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MORTGAGE DELINQUENCIES HIT FOUR-YEAR HIGH
WASHINGTON (The Dallas Morning News) – Home loan payment delinquencies nationwide are now at the highest level in almost four years. Subprime home loans account for almost half of the current home foreclosures in Texas and nationwide, according to analysts with Freddie Mac.
With mounting foreclosures and many subprime lenders closing down, buyers who have relied on these mortgages will have a harder time finding a loan, said Freddie Mac's economist Frank Nothaft.
During the last two years, subprime mortgages have accounted for almost 20 percent of the home lending business, Nothaft said. The mortgage giant recently announced that starting later this year it will demand more income documentation and put in place tougher qualifying standards for some of the home loans it buys.
"Local builders and local Realtors should be somewhat worried that the number of potential buyers will decrease or at least shift into lower-cost submarkets as lenders start requiring equity down payments and tightening underwriting," said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University.
A slowdown in sales at the low end can spread upward in the market. If owners of entry-level homes can't find a buyer, they won't be moving up to higher-priced housing, Gaines said.
In January, Dr. Mark Dotzour, the Center’s chief economist, issued a statement reflecting concerns about the effects of subprime lending on Texas’ real estate market. His comments are available online.
EXISTING-HOME SALES RISE AGAIN
WASHINGTON (Realtor.org) – Reaching the highest level since last April and following January’s healthy gain, existing home sales rose strongly in February, according to the National Association of Realtors (NAR).
Total existing-home sales — including single-family, townhomes, condominiums and co-ops — rose almost 4 percent to a seasonally adjusted annual rate of 6.69 million units, down 3.6 percent from the same time last year.
David Lereah, NAR’s chief economist, said the strong gain is a bit of a surprise.
“Some of the rise in home sales may be from mild weather that brought out shoppers in December, but fundamentals have improved in the housing market and buyers see a window now with historically low mortgage interest rates and competitive pricing by sellers,” he said.
Total housing inventory levels rose 5.9 percent at the end of February to 3.75 million existing homes available for sale, which represents a 6.7-month supply at the current sales pace compared with a 6.6-month supply in January. Raw inventories peaked last July at 3.86 million, and supplies topped at 7.4 months in October.
The entire report is available online at Realtor.org.
GREEN ACRES
ROUND ROCK (impactnews.com) – Designated Tree Partners will break ground this spring on what it hopes will be the city’s first LEED-certified office complex.
Green Square will encompass more than 130,000 square feet on 13 acres off Greenhill Drive. The complex will incorporate natural light to cut energy costs, and xeriscaping and rainwater retention will be used to maintain the campus grounds.
The Williamson County Association of Realtors has committed to buying the first building in the seven-building complex, with plans to move in shortly after the complex is completed in early 2008.
NEW LEASE ON PARK
COPPELL (globest.com) – Universal Display & Fixture Co., headquartered in nearby Lewisville, has leased almost 275,000 square feet of distribution space — half of AmberPoint 4 — in the newly built AmberPoint Business Park.
The park at 200 N. Northpoint Dr. is now 50 percent occupied. Transwestern’s Dallas office represented owner Cabot Properties Inc. of Boston. Henry S. Miller Commercial represented Universal Display.
BAYOU CITY SURGES TO SIXTH
HOUSTON (Houston Business Journal) – New residents moving in from southern Louisiana following Hurricane Katrina have made Houston the sixth-largest metropolitan area in the United States, according to population estimates released by the Census Bureau.
Between July 1, 2005, and July 1, 2006, the 10-county Houston–Sugar Land–Baytown Metropolitan Statistical Area (MSA) gained more than 187,000 residents, bringing the total to almost 5.54 million. Only the New York, Los Angeles, Chicago, Dallas–Fort Worth and Philadelphia MSAs are larger.
Harris County, which grew 3.3 percent over the year, accounted for 66 percent of the area’s population growth, but three suburban counties grew faster: Fort Bend, up almost 6 percent; Montgomery, up just over 5 percent; and Brazoria, up 3.6 percent.
Look for the article “Howdy Neighbors: Katrina Boosts Texas Population” in April’s Tierra Grande magazine. It will discuss Texas’ population growth in the wake of Katrina.
TOWN CENTER COMING TO HIGHLANDS
DALLAS (The Dallas Morning News, globest.com) – Prescott Realty Group is buying three Class-C Lake Highlands apartment complexes totaling more than 1,400 units. The locally based developer will replace them with a mixed-use community.
Prescott will build the $300 million Lake Highlands Town Center, which will encompass about two million square feet, including a shopping center and office space. About 300,000 square feet of urban-style retail and more than 1,000 residential units are also planned on the 70-acre site. Also planned are a hike-and-bike trail, lakes, park areas and an outdoor amphitheater.
Architect RTKL Associates drew up the development’s master. Prescott Realty Group will oversee the project.
The 50 percent occupied complexes to be torn down are Whispering Creek, on the northeast corner of Walnut Hill Lane and Skillman Road; Sutter Woods, at the southeast corner; and Bella Palms, Sutter Woods' neighbor.
Closing is expected by May. The development’s first retail phase is expected to take about two years to complete, coinciding with the 2010 completion of DART’s light rail station.
TAKING CARE OF LOGISTICS
GRAND PRAIRIE (globest.com) – APL Logistics is renewing its lease on a 343,200-square-foot distribution center in the Great Southwest Industrial District.
The eight-year tenant has signed a three-year renewal on the center at 510 W. Trinity Blvd. The company occupies two of the park's five buildings. APL also has a lease on a 500,000-square-foot building located nearby at 610 W. Trinity Blvd.
CB Richard Ellis represented APL, while property owner ProLogis was assisted by NOL Group, APL’s parent company.
VINEYARD SPRINGS COMPLEX SOLD
SAN ANTONIO (San Antonio Business Journal) – Vineyard Springs Apartments has been purchased by California-based Triple Net Properties LLC from developer Arcanum at the Vineyard Springs Ltd. on behalf of tenant-in-common investors.
The 23-building complex, built in 2001, is 94 percent occupied with one-, two- and three-bedroom units overlooking Loop 1604 and the Hill Country.
In the last year, Triple Net, a subsidiary of NNN Realty Advisors Inc., has bought four area apartment complexes: Walker Ranch, Hidden Lake Apartment Homes, Woodbridge Apartments and now Vineyard Springs.
Financing for the purchase was arranged by Wachovia Bank.
SAN CARLOS MAKEOVER
DALLAS (globest.com) – San Carlos Associates LP has purchased the 153-unit San Carlos Apartments for more than the $6.5 million asking price.
The local condo converter plans to invest millions in rebuilding the 12-building complex at 5010 Maple Ave. San Carlos Apartments was fully occupied at the time of sale.
Sam Lewis, senior adviser for Hendricks & Partners, says the buyer will gut the buildings to renovate mechanical systems and build from the inside out so that the condos will be like new. San Carlos Associates plans to price the condos below the area's $300,000 and $400,000 bracket.
Built in 1963, San Carlos Apartments has two efficiency units, five three-bedroom units and 24 one-bedroom units. The rest have two-bedroom floor plans. Units range from 300 to 1,152 square feet. Monthly rents range between $350 and $950.
CEDAR PARK RETAIL ENDEAVOR
CEDAR PARK (Austin Business Journal) – Endeavor Real Estate Group LLC is breaking ground today on a $100 million retail center.
The 800,000- to 900,000-square-foot 1890 Ranch is scheduled to open its first phase in October. Tenants will include Super Target, Cinemark, Circuit City, PetSmart and OfficeMax. The center is on 85 acres at US 183A and FM 1431.
The project engineer is Bury+Partners Inc., and the architect is Nelsen Architects Inc. Both companies are based in Austin.
FOUR POINTS GROUNDBREAKING
AUSTIN (Austin Business Journal) – Workers broke ground this week on the first 275,000 square feet of office space at Four Points Centre.
Los Angeles-based Thomas Properties Group is developing the project, which includes two 100,000-square-foot, Class-A buildings with a parking garage and a smaller 75,000-square-foot tilt-wall building with surface parking. The buildings are slated for completion next spring.
