RECON

RECON
Real Estate Center Online News
September 14, 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.

HELP FOR VETERANS

SAN ANTONIO (San Antonio Express-News) – The Veterans Affairs Department will build a new "polytrauma" rehabilitation center on the Audie Murphy VA Hospital campus.

The $67 million center is one of five nationwide designed to provide extensive rehabilitative care to veterans treated for severe injuries to more than one organ system.

The new center at Audie Murphy will work with Brooke Army Medical Center, Wilford Hall Medical Center, University Hospital, the University of Texas Health Science Center and the U.S. Army Institute of Surgical Research.

Texas is home to 1.7 million military veterans, with 180,000 veterans living in the area, according to VA statistics.

Construction on the new center is expected to begin in fiscal year 2008, which begins Oct. 1.

H-E-B REMODELING OLD ALBERTSON'S

AUSTIN (Austin American-Statesman) – H.E. Butt Grocery Company (H-E-B) will remodel three Albertson's grocery stores, adding new departments and services and up to 150 jobs.

In early November, San Antonio–based H-E-B will begin renovating the stores on Gattis School Road in Round Rock, in West Lake Hills and on Research Boulevard and Spicewood Springs Road in northwest Austin.

The West Lake Hills store will be gutted and reopened with a sushi bar, an area for cooking demonstrations and a Central Market Cafe on the Run, which offers prepared meals to go.

With the new stores, H-E-B will have 45 stores in Central Texas, about 8,000 employees and an annual payroll of about $250 million.

H-E-B expects to offer jobs to many of the 350 Albertson's employees and plans to hire another 100 to 150 people to staff the three converted stores.

H-E-B has about 60 percent of Central Texas' grocery market, followed by Wal-Mart with 23 percent and Randalls with 7 percent.

FOR MANSFIELD'S AMUSEMENT

MANSFIELD (Dallas Business Journal) – Harvest Family Entertainment has begun construction on Hawaiian Falls/Mansfield, a 14-acre water park at Heritage Parkway and SH 360.

The $10 million water park, which includes 12 waterslides, a football field–sized wavepool and a "lazy river," is a joint venture between Hawaiian Falls, the Mansfield Park Facilities Development Corp. and the city.

The city will own the park and Hawaiian Falls will operate it under a 40-year lease. The park will employ about 200 people. It is expected to attract about 150,000 guests per year and increase the local economy by about $5 million annually.

Harvest Family Entertainment has codeveloped and managed 17 water and amusement parks in Arizona, California, Hawaii, Missouri, Mississippi and Texas.

Hawaiian Falls/Mansfield is expected to open next Memorial Day.

MOTORCADE BEGINS

PHARR (McAllen Monitor) – Frank Smith Motors, including McAllen’s flagship Toyota dealership, will begin relocating to a 19-acre facility on Expressway 83 next month.

The company’s old headquarters on Second Street in McAllen will host an expanded used car selection as well as its Isuzu dealership, said company president Roland Smith. The entire Toyota/Scion dealership will be at the new location by years’ end.

The new facility will follow the new Toyota dealership design and will include a La Palatera restaurant.

COME CHAT WITH GAINES

COLLEGE STATION (Real Estate Center) – If you plan to attend the Austin Realty Roundup next Wednesday, stop by the Real Estate Center’s booth (number 726) between 11 a.m. and noon to visit with Dr. James Gaines, research economist with the Center.

Gaines will also be a keynote speaker at the conference.

SOMERSET SOLD

TEXAS CITY (Reliant Property Group) – Reliant Property Group has purchased the 200-unit Somerset Place Apartments from Continental Somerset Corporation.

Reliant plans to renovate and reposition the 23-year-old complex.

Houston Income Properties Inc. represented the Houston buyer. Redstone Bank provided financing. Continental Somerset was represented in-house.

KBS GOES CORPORATE

PLANO (McDaniel & Co.) – KBS Real Estate Investment Trust (KBS REIT) has purchased Plano Corporate Center I and II from Lincoln Property Company.

The two-building, more than 308,000-square-foot, Class-A office complex at 2201 and 2301 West Plano Parkway is 87 percent leased.

The more than 153,000-square-foot Plano Corporate Center I was built in 1999, and the almost 155,000-square-foot Plano Corporate Center II was built in 2001. Each three-story building is on a ten-acre site. Major tenants are FedEx Kinko’s and UnitedHealthcare.

KBS Capital Advisors, which oversees KBS REIT, was self-represented. Jones Lang LaSalle of Dallas represented the seller. Transwestern Commercial Services will handle leasing, while PM Realty Group will manage the property. Both companies are based in Dallas.

