property Group has begun construction on the 430,000-square-foot Houston Premium Outlets near Texas 290 between Mason Road and Fairfield Drive.

The 75-acre center, just east of the planned 100-acre Fairfield Town Centre, represents the New Jersey–based company's fourth project in the state. Chelsea's other three Texas outlet centers are Allen Premium Outlets, Round Rock Premium Outlets and the Rio Grande Valley Premium Outlets just north of the U.S.-Mexico border.

Houston Premium Outlets will have 120 stores when it opens in second quarter 2008.

The project’s architect is Collaborative Inc. from Cleveland. Bury+Partners of Houston is the civil engineer, while Atlanta-based Hardin Construction is the general contractor.

NORDSTROM'S NEW DOMAIN

AUSTIN (prnewswire.com) – Fashion retailer Nordstrom Inc. has signed a letter of intent with Endeavor Real Estate Group to open a store at The Domain, a mixed-use community being developed here.

The two-level, 149,000-square-foot Nordstrom at The Domain will be the retailer's eighth store in Texas and second store in Austin. The Nordstrom at Barton Creek Square opened in August 2003. The Seattle-based firm also operates two Nordstrom Racks in Texas.

When Phase II of The Domain is completed, it will include over 3 million square feet of office space, more than 4,000 residential units, 900,000 square feet of retail space and two hotels. The Phase II retail district will open with the Nordstrom store, which is scheduled to be completed by fall 2011.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

Tuesday, March 13, 2007

RECON March 13, 2007

RECON

Real Estate Center Online News

March 13, 2007

BUILDING OUR CHILDREN'S FUTURE

FRISCO (rebusinessonline.com) – The Frisco Independent School District has chosen Cadence McShane to construct Frisco Career and Technology Center.

The almost 126,000-square-foot building on Wade Boulevard will feature career-focused and technology education for 11th and 12th grade students. Amenities will include a testing center, restaurant, TV studio, computer and animation labs, marketing and media center, employee training area, and medical and veterinary science labs.

The project is scheduled for a June 2008 completion.

SOLD ON SAFETY

COLLEGE STATION (Real Estate Center) – Recent headlines reporting assaults against real estate licencees continue to point out some of the hazards of showing homes to prospective buyers.

The Real Estate Center has produced a video in cooperation with the Houston Association of Realtors and the Houston Police Department that provides safety tips to help avoid becoming a victim. Click "Sold on Safety" to view this free video.

To find other Center videos, click "Video Archives" and scroll down to view topics of interest to you, including highlights from the Texas Association of Realtors' 2006 Convention.

THIRD TIME CHARM

DALLAS (globest.com) – Greenwood Apartments has been sold to a private Los Angeles–based partnership for the $1.42 million asking price, which represents about a 9 percent cap rate.

According to Al Silva, investment associate with Marcus & Millichap Real Estate Investment Brokerage Co., who assisted in brokering the sale, two previous contracts had fallen through for the 60-unit, all-bills-paid complex.

The 95 percent leased complex, built in 1964 on more than two acres at 716 N. Plymouth St. in North Oak Cliff near I-3, had been purchased two years ago and renovated. The complex consists of one- and two-bedroom units ranging from 750 to 950 square feet. Monthly rents are between $525 and $700.

LaSalle Bank in Chicago financed an 80 percent loan for ten years at a fixed interest rate for the buyer's first-time purchase in the Metroplex.

WOW! WE'RE GONNA GET A VA!

FORT WORTH (Dallas Business Journal) – The Veterans Administration (VA) plans to open the nation's largest outpatient clinic for military veterans here.

The $13.4 million, 238,000-square-foot-plus clinic will accommodate a projected 192,000 patient visits per year by 2025, according to the VA. The existing clinic, which is about 50,000 square feet, was designed to serve 45,000 annual patient visits, but is handling more than 149,000 visits annually.

