TEXAS SURPASSES NATIONAL HOME APPRECIATION RATE
COLLEGE STATION (Office of Federal Housing Enterprise Oversight, Real Estate Center) – According to recent figures from the Office of Federal Housing Enterprise Oversight, home prices in Texas increased 6.8 percent during first quarter 2007, well above the 4.3 percent national average.
“Despite the national slowdown, Texas is still strong,” said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University. “There’s no reason prices shouldn't continue to rise despite the increase in foreclosures and the slowdown in transactions, construction and new home starts.”
By comparison, home appreciation slowed to 1.2 percent in California and 3 percent in New York. Nevada price increases virtually disappeared at just .6 percent. Even rapidly growing Florida and Arizona reported value increases of 4.3 percent and 5.2 percent, respectively.
Within Texas, there is a wide variation in appreciation rates in the 25 metropolitan areas. Among the state’s large metro areas, Austin and San Antonio are seeing the strongest rate increases at more than 10 percent.
Meanwhile, the energy industry is fueling strong housing markets in some smaller metros. Home prices are up more than 21 percent in Midland and 16 percent in Odessa. Victoria prices are up 8.3 percent.
Some border communities are on fire as well, thanks to a surge in government hiring and business activity. Laredo is up 16.6 percent, while El Paso is up 11.2 percent.
PUBLIC'S PARTNERSHIP ASSISTS REVITALIZATION
DALLAS (Dallas Business Journal) – The proposed Fort Worth Avenue tax increment financing (TIF) district and the adjacent Twelve Hills TIF district have received the city council’s unanimous approval.
According to council members, approving these districts will bring much-needed residential, retail, entertainment and office space to North Oak Cliff.
The Fort Worth Avenue TIF's plans include about one million square feet of retail and 231,000 square feet of office space. Also planned are 9,535 residential units, including affordable housing units, some of which will be allocated for local teachers and police officers.
The additional taxable value attributed to the development over the 22-year investment period is expected to be more than $1.2 billion.
The Twelve Hills TIF proposal includes plans for 472,000 square feet of retail and other commercial development over a 22-year period plus 2,725 residential units, including townhomes, condos and upgraded apartments.
This district would add an additional $599 million in taxable value over the life of the TIF. The estimated 2007 base real property value of the zone is about $103 million.
The Fort Worth Avenue Development Group has been working with the city and community for several years to build consensus on the redevelopment corridor, councilman Ed Oakley said.
To learn how a TIF provides a taxing process that benefits both its public and private partners, see Tierra Grande’s “The ABCs of TIF.”
METRO STYLIN'
SPRING, HUMBLE (globest.com) – Steve & Barry's LLC, representing itself, has leased 56,000 square feet at Corum Station Shopping Center and 42,000 square feet at Deerbrook Mall.
J. Beard Real Estate Co. in the Woodlands handles leasing at the 135,000-square-foot Corum Station Shopping Center at 4880 Louetta Rd. in Spring. The casual fashion retail chain will backfill a Randall's grocery and drug store.
According to tax records, Corum is owned by Transwestern Property Co.
General Growth Properties Inc. of Chicago owns the 1.2 million-square-foot Deerbrook Mall at 20131 US 59 N. in Humble. The clothier will backfill an empty Mervyns store.
Both locations are scheduled to open within four months. Including these new leases, the company now has five locations in the Houston area.
NAR HONORS TAR PRESIDENT MCMAHAN
WASHINGTON (National Association of Realtors) – Benny McMahan, president and CEO of the Texas Association of Realtors, was awarded the 2007 William R. Magel Award of Excellence by the National Association of Realtors (NAR).
The Magel Award is the highest honor bestowed by NAR’s Association Executives Committee (AEC). It is presented annually to one individual who has excelled as an executive of a local or state association of Realtors and who is active in the Realtors organization at the time of nomination.
Bob Hamilton, chair of the AEC Recommendations and Recognition Subcommittee, said colleagues nominated McMahan based on his leadership style, his involvement in the Realtors Political Action Committee and the help he provided fellow Realtors after Hurricane Rita.
McMahan, a former member and chairperson of the Real Estate Center’s Advisory Committee, said he started in real estate just out of college and, after a more than 20-year career, moved into Realtor association management.
LUXURY LA SALLE BREAKS GROUND
ROCKPORT (Corpus Christi Caller-Times) – Three Houston-based developers broke ground this week on the $41 million La Salle development.
The 80 two- or three-story townhomes will range from 2,300 to 3,100 square feet and start in the low $400,000s. Construction of model homes should be completed by the end of July.
The project, adjacent to the Rockport Country Club, is being developed by R&R Development Partners LLC, Bronstorph Development Partners LP and British American Properties of Houston Inc. under the umbrella of Rockport Greens LLC.
Key Allegro Real Estate is listing the project.
PLAZA PLUCKED
THE WOODLANDS (globest.com) – American Investment Exchange LLC, a tenants-in-common buyer from California, has purchased the 95 percent leased College Park Plaza.
Selling in about 20 days for just under $19.5 million, the more than 70,000-square-foot plaza is on just over nine acres at 3081-95 College Park Dr.
Developed in 2005 and purchased just after its completion by HSM Equity Partners, an affiliate of Dallas-based Henry S. Miller Commercial, the center's tenant base includes local shop owners, professional services and some nationally known retailers, including Pizza Hut.
MCCANN CLAIMS CLASS-A BARONS
MESQUITE (globest.com) – McCann Realty Partners has purchased the 508-unit Barons Apartments from Dallas-based Mockingbird Properties.
McCann purchased the Class-A complex at 2101 E. US 80 through the Silver-McCann Apartment Group II LP. The Virginia-based firm made the purchase using a ten-year loan at a 5.8 percent fixed interest rate from New York City–based Lehman Brothers.
