RECON March 6, 2007

RECON

Real Estate Center Online News

March 6, 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.

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.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON March 2, 2007

RECON

Real Estate Center Online News

March 2, 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.

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 CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON February 27, 2007

RECON

Real Estate Center Online News

February 27, 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.

COTTON TRAIN'S A-COMIN'

RICHLAND HILLS (globest.com) – Paxton Warehouse Services of North Carolina has signed a short-term lease with Richland Warehouse Specialist for as-is warehouse space, which the company will use as a storage and regional distribution center.

The almost 100,000-square-foot, 30-dock-door warehouse at 7205 Burns St. will store raw, baled cotton from railcars coming into Alliance Airport. The cotton will later be transported to U.S. production sites.

MOODY PLANS MIXED-USE

HOUSTON (globest.com) – Moody National Cos. has purchased 12 acres at I-10 and Texas 6 in the Energy Corridor from Dallas-based Granite Properties Inc. for a mixed-use development.

Moody Park 10 will begin development with a 127-room Hyatt Place and 101-room Marriott hotel. Also planned are a 7,000-square-foot restaurant and 175,000 square feet of Class-A office space.

CONFERENCE RATES INCREASE MARCH 16

COLLEGE STATION (Real Estate Center) – The registration fee and hotel rate for the 17th Annual Outlook for Texas Land Markets conference will increase March 16.

Registration for the conference, which will be held April 11–13 at the Hyatt Regency on the Riverwalk in San Antonio, will increase from $200 to $220 per person after March 15. 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/.

QUARRY BREAKS GROUND

SAN ANTONIO (San Antonio Express-News) – Embrey Partners Ltd. has begun construction on the last tract in the old quarry almost 100 years after Alamo Cement Co. workers first took up residence in the company town, "Cementville."

Quarry Village, Embrey's Tuscany-inspired, mixed-use development on almost 13 acres near East Basse Road and Jones Maltsberger will be built in two phases. The first phase will open next summer and is slated to include a multistory complex with 70,000 square feet of ground-floor retail space and 280 luxury apartments.

Phase two, which begins in 2008, will include office space and 30,000 square feet of retail.

The Artessa at Quarry Village apartments will range from 600 square feet to 2,934 square feet. Monthly rents will range between $930 and $4,547.

The primary Quarry Village architect is Beeler Guest Owens Architects of Dallas. RVK Architects, a San Antonio–based firm, is the architect of two of the project’s freestanding retail buildings. Development companies Bitterblue Inc. and Alamo Gardens Inc. are partners in the project. Alamo Gardens sold Embrey the acreage for the Quarry Village last December.

The master-planned community begun in the mid-80s includes the 50-acre Alamo Quarry Market, built by Trammell Crow Company, and the Quarry Golf Club.

TECHNOLOGY CENTER SOLD

HOUSTON (costar.com) – Brookfield Asset Management is selling the fully leased North American Technology Center to Crystal River Capital.

The 412,500-square-foot center at 1111 Fannin St. is anchored by JPMorgan Chase under a 15-year, triple-net lease.

ST. THOMAS' LANDMARK PURCHASE

HOUSTON (Houston Business Journal) – The University of St. Thomas has purchased two Montrose-area office buildings and a retail center, marking the largest such acquisition in the university's 60-year history, and the first time St. Thomas has purchased commercial property.

The five-story, 75,000-square-foot and four-story, 32,000-square-foot buildings — both 95 percent occupied — will serve as faculty offices, administrative offices or classrooms.

The properties were sold by a partnership led by John Hansen Investment Builder, a local developer who constructed the office buildings and renovated the 62-year-old retail site, which has been home to the Black Labrador Pub for the past 21 years.

Hansen-owned Tenax Group Inc. will manage the properties.

JCPENNEY'S OPENING ON PRAIRIE

FLOWER MOUND (Dallas Business Journal) – Six JCPenney stores will open across the country next month, including one at 5751 Long Prairie Rd.

The Plano-based retailer’s new store will have more than 100,000 square feet and include a Paul Mitchell Signature Salon and a Sephora store, which will offer cosmetics and fragrances.

The new store will bring about 200 jobs to Flower Mound, a spokesperson said.

J.C. Penney Co.'s long-range plan is to open 50 new stores between 2007 and 2009. The company opened 28 stores in 2006. The other stores opening are in Eden Prairie, Minn.; Brighton, Mich.; Papillion, Neb.; Natick, Mass.; and Washington, Pa.

CREEKSTONE BUYS VENTURE IV, XI

THE WOODLANDS (Creekstone Partners) – Creekstone Partners has purchased two Class-A, multitenant, office-flex buildings from the Woodlands Development Corporation. Both buildings are in the Research Forest area.

The more than 63,600-square-foot Venture Technology Center IV at 8665 New Trails Dr. is 100 percent leased to Chart Industries, McLeod USA and Fusion Petroleum. It was built in 1992 on more than seven acres.

The more than 72,500-square-foot Venture Technology Center XI at 2700 Research Forest Dr. is almost 96 percent leased to Newpark Resources, Rockwell Automation, Applied Veterinary Systems, Mineral Resource Technologies and Option One Mortgage. Built in 1999, the building sits on more than eight acres.

Harbor Capital Group of Houston arranged the cross-collateralized loan from KeyBank National Association. Creekstone Management will manage the properties.

PALLADIUM HIGH-RISE COMING TO 'BURBS

MCKINNEY (Dallas Business Journal) – Palladium USA International Inc. will build Craig Ranch’s first high-rise residential building near the development’s new Cooper Aerobics Center.

