U.S. HOUSING MARKET REVERTING TO NORM
NEW YORK (Bloomberg News, Real Estate Center) – The National Association of Realtors (NAR) projects that U.S. home sales and prices will continue to fall this year, and the housing slump will persist into next year as builders curtail production.
NAR reduced its sales forecast Wednesday for the seventh consecutive month and said existing home sales will fall 5.6 percent to 6.11 million in 2007. Prices will drop 1.4 percent. In 2008, single-family housing starts will probably fall to their lowest since 1995.
Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University, said the decline is natural and expected after several years of uncommonly high sales levels.
“Through a series of market factors, sales reached very high, unsustainable levels from 2004 through 2006,” Gaines said. “Now we’re seeing the housing market revert to its norm. The market took several steps forward during the last few years. Now it’s taking a step back.”
ACREAGE EARMARKED FOR OFFICE USE
ADDISON (costar.com) – Opus West Corp. has earmarked 3.5 acres near Addison Circle for office development.
Opus West purchased the site from Staubach Assets Inc., and it is one of the last tracts in town zoned for office development. The company, which represented itself in the transaction, plans to use the tract for a multistory building that could offer between 180,000 and 200,000 square feet of Class-A office space.
NORTHWEST PINES SOLD
HOUSTON (globest.com) – Los Angeles–based JRK Asset Management Inc. has sold the 364-unit Northwest Pines to MNR Inc. of New York City.
Northwest Pines, which sits on more than 11.5 acres at 5801 N. Houston Rosslyn Rd., has one- and two-bedroom units. Rents range from $435 to $625 per month. The Class-B, 27-year-old complex was 94 percent occupied at closing.
The sales price was within 90 percent of JRK’s $11.4 million asking price and had a 8.5 percent cap rate.
Cushman & Wakefield represented the seller, while MNR was self-represented. Asset Plus Corp. of Houston will manage the property.
FOUR NEW TENANTS FOR IDI
DALLAS (globest.com) – Four tenants have signed leases totaling 280,000 square feet of distribution space at area properties owned by Atlanta-based IDI.
- Jupiter Logistics Ltd. signed for 105,000 square feet in a five-year lease at the Beltline Trade Center at 346 E. Belt Line Rd. in Coppell.
- Harvel Plastics Inc. also leased space at the Beltline Trade Center. The Pennsylvania-based company signed a five-year, 60,000-square-foot lease for a distribution facility.
- At the Class-A Skyline Trade Center in Mesquite, the Merit Group Inc. signed a ten-year lease for almost 87,500 square feet. The center is at 2400 Skyline Dr., near I-635 and Gross Road.
- Contractors Wire and Cable signed a five-year lease on almost 27,500 square feet in Building C in Valwood West Business Park at 2045 Westgate Dr. in Carrollton. The lease brings the four-building, almost 577,000-square-foot Valwood to 100 percent occupancy.
IDI represented itself in all four leases, and it also represented Harvel Plastics. NAI Huff Partners represented Contractors Wire and Cable, NAI Robert Lynn Co. represented the Merit Group and the Staubach Co. represented Jupiter Logistics.
IMPROVEMENTS AT PIONEER PARKWAY
GRAND PRAIRIE (costar.com) – The PPA Group has paid $6.1 million for 334 apartment units at 145 Pioneer Pkwy.
The buyer plans to spend about $360,000 to improve some of the amenities and restore the building exteriors.
CB Richard Ellis represented seller Thurman Skillman Woods.
APARTMENTS UNDERGO CONDO CONVERSION
AUSTIN (Austin Business Journal) – Windsong Apartments and Parkside Apartments, which were recently purchased by two different buyers, will be converted into condominiums.
The Sutton Co. purchased the 52-unit Windsong at 2703 Swisher Street, while an unnamed local investor picked up the 18-unit Parkside at 4209 Burnet Road.
Transwestern's Central Texas Multifamily Group represented the sellers.
RIVER PLAZA REDO
FORT WORTH (globest.com) – Trademark Property Co. is developing a $100 million mixed-use project on the banks of the Trinity River.
The River Plaza project, a joint venture of Trademark and RP Partners, will include the complete makeover of a 140,000-square-foot office building at 1701 River Run, the purchase of the Silver Fox Steakhouse for a sale-leaseback and expansion, 95,000 square feet of new specialty retail along University Drive, and a 135-room hotel.
The almost seven-acre site includes 600 feet of frontage along University Drive and another 600 feet along the Trinity River.
Trademark officials say construction will get under way before the end of the year. The first phase will be completed in 2009, while the second, including the hotel, will wrap up in 2010.
POST OAK PLAZA TO FRESHEN UP
HOUSTON (globest.com) – A $38 million renovation of the more than 129,000-square-foot Post Oak Plaza began yesterday, marking the first upgrade for the 40-year-old shopping center.
Improvements to the property at 1751 Post Oak Blvd., near the Galleria, will focus largely on the façade, landscaping and parking lots. The work will take 12 to 18 months to complete.
The center is 85 percent occupied. Major tenants include Linens 'n Things, Whole Earth Provision Co., the Arrangement, Pinto Ranch and Luby's.
Financing was arranged by NorthMarq Capital Inc.'s Houston office. Mony Life Insurance Co. in New York City provided the funding.
SEA GUN A GO
ROCKPORT (Corpus Christi Caller-Times) – A joint-venture partnership is developing a $75 million project on the Lamar Peninsula that will bring luxury town homes, waterfront condominiums and a new marina to Aransas County.
The project will redevelop about 22 acres, including the old Sea Gun Sports Inn property. Plans include creating a private gated enclave with 15 waterfront lots for single-family homes, 50 townhomes with individual boat slips, 100 condominium units, a 165-slip marina and harbormaster building.
The Sea Gun project, which will likely be completed in three to five years, is a joint venture between Brett Bohn of Houston-based Lakeland Development Company and current property owners David Pilgrim and Alan Latham of Aransas Bay Interest.
KEMPWOOD SERVICE CENTER PURCHASED
HOUSTON (Houston Chronicle) – Colette Farms has purchased the Kempwood Tech Center, a more than 113,000-square-foot flex service center on 7.2 acres at 2704-2778 Bingle.
Holliday Fenoglio Fowler represented seller Midway Cos. NewQuest Properties represented Colette Farms.
MARRIOTT MOVING INTO VILLAGE
ALLEN (The Dallas Morning News) – A 225-room hotel will be part of the Village at Allen, a 181-acre mixed-use development at the southeast corner of Central Expressway and Stacey Road.
Construction on the ten-story Courtyard by Marriott hotel will begin this fall and be completed in spring 2009.
The developer is John Q. Hammons of Missouri.
PARADISE FOUND
CORPUS CHRISTI (globest.com) – Post Investment Group LLC has paid $23.5 million for the 783-unit Paradise Bay Apartments.
The California-based real estate company plans to invest $2 million in upgrading the Class-B complex at 5901 Weber Rd.
Paradise Bay was built in two phases between 1973 and 1980. It has a mix of efficiencies and one-, two- and three-bedroom units. Sizes range from 500 to 1,200 square feet. Monthly rents are $475 to $1,100.
Post Investment’s goal is to have $100 million in multifamily properties nationwide by the end of the year, with 80 percent of the activity in Texas.
Hendricks & Partners’ Houston office represented seller Paradise Bay Apartments LP, while Post Investment was self-represented. New York City–based Credit Suisse Inc. financed $21.5 million of the debt. The remainder was provided by private equity sources.
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