BOOMERS WATCHING AUSTIN
AUSTIN (AARP The Magazine) – Texas' capital city has landed on the list of the top four "retirement-friendly" cities to watch, according to AARP The Magazine.
Features that make a community livable, such as mass-transit systems, expanded sidewalks, better healthcare and a wide range of mixed-use housing, were among the criteria for determing the magazine’s list of five great places to live and the four cities worth watching. These features tend to attract residents over age 50. According to the magazine, that age group is estimated to grow by 32 percent in the next 15 years.
The three other places to watch were Burlington, Vt.; Mankato, Minn.; and Traverse City, Mich. The top five places in the nation for retirees were Atlanta, Ga; Boston, Mass.; Chandler, Ariz.; Milwaukee, Wis.; and Portland, Ore.
MUELLER MULTIFAMILY DEVELOPMENT UNDERWAY
AUSTIN (globest.com) – Construction has begun on the first multifamily development at the former Robert Mueller Municipal Airport.
Mosaic at Mueller is a $45 million, 440,000-square-foot complex with 442 apartment units. It is being developed by Austin- and Houston-based Simmons Vedder & Co. in partnership with Dallas-based Crow Holdings Realty Partners IV LP.
The four-story Mosaic at Mueller will include one-, two- and three-bedroom units ranging from 580 to 1,750 square feet. Monthly rents will range from $850 to $2,500, with 10 percent of the units available to low-income renters. Facilities will include swimming pools, a clubroom, fitness center and a business center.
Simmons Vedder was awarded development rights for the site under a ground lease with the 711-acre airport’s redeveloper, Catellus Development Group, a subsidiary of Denver-based ProLogis.
Leasing begins late next summer.
A QUARTER TO GO AT BAYPORT
PASADENA (globest.com) – Phase one of the one-year-old Bayport North Distribution Center is now 72 percent leased thanks to two transactions totaling 204,000 square feet.
Catalytic Distillation Technologies, a Houston-based developer and licenser of refining and petrochemical processes, has leased 60,000 square feet. Memphis-based Mallory Alexander International Logistics LLC will occupy 144,000 square feet.
The two-building, 563,500-square-foot, rail-served office/warehouse at 4330 Underwood Rd. was completed last summer by Vantage Cos. and sold to California-based REIT Carson Cos. Based in Houston, Vantage manages and leases the buildings for Carson.
Carson is currently beginning the project's second phase, which will feature two cross-dock buildings totaling 772,000 square feet.
Leasesquarefeet.com in Houston represented Catalytic Distillation, while Moody Rambin Industrial Realty, also of Houston, represented Mallory Alexander. Vantage represented Carson.
THE RISE AND FALL OF EXISTING-HOME SALES
WASHINGTON (National Association of Realtors) – Sales of existing homes fell last month. Prices rose modestly as inventories eased, according to the National Association of Realtors (NAR).
Total existing-home sales — including single-family, townhomes, condominiums and co-ops — declined 3.8 percent to a seasonally adjusted annual rate of 5.8 million units, 11.4 percent below the 6.5 million unit pace same time last year.
“Although we’ve seen seasonal month-to-month price increases over the past four months, this is the first time in 11 months that the median home price is higher than the year-ago price,” said NAR Senior Economist Lawrence Yun.
Last month’s national median existing-home price for all housing types was $230,100, up 0.3 percent from last year. Total housing inventory fell 4.2 percent to 4.2 million existing homes available for sale, representing an almost nine-month supply at the current sales pace, the same as in May.
Regionally, existing-home sales in the South eased by 1.7 percent to an annual sales rate of 2.3 million, 11.4 percent below a year ago. The median price in the South was $190,800, up 0.7 percent from June 2006.
AUSTIN 'BURBS SALES RISE
LEANDER, CEDAR PARK (impactnewspaper.com) – Home sales in the area increased last month, according to the Cedar Park–Leander MLS.
While the 198 homes sold in June represents a decline from the 295 sold during the same time last year, it is an increase over the 132 homes sold in May.
Last month’s average price per home was $166,287, up from $160,465 per home in May, but down from last year’s $172,265.
NURSING HOME EXPANSION PLANNED
GARRISON (svn.com) – Garrison Nursing Home, a 1960s-era, 43-unit nursing home, has been sold to New York–based Garrison Realty.
The new owner will build a replacement facility containing approximately 100 beds. It is scheduled to open next summer.