Palladium at Craig Ranch will include two seven- to nine-story condominium towers plus 80,000 square feet of retail space. The average unit will be 1,470 square feet and cost $375,000, or about $265 per square foot.

The $125 million project will be developed in two phases. Phase one will break ground in early fall.

Other projects underway in the 2,500-acre development include a $100 million-plus, eight-story Golden Tulip hotel; the Michael Johnson Performance Center, an athletic training facility and stadium; and Times Square at Craig Ranch.

AUSSIE BUYER SAYS G'DAY, CONROE!

CONROE (svn.com) – Huntsville Investments LLC has sold a two-building, more than 81,000-square-foot office property to Australia-based 100 North Freeway Investments LLC.

Built in 1978 and renovated in 2005, the property at 100 I-45 North is 95 percent occupied by tenants including Louisiana Pacific and Odyssey Healthcare.

Sperry Van Ness in Houston represented the buyer. Homestead Land Company represented the seller.

EL MERCADO LANDS JCPENNEY ANCHOR

EL PASO (El Paso Times) – A JCPenney store will anchor a 23-acre shopping center being built by River Oaks Properties, a local shopping center development and management company.

Part of the $30 million El Mercado Plaza, this JCPenney will be one of the retail company's new “off-mall” stores. It will be a single-floor facility of about 100,000 square feet. It is slated to open in October along with a handful of smaller stores. The rest of the complex will open in 2008.

The shopping center at Joe Battle and Zaragoza will also include a 30,000-square-foot junior anchor store and several restaurants.

FOSSIL CREEK APARTMENTS PURCHASED

FORT WORTH (globest.com) – Abacus Capital Group LLC of New York and Colonial Properties Trust of Alabama have purchased the 240-unit Fairmont at Fossil Creek Apartments for $21.3 million.

The two-year-old Fairmont, on about 13 acres beside the Fossil Creek Golf Club, is 93 percent leased. The one-, two- and three-bedroom units average 930 square feet with an average monthly rent of $932.

Holliday Fenoglio Fowler LP arranged a Freddie Mac loan.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON February 20, 2007

RECON

Real Estate Center Online News

February 20, 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.

TECHNOLOGY SURVEY SPOTLIGHTS RENTERS

WASHINGTON, D.C. (National Multi Housing Council) – The National Multi Housing Council (NMHC) has published a new research report that explores which technologies renters currently use and which ones they desire in their apartment homes. The report, Apartment Renter Technology Survey, is based on a national survey of nearly 1,000 residents conducted by SatisFacts Research LLC.

Here's what the survey revealed:

• Only 58 percent of apartment homes have wired landline phones, and only 38 percent of occupants surveyed consider it their primary phone. Instead, renters prefer mobile phones. Fully 88 percent of renter households have mobile phones compared to 74 percent of all households.
• Seventy-eight percent of respondents have computers in their apartments; 85 percent of those subscribe to high-speed Internet service.
• Lower-income renters are just as involved with technology and desire it just as much as upper-income residents.
• Sixty-nine percent would like communities to offer wireless hotspots.
• Residents do not want their services bundled with a single service provider. Only 15 percent said they were “likely” or “very likely” to bundle their phone, video and Internet services with one provider.
• While 94 percent say that they did not choose their current apartment home because of the technology amenities it offered, they report that high-speed Internet, good cell phone reception and a choice of service providers might be important factors in choosing where to live next.
• By a factor of 500 percent, residents would prefer communicating with their landlords in person versus sending an e-mail or using a web portal. Calling the office was the second-most desired means of communicating with the apartment staff.

PARKWOOD PLACE 1 SOLD

PLANO (The Dallas Morning News) – KBS Realty Advisors of California has purchased Parkwood Place I in the Legacy business park from developer Myers & Crow and Kennedy Real Estate Advisors.

The nearly 99,000-square-foot building at 5601 Democracy Dr. was completed in 2006 and is more than 80 percent leased.

CB Richard Ellis negotiated the sale.

LENNOX CENTER CHANGES HANDS

RICHARDSON (The Dallas Morning News) –Tri State Commercial Associates has purchased Lennox Center from developer Henson-Williams Realty Inc.

The more than 183,000-square-foot shopping center is at Coit Road and Campbell.

CB Richard Ellis and Quine & Associates Inc. arranged the sale.

THREE FOR LIBERTY

HOUSTON (Houston Business Journal) – Liberty Property Trust has purchased three industrial buildings in the Greens Crossing Distribution Center, adding 575,000 square feet to the Pennsylvania company’s portfolio.

The buildings are at 11201 Greens Crossing Blvd., 850 Greens Pkwy. and 860 Greens Pkwy.

Liberty purchased the Class-A properties from Simmons Vedder & Co.

HOUSTON'S CAMPUS CONSTRUCTION

HOUSTON (Houston Chronicle) – Houston Community College breaks ground this week on several new projects at two of its campuses.

The college will build a 47,000-square-foot Energy Institute and Science and Technology Building and a 90,000-square-foot Student Services Learning Hub at its Northeast (Codwell) Campus near 610 North and I-10 East.

Meanwhile, the 118,000-square-foot Northline Academic Building will be the first new building at the 24-acre Northline Campus at I-45 North and Crosstimbers.

ECLIPSE NEAR NASA

FRIENDSWOOD (Houston Chronicle) – Eclipse Development has purchased 136 acres at NASA Parkway and Blackhawk from Whitcomb Clear Creek Farms.

California-based Eclipse plans to turn the land into a mixed-use development that will include 600 residential units and 500,000 square feet of retail, office and hotel space.

RFP Commercial represented Eclipse in the purchase.