The offices at Four Points Centre are part of the much larger 33-acre, master-planned development that already includes retail and multifamily components. Future phases could include up to 900,000 square feet of office or research and development space, 250,000 square feet of retail and a 250-room hotel.
According to Brett Arabie of Oxford Commercial, which is marketing the office space, the project is the first multitenant, speculative office in Austin to attempt to achieve LEED certification.
Page Southerland Page is the architect on the Four Points project and DPR Construction is the general contractor.
NEW HOME CONSTRUCTION RISES; PERMITS DOWN
WASHINGTON (The Dallas Morning News) – Nationwide construction of new homes and apartments rose 9 percent in February to a seasonally adjusted annual rate of 1.525 million units, the Commerce Department reported. Construction had fallen by 14.3 percent in January to the slowest pace in more than nine years.
However, activity remained 28.5 percent below the level of a year ago. Marking the 12th decline in the past 13 months, builders’ applications for new permits continued falling in February. Permits dropped by 2.5 percent to an annual rate of 1.53 million units.
By region, the West led the gains in construction, posting a 26.4 percent jump, which was the best showing since January 1997. Construction activity was also up in the South, increasing by 18 percent, the biggest percentage gain in that region in nearly two years.
Construction fell by almost 30 percent in the Northeast, the biggest one-month plunge in that region since December 1990, while construction fell in the Midwest by 14.4 percent after a January decline of 16.4 percent.
NEW LIFE FOR FORMER AUTO DEALERSHIP SITE
HURST (globest.com) – Dmyterko & Wright Partners has purchased the former Freeman Toyota–Mazda dealership site at Northeast Loop 820 with plans to turn it into a retail center.
The 8.25-acre tract, previously owned by Ford Motor Credit Co., will be redeveloped with an LA Fitness, restaurant and hotel. Site work is set to begin next month, and LA Fitness should open in first quarter 2008.
Bob Ginsburg, vice president for CB Richard Ellis in Dallas, which brokered the transaction, says talks are underway with several national restaurateurs for the one-acre pad site and with a hotel developer for a 2.25-acre tract. The broker says Dmyterko & Wright's plan is to own the LA Fitness building and restaurant pad and sell the hotel site.
MUELLER PROJECT GETS SETON HQ
AUSTIN (Austin American-Statesman) – Seton Family of Hospitals is moving its headquarters and 700 employees to a new office complex at the site of the former Robert Mueller Municipal Airport, which was closed in 1999.
Seton plans to move into 150,000 square feet of office space on 3.25 acres in fall 2008. The new headquarters will consolidate Seton's administrative operations in one building and include the company’s administrative, human resources, legal services, communications and marketing departments.
Catellus Development Corp., which is in charge of the Mueller project, said this commitment by Seton was key to developing the proposed town center, a community hub that will link the commercial and residential areas.
The first retail stores are open, office space is under construction and the Dell Children’s Medical Center of Central Texas opens July 1. Construction on the first homes will start this summer (see RECON, March 6, 2007).
GROUPO CONSOLIDATING OFFICES
LAREDO (Laredo Morning Times) – Groupo Galvan will consolidate two warehouses and two offices in a new distribution center facility in the El Portal Industrial Park.
The 180,000-square-foot warehouse at 11905 Conly will have more than 10,000 square feet of office space, a 46-door dock with two ramp doors, and parking capacity for 180 trailers.
Groupo Galvan, an ISO 2000–qualified firm, was founded in 1921.
Modern Construction is the general contractor of the new building. Grand opening is scheduled for next month.
REMODELED, RENAMING, REOPENING SET
EL PASO (El Paso Times) – The vacant International Hotel will soon receive an $18 million renovation and be reopened as a 210-room Hilton DoubleTree Hotel.
Jim Scherr of Hotel Don Quixote LTD, which bought the property in 2004, said construction on the hotel at 600 El Paso at Missouri streets will probably begin in June, and the tentative opening date will be February 2009.
Houston architect Keith Carlson said the building will undergo a complete transformation, including the conversion of the seventh-floor pool deck into a sunset-viewing area with a new pool.
KOHL'S COMING TO LONGVIEW
LONGVIEW (News-Journal) – The city has issued a building permit for Kohl's in the new Longview Towne Center under construction on US 259 at Hawkins Parkway.
According to the building permit, the store will include more than 97,000 square feet. The store's construction value is listed at $4 million. Towne Center developers say the department store is expected to open later this year.
Kohl's has more than 800 stores in 46 states.
DIAMOND LOCH EXCHANGED
NORTH RICHLAND HILLS (svn.com) – Local private investors have purchased the 138-unit Diamond Loch Apartment community from California-based D Loch CP LP.
The 29-year-old complex on about eight acres at 6100 Glenview consists of one-, two- and three-bedroom units. At the time of closing, the complex was 96 percent occupied and purchased as part of a 1031 exchange.
Sperry Van Ness in Fort Worth represented the seller, while DFW Homes represented the buyers.
For more information on 1031 exchanges, read the Real Estate Center's “1031 Tax-Deferred Exchanges” and “Boom With a View.”
MALL IN THE FAMILY
TEXAS CITY (Houston Business Journal) – A group of California investors headed by brothers Michael and Mayer Makabeh of Los Angeles have purchased the Mall of the Mainland from Triyar Cos. LLC.
The 15-year-old, 780,000-square-foot mall on Emmett F. Lowry Expressway, off I-45, is the first Texas acquisition — and the largest purchase to date — for the Makabehs, who own a majority stake in the property.
Mall of the Mainland is one of five local malls put up for sale late last year by Triyar. Among the tenants are Dillard's, Macy's, Palais Royal and Sears.
TYLER'S LOOP ATTRACTS ARIZONA BUYER
TYLER (Tyler Morning Telegraph) – An Arizona private investment firm has purchased 543 contiguous acres for developing a mixed-use community between Loop 323 and Lake Bellwood.
"Middle-sized markets like Tyler often get overlooked by large institutional investors, but I know Tyler is a great town and I asked them to come look. Once they visited, they were sold," said Eric Davis, president of TierraStar Real Estate in McKinney, which helped facilitate the sale for the owners, Westchase Land Development and Martin Heines. Davis is also a former vice president of the Tyler Economic Development Council.
OMNI, RENAISSANCE HOTELS SOLD
AUSTIN, HOUSTON (Austin American-Statesman) – Walton TCC Hotel Investors of Delaware will pay $550 million for the 375-room Omni Austin Hotel and six other properties, including the Renaissance Houston hotel.
The seller, Fort Worth–based Crescent Real Estate Equities Co., had announced earlier this month that it was putting all of its holdings in Austin and a few other cities up for sale to match a revised business strategy.
The Omni is the latest in a series of sales which have put almost every major hotel in downtown Austin in new hands or under new brands in the past 18 months.
ROUNDTABLE SERIES COMING TO HOUSTON
COLLEGE STATION (Real Estate Center) – The Real Estate Roundtable Speaker Series will present “The Front Edge of the Real Estate Boom” Wednesday, April 18, from 11:30 a.m.–1:30 p.m. in Houston.
The guest speaker will be Dr. Mark G. Dotzour, chief economist and director of research at the Real Estate Center at Texas A&M University.
The seminar, which costs $65 and includes lunch, will be held at the InterContinental Hotel, 2222 West Loop South. To register, go to http://recenter.tamu.edu/register.
FORMER OPERATIONS CENTER SOLD
HOUSTON (globest.com) – Griffin Partners of Houston, in partnership with Urdang Capital Management of Pennsylvania, has purchased the high-rise known in the 1980s as the operations center for First City National Bank.
The 85 percent leased, 795,000-square-foot, Class-A building at 1301 Fannin St. was purchased for $114.5 million from the San Diego–based Shidler Group and Angelo, Gordon & Co.
Major tenants are ExxonMobil Corp., AIM Management Group and JPMorgan Chase Bank.
Eastdil Secured's San Diego office represented Shidler and New York City–based Angelo, Gordon & Co. Griffin Partners, which will lease and manage the building, represented itself.
CEDAR PARK LAND BOUGHT
CEDAR PARK (Austin Business Journal) – Dennis McDaniel, cofounder of Merit Texas Properties LLC, has purchased 129 undeveloped acres that includes 2,700 square feet of frontage on the new 183A tollway.