The VA is expected to advertise for interested developers in April, receive initial offers from developers by June 15, and select a developer by Nov. 15. Grand opening is slated for the spring of 2010.

BRAKER FIVE SOLD

AUSTIN (Austin Business Journal) – Vintage Interests LP of Dallas has purchased the Beatrice Cove industrial office park at Kramer and Braker lanes from TCC-Beatrice Cove LP (TCC).

TCC is a partnership that included HPI Real Estate Services & Investments. Vintage has retained HPI Real Estate Services to lease and manage the properties, which are about 80 percent leased.

Rusty Perry, founder and managing partner for Vintage Interests, says the company will soon begin a capital improvement program for the five-building, 119,000-square-foot portfolio, also known as Braker 14 through 18.

Last year, the company purchased another industrial building at 3733 Drossett Lane. Vintage is now more than halfway toward fulfilling its goal of assembling a $100 million industrial portfolio within its first two years of operation.

Holliday Fenoglio Fowler (HFF) represented the seller on the transaction, and HFF in Dallas arranged financing for the buyer.

THURSDAY DEADLINE FOR REDUCED CONFERENCE RATES

COLLEGE STATION (Real Estate Center) – Thursday is the last day to take advantage of the reduced registration fee and hotel rate for the 17th Annual Outlook for Texas Land Markets conference.

Registration for the conference, to be held April 11–13 at the Hyatt Regency on the Riverwalk in San Antonio, will increase from $200 to $220 per person Friday. The Hyatt Regency's $189 room rate will also increase at that time.

To take advantage of the reduced rates, register for the conference at http://recenter.tamu.edu/register/ and reserve a room at http://www.sanantonioregency.hyatt.com/groupbooking/tamu2007.

The land conference will provide information on a variety of legal, economic, social and natural resource issues influencing current land market dynamics. For more information, go to http://recenter.tamu.edu/events/.

INNER LOOP RETAIL PLANNED

GEORGETOWN (Austin Business Journal) – New America Georgetown LLC of Houston will break ground later this spring on a 500,000-square-foot retail and commercial development on the northeast and northwest corners of the SH 29 and Inner Loop intersection.

The Inner Loop development will become the area’s second-largest retail development after the 700,000-square-foot Wolf Ranch, which opened in the summer of 2005.

A 2004 retail market study by the Capital Area Planning Council found that Georgetown was losing about $500 million in retail sales out of a potential $1 billion market, said Mark Thomas, director of Georgetown's Economic Development Corp.

FROM GABLES TO ESTATES

DALLAS (The Dallas Morning News) – Gables Highland Park apartments have been purchased by CWS Apartment Homes LLC (CWS). They will be renamed the Estates of Highland Park.

The six-year-old project at 4201 Lomo Alto Dr. has 55 large apartments with monthly rents ranging from $1,700 to $2,500.

In 2004, CWS, an Austin builder and investor, bought the West Village apartments and converted about a dozen of the largest units to condominiums.

Gables, which owned this complex until 2004, still owns the 57-unit Gables Highland Park Brownstones at 4733 Bowser Ave.

DALLAS, HOUSTON APARTMENT SALES SKYROCKET

DALLAS, HOUSTON (costar.com) – Both metro areas recorded a significant jump in apartment sales last year. Dallas recorded more units and more square footage for apartment sales, while Houston racked up a higher percentage of units sold over the previous year.

In Dallas, more than 52,300 apartment units were sold last year, which represents a 40 percent increase over the 37,500 units sold in 2005, according to CoStar Comps' information on buildings totaling at least 15,000 square feet.

More than 44.7 million square feet sold last year compared with 32.8 million in 2005.

Last year’s notable sales include the 267-unit The Ashton for $103 million, or about $385,800 per unit (April); the 422-unit Manchester State Thomas for $71.3 million, or about $169,000 per unit (March); and the 331-unit Windsor at Turtle Creek for $61.1 million, or about $184,500 per unit (September).