QUARTER CIRCLES BUYS PARKWOOD, STEPPINGTON

HURST, DALLAS (The Dallas Morning News) – Quarter Circle Capital has purchased two commercial properties in the Metroplex.

The Nebraska investor paid about $6 million for Parkwood Village Shopping Center, a 163,000-square-foot neighborhood retail center at 113-209 Harwood Dr. in Hurst.

The company also bought Steppington Plaza, a 64,000-square-foot, two-building office complex at 10500 N. Central Expressway.

PRESIDIO GEARING UP

FORT WORTH (globest.com) – Transwestern and Las Vegas–based Diversified Asset Planning will break ground by the end of this year on a 388-acre mixed-use project at North Tarrant Parkway and I-35 West.

The Presidio will include 1.4 million square feet of retail space, 1.5 million square feet of multifamily housing and 500,000 square feet of office and hotel space.

Hodges & Associates PLLC of Dallas is the architect, and Halff Associates Inc. is the project's engineer. Both are Dallas-based companies.

COMMON INTERESTS

AUSTIN (Austin Business Journal) – Gables Residential and the Austin office of Direct Development will break ground next month on 5th Street Commons, a mixed-use project that will bring 38,000 square feet of retail and restaurant space and 138 apartments to 5th Street between West Lynn and Campbell streets.

The four-story, $28 million development, designed by the Dallas office of LRK, will feature luxury apartments on top of a neighborhood-oriented retail project. At least 15,000 square feet will be dedicated to restaurants, including such well-known establishments as Pok-e-Jo's Smokehouse and Mean Eyed Cat. Both Pok-e-Jo’s and Mean Eyed Cat currently reside on the project site.

The development will also have a 200-space surface parking lot for retail customers and a multilevel garage for residents.

BIG-CITY STYLE IN SUBURBS

McKINNEY (The Dallas Morning News) – Developer Trammell Crow Residential will break ground next month on the Alexan McKinney apartment complex. In the process, the company hopes to bring a little big-city style to the suburbs.

Taking design cues from city townhomes, designer BGO Architects have incorporated stone, brick and stucco into the 379-unit complex, which will occupy 15 acres near Stacy Road and McKinney Ranch Parkway.

The first units should be ready late this year. They will rent for more than $1 per square foot. The complex, a series of three-story buildings, is part of the 530-acre McKinney Ranch development, which will contain housing and commercial space.

Beaird Commercial Realty negotiated the sale.

COMMERCIAL SALES REACH NEW LEVELS

DALLAS (The Dallas Morning News) – According to Roddy Information Service's year-end survey of transactions, Dallas, Tarrant and Collin counties saw increases in sales on most property types last year, with commercial property sales reaching new levels.

Overall commercial sales in the three-county area were up 8 percent in 2006, with almost 5,400 properties sold. While Dallas County had the largest number of commercial sales (2,240 transactions), the biggest percentage increase was in Collin County, where commercial property trades were up 44 percent from 2005.

Industrial buildings were up 13 percent over 2005, with 749 properties sold. Retail buildings saw about a 5 percent increase in sales in the three-county area, and land sales rose 10 percent.

Only apartment building purchases saw a small decline, down 5 percent from 2005.

HIGHPOINT OAKS' SELF-STORAGE

LEWISVILLE (The Dallas Morning News) – Rearden Capital Corp., a self-storage operator, has purchased almost six acres at Highpoint Oaks on Denton Tap Road.

The property will be developed into a more than 100,000-square-foot self-storage facility and more than 14,000 square feet of retail space.

Joe Foster Co., CB Richard Ellis and Reese Commercial Realty were the brokers assisting in the sale.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON February 14, 2007

RECON

Real Estate Center Online News

February 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.

100,000 BUILDERS FLOCK TO ORLANDO

Editor's Note: This special edition of RECON provides a wrap-up of last week's International Builders Show in Orlando, Fla.

ORLANDO, Fla. (NAHB) – Any way you look at it, the International Builders Show (IBS) is big. In fact, the show has grown so large that many cities cannot host it any more. Not many warm-weather cities have 50,000 hotel rooms and one million square feet of exhibit space. Some 100,000 attended this year's show — the equivalent of all residents of Boulder, Colo., coming to town.

Those wanting to see all 1,900 exhibitors needed to wear comfortable shoes and walk 11.5 miles up and down the aisles of the exhibit hall. That is equivalent of walking every square foot of the landmark Chrysler Building, a 77-story New York City skyscraper. This year’s show had 450 new exhibitors. Products spanned 300 categories ranging from residential and light commercial to construction.

Here is a quick look at some of the new products coming to a home near you.