The firm purchased the land in partnership with a commingled fund managed by Strategic Capital Partners, a real estate investment management company based in Chicago.
OFFICE BUILDINGS PLANNED FOR NORTHWEST AUSTIN
AUSTIN (Austin Business Journal) – Two major real estate companies are planning to break ground later this year on new buildings along US 183.
Trammell Crow Co. will develop Pecan Park Place, a 266,000-square-foot, four-story, two-building office development on 24 acres under contract on the south side of the intersection of US 183 and RR 620.
Bury+Partners is handling the civil engineering for Pecan Park, and Studio 8 is the architect.
Just down the road, Cousins Properties Inc.’s Austin office is planning Research Park Plaza V, the last piece of the campus that already includes more than 620,000 square feet in four buildings.
UPGRADE FOR EXPO PURCHASE
IRVING (globest.com) – The Expo Group LP has purchased a 210,000-square-foot office/warehouse from Invesco Real Estate.
The 27-year-old building, which is on ten acres at 5931 W. Campus Circle Dr., contains 30,000 square feet of office space, which Expo Group plans to overhaul. The company will also make minor upgrades to the warehouse area.
The local trade show display company will move its operations into the building toward the end of the year.
Holt Lunsford Commercial Inc. in Dallas represented locally based Invesco.
MERITEX BUYS PORTWALL
HOUSTON (globest.com) – Meritex Enterprises has purchased a 205,000-square-foot industrial building on the city's northeastern side from Denver-based Argus Realty Investors LP for $10.4 million.
The Class-A Portwall building, built in 2000 at 200 Portwall St., is 100 percent leased for the long term to two tenants.
Grubb & Ellis Co. in Houston represented the Minnesota-based buyer.
SMA COMES TO LAS COLINAS
IRVING (globest.com) – SMA Equities has purchased a Class-A office building in Las Colinas from Connecticut-based Cornerstone Real Estate Advisers, an affiliate of Massachusetts Mutual Life Insurance Co.
The Overlook at 251 O'Connor Ridge Blvd. encompasses more than 95,500 square feet and is 92 percent occupied. Transwestern retained leasing duties, bringing the Bruning law firms, now at 3102 Maple Ave. in Dallas, to the three-story building’s top floor. The lead tenant is Darling International Inc.
Cornerstone owned the 22-year-old building, which sits on almost five acres, nearly a decade.
STANLEY TOOL WORKS COMPLEX SOLD
WICHITA FALLS (Times Record News) – The vacant, former Stanley Tool Works building has been sold by the company to local developers Bobby Schaaf and Paul Clark, plus Harry Patterson, Gary Mehan and other investors.
The 182,000-square-foot building on 75 acres in Wichita Falls Business Park, off US 287, has 8,000 square feet of office space. Parking is spread over six or seven acres.
Stanley Tool Works purchased the Ingersoll-Rand tool plant here in 1984 and closed its operation in 2002. The investors plan to "retrofit the building, spit-shine it and make it look brand new," said Bobby Schaaf. Work is expected to take between two and three months.
PREMIUM OUTLET BREAKS GROUND
CYPRESS (globest.com) – Chelsea Property Group has begun construction on the 430,000-square-foot Houston Premium Outlets near Texas 290 between Mason Road and Fairfield Drive.
The 75-acre center, just east of the planned 100-acre Fairfield Town Centre, represents the New Jersey–based company's fourth project in the state. Chelsea's other three Texas outlet centers are Allen Premium Outlets, Round Rock Premium Outlets and the Rio Grande Valley Premium Outlets just north of the U.S.-Mexico border.
Houston Premium Outlets will have 120 stores when it opens in second quarter 2008.
The project’s architect is Collaborative Inc. from Cleveland. Bury+Partners of Houston is the civil engineer, while Atlanta-based Hardin Construction is the general contractor.
NORDSTROM'S NEW DOMAIN
AUSTIN (prnewswire.com) – Fashion retailer Nordstrom Inc. has signed a letter of intent with Endeavor Real Estate Group to open a store at The Domain, a mixed-use community being developed here.
The two-level, 149,000-square-foot Nordstrom at The Domain will be the retailer's eighth store in Texas and second store in Austin. The Nordstrom at Barton Creek Square opened in August 2003. The Seattle-based firm also operates two Nordstrom Racks in Texas.
When Phase II of The Domain is completed, it will include over 3 million square feet of office space, more than 4,000 residential units, 900,000 square feet of retail space and two hotels. The Phase II retail district will open with the Nordstrom store, which is scheduled to be completed by fall 2011.
BUILDING OUR CHILDREN'S FUTURE
FRISCO (rebusinessonline.com) – The Frisco Independent School District has chosen Cadence McShane to construct Frisco Career and Technology Center.
The almost 126,000-square-foot building on Wade Boulevard will feature career-focused and technology education for 11th and 12th grade students. Amenities will include a testing center, restaurant, TV studio, computer and animation labs, marketing and media center, employee training area, and medical and veterinary science labs.
The project is scheduled for a June 2008 completion.
SOLD ON SAFETY
COLLEGE STATION (Real Estate Center) – Recent headlines reporting assaults against real estate licencees continue to point out some of the hazards of showing homes to prospective buyers.
The Real Estate Center has produced a video in cooperation with the Houston Association of Realtors and the Houston Police Department that provides safety tips to help avoid becoming a victim. Click "Sold on Safety" to view this free video.
To find other Center videos, click "Video Archives" and scroll down to view topics of interest to you, including highlights from the Texas Association of Realtors' 2006 Convention.
THIRD TIME CHARM
DALLAS (globest.com) – Greenwood Apartments has been sold to a private Los Angeles–based partnership for the $1.42 million asking price, which represents about a 9 percent cap rate.
According to Al Silva, investment associate with Marcus & Millichap Real Estate Investment Brokerage Co., who assisted in brokering the sale, two previous contracts had fallen through for the 60-unit, all-bills-paid complex.
The 95 percent leased complex, built in 1964 on more than two acres at 716 N. Plymouth St. in North Oak Cliff near I-3, had been purchased two years ago and renovated. The complex consists of one- and two-bedroom units ranging from 750 to 950 square feet. Monthly rents are between $525 and $700.
LaSalle Bank in Chicago financed an 80 percent loan for ten years at a fixed interest rate for the buyer's first-time purchase in the Metroplex.
WOW! WE'RE GONNA GET A VA!
FORT WORTH (Dallas Business Journal) – The Veterans Administration (VA) plans to open the nation's largest outpatient clinic for military veterans here.
The $13.4 million, 238,000-square-foot-plus clinic will accommodate a projected 192,000 patient visits per year by 2025, according to the VA. The existing clinic, which is about 50,000 square feet, was designed to serve 45,000 annual patient visits, but is handling more than 149,000 visits annually.
The VA is expected to advertise for interested developers in April, receive initial offers from developers by June 15, and select a developer by Nov. 15. Grand opening is slated for the spring of 2010.
BRAKER FIVE SOLD
AUSTIN (Austin Business Journal) – Vintage Interests LP of Dallas has purchased the Beatrice Cove industrial office park at Kramer and Braker lanes from TCC-Beatrice Cove LP (TCC).
TCC is a partnership that included HPI Real Estate Services & Investments. Vintage has retained HPI Real Estate Services to lease and manage the properties, which are about 80 percent leased.
Rusty Perry, founder and managing partner for Vintage Interests, says the company will soon begin a capital improvement program for the five-building, 119,000-square-foot portfolio, also known as Braker 14 through 18.
Last year, the company purchased another industrial building at 3733 Drossett Lane. Vintage is now more than halfway toward fulfilling its goal of assembling a $100 million industrial portfolio within its first two years of operation.
Holliday Fenoglio Fowler (HFF) represented the seller on the transaction, and HFF in Dallas arranged financing for the buyer.
THURSDAY DEADLINE FOR REDUCED CONFERENCE RATES
COLLEGE STATION (Real Estate Center) – Thursday is the last day to take advantage of the reduced registration fee and hotel rate for the 17th Annual Outlook for Texas Land Markets conference.