Houston apartment sales increased 58 percent last year over 2005 sales. More than 30,600 multifamily units were sold last year compared with 19,300 units sold in 2005.

Sold units last year totaled more than 26.8 million square feet, while the 2005 total was just over 17.8 million square feet.

Last year’s top three Houston multifamily transactions include the 346-unit Montierra Apartments for $60 million, or about $173,400 per unit (January); the 314-unit San Montego for $52.1 million, or about $166,000 per unit (June); and the 385-unit Pin Oak Estates for $45.7 million, or about $118,700 per unit (September).

Transactional unit counts and square footage calculations are important indicators of real estate investment behavior in Texas because of the state’s nondisclosure rules.

LAKESIDE APARTMENT COMMUNITY COMING

HOUSTON (rebusinessonline.com) – Newport on the Lake apartments will be constructed on ten acres along Barker Cypress Road.

Newport on the Lake, a limited partnership that includes Cambridge Development Group and Atticus Real Estate Development, will build 234 units consisting of one- to three-bedroom units in two- and three-story buildings. Amenities will include a conference room, a business room and a fitness center.

UPSCALE SELLS NEAR DOWNTOWN

AUSTIN (Austin Business Journal) – Investment Realty Holdings LLC of Alabama has purchased the 308-unit Alexan Cityview from Atlanta-based Trammell Crow Residential.

The upscale development at 4900 E. Oltorf St. is minutes from the city’s central business district, but it rents for 40 percent lower than comparable downtown units. As a result, the property historically has an occupancy rate of more than 95 percent.

Apartment Realty Advisors represented Trammell Crow.

SUMMERFIELD SUITES CONVERTING TO CONDOS

AUSTIN (Austin Business Journal) – Developer Bill Hale has purchased the Summerfield Suites near Northcross Mall at 7685 Northcross Dr. with plans to convert the hotel to condominiums.

Each of the 11 buildings has 18 units that will continue functioning as hotel rooms while the conversion is conducted in phases. The project will include a mix of one-bedroom units at around 575 square feet and two-bedroom units at around 850 square feet. On the ground floor, 20 units will serve special-needs residents.

The city is purchasing 34 one-bedroom and six two-bedroom units to resell through its affordable housing program. Paul Hilgers, director of neighborhood housing and community development for the city, says the project is significant because it will be the first for-sale affordable housing in the city's program west of I-35.

WE'LL TAKE THE FIFTH

AUSTIN (Austin American-Statesman) – Next up in downtown's condo-building boom is Sabine on Fifth, a ten-story building of mostly empty offices that CWS Capital Partners LLC is converting into 80 condominiums.

Crews are gutting the building, which adjoins the Hilton Garden Inn on the corner of Sabine and Fifth. Prices start in the mid-$190,000s for one-bedroom units with about 700 square feet and range up to the mid-$500,000s for 1,461-square-foot units.

Urbanspace Realtors LLP of Austin is marketing the units.

NO RECON FRIDAY

COLLEGE STATION (Real Estate Center) – Because the Real Estate Center will be closed for spring break beginning tomorrow, there will be no Friday edition of RECON this week. We will resume our normal publication schedule next week.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

Friday, March 9, 2007

RECON March 9, 2007

RECON

Real Estate Center Online News

March 9, 2007

A TALE OF TWO VILLAGES

ALLEN (The Dallas Morning News) – As it prepares to break ground on a regional shopping center, MGHerring Group has announced that it is teaming up with Koll Development Co. to build the Village at Allen, a 181-acre mixed-use complex.

The Allen complex will be built at the southeast corner of North Central Expressway and Stacy Road, across the street from where Dallas-based MGHerring is about to begin work on the Village at Fairview. Together, the projects will have more than 3 million square feet of construction.

Koll Development, also of Dallas, will develop the 500,000-square-foot office portion of the Village at Allen, which will include 900,000 square feet of retail space and a 250-room hotel.