• The GE Profile double oven freestanding range can cook two different dishes at two different temperatures at the same time. The 2.1-cubic-foot capacity upper oven easily handles pizzas thanks to an exclusive pizza mode.
• Brondell Inc. unveiled the new BreezaTM, a first-of-its-kind automatic deodorizing toilet seat. There is also a version with an adjustable heated seat.
• FAFCO introduced Hot20 and Revolution, the first-ever, lightweight, affordable, do-it-yourself solar hot water system. Company officials said it reduces water heating bills by as much as 50 percent.
• Fire Stone Home Products was showing its Chat Fire Set, a new outdoor fire pit that instantly turns into a sturdy coffee table with an English granite top.
• Jacuzzi Whirlpool Bath unveiled a new Home Spa Towel Warming Drawer that heats four towels in 15 minutes.
• KOHLER attracted lots of attention with its DTV Custom Shower. Similar to an MP3 player for the shower, the DTV offers digital touch-screen pads that control all showerheads, body sprays and temperatures, all saved as favorite settings.
• Sears Kenmore introduced its Drawer Dishwasher with hidden electronic controls. Each drawer accommodates five full place-settings of dishes.
• TurboChef demonstrated its new 30-inch Double Wall Speedcook Oven, which cooks 15 times faster than conventional ovens.
• DECRA Roofing Systems displayed its stone-coated steel roofing systems that are lightweight but extremely durable. The products have 50-year limited warranties and can withstand winds of 120 mph.
• Kreuz Construction Products introduced its Easy-Set Mortarless Glass Block System, which allows anyone to build a professional looking glass-block panel.
• Gorell Windows & Doors introduced a new line of vinyl hurricane windows. Armor Impact Max is designed to protect homes and homeowners from airborne debris during violent weather. They are approved for use in hurricane-prone areas.
• Royal Concrete Concepts opened the doors to its new Safe Room. While it looks like any walk-in closet, the safe room can withstand winds of more than 250 mph.
• Byers Products Group debuted the Versa-Lift attic storage lift, which installs alongside the attic ladder and provides power lifting and access to attic storage space.
• Schlage presented new electronic keypad locks and deadbolts that use four-digit access codes.
• Kwikset showed a residential biometric keyless entry system activated by a fingerprint.
• Delta Faucet Co. exhibited its “disappearing” Illusions Concept Faucet. The Jetsons-like device appears and disappears when water is activated and deactivated. When a control joystick is moved, the spout automatically rises up and out of the counter top. Delta Faucet also had the Smart Concept Custom Shower, which comes with a remote control to allow users to warm up the shower to a designated temperature before they get out of bed.
• Sharp Electronics opened its Insight Pro Microwave Drawers, which allow builders to incorporate microwave technology into more places in the kitchen and elsewhere in the home.

AN IBS FIRST: TWO OFFICIAL SHOW HOMES

ORLANDO, Fla. (NAHB) – For the first time in 24 years, two official showcase homes were unveiled at the International Builders Show (IBS). In addition to The New American Home, which has been a traditional showpiece since 1984, the 2007 show also had The Renewed American Home. The homes were built on adjacent lots in a historic district near downtown.

The New American Home is designed as a real-world laboratory with the latest theories and concepts in architectural design, product development, construction techniques and lifestyle trends. The National Council of the Housing Industry/Supplier 100 co-sponsors construction of the show homes along with Builder Magazine.

This year’s home illustrates how builders could revitalize an older neighborhood. Both homes are built on urban infill sites. While the New American Home was built to add a contemporary flair to the historic neighborhood, the Renewed American Home demonstrates how today’s technologies and building advances can update older homes.

Both homes have the latest in universal design, energy efficiency and cutting-edge technology, including extensive use of low-voltage systems such as home-run structured wiring and whole-house lighting control, entertainment and security. Both homes have been certified “green” by the Florida Green Building Coalition and are Energy Star rated. The New American home includes a photovoltaic system, impact-resistant windows, a generator and a cistern that collects rainwater for landscape irrigation.

The 2007 New American Home is a three-story urban loft boasting 5,800 square feet of living area and a 576-square-foot suite above the two-car garage. There is a roof plaza, courtyard and swimming pool. The home was inspired by the national trend of homeowners leaving the suburbs to live in urban areas to be within walking distance of restaurants, parks and entertainment venues.

Originally built in 1909, the Renewed American Home is a blend of Victorian, coastal design and bungalow. The renovation more than doubled the home’s size. The historic home has modern luxuries, four bedrooms, five and a half baths, structured wiring, security, multizone audio, lighting control and flat panel displays. A basement was added with a wine cellar, exercise room, laundry suite, gift-wrapping station and game room.

HOME FOR A LIFETIME?

ORLANDO, Fla. (NAHB) – Nothing lasts forever, including our homes. However, some parts of our homes last longer than others. A recent study by the National Association of Home Builders (NAHB) and Bank of America Home Equity provides insight into the life expectancies of certain home products.

According to the study, properly installed insulation can last a lifetime as long as it is kept dry and not damaged. A coat of paint can be good for upwards of 20 years, depending on the quality of paint and its exposure to the elements. Aluminum windows can last 15 to 20 years, while wood windows can last up to 30 years.

The longevity of roofs also depends partly on materials used. Slate, copper, clay or concrete roofs can last more than 50 years, asphalt roofs more than 20 years, fiber cement shingle roofs about 25 years, and wood shakes about 30 years.

Of course, the life expectancies for materials in this study are just averages.

“Usage, weather and a number of other factors can influence life expectancy,” said NAHB Staff Vice President for Research Gopal Ahluwalia at this year's International Builders Show. “Moreover, homeowners often replace materials long before the end of their expected life span due to personal preferences and changing trends.”

55-PLUS POPULATION ON THE RISE

ORLANDO, Fla. (NAHB) – A new report from the National Association of Home Builders' (NAHB) 50+ Housing Council, presented at this year's International Builders Show, predicts that 40 percent of all households will be headed by someone 55 or older by 2012.

The number of people age 55 or older is expected to hit 85 million by 2014. The number of households in the 65–74 age bracket by itself will grow by 4.5 million between 2005 and 2014, an increase of more than 38 percent in only ten years.

The annual 55+ estimates are generated by applying the American Housing Survey percentages to NAHB’s forecast of housing activity for calendar year 2007.

WHAT'S IN THE CARDS FOR CONDOS?

ORLANDO, Fla (NAHB) – Is the condominium market here to stay or is the current slowdown in some markets signaling the end?