Registration for the conference, to be held April 11–13 at the Hyatt Regency on the Riverwalk in San Antonio, will increase from $200 to $220 per person Friday. The Hyatt Regency's $189 room rate will also increase at that time.
To take advantage of the reduced rates, register for the conference at http://recenter.tamu.edu/register/ and reserve a room at http://www.sanantonioregency.hyatt.com/groupbooking/tamu2007.
The land conference will provide information on a variety of legal, economic, social and natural resource issues influencing current land market dynamics. For more information, go to http://recenter.tamu.edu/events/.
INNER LOOP RETAIL PLANNED
GEORGETOWN (Austin Business Journal) – New America Georgetown LLC of Houston will break ground later this spring on a 500,000-square-foot retail and commercial development on the northeast and northwest corners of the SH 29 and Inner Loop intersection.
The Inner Loop development will become the area’s second-largest retail development after the 700,000-square-foot Wolf Ranch, which opened in the summer of 2005.
A 2004 retail market study by the Capital Area Planning Council found that Georgetown was losing about $500 million in retail sales out of a potential $1 billion market, said Mark Thomas, director of Georgetown's Economic Development Corp.
FROM GABLES TO ESTATES
DALLAS (The Dallas Morning News) – Gables Highland Park apartments have been purchased by CWS Apartment Homes LLC (CWS). They will be renamed the Estates of Highland Park.
The six-year-old project at 4201 Lomo Alto Dr. has 55 large apartments with monthly rents ranging from $1,700 to $2,500.
In 2004, CWS, an Austin builder and investor, bought the West Village apartments and converted about a dozen of the largest units to condominiums.
Gables, which owned this complex until 2004, still owns the 57-unit Gables Highland Park Brownstones at 4733 Bowser Ave.
DALLAS, HOUSTON APARTMENT SALES SKYROCKET
DALLAS, HOUSTON (costar.com) – Both metro areas recorded a significant jump in apartment sales last year. Dallas recorded more units and more square footage for apartment sales, while Houston racked up a higher percentage of units sold over the previous year.
In Dallas, more than 52,300 apartment units were sold last year, which represents a 40 percent increase over the 37,500 units sold in 2005, according to CoStar Comps' information on buildings totaling at least 15,000 square feet.
More than 44.7 million square feet sold last year compared with 32.8 million in 2005.
Last year’s notable sales include the 267-unit The Ashton for $103 million, or about $385,800 per unit (April); the 422-unit Manchester State Thomas for $71.3 million, or about $169,000 per unit (March); and the 331-unit Windsor at Turtle Creek for $61.1 million, or about $184,500 per unit (September).
Houston apartment sales increased 58 percent last year over 2005 sales. More than 30,600 multifamily units were sold last year compared with 19,300 units sold in 2005.
Sold units last year totaled more than 26.8 million square feet, while the 2005 total was just over 17.8 million square feet.
Last year’s top three Houston multifamily transactions include the 346-unit Montierra Apartments for $60 million, or about $173,400 per unit (January); the 314-unit San Montego for $52.1 million, or about $166,000 per unit (June); and the 385-unit Pin Oak Estates for $45.7 million, or about $118,700 per unit (September).
Transactional unit counts and square footage calculations are important indicators of real estate investment behavior in Texas because of the state’s nondisclosure rules.
LAKESIDE APARTMENT COMMUNITY COMING
HOUSTON (rebusinessonline.com) – Newport on the Lake apartments will be constructed on ten acres along Barker Cypress Road.
Newport on the Lake, a limited partnership that includes Cambridge Development Group and Atticus Real Estate Development, will build 234 units consisting of one- to three-bedroom units in two- and three-story buildings. Amenities will include a conference room, a business room and a fitness center.
UPSCALE SELLS NEAR DOWNTOWN
AUSTIN (Austin Business Journal) – Investment Realty Holdings LLC of Alabama has purchased the 308-unit Alexan Cityview from Atlanta-based Trammell Crow Residential.
The upscale development at 4900 E. Oltorf St. is minutes from the city’s central business district, but it rents for 40 percent lower than comparable downtown units. As a result, the property historically has an occupancy rate of more than 95 percent.
Apartment Realty Advisors represented Trammell Crow.
SUMMERFIELD SUITES CONVERTING TO CONDOS
AUSTIN (Austin Business Journal) – Developer Bill Hale has purchased the Summerfield Suites near Northcross Mall at 7685 Northcross Dr. with plans to convert the hotel to condominiums.
Each of the 11 buildings has 18 units that will continue functioning as hotel rooms while the conversion is conducted in phases. The project will include a mix of one-bedroom units at around 575 square feet and two-bedroom units at around 850 square feet. On the ground floor, 20 units will serve special-needs residents.
The city is purchasing 34 one-bedroom and six two-bedroom units to resell through its affordable housing program. Paul Hilgers, director of neighborhood housing and community development for the city, says the project is significant because it will be the first for-sale affordable housing in the city's program west of I-35.
WE'LL TAKE THE FIFTH
AUSTIN (Austin American-Statesman) – Next up in downtown's condo-building boom is Sabine on Fifth, a ten-story building of mostly empty offices that CWS Capital Partners LLC is converting into 80 condominiums.
Crews are gutting the building, which adjoins the Hilton Garden Inn on the corner of Sabine and Fifth. Prices start in the mid-$190,000s for one-bedroom units with about 700 square feet and range up to the mid-$500,000s for 1,461-square-foot units.
Urbanspace Realtors LLP of Austin is marketing the units.
NO RECON FRIDAY
COLLEGE STATION (Real Estate Center) – Because the Real Estate Center will be closed for spring break beginning tomorrow, there will be no Friday edition of RECON this week. We will resume our normal publication schedule next week.
A TALE OF TWO VILLAGES
ALLEN (The Dallas Morning News) – As it prepares to break ground on a regional shopping center, MGHerring Group has announced that it is teaming up with Koll Development Co. to build the Village at Allen, a 181-acre mixed-use complex.
The Allen complex will be built at the southeast corner of North Central Expressway and Stacy Road, across the street from where Dallas-based MGHerring is about to begin work on the Village at Fairview. Together, the projects will have more than 3 million square feet of construction.
Koll Development, also of Dallas, will develop the 500,000-square-foot office portion of the Village at Allen, which will include 900,000 square feet of retail space and a 250-room hotel.
The Village at Fairview will contain about 500,000 square feet of specialty shops and restaurants, a movie theater, hotel and conference center, and more than 1,000 residential units. Tenants will include Dillard's, Macy's, Barnes & Noble and the Container Store.
Both Villages will open late next year.
MGHerring is partnering with a unit of Prudential Insurance. Dallas-based Princeton Partners has been hired as the leasing agent for the Village at Allen.
BAYLOR GETTING RESEARCH CENTER
WACO (Waco Tribune-Herald, Austin America-Statesman) – Keller-Williams cofounder and Baylor University alumnus Gary Keller has donated $5 million to his alma mater to establish a real estate research center.
Under the direction of marketing professor Chris Pullig, the Keller Center will study the buyer-seller relationship in real estate deals.
“Why do people really buy? How do they consider the role of the agent? What influence does the Internet have on information search processes and purchase decisions? These are the kinds of questions we will be answering in great depth,” said Kirk Wakefield, who chairs Baylor’s marketing department, where the research center will be housed.
That decision will set Baylor’s center apart from the Real Estate Center at Texas A&M University, which focuses on economic issues to better inform buyers, sellers, government agencies, lenders, appraisers and the public.
“There is room for more real estate research across the board, and we are confident that the academic work at Baylor will add to the body of knowledge in the field,” said Gary Maler, director of the Center in College Station.
THE MCNEIL DEAL
AUSTIN (globest.com) – Williams Asset Management has purchased the 192-unit McNeil House from Bridge Investment Group of Salt Lake City. The Atlanta-based investment group will rename the Class-A property McNeil Ranch.
The 92 percent occupied complex, built in 1988 on almost 11 acres at 6280 McNeil Dr., includes a mix of one-, two- and three-bedroom units measuring 677 to 1,468 square feet. Monthly rents range from $896 to $1,565.
Williams Asset Management plans to upgrade the clubhouse and add a new fitness center.