The Village at Fairview will contain about 500,000 square feet of specialty shops and restaurants, a movie theater, hotel and conference center, and more than 1,000 residential units. Tenants will include Dillard's, Macy's, Barnes & Noble and the Container Store.

Both Villages will open late next year.

MGHerring is partnering with a unit of Prudential Insurance. Dallas-based Princeton Partners has been hired as the leasing agent for the Village at Allen.

BAYLOR GETTING RESEARCH CENTER

WACO (Waco Tribune-Herald, Austin America-Statesman) – Keller-Williams cofounder and Baylor University alumnus Gary Keller has donated $5 million to his alma mater to establish a real estate research center.

Under the direction of marketing professor Chris Pullig, the Keller Center will study the buyer-seller relationship in real estate deals.

“Why do people really buy? How do they consider the role of the agent? What influence does the Internet have on information search processes and purchase decisions? These are the kinds of questions we will be answering in great depth,” said Kirk Wakefield, who chairs Baylor’s marketing department, where the research center will be housed.

That decision will set Baylor’s center apart from the Real Estate Center at Texas A&M University, which focuses on economic issues to better inform buyers, sellers, government agencies, lenders, appraisers and the public.

“There is room for more real estate research across the board, and we are confident that the academic work at Baylor will add to the body of knowledge in the field,” said Gary Maler, director of the Center in College Station.

THE MCNEIL DEAL

AUSTIN (globest.com) – Williams Asset Management has purchased the 192-unit McNeil House from Bridge Investment Group of Salt Lake City. The Atlanta-based investment group will rename the Class-A property McNeil Ranch.

The 92 percent occupied complex, built in 1988 on almost 11 acres at 6280 McNeil Dr., includes a mix of one-, two- and three-bedroom units measuring 677 to 1,468 square feet. Monthly rents range from $896 to $1,565.

Williams Asset Management plans to upgrade the clubhouse and add a new fitness center.

HOW GREEN WAS MY PARK

AUSTIN (Cox Newspapers West Coast Bureau) – A local recycling company hopes to attract similarly green-minded businesses to its planned "clean-technology" business park.

Balcones Recycling, which makes industrial fuel from waste paper, expects to break ground in the fall on Environomics Park, a 125-acre development that will emphasize environmentally sustainable buildings that use renewable materials.

Located south of US 290 across from Applied Materials Inc., Environomics Park will house mostly companies in environmentally friendly businesses, such as recycling, alternative fuels or manufacturing of energy-saving products.

Balcones expects to spend $7 million on the land and for construction of its own 120,000-square-foot building.

Stream Realty Partners LP has been hired to help with development and marketing of Environomics Park. Balcones is also getting help from the city and the Greater Austin Chamber of Commerce.

GOING TO THE MARKET

MURPHY (The Dallas Morning News) – Langford Property Co. will break ground this month on Murphy Marketplace, a $60 million retail complex.

The 48-acre project east of North Central Expressway at Murphy Road and FM 544 will be anchored by a Sprouts Farmers Market grocery store. The first shops are scheduled to open early next year.

Demand for retail space in the development is so strong that Langford is negotiating an additional 28 acres. The developer is also working on plans for townhomes on part of the property.

The 500,000-square-foot marketplace was designed by O'Brien & Associates. Staubach Co. is handling the leasing.

LAKESIDE CENTER LANDS FURNITURE RETAILER

FLOWER MOUND (Hillwood Communications) – Stacy Furniture has leased the almost 380,000-square-foot Lakeside Trade Center 2 building from Hillwood.

Located on the northeast corner of FM 2499 and Enterprise Drive, the building will be used primarily as a distribution center, with 30,000 square feet serving as a retail outlet store.

This will be the fourth North Texas location for the home furnishings retailer. Besides its headquarters and showroom in Grapevine, the company has a showroom in Allen, and it owns Dorian's Interior Designs in Fort Worth.