Condominium starts accounted for almost half of the more than 350,000 multifamily starts in 2005, an increase of about 30 percent from 2003. Speculators have driven demand for the past three years, creating excess inventory in markets such as Florida and Las Vegas.

According to Bill Donges, CEO of the Lane Company, demand for condos will continue driving the market because today’s buyers want to live close to work, transportation, entertainment and retail.

“Condominiums won’t go away,” he said, “because people like them.”

Bernie Markstein, National Association of Home Builders’ (NAHB) senior economist, said the long-term forecast looks for condominium starts to account for about 30 percent of the overall multifamily starts, a sustainable figure.

NAHB 2007 Multifamily Condo Buyers Survey results show that two-thirds of condominium dwellers own their units, with over half of owners being repeat purchasers. The typical condo dweller’s median age is 49 and earns around $40,000. Single females occupy most condos (32 percent), single males are a distant second (20 percent) and married without children are next (17 percent). The average unit is over 30 years old, has two bedrooms and one bath, is part of ten or more units built together, and is considered a primary residence.

“Condominiums remain an active, viable segment to the housing market. A great location, a distinct product, and a good price point for your market are critical to a condominium community’s success,” Donges said.

'GREEN' ALL THE RAGE

ORLANDO, Fla. (NAHB) – Three members of the National Association of Home Builders (NAHB) are helping lead the home-building industry toward a greener tomorrow, and their resource-efficient homes have features all homebuyers can incorporate.

Ferrier Custom Homes of Fort Worth made green affordable with Heather’s Home. Comfortable yet cutting-edge — and with a monthly utility bill of only $15 — the home includes low-flow faucets, dual-flush toilets, compact fluorescent lighting, structural insulated panel walls and the latest heating and air-conditioning systems. It was also built using passive solar design techniques, including overhangs to block the sun.

In 2005, the Home Builders Association of St. Louis and Eastern Missouri launched a green building program based on NAHB’s Model Green Home Building Guidelines. Since the program’s inception, more than 20 homes have been built according to the guidelines, and another 70 are either under construction or on the drawing board.

Pardee Homes of Los Angeles is enjoying increasing success with its “Living Smart” program, which incorporates features that are environmentally sensitive as well as energy conscious into new home developments. The company also has model homes that demonstrate the benefits of green homes and show what the homes will look like.

“Consumers want to go green, but they also want choices, and they want to make sure that any additional costs are paid back in a reasonable amount of time through energy bill savings,” said NAHB Green Building Subcommittee Chair Ray Tonjes at the International Builders Show. “These builders show that NAHB members are taking the lead, and that voluntary programs are the most cost-effective, yet innovative way to go.”

THE FUTURE IS NOW

ORLANDO, Fla. (NAHB) – What’s in store for home design in 2015? Thanks to a recent study conducted by the National Association of Home Builders' (NAHB) Economics Group, visitors at the International Homebuilders Show did not need a crystal ball to find out.

Average home size is likely to stay in the range of today’s 2,400 square feet, and homes are likely to be two-story rather than one-story. They will be greener and more resource-efficient, and there will be a stronger emphasis on universal design and handicap access.

Kitchens and bathrooms will continue featuring upgraded materials and appliances, and more consumers will prefer recessed lighting and wood floors. Three-car garages with larger garage door openings will also become more popular.

Finally, there will be a definite trend toward outdoor living. An increasing number of high-end homes will come with outdoor kitchens, outdoor fireplaces, pools and spas, and outdoor home entertainment equipment.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON February 13, 2007

RECON

Real Estate Center Online News

February 13, 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.

BILL GATES IN REAL ESTATE?

AUSTIN (Austin American-Statesman) – Four Seasons Hotels Inc., the manager of 74 luxury hotels, agreed to be taken private by Microsoft Corp. Chairman Bill Gates, Saudi Prince Alwaleed Bin Talal and the company's chief executive officer for $3.8 billion, including debt.

The purchase does not affect the ownership of each hotel, just the management company. Shareholders will get $82 a share in the purchase, the Toronto-based company said in a statement. Isadore Sharp, Four Seasons' CEO, will receive $289 million as part of the transaction.

Hotel companies have become takeover targets as travel to the world's largest cities rises while the supply of new hotel rooms trails. Four Seasons, whose hotels include the Four Seasons in Austin, the George V in Paris and the Beverly Wilshire in Beverly Hills, Calif., operates in 31 countries.

Alwaleed is bidding through Kingdom Hotels International, and Gates will purchase his stake through Cascade Investment LLC.

AREA NEW HOME DEMAND STILL STRONG

LONGVIEW (Longview News-Journal) – Although the number of new home permits issued dropped toward the end of the year, the city issued permits for 249 homes in 2006, up about 7 percent from the same time the year before.

In 2005, the city issued 232 new home permits, reaching construction levels not seen in more than 20 years.

Statewide, new home construction permits dropped about 2 percent between 2005 and 2006, according to the Real Estate Center at Texas A&M University. However, Research Economist Dr. Jim Gaines said that is down 2 percent from a peak year and not a cause for alarm. Nationally, new home starts were down 13 percent, which is a significant number, he said.

PYRAMID BUILDING PALMS

LONGVIEW (Longview News-Journal) – Pyramid Homes plans to build a more than 300-home subdivision at the city's eastern limits. 

The Palms will be developed on 170 acres on the north side of US 80 just west of Delia Drive. The first phase will include 70 homes. The front portion of the property will be saved for commercial use, said Anwar Khalifa, president of the Tyler-based firm.

Homes will range from 1,800 to 2,500 square feet, with prices ranging from the $170s to the $220s.