HOW GREEN WAS MY PARK
AUSTIN (Cox Newspapers West Coast Bureau) – A local recycling company hopes to attract similarly green-minded businesses to its planned "clean-technology" business park.
Balcones Recycling, which makes industrial fuel from waste paper, expects to break ground in the fall on Environomics Park, a 125-acre development that will emphasize environmentally sustainable buildings that use renewable materials.
Located south of US 290 across from Applied Materials Inc., Environomics Park will house mostly companies in environmentally friendly businesses, such as recycling, alternative fuels or manufacturing of energy-saving products.
Balcones expects to spend $7 million on the land and for construction of its own 120,000-square-foot building.
Stream Realty Partners LP has been hired to help with development and marketing of Environomics Park. Balcones is also getting help from the city and the Greater Austin Chamber of Commerce.
GOING TO THE MARKET
MURPHY (The Dallas Morning News) – Langford Property Co. will break ground this month on Murphy Marketplace, a $60 million retail complex.
The 48-acre project east of North Central Expressway at Murphy Road and FM 544 will be anchored by a Sprouts Farmers Market grocery store. The first shops are scheduled to open early next year.
Demand for retail space in the development is so strong that Langford is negotiating an additional 28 acres. The developer is also working on plans for townhomes on part of the property.
The 500,000-square-foot marketplace was designed by O'Brien & Associates. Staubach Co. is handling the leasing.
LAKESIDE CENTER LANDS FURNITURE RETAILER
FLOWER MOUND (Hillwood Communications) – Stacy Furniture has leased the almost 380,000-square-foot Lakeside Trade Center 2 building from Hillwood.
Located on the northeast corner of FM 2499 and Enterprise Drive, the building will be used primarily as a distribution center, with 30,000 square feet serving as a retail outlet store.
This will be the fourth North Texas location for the home furnishings retailer. Besides its headquarters and showroom in Grapevine, the company has a showroom in Allen, and it owns Dorian's Interior Designs in Fort Worth.
Hillwood was represented by itself and NAI Robert Lynn Company. Stacy Furniture was represented by Glacier Commercial Realty.
HISTORIC WAREHOUSE CONVERTING TO CONDOS
DALLAS (The Dallas Morning News) – Bisno Development of Los Angeles plans to create more than 400 condominium units in the historic Butler Brothers building across the street from city hall.
The 510,000-square-foot, nine-story former warehouse on 500 South Ervay was the city’s biggest wholesale distribution center almost a century ago. When it opened, it took more than 800 train car loads of merchandise — the equivalent of a train ten miles long — to stock the building.
The city has committed $15 million in tax increment financing funds to support the redevelopment. Ebby Halliday Realtors will market the condos, with prices ranging from $180,000 to more than $600,000.
Bisno has already begun restoring the building's original facade, removing sections of concrete and stucco exterior panels put on the building almost 50 years ago.
"It was a Romanesque building with a heavy base, arches and a crenelated top like you see on a castle. It's typical of an early 20th century style of warehouse," said Jay Firsching of Dallas architecture firm Architexas, which has done consulting work for the developers. "For 1911, it was pretty incredible."
ANOTHER CALIFORNIA COMPANY LIKES AUSTIN
AUSTIN (Austin American-Statesman) – IndyMac Bancorp Inc., one of the nation's largest mortgage companies and thrifts, has leased slightly more than 100,000 square feet of Freescale Semiconductor Inc.'s campus at 7700 West Parmer Lane.
Dale Lazerson, IndyMac's first vice president of corporate real estate, said the company plans to hire 300 in the next two to three years. Full-time positions will on average pay from the mid-$30,000 range to between $50,000 and $60,000.
IndyMac is the third large California company to announce a move to Austin in the last few months. Dimensional Fund Advisors, an institutional money management firm, is moving its headquarters from Santa Monica and expects to create up to 800 jobs. Education Finance Partners, a private student loan company, recently announced it will move most of its operations from San Francisco to Austin, creating about 200 jobs.
NORTH TEXAS HOME SALES CONTINUE DECLINE
DALLAS (The Dallas Morning News) – February sales of North Texas pre-owned homes fell 8 percent from a year earlier — double the rate of decline in January — according to statistics released by the North Texas Real Estate Information System.
Increases in mortgage rates and tightened standards for mortgages due to rising defaults of home loans are credited with reducing the number of sales.
Simultaneously, the number of homes on the market has increased 7 percent. More than 44,000 area pre-owned single-family homes were listed for sale. A six-month supply of houses is considered a balanced market. North Texas’ supply is just over eight months.
Median home sales prices were unchanged from a year ago at $144,900. Most of the decline has been in houses priced under $200,000, statistics show.
Sales of homes priced at $1 million or more rose 27 percent in the first two months of this year.
COMERICA TO HEADQUARTER IN DALLAS
DALLAS (The Dallas Morning News, Austin American-Statesman) – Banking firm Comerica Inc. will relocate its corporate headquarters to the area from its 158-year home base in Detroit.
Comerica's Texas operations are already based here in Thanksgiving Tower, but the firm has not said where in Dallas the new corporate headquarters will be.
The company would receive an economic incentive package from the city worth about $500,000 over ten years, if the City Council approves it, said Karl Zavitkovsky, city hall's economic development director.
Comerica now generates nearly half its business outside Michigan, up from about 25 percent in 1997. There are 71 banking centers in Texas.
The Texas Enterprise Fund will provide a $3.5 million grant for Comerica, and the company is expected to generate about $47 million in capital investments in the state, Gov. Rick Perry said.
In 2005, Countrywide Financial Corp., the nation's largest independent home mortgage lender, also received $20 million from the Texas Enterprise Fund to establish offices in North Texas on the condition that it add 7,500 jobs in Texas by 2010. Comerica’s move will bring 200 area jobs.
FAIRGROUNDS SOLD
SAN ANTONIO (earthtimes.org) – EastGroup Properties Inc., an equity real estate investment trust based in Mississipi, has purchased Fairgrounds Business Park for $10.5 million.
The four 1980s-era business distribution buildings total 231,000 square feet, are currently 80 percent leased and are located in the Alamo Downs Business Park.
Eastgroup also owns the 100 percent leased, 253,000-square-foot Alamo Downs Distribution Center, which is in the same park.
This is EastGroup's fourth area investment. The trust’s San Antonio holdings now total more than 1.3 million square feet, including two properties under development.
SITTERLE'S GARDEN
WINDCREST (San Antonio Business Journal) – Sitterle Homes will develop The Gardens at Windcrest near the corner of Crestway and Midcrown.
The Gardens will feature 28 garden homes, ranging from roughly 1,650 to 2,200 square feet. Prices will start in the $210,000 range. Two mini-parks are also planned for the community.
Locally based Sitterle Homes has built more than 4,000 homes in the greater San Antonio area, including Rosehart, Emerald Forest, The Gardens on Point Bluff and River Crossing.
DEVELOPMENT AT RESLER RIDGE
EL PASO (El Paso Inc.) – Sixty new high-end homes will soon be built in the Resler Ridge Subdivision near I-10.
Hunt Communities LLC is finishing development and recently sold 12 acres to both Mountain Vista Builders and Zia Homes Inc.
Construction of the subdivision, including finished lots, roads, utilities, retaining walls and perimeter walls, will be completed by the end of the month, at which time Mountain Vista and Zia Homes can begin work on the homes.
According to Mountain Vista Builders sales manager Ismael Lozano, the new homes will likely range from about $280,000 to $500,000, and most will be two stories.
NEW LANDLORD FOR ACADEMY HQ
KATY (globest.com) – Cole Cos. of Phoenix has purchased Academy Sports & Outdoors Ltd.’s 93-acre corporate headquarters and national distribution center as part of a sale-leaseback arrangement.
Cole paid $102 million for the 1.4-million-square-foot property at 1800 N. Mason Rd. Academy Warehouse has a 20-year, triple-net lease, with numerous options allowing up to a 20-year extension following the base lease's expiration.
Currently, 93 percent of the property is used for warehouse and distribution, with the other 7 percent going to corporate office space. Chris Robertson, Cole's senior vice president of acquisitions, said Cole plans no upgrades to the buildings or land.