Hillwood was represented by itself and NAI Robert Lynn Company. Stacy Furniture was represented by Glacier Commercial Realty.

HISTORIC WAREHOUSE CONVERTING TO CONDOS

DALLAS (The Dallas Morning News) – Bisno Development of Los Angeles plans to create more than 400 condominium units in the historic Butler Brothers building across the street from city hall.

The 510,000-square-foot, nine-story former warehouse on 500 South Ervay was the city’s biggest wholesale distribution center almost a century ago. When it opened, it took more than 800 train car loads of merchandise — the equivalent of a train ten miles long — to stock the building.

The city has committed $15 million in tax increment financing funds to support the redevelopment. Ebby Halliday Realtors will market the condos, with prices ranging from $180,000 to more than $600,000.

Bisno has already begun restoring the building's original facade, removing sections of concrete and stucco exterior panels put on the building almost 50 years ago.

"It was a Romanesque building with a heavy base, arches and a crenelated top like you see on a castle. It's typical of an early 20th century style of warehouse," said Jay Firsching of Dallas architecture firm Architexas, which has done consulting work for the developers. "For 1911, it was pretty incredible."

ANOTHER CALIFORNIA COMPANY LIKES AUSTIN

AUSTIN (Austin American-Statesman) – IndyMac Bancorp Inc., one of the nation's largest mortgage companies and thrifts, has leased slightly more than 100,000 square feet of Freescale Semiconductor Inc.'s campus at 7700 West Parmer Lane.

Dale Lazerson, IndyMac's first vice president of corporate real estate, said the company plans to hire 300 in the next two to three years. Full-time positions will on average pay from the mid-$30,000 range to between $50,000 and $60,000.

IndyMac is the third large California company to announce a move to Austin in the last few months. Dimensional Fund Advisors, an institutional money management firm, is moving its headquarters from Santa Monica and expects to create up to 800 jobs. Education Finance Partners, a private student loan company, recently announced it will move most of its operations from San Francisco to Austin, creating about 200 jobs.

NORTH TEXAS HOME SALES CONTINUE DECLINE

DALLAS (The Dallas Morning News) – February sales of North Texas pre-owned homes fell 8 percent from a year earlier — double the rate of decline in January — according to statistics released by the North Texas Real Estate Information System.

Increases in mortgage rates and tightened standards for mortgages due to rising defaults of home loans are credited with reducing the number of sales.

Simultaneously, the number of homes on the market has increased 7 percent. More than 44,000 area pre-owned single-family homes were listed for sale. A six-month supply of houses is considered a balanced market. North Texas’ supply is just over eight months.

Median home sales prices were unchanged from a year ago at $144,900. Most of the decline has been in houses priced under $200,000, statistics show.

Sales of homes priced at $1 million or more rose 27 percent in the first two months of this year.

COMERICA TO HEADQUARTER IN DALLAS

DALLAS (The Dallas Morning News, Austin American-Statesman) – Banking firm Comerica Inc. will relocate its corporate headquarters to the area from its 158-year home base in Detroit.

Comerica's Texas operations are already based here in Thanksgiving Tower, but the firm has not said where in Dallas the new corporate headquarters will be.

The company would receive an economic incentive package from the city worth about $500,000 over ten years, if the City Council approves it, said Karl Zavitkovsky, city hall's economic development director.

Comerica now generates nearly half its business outside Michigan, up from about 25 percent in 1997. There are 71 banking centers in Texas.

The Texas Enterprise Fund will provide a $3.5 million grant for Comerica, and the company is expected to generate about $47 million in capital investments in the state, Gov. Rick Perry said.

In 2005, Countrywide Financial Corp., the nation's largest independent home mortgage lender, also received $20 million from the Texas Enterprise Fund to establish offices in North Texas on the condition that it add 7,500 jobs in Texas by 2010. Comerica’s move will bring 200 area jobs.

