RW’s TX CRE Brief: 09/03/21
Did you know?
The 2021 Population of Texas is near 30 million which is 50% greater than just 20 years ago!
This week’s newsletter includes:
1) Deals, announcements, and news
2) Other items of interest
3) Economic data
4) Books, courses, podcasts
1) DEALS / ANNOUNCEMENTS / NEWS
Austin
Austin Business Journal is reporting that Samsung is meeting with the Taylor City Council and Williamson County Commissioners Court on Sept 8th. Taylor has moved past other locations in the competition to house the South Korean company’s proposed $17-billion facility and its 1,800 proposed jobs.
Indianapolis based developer, Milhaus, received unanimous approval from the Round Rock city council to rezone land near Dell Diamond and the Kalahari resort reports the Austin Business Journal. The proposed “Kenney Forth North Planned Unit Development” will include multi-family, retail, maker space and park space. This follows the company’s entrance into the Texas market with its recent Dallas multi-family project.
More from the Journal, and more out of state entrants to the Texas economy, Ryan Companies has named Tishman Speyer to develop 331 West. The 58-story mixed use tower will include ground-floor retail, 140k sf office space and 370 residential units. Capital Metro has announced that an underground subway stop is planned for the area which could include a possible entrance from 331 West. NewsTalk Texas has information on the project as well.
NewsTalk Texas reports that Juliet 5 LLC has purchased a 32-acre mixed-use development site in Dripping Springs. Retail, commercial and multifamily are to be included.
California Based Archway Equities and CAF Capital Partners acquired The Morgan, a 504-unit apartment community located near The Domain and Austin’s Tech Ridge. NewsTalk Texas reports that the property was 95% leased at closing.
California-based Apple has purchased Capital Ridge, a seven-story office building at 320 S. Capital of Texas Hwy. Austin Business Journal reports the deal at $140 million, or $647 per square foot.
DFW / Metroplex
REBusiness Online reports that Texas based developer Presidium has completed Presidium Revelstoke, a 408-unit apartment community at 9600 Blue Mound Rd. in Ft. Worth. Project partners included O'Brien Architects, Kimley-Horn, and Provident General Contractors.
REBusiness Online reported on the sale of a 512,269 SF Office Complex in Irving’s Las Colinas District. Newmark negotiated the deal and the buyers are Dominus Commercial Inc. & Convergent Capital Partners. They plan to invest $20 million into capital improvements.
NewsTalk Texas shares that PMB Capital has purchased the 3,800-acre Veale Ranch for a mixed-use master-planned development. Dallas Morning News Reports that the Ft. Worth legacy ranch could possibly accommodate a new community of up to 30,000 residents.
Los Angeles Based TruAmerica Multifamily Adds 500-Units to its Texas Portfolio. GlobeSt.com reports that with the acquisition, TruAmerica has doubled its portfolio in TX since entering the market in late 2020.
Houston
REBusiness Online reports that that Texas Medical Center is set to break ground on phase one of a $1.8 billion life science campus. Once complete, the 37 acre site will encompass almost 6,000,000 square feet of development. It was designed by Boston based Elkus Manfredi Architects.
Newport Beach California’s Buchanan Street Partners recently acquired Westport Business Center, a 176,864-square-foot office/industrial flex business park in Houston. ConnectCRE reports that the 87 percent-leased property is located at 6611-6975 Portwest Dr. inside the I-610 Loop.
Real Estate Industry Newswire shares that Sunrise Capital, Zane Holdings, and Goodegg Investments Acquired Royal Sping, a 351-Unit Apartment Complex in Spring. This is the 23rd asset added to the groups Texas inventory.
San Antonio
REBusiness reports that Kansas-based Cohen-Esrey Apartment Investors has purchased the Preserve at Westover Hills. The 276-unit community was 96% occupied at the time of sale.
Cavender Auto Group is building a 200,000-sf Jaguar and Land Rover dealership along I-10 near Loop 1604. RealTalk Texas reports that the dealership will be 80 percent powered by solar energy.
ConnectCRE is reporting that Vistana, a downtown San Antonio multifamily community, has been rebranded as Inspire Downtown. After its just completed major renovation, the 17-story community populated by 247 apartment homes is positioned to create a lifestyle for residents to connect to the creative pulse of the city.
2) OTHER ITEMS OF INTEREST
Kastle Systems’ Back to Work Barometer shows Austin, Houston and Dallas still leading the way with 48.5%, 48.3% and 46.8% occupancy. All are well above the average of the top-10 metros in the country.
JLL’s research group put out Transform with technology: Workplace of the future. Key considerations shared are: 1) Aligning technology strategy with business & portfolio goals. 2) Identifying meaningful metrics. 3) Partner with experienced technology providers. And, 4) Build trust by communicating your data plan with your people. As far as I’m concerned, #3 is key. If the tech, including data connectivity, doesn’t work, everything else is moot.
3) ECONOMIC DATA
Texas A&M’s Real Estate Research Center’s Aug 27, Texas Weekly Leading Index is pointing to higher future economic activity with moderate growth seen as a result of further re-opening. However, Covid-19 and the Delta variant is bringing more uncertainty to the marketplace.
The Texas Real Estate Research Center’s Mid-Year Texas Apartment & Economic Outlook reports that the apartment market in TX is strong with firm demand and solid price growth. The major turn-around is reflected in pre-pandemic levels of occupancy and rent growth.
Wells Fargo’s Weekly Economic & Financial Commentary for September 3rd reports that the 235K jobs added in August was about half a million jobs short of expectations. For financial markets, this report did not shout "substantial further progress" and was at least in-part to be blamed on supply issues.
The Gross Domestic Product, 2nd Quarter 2021 (2nd Estimate) was released by the Bureau of Economic Analysis on August 26th. It shows Q2 GDP growing at 6.6% which was revised up from 6.5% in its previous estimate.
The BEA also published on August 27 that Personal Income and Outlays, July 2021 showed a slight increase in personal income with increases in government social benefits being one of the drivers. Personal Consumption Expenditures showed a negligible .3 percent increase with food services and accommodations increasing, and decreases seen in motor vehicles and parts, recreational goods and vehicles, as well as clothing and footwear. Both are easily understood from the vantage point of 1) the economy continuing to open up, and 2) chip shortages and other supply chain issues.
JLL research opines on the economy with “Warning: Changes Ahead.” This article is a very good overview of what we’ve gone through and what JLL sees for the future.
AAA reports that as of July 30, the national average for gasoline is at $3.184 with Texas’s average at $2.82 a gallon.
4) BOOKS, COURSES, PODCASTS
Sandler’s “How To Succeed Podcast” this week featured Mike Montague interviewing Alison Escalante, MD on the subject of “Succeeding Under Pressure.” Escalante is a Forbes Contributor on the science of performance.
The Ralph Bivens Project interviewed Lauri Goodman of PDR on the topic of How the Delta Variant Impacts the Office. PDR is a consulting, design and architecture firm with locations in Houston, Austin and Dallas. The firm did extensive work and study on Exxon Mobile’s City Place campus in Houston.
My latest read is actually a re-read of The 4 Disciplines of Execution. This is a wonderful book, especially in today’s world. Seek, Commit, Resist, and Focus!
THANK YOU
I hope you enjoyed this week’s TX-CRE-Brief. If you see something that might be of interest and should be included in a future brief, please send it along via DM on LinkedIn or by e-mail to TX.Sales.Leadership@pm.me.
And please, by all means, support the sources I link to above.
Thanks everyone!