PGA DEVELOPER BUYS STAKE

HOUSTON (usaarealco.com) – USAA Real Estate Company closed on the sale of a 70 percent interest in seven business-class hotels totaling 2,449 rooms to The Ecclestone companies.

The companies are owned by E. Llwyd Ecclestone, who developed the famed PGA National Resort & Spa in Palm Beach Gardens, Fla., home of the PGA of America.

Included in the portfolio are a full-service Doubletree hotel and the Post Oak Hilton in Houston.

USAA was represented by Florida-based The Plasencia Group. SunAmerica Life Insurance and its affiliates provided financing. San Antonio–based USAA will continue to provide asset management for the hotels.

TEN FOR DELOITTE

HOUSTON (globest.com) – Deloitte & Touche USA LLP will consolidate their operations into 300,000 square feet of Class-A space in the Heritage Plaza.

The 12-year, ten-floor, contiguous space lease begins in late 2008. With this lease, Heritage Plaza is at 85 percent occupancy. Both parties represented themselves.

Atlanta-based Goddard Investment Group purchased the 1980s-built, 1.15 million-square-foot tower at 1111 Bagby St. for $114 million in 2005 and renovated all common areas.

GULF COAST COMMERCIAL PLANS SHOPPING CENTER

PEARLAND (Houston Chronicle) – Gulf Coast Commercial has purchased about 41 acres at the northwest corner of Texas 288 and Shadow Creek Parkway from Strouhal Tire. The developer plans to build a shopping center on the land.

F. Carrington Weems and Stuart L. Phelps Jr. represented Strouhal in the sale.

PROGNOSIS GOOD FOR MEDICAL RESEARCH FACILITY

HOUSTON (Houston Chronicle) – Construction has begun on the Methodist Hospital Research Institute, a 420,000-square-foot advanced medical research facility in the Texas Medical Center.

The five-floor building, which will have laboratory space, imaging equipment and operating rooms for research, is being built next to the Methodist Hospital on Bertner Avenue.

Methodist's board approved $100 million in early 2004 to create an endowment to launch the institute. Later that year, the board committed an additional $30 million to fund a neurological institute as part of the research center.

The facility should be completed in 2009.

SHOPPING SUNFIELD

BUDA (Austin Business Journal) – Provident Realty Advisors Inc. of Dallas closed on about 65 acres recently at the corner of I-35 and FM 2001 in northern Hays County.

Provident now owns 70 acres on which it will build The Shops at Sunfield, a 500,000-square-foot retail center.

The center will be adjacent to Sunfield community's proposed 7,200 homes, currently under development by the Steve Bartlett Co. and Institutional Housing Partners. Cabela's and Wal-Mart, each about 200,000 square feet, are directly across I-35 from the proposed development.

The Weitzman Group is marketing several pad sites in the development. Construction is slated to begin in 2008.

EAST TEXAS THE NEW FLORIDA?

ATHENS (Associated Press) – As part of a program approved by the state legislature last year, Athens, Lufkin and Nacogdoches County have been declared the state’s first Texas Certified Retirement Communities, a designation intended to help areas that are short on economic growth market themselves to retirees.

The program — the brainchild of an East Texas lawmaker — is similar to other states' efforts to lure retirees and their disposable income. A nearly identical program that was launched in Mississippi in 1994 stamped 21 cities as amenable to retirees, and Mississippi state officials say the state has since attracted more than 5,500 new retiree households.

Mark Fagan, a sociology professor with Jacksonville State University, says rural areas seeking economic growth are better off luring retirees and tourists than new plants. The median income in Nacogdoches County is almost $40,000, about $10,000 below the state average. East Texas officials say a retired couple packs an economic clout equal to 3.7 factory jobs.

CANYON VIEW

AUSTIN (Austin Business Journal) – Madison Partners is planning The View, a new 69-unit condo project, at 3600 S. Lamar.

The four-story project on the edge of the Barton Creek canyon lands will have one- and two-bedroom units ranging from 760 to 2,280 square feet and priced from $260,000 to $850,000. The project developers will seek LEED certification.

Avenue One will market the property. The Austin-based developers will break ground in July, with occupancy projected for late 2008.

MOCKINGBIRD SINGS PROFIT

SAN ANTONIO (San Antonio Business Journal) – Brass Real Estate Funds has sold Mockingbird Plaza to Next Block-San Antonio I LP.

Mockingbird Plaza is a seven-building complex at 5360-5430 Fredericksburg Rd. in the South Texas Medical Center. It is more than 85 percent occupied.

Locally based Brass Funds, under an entity called Brass Mockingbird Income Fund LP, purchased the complex in late 2004 and invested almost $2.7 million for upgrades. Locally based Magi Real Estate Services managed and leased the property.

According to Rick Rodriguez, president of both Brass Funds and Magi, Brass' return from this sale exceeded 43 percent.

WEATHERFORD PLAZA SOLD

HOUSTON (globest.com) – Moody National Cos. has purchased the Weatherford Plaza at 15710 JFK Blvd. from KBS Realty Advisors of Newport Beach, Calif.

Moody National will manage the more than 216,000-square-foot, Class-A, stabilized office building, which is 90 percent leased.

Cushman & Wakefield of Texas Inc. represented KBS Realty Advisors while Moody National represented itself.

VINEYARD EXPANSION PLANNED

GRAPEVINE (globest.com) – Henry S. Miller Cos. is planning a slight expansion for the more than 121,000-square-foot Vineyard Marketplace, which the company recently purchased from Dallas-based Clearview Investments LLC.