Stan Johnson Co. of Oklahoma represented Academy Sports in the transaction.
REDUX ATTRACTS FIRST BIG TENANT
IRVING (The Dallas Morning News) – Avelo Mortgage LLC, an affiliate of Goldman Sachs, has leased almost 98,000 square feet of office space in the former Associates Corp. headquarters at 250 East John Carpenter Frwy.
The 539,000-square-foot building, which opened in 1976, was one of the first developed in the Las Colinas area. Behringer Harvard bought the buildings in April 2005.
When major tenant Citigroup moved out of the building last year, Behrenger began extensive renovations expected to total $11.2 million. Renovations include common areas, mechanical system upgrades, a new food service facility, an updated fitness center, a new entry, additional parking and landscaping.
CB Richard Ellis and the Staubach Co. were the brokers assisting in lease negotiations that secured Avelo, the first major tenant for the renovated building.
THE SKINNY ON ALON
DALLAS (Dallas Business Journal) – Alon USA Energy Inc. will buy Abilene-based Skinny's Inc. for about $70 million. Skinny’s owns and operates about 102 Fina stations in Central and West Texas.
Alon currently operates 206 stores in West Texas and New Mexico under the Fina brand and supplies the stores with motor fuel from its refinery in Big Spring.
The Dallas-based petroleum refiner and marketer plans to convert the stations to the 7-Eleven brand, making Alon the largest 7-Eleven licensee in the United States, said Alon CEO and President Jeff Morris.
The sale is expected to close soon.
DOMAIN PHASE I OPENING, PHASE II PLANNED
AUSTIN (Austin American-Statesman) – Simon Property Group Inc. plans to start construction late this year on Domain Phase II, including about 300,000 square feet of retail and about 300 apartments and townhomes.
Phase II will rise on 34 acres south of the current Domain, a $245 million luxury open-air center opening March 9 near North MoPac Boulevard (Loop 1) and Braker Lane.
The Domain Phase I shopping center has 700,000 square feet of shops. It is anchored by Austin's first Neiman Marcus store and a Macy's, and it has restaurants and 390 luxury apartments.
Like the soon-to-open Phase I, the Phase II residences will be built on top of the retail and entertainment components. Phase II will be pedestrian-friendly, with extensive landscaping and no through streets.
Simon's partner in the Domain is Austin-based Endeavor Real Estate Group. Phase II is slated to open in 2009.
GALLERIA TOWER IV IN THE WORKS
DALLAS (Dallas Business Journal) – Fortis Property Group is planning Galleria Tower IV, a 300,000- to 350,000-square-foot addition to the Galleria Office Towers complex it purchased last year.
The fourth tower will be about 18 stories and include stacked parking on the lower levels and ground floor or mezzanine retail space. Construction is tentatively set to begin in the fall.
Fortis purchased the 1.4 million-square-foot Galleria complex for $285 million in 2006 from The Blackstone Group. Situated at the northeast corner of I-635 and the Dallas North Tollway, one of the busiest intersections in the state, the Galleria is one of the most recognizable commercial developments in North Texas.
ABACUS COUNTING UP ITS PURCHASES
ALLEN (globest.com) – Abacus Capital Group LLC, along with minority partner Colonial Properties Trust, has paid $21 million for the 216-unit Auberry at Twin Creeks from A.G. Spanos Cos.
The Class-A, one-year-old Auberry at 705 Bray Central Dr. is the second property in a week to be sold to Abacus by the California-based A.G. Spanos. At the end of February, Abacus bought the 240-unit Fairmont at Fossil Creek at 3701 Fossil Creek Blvd. from Spanos.
The 92 percent-leased, nine-building complex on more than 12 acres has a mix of one-, two- and three-bedroom units averaging almost 1,000 square feet, with the average rent about $984 per month.
Colonial Properties Trust will manage the complex.
Holliday Fenoglio Fowler LP arranged the $17-million, ten-year, fixed-rate interest, Freddie Mac financing.
EAST BY EAST POINT
EL PASO (Fortune Real Estate) – Vista del Este JV has sold 433 acres off Montana Boulevard to Washington-based East Point LLC for about $3 million.
The land, which is about four miles east of the city limits, will be developed into residential lots, said James Salome, president of Fortune Real Estate Inc., which brokered the transaction.
AFFORDABLE HOUSING AT RIVERMONT
AUSTIN (Austin Business Journal) – Campbell-Hogue & Associates Inc. will break ground in early summer on a $12 million residential and retail development intended to bring affordable rental housing to the area.
Rivermont Place, at Montopolis Drive and East Riverside Drive, will include 142 rental units targeting mostly families making between 60 to 80 percent of the area’s median income. Some retail development is planned.
Chiles Architects Inc. of Austin is executing Rivermont’s design, and Campbell-Hogue will handle construction.
RETAIL DEVELOPMENT TAKES NEW NAME
HOUSTON (Houston Business Journal) – Moody Rambin Interests has changed the name of its planned retail center to match the new Lakes of Bella Terra community.
At 800,000 square feet, Shops at Bella Terra, previously called Parkway Lakes, will provide one of the largest concentrations of retail stores south of I-10. The center will be between the Westpark Tollway, the Grand Parkway and Bellaire Boulevard.
Shops at Bella Terra will include a Wal-Mart Supercenter, which is currently under construction and expected to open in the fall. The rest of the center will be completed by the end of 2008.
NEXT DOOR TO MOTHER NATURE
AUSTIN (Austin Business Journal) – A joint venture has begun work on a $70 million gated community on 35 acres overlooking the Balcones Canyonlands Preserve.
Versante Canyon Homes, at RR 620 in the Four Points area, will include 142 townhomes and villas. The townhomes will be in two- and four-unit buildings with sales prices starting in the low $300,000s. The villas, which will be detached single-family homes, will be priced as high as the mid-$500,000s.
To preserve the natural aesthetic, about 40 percent of the land will remain undeveloped.
Crow Holdings Realty Partners IV LP of Dallas and The Verandah Cos. of Houston will begin construction in the summer. Homes will be completed by spring 2008. Verandah will handle construction on the townhomes, while Austin-based Harrington Custom Homes will build the villas.
HERE COMES THE NEIGHBORHOOD
AUSTIN (Austin American-Statesman, Austin Business Journal) – City leaders and developer Catellus Development Corp. have selected six companies to build the first phase of the new Mueller neighborhood.
The neighborhood, which is being built on the site of the former Robert Mueller Municipal Airport, will eventually include 1,500 single-family homes, 900 row houses and 2,200 apartments and condominiums. About 25 percent of those units will be included in the Mueller Affordable Homes Program.
The builders are David Weekley Homes, Meritage Homes, Standard Pacific Homes, Saldaña Homes, Streetman Homes and The Muskin Co. Saldaña, Streetman and Muskin are locally based.
The 340-home first phase will consist of three housing types — yard homes, row houses and garden court homes — all of which will be highly energy efficient, meeting the city's three-star Green Building rating. Prices will range from the $180,000s to the $600,000s, with units having between 900 and 3,700 square feet of living space.
The Mueller project, which is the largest public-private venture in Austin's history, will house up to 10,000 residents. In addition, it is expected to add $1 billion to the city's tax base and generate thousands of jobs.
CLASS-B WAKEFOREST PURCHASED
HOUSTON (CB Richard Ellis) – Cameron Wakeforest Apartments LLC has purchased the 101-unit Wakeforest Apartments from AON Wakeforest Inc.
The Class-B property is on almost three acres at 3700 Wakeforest St. in the Greenway Plaza district.
CB Richard Ellis negotiated the transaction for AON Wakeforest. Cameron Wakeforest was self-represented.
BASCOM TAKES CHESTNUT
HOUSTON (globest.com) – The Bascom Group, with equity backing from Los Angeles–based Pacific Coast Capital Partners LLC, has purchased the 484-unit Chestnut Park Apartments from Baltimore-based Alex Brown Realty Inc.
The 30-year-old Chestnut Park is on 20 acres at 505 Cypress Dr. Comprising 51 buildings, the complex is a mix of one-, two-and three-bedroom apartments, as well as loft- and townhouse-style units. The average unit size is 954 square feet, and the monthly rent is $654.