FAIRGROUNDS SOLD

SAN ANTONIO (earthtimes.org) – EastGroup Properties Inc., an equity real estate investment trust based in Mississipi, has purchased Fairgrounds Business Park for $10.5 million.

The four 1980s-era business distribution buildings total 231,000 square feet, are currently 80 percent leased and are located in the Alamo Downs Business Park.

Eastgroup also owns the 100 percent leased, 253,000-square-foot Alamo Downs Distribution Center, which is in the same park.

This is EastGroup's fourth area investment. The trust’s San Antonio holdings now total more than 1.3 million square feet, including two properties under development.

SITTERLE'S GARDEN

WINDCREST (San Antonio Business Journal) – Sitterle Homes will develop The Gardens at Windcrest near the corner of Crestway and Midcrown.

The Gardens will feature 28 garden homes, ranging from roughly 1,650 to 2,200 square feet. Prices will start in the $210,000 range. Two mini-parks are also planned for the community.

Locally based Sitterle Homes has built more than 4,000 homes in the greater San Antonio area, including Rosehart, Emerald Forest, The Gardens on Point Bluff and River Crossing.

DEVELOPMENT AT RESLER RIDGE

EL PASO (El Paso Inc.) – Sixty new high-end homes will soon be built in the Resler Ridge Subdivision near I-10.

Hunt Communities LLC is finishing development and recently sold 12 acres to both Mountain Vista Builders and Zia Homes Inc.

Construction of the subdivision, including finished lots, roads, utilities, retaining walls and perimeter walls, will be completed by the end of the month, at which time Mountain Vista and Zia Homes can begin work on the homes.

According to Mountain Vista Builders sales manager Ismael Lozano, the new homes will likely range from about $280,000 to $500,000, and most will be two stories.

NEW LANDLORD FOR ACADEMY HQ

KATY (globest.com) – Cole Cos. of Phoenix has purchased Academy Sports & Outdoors Ltd.’s 93-acre corporate headquarters and national distribution center as part of a sale-leaseback arrangement.

Cole paid $102 million for the 1.4-million-square-foot property at 1800 N. Mason Rd. Academy Warehouse has a 20-year, triple-net lease, with numerous options allowing up to a 20-year extension following the base lease's expiration.

Currently, 93 percent of the property is used for warehouse and distribution, with the other 7 percent going to corporate office space. Chris Robertson, Cole's senior vice president of acquisitions, said Cole plans no upgrades to the buildings or land.

Stan Johnson Co. of Oklahoma represented Academy Sports in the transaction.

REDUX ATTRACTS FIRST BIG TENANT

IRVING (The Dallas Morning News) – Avelo Mortgage LLC, an affiliate of Goldman Sachs, has leased almost 98,000 square feet of office space in the former Associates Corp. headquarters at 250 East John Carpenter Frwy.

The 539,000-square-foot building, which opened in 1976, was one of the first developed in the Las Colinas area. Behringer Harvard bought the buildings in April 2005.

When major tenant Citigroup moved out of the building last year, Behrenger began extensive renovations expected to total $11.2 million. Renovations include common areas, mechanical system upgrades, a new food service facility, an updated fitness center, a new entry, additional parking and landscaping.

CB Richard Ellis and the Staubach Co. were the brokers assisting in lease negotiations that secured Avelo, the first major tenant for the renovated building.

@ THE CENTER

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To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

Texas Real Estate Market News

Friday, March 30, 2007

RECON March 30, 2007

Tuesday, March 27, 2007

RECON March 27, 2007

The Woodlands E-Neighbor - March 27, 2007

Friday, March 23, 2007

RECON March 23, 2007

Tuesday, March 20, 2007

RECON March 20, 2007

Tuesday, March 13, 2007

RECON March 13, 2007

Friday, March 9, 2007

RECON March 9, 2007

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