Sperry Van Ness in Fort Worth represented Garrison Realty and the seller, Garrison-based Garrison Nursing Home Inc.
CAPITAL CITY'S RECORD LOW
AUSTIN (grubb-ellis.com) – Net absorption in the city’s industrial leasing market this second quarter was over 2.6 million square feet, according to Grubb & Ellis’ second quarter Industrial Market Trends survey.
The overall vacancy rate in the over 68.4 million-square-foot industrial sector fell by 90 basis points to 7.3 percent, the lowest level recorded in seven years. Another more than 1.4 million square feet are under construction.
Among all sectors, the citywide low vacancy rate (3.7 percent) was in the standard industrial product, which led with 1.8 million square feet of growth.
Overall asking rents increased by $0.66 to $7.75 triple-net per-square-foot-per-year (NNN PSF/YR) during this year’s second quarter, a $1.38 PSF increase over the same time last year.
Much of the growth is in the northeast submarket where Samsung Electronics Co. Ltd. opened a 1.6 million-square-foot 30mm NAND flash memory wafer plant, one of the largest single semiconductor facilities in the United States.
ABSORPTION CONTINUES CLIMB, VACANCY SLIGHTLY UP
AUSTIN (grubb-ellis.com) – The office leasing market, which totals more than 39.2 million square feet, recorded its sixth consecutive quarter of positive growth, pushing the year-to-date absorption level to 600,811 square feet, according to Grubb & Ellis' second quarter Office Market Trends report.
Despite the quarterly absorption gain, Austin’s overall vacancy ended the quarter 20 basis points higher at 11.5 percent. Class-B office space has the highest vacancy rate at 12.7 percent, followed by Class-A space at 11.4 percent and Class-C at 6.8 percent.
Landlords are boosting rents beyond levels seen during the previous record high in 2000. Overall full-service asking rents increased by $1.25 to $25.88 per-square-foot-per-year as all classes experienced an increase in asking rents over the quarter.
RIVER CITY'S INDUSTRIAL STRENGTH
SAN ANTONIO (grubb-ellis.com) – The city’s roughly 62.8 million-square-foot industrial market closed the first half of this year with almost 348,000 square feet of positive absorption, bringing the year-to-date growth to just over 500,000 square feet, according to Grubb & Ellis' Second Quarter Industrial Market trends.
General industrial properties closed the quarter with the least absorption at 9,457 square feet. The largest gain, 297,007 square feet, was seen in the warehouse and distribution sector.
Overall asking rents for the quarter increased a slight $0.06 to $5.07 triple-net per-square-foot-per-year. New construction levels rose by 180,000 square feet.
Overall, industrial space vacancy remained level at 8.4 percent.
New construction levels rose by 180,000 square feet. Currently, over 1.4 million square feet of speculative development is underway, with the majority concentrated in the northeast submarket and Port San Antonio.
FIFTEENTH FOR OFFICE ABSORPTION
SAN ANTONIO (grubb-ellis.com) – For the fifteenth consecutive quarter, the city’s roughly 23.6 million-square-foot office leasing market registered positive absorption with the mid-year absorption total at 354,650 square feet, reports Grubb & Ellis’ second quarter Office Market Trends survey.
During the second quarter, the Class-A sector filled the most space (157,062 square feet). Class-B and Class-C sectors posted gains of 90,549 and 14,525 square feet, respectively.
San Antonio’s overall second quarter office vacancy declined 60 basis points to 11.1 percent. Class-C had the largest drop, a full percentage point, to 13.6 percent.
Full-service asking rents increased by $0.33 to $19.45 per-square-foot-per-year (PSF/YR). Class-A led with a $0.26 bump to $22.35 PSF/YR, Class-B increased $0.13 to $17.90 PSF/YR. Class-C full-service increased by $0.21 to $15.81 PSF/YR.
TEXAS EMPLOYMENT SLOWING BUT STRONG
COLLEGE STATION (Real Estate Center) – The Texas labor market is cooling, but the pace of job creation in Texas is still higher than the national average. The state’s nonfarm employment rose 2.1 percent from June 2006 to June 2007, compared with 1.4 percent for the United States.
Texas’ seasonally adjusted unemployment rate fell from 4.9 percent in June 2006 to 4.1 percent in June 2007.
The state’s mining industry, which consists mainly of oil and gas extraction, ranked first in job creation, followed by professional and business services, the leisure and hospitality industry and construction.