California-based Bascom plans to change Chestnut Park from a Class-C to a Class-B property by investing $10,000 per unit to overhaul the complex.
CB Richard Ellis’ Dallas and Houston offices represented the seller, while Bascom represented itself.
FACELIFT FOR '70S-ERA BUILDING
HOUSTON (globest.com) – Locally based Moody National Cos. has bought a more than 165,000-square-foot office building in the Galleria area from a local limited partnership.
Moody National will spend more than $2 million to renovate the 1970s-era, Class-B building at 2100 W. Loop South.
Tenants include EMS Pipeline Services, TelWest Network Services Corp., Layton Energy Corp. and Imedia.it Inc.
The buyer was self-represented and will handle leasing and management. Holliday Fenoglio Fowler LP's Houston office represented the seller.
CAPITAL CITY CRACKS FORBES' TOP 25
AUSTIN (Forbes) – Austin–Round Rock was the only Texas city to break the top 25 on Forbes’ top 100 list of best cities for jobs. The city moved up 28 spots from last year to land at number 23.
Other Texas metropolitan areas making the list were McAllen-Edinberg-Mission (no. 32), San Antonio (no. 44), Houston–Sugar Land–Baytown (no. 45), Fort Worth–Arlington (no. 47), Dallas-Plano-Irving (no. 49) and El Paso (no. 69).
Raleigh-Cary, N.C., topped the list while Phoenix-Mesa-Scottsdale, Ariz., ranked second and Jacksonville, Fla., ranked third.
For the second time in a row, the big cities performed poorly. While Washington, D.C., is fifth on the list, Chicago (No. 82), Los Angeles (No. 88), San Francisco (No. 86) and Boston (No. 83) didn’t even break the top 75. Speaking of number 75, that slot was taken by New York City.
Forbes used five data points — unemployment rate, job growth, income growth, median household income and cost of living — to compile the rankings. They measured the largest 100 metropolitan areas, as defined by the U.S. Census Bureau, and obtained the data from Moody's economy.com.
NEW PLAN FROM DOWN UNDER
HOUSTON, DALLAS, U.S. (Commercial Property News, prnewswire.com) – New Plan Excel Realty Trust Inc. will be purchased by affiliates of Australia-based Centro Properties Group for approximately $6.2 billion, including assumption of debt and preferred stock.
New Plan Excel Realty Trust Inc., a self-administered and self-managed REIT, currently manages a national portfolio of 467 properties in cities across 38 states, including Houston and Dallas. The properties include 453 community and neighborhood shopping centers totaling approximately 67.6 million square feet. Total assets are valued at approximately $3.5 billion.
Centro Properties Group currently has approximately $12.4 billion in funds under management, having previously purchased U.S. firms Kramont Realty Trust and Heritage Property Investment Trust Inc. Centro currently holds ownership, management and development of shopping centers in Australia, New Zealand and the United States.
New Plan was advised by J.P. Morgan Securities Inc. and Merrill Lynch & Co. Acting as legal advisor to New Plan was Hogan & Hartson LLP, while Skadden, Arps, Slate, Meagher & Flom LLP acted as Centro's legal advisor.
The tender offer is expected to close in the second quarter of 2007.
PAVILIONS BOOKS-A-MILLION
HOUSTON (Houston Business Journal) – Houston Pavilions developers William Denton and Geoffrey Jones have signed Books-A-Million Superstore and Forever 21 clothing store as anchor tenants for the mixed-use development in downtown.
Other tenants already signed on include the House of Blues live music venue, upscale Lucky Strike bowling center and several restaurants. Both newly announced tenants will have two-story retail centers in the $170 million project.
Bounded by Dallas, Polk, Main and Caroline, the three-block project will include 360,000 square feet of retail and 200,000 square feet of office space. Sky bridges spanning Fannin Street and San Jacinto Street will connect the second and third floors.
Houston Pavilions began construction this week and is scheduled to open in October 2008.
ONE CITY CENTRE SOLD
HOUSTON (globest.com) – One City Centre, formerly known as First City Main, has been sold to New York City–based investment company Broadway Partners LLC.
The 29-story, 590,700-square-foot building was constructed in 1961 at 1021 Main St. In 2004, the highrise underwent a $20 million renovation to make it a Class-A building.
Tenants in the 95 percent occupied building include Waste Management Inc., Electronic Data Systems and Plains Exploration & Production Co. Locally based Transwestern has assumed leasing duties.
COMMERCE CENTER GETS DISTRICT OFFICE
McALLEN (mcshane.com) – Harwood & Associates has contracted Cadence McShane to provide design/build services for the new McAllen District Office in the 495 Commerce Center.
The 80,000-square-foot, four-story building on 4.5 acres at 1201 E. Laurel Ave. will include a 54,300-square-foot office tower and a two-level, 146-car underground garage. Also planned is a warehouse space of more than 14,000 square feet.
Exterior landscaping includes a fountain at the building entrance and a meandering water feature.
Alliance Architects Inc. is the project’s architect of record. Grand opening is scheduled for
January 2008.
COTTER & SONS REMEMBER THE ALAMO
SAN ANTONIO (Embrey Simpson, San Antonio Express-News) – Cotter & Sons has purchased two eight-story office buildings totaling almost 195,000 square feet.
The Alamo Towers were built in 1980 at 901 and 909 NE Loop 410. They are 73 percent leased, with tenants that include the San Antonio Federal Credit Union, insurance companies and law firms.
Cotter & Sons, a local real estate investor, plans to make improvements to the properties and manage them in-house. The company was represented by Embrey Simpson, while the seller was represented by CB Richard Ellis.
DALZELL, MCDOUGAL TO LEAD ADVISORY COMMITTEE
COLLEGE STATION (Real Estate Center) – Realtor David Dalzell of Abilene has been elected chairman of the Advisory Committee for the Real Estate Center at Texas A&M University. D. Marc McDougal, a Lubbock Realtor, was elected vice chairman.
Committee members are appointed by the governor for six-year terms. Both the chair and vice chairmanship are rotated among the nine members. Members represent various segments of the real estate industry and the public. Their expertise helps set the research agenda. They also approve the Center’s budget.
Dalzell, the owner of Dalzell Realtors, was appointed to the committee in 2001 to represent the real estate brokerage industry, and he served as vice chairman during the past year. He started in the real estate business in 1977. He was named salesperson of the year in 1987 by the Abilene Board of Realtors and Realtor of the Year in 1988. In 2004, he was chairman of the Texas Association of Realtors (TAR).
Dalzell has served in numerous offices and committees for his local association, TAR and the National Association of Realtors (NAR). He was president of the Abilene board in 1986, served two terms as a TAR regional vice president, president of the Texas Chapter of CRBs in 1985, and six years as a TAR-PAC trustee.
Currently, Dalzell is in his fourth term as an NAR director. He serves on both the TAR legislative management team and executive committee. He is on the board of directors of the West Central Texas Workforce Commission and on the Southwest Region Advisory Board of Fannie Mae.
Dalzell taught real estate for five years at Cisco Junior College and 12 years at Abilene Christian University. Since 1986, he has been a senior instructor for the Realtor Institute of TAR.
McDougal was appointed to the Advisory Committee last September to represent the commercial properties industry. A graduate of South Plains College, McDougal is president of McDougal Realtors, where he has worked since 1988.
McDougal is a member of the Lubbock Board of Realtors and the West Texas Homebuilders Association, where he has served on the board of directors. Since 1984, he has been a member of the Lubbock Apartment Association, where he has served as both president and vice president.
In addition to his involvement in professional organizations, McDougal has served in a number of civic positions in Lubbock, including mayor, city council representative and Lubbock County Republican chair.
McDougal is also a member of the City of Lubbock Traffic Commission, Red Raider Club, Leadership Lubbock, Lubbock Centercorp Board of Directors and METTS Board.
MAJESTIC BEGINS PHASE ONE
LEWISVILLE (Dallas Morning News, globest.com) – Majestic Realty Co. and Northwestern Mutual Life Insurance Co. have broken ground on the first phase of Majestic Airport Center on SH121. Ultimately, the 160-acre business park will house 3 million square feet of office and warehouse buildings.