The Class-A shopping center, which spans 12.5 acres at 5325 William D. Tate Ave., is 90 percent leased. The buyer is considering adding 7,500 to 8,000 square feet to a currently vacant spot. The expansion would create a 10,000-square-foot opening at the Texas 121 and Glade Road junction.

Henry S. Miller Commercial will handle leasing and management.

ASHLEY HOUSE SOLD

KATY (globest.com) – MBS Cos. of Louisiana has purchased the 276-unit Ashley House Apartments from locally based Judwin Properties Inc.

The 94 percent leased Ashley House at 3903 S. Mason Rd. sold at a 6 percent cap rate, according to Apartment Realty Advisors, which brokered the transaction.

A part of the master-planned Cinco Ranch community, Ashley House is a mix of efficiencies and one-, two- and three-bedroom units ranging from 528 to 1,321 square feet. Monthly rent ranges from $685 to $1,435.

@ THE CENTER

To subscribe or unsubscribe to RECON or to view back issues go to the Real Estate Center's website.

To send news items for consideration, e-mail Bryan Pope.

The Real Estate Center is part of the Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

RECON February 9, 2007

RECON

Real Estate Center Online News

February 9, 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.

BOON OVER PARMER

AUSTIN (globest.com) – DivcoWest Real Estate Investment & Asset Management has purchased the almost 257,000-square-foot Parmer Business Park from San Francisco–based Rreef for $49 million.

The 28-acre park in the 5300 block of Riata Park Court was developed in 2000–2001. It is 100 percent leased to Sun Microsystems Inc. until 2010.

CB Richard Ellis brokered the transaction for Rreef.

CENTEX COMMUNITY COMING

AUSTIN (Austin Business Journal) – Centex Homes' Central Texas division will develop a mixed-use community on 750 recently acquired acres on the north side of SH 45 near the intersection of West Parmer Lane.

Pearson Place will include 1,400 homes on 450 acres, with the remaining land earmarked for civic uses, retail and office space. The project’s residential portion is expected to cost nearly $275 million.

TBG Partners, the land-planning firm behind Teravista and Goodnight Ranch projects, is working with Centex on the development.

IMPLODING INTEL

AUSTIN (Austin Business Journal) – A block of downtown Austin will be demolished Feb. 25 at the Intel site on Fifth and San Antonio streets, according to a statement from U.S. General Services Administration (GSA) regional administrator Scott Armey.

The GSA is imploding the famed Intel shell building to clear the way for the new $65 million, 211,690-square-foot federal courthouse. GSA purchased the property four years ago for the new courthouse, which has been on the drawing board for more than 10 years.

In October, GSA awarded Austin-based White Construction Co. the contract for the new courthouse. Austin architects Page Southerland Page, along with Atlanta-based firm Mack Scogin Merrill Elam Architects, have been designing the modern courthouse. The $1.3 million demolition project for the Intel shell began late last fall.

TNRG'S ROYAL ACQUISITION

HOUSTON (CB Richard Ellis) – TNRG Acquisitions has purchased Royal Window Coverings’ 440,000-square-foot facility at 7611 Railhead Lane.

TNRG plans to subdivide the facility, which is on 56 acres, and remarket it to the northwest Houston industrial base.

CB Richard Ellis’ Houston and Toronto offices represented the seller, and Steve Adkisson represented TNRG.

UNO, DOS Y CINCO

KATY (globest.com, Houston Business Journal) – With the first phase of the $60 million LaCenterra at Cinco Ranch nearly wrapped, Vista Equities Group and its partner, Denver-based Amstar Group, will soon begin work on an $80 million second phase. Groundbreaking for phase two is slated for May, and construction will be completed in fall 2008.

Phase two will include 160,000 square feet of retail and 230 residential units. Phase one, which is set to open next month, has 170,000 square feet of retail and 90,000 square feet of office space. Work on the 34-acre, 700,000-square-foot development at 23501 Cinco Ranch Blvd. began in January 2006.

Hermes Architects Inc. is the architect of record, and Alabama-based Hoar Construction is the general contractor. Locally based Page Realty Partners Ltd. is handling leasing for the retail space, while CB Richard Ellis is overseeing office leasing.

CONCORDIA CAMPUS MOVING

AUSTIN (Austin American-Statesman) – Concordia University will build its new campus on 389 acres in Northwest Travis County.

Concordia, a private Lutheran university, will be moving from its 23-acre site at I-35 and 32nd Street, to 8311 RM 620 North in the summer of 2008, said David Kluth, vice president for university services.

The 30-year master plan will organize the campus into three districts, centering each district around a plaza and connecting each with a pedestrian path. Athletic fields will be across the main road.

The first phase of construction, estimated to cost about $100 million, is scheduled to be completed by summer 2008, with classes to start that fall.

Barnes Gromatzky Kosarek Architects is architect of record. The university is expected to finalize the land purchase next month.

MARKETPLACE'S NEW OWNERS

SAN ANTONIO (San Antonio Express-News) – Bandera Road Marketplace has been purchased by Denver-based Dividend Capital Total Realty Trust.

Principal Life Insurance Co. sold the 17-year-old, 160,223-square-foot shopping center at Loop 410 and Bandera Road for $30 million.

Cencor Realty Services will manage the 97 percent leased center, which is anchored by an H.E.B. grocery store. Other tenants include Office Depot and Old Navy.

HICKORY DICKORY SHOP

DENTON (globest.com) – Regency Centers Corp. of Florida will break ground in April on Hickory Creek Plaza, an almost 110,000-square-foot shopping center.