PARK CENTER II PROGRESSING

PLANO (Dallas Morning News) – Construction is about to begin on Park Center II, a 196,000-square-foot office building being developed by Heady Investments.

Designed by ANPH Architects, Park Center II will be built on about eight acres between the Dallas North Tollway and Parkwood Boulevard. Offices will lease for around $25 per square foot.

Crow Financial Partners LP arranged construction financing for the project with Stillwater National Bank. Henry Building Inc. is the general contractor.

The building is scheduled to open in October 2008.

METROPLEX APARTMENT BOOM

DALLAS (Dallas Morning News) – Since the beginning of the year, developers have obtained permits to bring almost 7,000 apartments to the Metroplex. Among those projects:

* Houston-based Hanover Co. has two apartment towers totaling almost 500 units under construction in Uptown.
* Wood Partners has begun work on Alta Lake Shore Lofts, a 341-unit complex at 800 Lake Carolyn Pkwy. in Las Colinas.
* Construction begins Monday on Wood Partners’ Block 1500, a 309-unit, four-story complex west of the Victory complex on Stemmons Freeway.
* Wood Partners plans to break ground in January on a 340-unit complex near Eldorado Parkway and the Dallas North Tollway in Frisco.

PANHANDLE'S LUXURY LIVING

LUBBOCK (Lubbock Avalanche-Journal) – A $60 million luxury hotel and conference center received the go-ahead from the city council earlier this week.

The complex will be built at Sixth Street and Avenue X. The developer is Garfield Traub Corp., a hotel developer based in Dallas and managed by Gal-Tex Hotel Corp.

At 15 stories and 306 rooms, the hotel will be the city’s largest. It will include laboratory and classroom space for Texas Tech’s restaurant, hotel and institution management program. The conference center will contain 50,000 square feet.

The city is pitching in $11.4 million collected from the hotel's property taxes, hotel-motel tax and 1 percent of gross room revenues. About $11 million in grants also has been collected to pay for the center, and Plains Capital Bank is providing $30 million financing.

Groundbreaking is scheduled for Sept. 26.

BELTWAY LAKES CONSTRUCTION BEGINS

HOUSTON (Realty News Report) – Construction has begun on the first phase of Beltway Lakes, a LEED-certified office project along SH 249 and Beltway 8.

The first phase, which includes a 165,000-square-foot, six-story building and a parking garage, is part of a six-building, master-planned office complex owned and developed by Radler Enterprises Inc.

Yancey-Hausman Interests is codeveloping and marketing the first building of Beltway Lakes, which was designed by Morris Architects and is being built by D.E. Harvey Builders. Construction financing was provided by Sterling Bank.

ELLMAN PURCHASES ONE SUGAR CREEK

SUGAR LAND (globest.com) – Ellman Cos. has paid Unilev Capital Corp. $60.5 million for the almost 529,000-square-foot, Class-A One Sugar Creek Place.

Ellman plans to renovate the 25-year-old office building at 14141 Southwest Frwy. Work is slated to begin in early 2008 and take about 18 months to complete.

The Unocal Building, as it is known locally, is leased entirely to Houston-based Chevron Corp. through March 2010.

The California-based seller was represented by M.M. Stapper Co. Commercial & Investment Real Estate and International Realty Concepts Inc., both of Houston. Phoenix-based Ellman was represented by Amcal Southwest LLC, also of Arizona. Ellman will assume leasing and management duties.

DIVCOWEST BUYS FULLY LEASED AMD

AUSTIN (globest.com) – DivcoWest has purchased the 215,500-square-foot AMD 312 Building from Washington-based Burleson Investments LLC.

The two-story, Class-B-plus office building is on nearly 19 acres of Lockheed Martin Corp.'s former one million-square-foot campus at 6800 Burleson Rd.

AMD 312 is leased to Advanced Micro Devices until May. Once the lease lets up, DivcoWest will upgrade the 25-year-old building.

DivcoWest was self-represented in the transaction.

HEAVY LIFTING FOR ABC&P

HOUSTON (Yancey Hausman) – ABC&P LLC has purchased a 110,000-square-foot manufacturing facility from Petrosin Properties Belmas Inc.

The property, a heavy manufacturing facility with various overhead cranes ranging in capacity from 20 to 250 tons, is on more than 12 acres at 122221 Almeda Rd.

Yancey Hausman represented, the buyer, while Colliers International represented the seller.