Phase one will contain more than 1.35 million square feet in three buildings. The 1 million-square-foot warehouse will include 156 cross-docks, each with a 36-foot clear height. It will also have two rear-load shallow bays. One will be 130,000 square feet with 28-foot clear height, while the other will be 195,000 square feet with 32-foot clear height.
Commerce Construction is the project’s general contractor and Alliance Architects performed design work. Phase one will be ready in early 2008, said Majestic vice president Al Sorrels.
SISTER COMPLEXES REUNITED
BEDFORD (globest.com) – Univesco of Plano has sold the Forestwood Apartments to The Bascom Group of California.
The 32-building, 263-unit complex at 1611 Oak Creek Ln. will be reunited with its sister property, the 201-unit Oak Creek Apartments, which Bascom purchased last year. The combined property on almost 20 acres will be renamed Oak Creek Apartments.
The firm will spend the next two years and $7,000 per unit to update the 88 percent leased, 1980s-era complex. Monthly rent averages about $550 for the one- and two-bedroom units, which average 929 square feet.
Bascom, whose equity partner is Carlyle Group of Washington, D.C., represented itself. George Smith Partners in Los Angeles arranged financing through Capmark Finance Co.
HOPE FOR THE HOMELESS
DALLAS (Dallas Morning News) – City officials broke ground this week on a center designed to help address the area’s homeless.
The homeless assistance center, which will be in the 1800 block of Corsicana Street, is scheduled to open next year. It is expected to provide services for about 400 people a day.
In addition to having 100 beds for short-term use, the center will have a covered outdoor pavilion with sleeping room for 300 people, as well as facilities with showers and lockers. The center will provide meals, mental-health services, substance abuse treatment programs and job training programs.
Voters in 2005 approved $23.8 million in bond money for the project, and the Metro Dallas Homeless Alliance is trying to raise $3 million in private funds to pay for the center's operating costs. Officials have noted that the city still needs 1,000 to 1,500 housing units to provide permanent solutions to the homeless problem.
According to a 2006 count, Dallas County has nearly 6,000 homeless people on any given night in shelters and on the streets.
COLONIZING ROSHARON
ROSHARON (Houston Business Journal) – Perry Properties has purchased 66 acres along FM 521 for $1.9 million from Elan Development.
The firm has retained an option to purchase additional acreage to complete the development of the Southern Colony subdivision in Fort Bend County. The subdivision currently has more than 120 homes. With this purchase, an additional 300 lots are planned.
Houston-based Perry Properties plans to build starter homes in conjunction with Trophy Homes and Royce Builders.
Perry Properties represented itself in the transaction and obtained financing from a Dallas-based private investor group.
HUNTER PLAZA PURCHASED
IRVING (Dallas Morning News, Commercial Property News) – Triple Net Properties LLC, representing its tenant-in-common investors, has purchased Hunter Plaza from Hunter Equities LLC.
The 106,000-square-foot retail center was built in 2005 and 2006 on more than 11 noncontinguous acres along I-636.
Tenants in the 90 percent leased center include anchors Best Buy and 24 Hour Fitness.
Holliday Fenoglio Fowler LP negotiated the sale and arranged financing through Wachovia Bank N.A.
COMPUSA CLOSING STORES, REVAMPING OPERATIONS
DALLAS–FORT WORTH (Fort Worth Star-Telegram, Dallas Business Journal) – CompUSA is closing more than half its stores nationwide, including seven in the Metroplex.
Overall, 126 stores will close nationwide in the next 60 to 90 days as part of a major cutback for the computer chain. CompUSA will continue to operate 103 stores nationwide, including stores in Plano and Frisco.
The company also said it will receive a $440 million cash capital infusion from its parent company, Mexico-based Grupo Carso SA, which will be used to improve CompUSA's balance sheet.
GEORGETOWN'S ECO-FRIENDLY SUBDIVISION
GEORGETOWN (Austin American-Statesman) – Williamson County is getting its first major environmentally sensitive mixed-use development, near the proposed Austin-to-Leander commuter rail line.
The 1,900-acre, multimillion-dollar Water Oak at San Gabriel will be completed in phases over the next decade. It will include 4,000 high-end homes with about 650 acres designated for land conservation, making it one of the largest conservation subdivisions in Texas.
Meritage Homes, Morrison Homes, Ryland Homes and Taylor Woodrow are set to build the homes, which will cost $250,000 to $1 million. Homes will be ready for occupants by late 2008.
About 100 acres will be devoted to commercial and retail development, and an additional 1,500 multifamily units are planned.
ABG Development Ltd., a subsidiary of Galo Properties of San Antonio, completed the purchase for the Georgetown development this week from six private sellers.
THE WOODLANDS' COMMUNITY COLLECTS GOLF BALLS FOR U.S. TROOPS - Several golf facilities, local businesses and golfers are collecting used golf balls for U.S. troops in Iraq and Afghanistan as part of the Balls for Baghdad program . The collection deadline is Monday, April 9, 2007. Golf balls may be dropped off at Metro Mini Storage at 7474 Gosling Road in The Woodlands at the intersection of Gosling Road and College Park Drive (SH 242). Ray Drake , owner of Metro Mini Storage, has donated a storage room for the project. 
NEW RETAIL IN THE WOODLANDS CROSSING SHOPPING CENTER - Flooring America recently opened a new showroom in The Woodlands Crossing Shopping Center, directly behind the new Starbuck's . Flooring America is open Monday through Friday from 10 am until 7 pm; Saturday from 10 am until 5 pm; and closed on Sunday. For free estimates and measurements, call 281-363-1962. 
Dickey's Barbecue Pit will be opening in early April in The Woodlands Crossing Shopping Center. Dickey's Barbecue Pit will offer a variety of eight different meats, sides, salads and soft-serve ice cream. 
SPRING HOME & GARDEN SHOW IN THE WOODLANDS - The Fifth Annual Spring Home & Garden Show will take place on Saturday, March 31, 2007 from 9 am until 7 pm and Sunday April 1 from 10 am until 6 pm at The Woodlands Waterway Marriott Hotel & Convention Center. Over 200 exhibitors will be featured. Admission is $8 for adults; $6 for seniors; and children 12 and under are admitted free. 
Jost Lunstroth of Vineyard Wine Cellars will offer award-winning design ideas for proper wine storage at the show. Outdoor grills, kitchen units and top chefs preparing dishes for attendees are also attractions at the event. A customized grill by Cunningham Gas Products is pictured. For more information on the Home & Garden Show, visit 
LOCAL SPORTS CELEBRITIES SUPPORT NEW DANVILLE HOUSE RAFFLE - A trio of Houston sports celebrities (pictured left to right) -professional golfer Roland Thatcher , Houston Texans defensive end, N.D. Kalu, and former Houston Astros pitcher Doug Drabek - have announced their endorsement of the New Danville House Raffle , a major initiative now underway to raise funds to develop New Danville, Texas' first self-sustaining, master-planned community for high functioning mentally challenged adults, according to Bev Ear l, chair of the event. 
LEADERSHIP MONTGOMERY COUNTY CLASS PROJECT IN FULL SWING - The 2007 Leadership Montgomery County (LMC) class is in full production of this year's class project, HelpOurCounty.com , "Your Connection to the Nonprofit Community". LMC's 34-member class has been working continuously on the development and implementation of the website's design, funding, marketing, legal compliance, nonprofit outreach and continuance. The HelpOurCounty.com website is designed to provide resources for the entire county by linking nonprofit organizations to the business and residential community. The website is scheduled to be up and running by May 9, just 15 days prior to the class graduation on Thursday, May 24. 
CONROE ISD KINDERGARTEN ROUND-UP BEGINS - All Conroe ISD elementary school campuses will begin "Kindergarten Round-up" pre-registration from Monday through Friday, April 2-6, 2007 for students who will be entering kindergarten for the 2007-2008 school year. Students must be at least five years old on or before September 1, 2007 to enroll in kindergarten. The parent/guardian should enroll the student at the elementary campus for which the student is zoned for attendance. In order to register a child, the following items are required: birth certificate, proof of residence, the child's social security card and immunization records. For more information, call 936-709-7623 or 832-482-6623.