Hickory Creek, which is being built on more than 20 acres at FM 2181 and Hickory Creek, will include almost 28,000 square feet of retail space and be anchored by a more than 81,000-square-foot Kroger Marketplace. The food chain’s first large-format store in North Texas, Kroger Marketplace will offer a mix of standard grocery fare and high-end home furnishings and general merchandise.

If the project stays on track, Hickory Creek Plaza will be completed at the end of this year or the beginning of 2008.

O'Brien & Associates Inc. designed Hickory Creek Plaza, and Linda Tycher & Associates Inc. is the landscape architect. Both companies are based in Dallas.

SOLD ON SANTA FE

SAN ANTONIO (globest.com) – Santa Fe Place apartment complex has been sold by locally-based Chivas West Apartments LLC for just under the $5.9 million listed price, or about $18,000 per door.

The sale of the 1970s complex at a 10 percent cap rate required the assumption of a $4.86 million conduit loan serviced by Cleveland-based Keybank Real Estate Capital.

The 327-unit, 11-building complex is on almost seven acres at 4210 Fredericksburg Rd. Nearby is the Texas Medical Center and USAA campus. It has efficiencies and one- and two-bedroom units ranging from 350 to 1,025 square feet. Monthly rents range from $349 to $650.

Hendricks & Partners' San Antonio office represented the seller. Mohammed Ashif, a private broker, represented the buyer, a Southern California investment group that plans to renovate the 91 percent–leased complex.

GDA BUYS SHAFER PLAZA

FRISCO (globest.com) – GDA Real Estate Services LLC has purchased the almost 181,000-square-foot Shafer Plaza from Dallas-based Shafer Property Co. for $42 million.

The four-year-old retail property on 22 acres at 2943 Preston Rd. is a gateway location for the 1.2 million-square-foot Stonebriar Centere.

GDA's sister company, ACF Property Management, took over the 98 percent-leased property after the closing.

Colliers International Inc. of Dallas represented Shafer, while Marcus & Millichap Real Estate Investment Brokerage Co., also of Dallas, represented GDA.

EIGHTH MONTH DOWN

NORTH TEXAS (Star-Telegram) – Home sales are down for the eighth month in a row, compared with the same month last year, according to figures released by the North Texas Real Estate Information System (NTREIS).

There were 4,859 homes sold in NTREIS' 29-county area, which stretches from north of Waco to the Red River, down 4 percent from January 2006. Homes are sitting an average of 81 days on the market, 4 percent longer than they were at the same time last year.

The median home price in North Texas was down 1 percent from the prior year to $139,950. Overall, the drivers that stoke home sales, such as job growth and consumer confidence, are still strong in North Texas.

BATTLE OF THE BUYOUT

CHICAGO (Bloomberg.com, Austin Business Journal) – Equity Office Properties Trust approved a $39 billion buyout bid from private equity firm The Blackstone Group LP, putting an end to a weeks-long bidding war over the nation's largest office building owner.

Rival bidder Vornado Realty Trust helped clear the way for Blackstone’s buyout when it terminated its offer for Chicago-based Equity.

The sale, expected to close today, is believed to be the biggest real estate transaction in history. Blackstone's $55.50-a-share offer is 14 percent higher than its original bid of $48.50 before the bidding battle began in January.

Nationwide, Equity owns more than 580 buildings representing 105 million square feet.

In Austin, the company is the largest office landlord with a local portfolio of 3.4 million square feet.

Blackstone is likely to divest portions of the Equity portfolio soon as part of a strategy it has used in previous real estate transactions.

FIDELITY FINE WITH WESTLAKE

WESTLAKE (Star-Telegram) – Fidelity Investments confirms it will invest more than $200 million to double the size of its Westlake campus by 600,000 square feet and add 1,535 jobs at the six-year old facility.

Gov. Rick Perry announced that the company, one of the world's largest financial-services providers, will receive an $8.5 million grant from the Texas Enterprise Fund. That grant would be one of the 10 largest made by the fund, an economic-development incentive program that, as of Dec. 31, had allocated nearly $324 million to more than 30 employers. (To read about Westlake's tax incentives, see Jan. 30 RECON)

"The good thing is that these jobs pay $55,000 to $60,000 a year. So we have an opportunity to bring in some really good-paying jobs," said G.K. Maenius, Tarrant County administrator.

Westlake is one of nine regional operations Fidelity has in North America. The company said it is prepared to begin hiring immediately in several of its Westlake business divisions.

CLASS-A WOODWAY SOLD

HOUSTON (globest.com) – Cornerstone Real Estate Advisers LLC has sold the 595-unit Woodway Square Apartments to a Scandinavian pension fund.

Built in 1992 on 20 acres at 1200 Winrock Blvd., Woodway Square has a mix of one- and two-bedroom units, ranging from 736 to 1,612 square feet. Monthly rents range from $923 to $1,949.

Chicago-based Cornerstone owned the Class-A complex for ten years. The company paid $5,000 per unit to upgrade 70 units with new flooring, cabinets, fixtures and appliances. The upgrades resulted in monthly rent increases of $100 to $150 for tenants in the renovated units. The complex is 95 percent leased.

CB Richard Ellis in Houston brokered the sale. Lincoln Property Co. will continue as the property manager.

SENIORS FACILITY SOLD

FREDERICKSBURG (dagicomm.com) – Live Oak Inn, a 90-bed seniors housing facility, has been sold to a Texas-based private investor.

Built in the early 1960s at 615 W. Live Oak, the property was recently updated. The buyer will add Medicare beds and open a wing that has been closed for years.

Sperry Van Ness' Fort Worth office represented the seller, a San Antonio–based private investor, as well as the buyer.

@ THE CENTER

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