All Texas metro areas except San Angelo and Texarkana had positive employment growth rates from June 2006 to June 2007. Lubbock ranked first in job creation, followed by Midland, Austin–Round Rock, Odessa, and Laredo.
Midland had the lowest unemployment rate, followed by Amarillo, Austin–Round Rock, Odessa and Abilene. For more information, see the full report.
CLASS-A WESTBRIDGE SOLD
CARROLLTON (globest.com) – A Boston-based investment group has purchased the 284-unit Westbridge Apartment Homes from Cornerstone Real Estate Advisors LLC.
The Class-A Westbridge was developed four years ago on a 16-acre tract at 2300 Marsh Lane. The 95 percent occupied complex consists of one- and two-bedroom units in 17 residential buildings and a leasing office. The units range from 641 to 1,140 square feet. The average rent is $1.08 per square foot.
Apartment Realty Advisors’ Dallas office represented the Hartford-based seller. Michelson Management Co. will manage the property.
SCHOOL'S OUT, RETAIL'S IN
HOUSTON (Trammell Crow Company) – The former site of the Houston Independent School District’s headquarters will soon be home to Greenway Commons, a two-story, 256,700-square-foot retail center.
The center, being developed by Trammell Crow Company, The Morgan Group and institutional investors advised by Prudential Real Estate Investors, will occupy more than 15 acres of the 24-acre site at Weslayan Road and Richmond Avenue. It will feature a 164,000-square-foot Costco, a 45,000-square-foot LA Fitness health club, a four-level parking garage, a 39,000-square-foot, two-story retail building and two pad sites.
In addition, The Morgan Group will build a 526-unit, high-end, midrise apartment community on the site. Construction begins in December.
CDA Architects is the architect and Miner-Dederick Constructors Inc. is the general contractor for the retail project. Wallace Garcia Wilson is the architect and Morgan Construction is the general contractor for the residential component.
CB Richard Ellis will handle the leasing for the retail side of the project, which is expected to be completed next summer.
LUXURY HOUSING, NATURE HAVEN PLANNED
EL PASO (El Paso Times) – Villagi Communities broke ground yesterday on Heritage Farms, a luxury housing community in the Upper Valley.
About one-third of the 32-acre gated community will be designated as a haven for local plants and wildlife.
Four local home builders have already committed to building custom homes in the development. Lot construction will begin in October or November, and homes will be available for purchase about seven months later.
NEW HILLSIDE VILLAGE OWNERSHIP
DALLAS (Holliday Fenoglio Fowler LP) – Twinrose Investments of Allen has purchased a more than 166,000-square-foot regional shopping center from Dunhill Partners Inc.
The fully occupied Hillside Village is on almost 12 acres at Mockingbird Lane and Abrams Road. It was renovated in 1993, and its tenants include SteinMart, Dollar Tree, Blockbuster Video, 7-Eleven and Washington Mutual.
Holliday Fenoglio Fowler LP’s Dallas office represented the seller and secured a fixed-rate loan through Column Financial Inc. on behalf of the buyer.
PORTFOLIO WITH TWO IN TEXAS
ROUND ROCK (Austin Business Journal) – KBS Real Estate Investment Trust has purchased a portfolio consisting of nine Class-A office, warehouse and distribution facilities, two of which are in Texas.
The largest Texas facility is in Round Rock. The more than 240,000-square-foot Crystal Park II industrial building is within the 38-acre Crystal Park complex at Old Settlers Boulevard and Greenhill Drive. The other Texas property, the just over 131,000-square-foot Corporate Express building, is in the Dallas–Fort Worth area.
Minneapolis-based Opus Corp., which sold the more than two million-square-foot portfolio to California-based KBS for $124.5 million, was represented by CB Richard Ellis.
NEW HOME CONSTRUCTION UP
AUSTIN (Austin Business Journal) – Area home builders started 4,132 new homes during second quarter 2007, according to housing research group Metrostudy.
That is more than 1,100 more homes than builders started during the first quarter, but it is still 8 percent fewer than the number of starts in second quarter 2006. The annual rate of new home starts is also 8 percent below where it was this time last year, according to the study.
That's due in large part to a significant reduction in starts on new homes priced below $200,000. Construction of new homes in the $400,000 to $750,000 range jumped 66 percent during the last 12 months.
Buyers closed on 3,818 new homes during the second quarter, a 13 percent decline from second quarter 2006. The annual closings rate is up 7 percent from last year to 16,125 units.
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