RECON May 15, 2007

RECON

Real Estate Center Online News

May 15, 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.

FARMERS MARKET SPROUTING DEVELOPMENT

DALLAS (The Dallas Morning News) – Jim Moore recently purchased two vacant blocks next to downtown's Farmers Market, which previously housed plant nurseries.

The Dallas-based homebuilder plans a mixed-use development on the 4.5 acres, which will include ground-floor retail space with homes above.

Currently, Moore is developing 28 townhomes at Pearl Expressway and Canton Street. The project, named 2100 Downtown, has three-story homes starting at more than $390,000.

LAKE BUCHANAN RANCH LAND SOLD

AUSTIN (Austin American-Statesman) – For almost 70 years, the 27,000-acre, family-owned Goodrich Ranch was a working cattle ranch about 70 miles northwest of Austin in Burnet County. Earlier this year, the family sold all but about 6,000 acres of the ranch to Copper Station Properties.

South Carolina–based Copper Station has purchased the remaining 21,000-plus acres along Lake Buchanan's northeastern shore and renamed the land Clearwater Ranch. The firm will subdivide the land into 11 parcels for resale. The land, which has limestone canyons and 21 miles of spring-fed creeks, is about 33 square miles, with 11 miles of frontage on the Colorado River and the lake.

Ranch Investments & Associates represented the Goodrich family in the sale. The family will retain rights to the Goodrich Ranch name.

MOODY'S MEDICAL CENTER MONOLITH

HOUSTON (globest.com) – Moody National Cos. has purchased just over one acre in the Texas Medical Center at Woodbury and Cambridge to build a 200-unit residential tower.

The $35 million Cambridge Tower will include small studios to large luxury units. Moody will manage and lease the tower, which will be near the Michael E. DeBakey Veterans Affairs Medical Center.

Moody is currently renovating the 297-room Residence Inn–Medical Center/Reliant Park at 7710 Main St. After completing its currently planned projects, the company will oversee about 40 million square feet in the Medical Center.

Moody National was self-represented, while Karpas Properties in Houston represented the local, private seller. Ground will break early next year. Grand opening is slated for early 2009.

CRESCENT'S LAST AUSTIN ASSETS SOLD

AUSTIN (Austin Business Journal) – Fort Worth–based Crescent Real Estate Equities Co. is selling the last of its local assets.

Hines Interests LP of Houston is buying the building at 301 Congress. Built in 1986, the 22-story building has about 418,000 square feet of rentable space. The property was 76 percent leased last August.

Meanwhile, Triple Net Properties LLC of California is buying 816 Congress and the Avallon complex, both Class-A properties.

Built in 1983, 816 Congress has about 433,000 square feet and was 90 percent leased as of last summer. The Avallon, at 10415 Morado Circle, consists of five three-story buildings totaling about 318,000 square feet.

According to the Travis Central Appraisal District, 301 Congress is valued at $94.5 million, 816 Congress is valued at $62.8 million and the Avallon is valued at $22.2 million.

SURVEY CHARACTERIZES REALTORS

WASHINGTON, D.C. (National Association of Realtors) – A recent member survey by the National Association of Realtors (NAR) found that Realtors work mostly on commission and earn more over time. Among the findings:

• Median income was $47,700 in 2006, down from $49,300 in 2004. Members licensed as brokers earned a median of $73,700 last year, while sales agents earned $34,600.
• Men earned a median income of $58,600 in 2006 and were more likely to be brokers, while women earned $42,000 and were more likely to work part time.
• Realtors in the business for two years or less earned a median income of $15,300, while those with three to five years of experience earned $44,200. For six to 15 years, the median was $64,600, while members in the business for 16 or more years earned $76,200.
• Nearly six in ten NAR members are women.
• Five percent are younger than 30 while another 6 percent are 30 to 34 years old; 12 percent are 65 or older.
• Most Realtors hold a sales agent license (63 percent), followed by a broker’s license (22 percent), broker associate (16 percent), and appraiser license (3 percent). One percent hold some other kind of license.
• One quarter of all business is from referrals or repeat business from previous clients.
• Seven out of ten are compensated through a split commission arrangement, 17 percent receive a full commission and another 3 percent receive a commission plus a share of profits.
• Only 10 percent work fewer than 20 hours per week and 30 percent work 20 to 39 hours per week, while 15 percent work at least 60 hours per week.
• Eight out of ten brokers report their primary business specialty is residential brokerage.
• Nine out of ten members report their firms have websites, and 61 percent have personal websites.
• Half of all members communicate with their clients by e-mail more than 50 percent of the time.

For information on other findings, visit www.realtor.org.

HOTEL HYATT PLACE COMING

SAN ANTONIO (San Antonio Business Journal) – FFC Capital Corp., a Pittsburgh-based investment company, and Houston-based Camden Hospitality Group have purchased an AmeriSuites hotel near the airport.

The joint venture, operating under the newly formed partnership Texas Place Hotel Properties LLC, has begun renovations, which are expected to take about six months. The hotel will be rebranded as a Hyatt Place.

In addition to this eight-year-old hotel on Jones Maltsberger Road near US 281, the partnership has acquired three more AmeriSuites in Austin, Houston and Grand Prairie. Each will be converted into Hyatt Place hotels.

The Pittsburgh office of Holliday Fenoglio Fowler LP arranged $49 million in financing for the LLC's purchase of the four AmeriSuites properties. FFC will own the majority interest in the properties, while Camden will own a minority interest and manage the hotels.

Camden also owns the Crockett Hotel, which is directly behind the Alamo.

EXISTING HOME PRICES DOWN

WASHINGTON, D.C. (Associated Press) – First-quarter sales of existing homes rose at an annual rate of 6.4 million units, 6.6 percent lower than a year ago, according to the National Association of Realtors (NAR).

Existing home sales were 2.4 percent higher at an annual rate than they were in fourth quarter 2006. In fact, the NAR reported that 14 states and the District of Columbia saw an increase in the rate of home sales last quarter compared with only six states showing gains during the previous quarter.

The national median existing single-family home price was $212,300, down 1.8 percent from a year ago when the median price was $216,100.

CENTEX'S THIRD HARRIS BRANCH COMMUNITY

AUSTIN (Austin Business Journal) – The Austin division of Dallas-based Centex Homes Corp. has purchased 135 acres from Harris Branch developer The Galesi Group.

It is the final single-family parcel within the 2,200-acre Harris Branch master-planned development, which already has about 1,100 single-family homes. Galesi began developing the project, which is near Parmer Lane and the new SH 130 toll road, in 1996. Fully built out, the project will contain single-family, multifamily, industrial, office and retail uses.

Stirling Bridge will be the company's third community within Harris Branch. The subdivision will contain about 350 homes ranging from $140,000 to just over $200,000 surrounding a 12-acre lake and greenbelt.

Centex currently has 16 active communities in the Austin market, which is Centex's third-strongest in terms of closings among more than 45 markets, following Dallas and the San Bernardino Valley area in California.

JLM Land Co. negotiated the sale. Phase one construction will begin this summer.

@ THE CENTER

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