Developed between 1999 and 2002, the 22-building complex was more than 90 percent occupied at time of sale. The one- and two-bedroom units average 775 square feet. McCann will put about $1,000 per unit into upgrading the Barons.
Lincoln Property Co. of Dallas has been hired to manage the complex.
JV TAKING CARE OF LOGISTICS
GRAND PRAIRIE (globest.com) – Vought Aircraft Industries Inc. of Dallas has sold 96 partially developed acres to NAI Huff Partners. The Fort Worth firm will work with Dallas-based Champion Partners Ltd. to build 1.3 million square feet of bulk distribution space.
Logistics Crossing, which will be west of the under-construction Hwy. 161 and I-20, will include two distribution centers with 600,000 square feet in the first phase and 700,000 square feet in the second. The development will cost more than $50 million, including the $1 million renovation of a neighboring 330,000-square-foot warehouse.
Alliance Architects Inc. of Dallas designed the industrial plan, putting 30- to 32-foot clear heights into the cross-dock buildings and platting the land for 600 trailer parking spaces, 185-foot truck courts and a 250-space trailer storage lot.
The joint venture will begin work on Logistics Crossing One by fall and complete it in first- or second-quarter 2008.
The developers secured a five-year, 50 percent tax abatement from the city.
SAMSUNG OPENING SINGS
AUSTIN (Austin American-Statesman) – Lee Ann Rimes and a bald eagle joined the UT Longhorn band and cheerleaders at the grand opening ceremonies held today for the Samsung Electronics Co. Ltd.’s $3.5 billion Fab 2 complex.
At 1.6 million square feet, the electronic chip-making factory will be the largest in Texas and one of the largest foreign investments in the United States.
Gov. Rick Perry, also speaking at the ceremonies, committed $10.8 million from the Texas Enterprise Fund as a part of the project’s $233 million incentive package. He also facilitated collaboration in the incentives process with the Manor school district.
Samsung, the world's second-largest chip maker, gained about 700 employees during the plant's construction, bringing its local employment to 1,600. An additional 900 workers will staff the new factory.
The factory is scheduled to begin commercial production near the end of the year. Payroll is expected to grow from $60 million a year to about $100 million after one fully operational year.
HOME SALES COOLING OVERALL
HOUSTON (Houston Chronicle) – While some parts of the city are still strong, the overall housing market is cooling as area home sales fell 2.2 percent last month from the previous year, according to the Houston Association of Realtors (HAR).
Realtors sold 7,052 single-family homes through the Multiple Listing Service, making last month the second highest May on record for sales.
However, it was the second time in three months that home sales fell compared to the previous year. In March, sales fell 8.4 percent, which was followed by a 4.1 percent gain in April.
Home sales in the $80,000 to $140,000 price range, which made up 32 percent of the transactions, were down 8.3 percent compared with the same period last year.
Sales of homes priced at more than $500,000 increased in activity by 14.6 percent.
While the number of homes on the market rose by 16.2 percent over last year, the median price for a single-family home reached a monthly record for May of $155,000 (2 percent increase). The average single-family home price came in at $214,540 (5.5 percent increase). The average sales price figure is an all-time high for the greater Houston area.
Month-end pending sales — listings expected to close within 30 days — were down 2.9 percent from last year, signaling an initial expectation of possible weakness in June sales, according to HAR.
GALO, FULCRUM PLAN MIXED-USE
SAN ANTONIO (San Antonio Express-News) – Galo Properties and Fulcrum Development will develop 99 acres at the southeast corner of I-10 and Loop 1604 near La Cantera.
Two hotels, one million square feet of office space, 300,000 square feet of retail and 1,500 multifamily units will be built on the land, which had been off the market for two decades,.
Phase one for the joint venture includes two six-story office buildings totaling 500,000 square feet. Construction is expected to begin in January.
The hotels will be constructed in phase two, and the multifamily units in the third phase. Each phase will include retail development.
The project will take seven to ten years to complete.
Drake Commercial Group brokered the transaction. The seller was Florida-based Turnberry Associates.
ARTSY TOWER, TALLEST PLANNED
DALLAS (The Dallas Morning News) – At 560 feet, the 42-story Museum Tower is planned by developer Brook Partners to be the tallest completely residential building in town.
The condominium project will rise in the Arts District on Olive Street next to the Nasher Sculpture Center. It will overlook the new Woodall Rodgers Park.
The building will have between 100 and 125 residences, with some units taking entire floors. The smallest unit is around 1,500 square feet and will cost about $1 million.
Dallas chef and restaurateur Stephan Pyles has been engaged to design the homes’ kitchens and provide catering and other services.
The $200 million cylindrical condominium tower was designed by Los Angeles architect Johnson Fain. The exterior will be three kinds of glass panels designed to overlap like scales on a fish.
NO PLACE LIKE HOME
LONGVIEW (Longview News-Journal) – Returning to his boyhood town, Mac Fuller will develop the high-end Fairmont Cove subdivision on land purchased from members of the Jane Cunningham family.
Crescent Fine Homes will develop the 28-lot garden home community on more than six acres off West Fairmont Street, west of the H.G. Mosley Parkway intersection.
Home prices will range from the $190,000s to $230,000. Custom floor plans will range between 1,800 and 2,100 square feet.
Crescent president Fuller, who has been in the development and real estate businesses in the Dallas area and throughout Texas for about 30 years, plans to use local contractors and suppliers during the development process. Local companies include Forbes & Butler (advertising), Southside Bank (financing) and Coldwell Banker Lenhart Properties (sales).
Site work is slated to start this month, and a model home should be ready for viewing by fall.
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