Middle Market Digest: Mid-Week in the South and Mountain Regions

BY THE NUMBERS

AUSTIN, TX—Limited availability continues to constrict market activity as Austin's class-A occupancy nears 98%. Class-A occupancy only registered down slightly during the final 90 days of 2017. Retailers aren't just on the search for prime class-A space; overall occupancy is also high at 96.3%—the highest measured in Texas, according to CBRE. Net absorption continued to fall off peak levels registered in 2015, while new construction captured a large portion of demand—more than 150,000 square feet of the 247,000 square feet absorbed. Large blocks were occupied this quarter by fitness tenants, including Crunch Fitness and Orangetheory Fitness in addition to inline stores. CBRE econometric advisors forecasts Austin retail sales volumes to reach $29.7 billion in 2018, a 6% increase from 2017. Similar sales growth is projected to continue during the next five years at an annual rate of 5.6%, higher than the US average.

NEWS AND NOTABLES

BROOMFIELD, CO— Savills Studley has represented Liqid in the company's relocation from Lafayette, CO to 329 Interlocken Pkwy. In February 2018, the company will start phased occupancy into 20,846 square feet of the new space.

DALLAS—AECOM added three architects and designers in Texas to expand its rapidly growing Buildings + Places (B+P) practice within the company's design and consulting services group: Juan Carlos Arias, senior project architectural designer; Jorge Martinez, senior architect; and, Lorena Toffer, senior architectural project manager.

DEAL TRACKER

AUSTIN, TX—JLL's Capital Markets experts announced the sale of The Park at Monterey Oaks, a garden-style multifamily community on behalf of the seller, Barings Real Estate Advisers acting on behalf of an institutional investor. Northland Investment Corporation purchased the 430-unit 37-acre property. Managing directors Jeff Price and Scott LaMontagne led the JLL team on the transaction.

AUSTIN, TX—CBRE announced that Netgate, the open-source secure networking company, signed a 15,331-square-foot lease at NorthTech Business Center 9 (4616 West Howard Lane). Nate Stricklen of CBRE's Austin office represented Netgate in the site search and lease negotiations. The firm anticipates moving from 7212 McNeil Dr. in the first quarter of 2018.

HOUSTON—Chase Cribbs and Clint Hankla of Lee & Associates–Houston represented WS Wholesale Cabinets & Floors LLC in a 18,841-square-foot industrial lease at 6442 and 6446 Long Point Rd.

HOUSTON—Lee & Associates–Houston represented Griffin Partners in a 1,314-square-foot office lease extension at 2001 Kirby with Goldking Energy Corp. Chris Lewis and Jill Nesloney represented the landlord.

HOUSTON—Lee & Associates–Houston represented Griffin Partners in a 4,062-square-foot office lease at 520 Post Oak Blvd. Chris Lewis and Jill Nesloney of Lee & Associates–Houston represented the landlord, and Lesa Nickelson French of JLL represented the tenant, Ortec International USA.

HOUSTON—Lee & Associates–Houston represented Unlimited Investors LLC in a 13,725-square-foot industrial sale at 12206 FM 529. Reed Vestal and Taylor Schmidt of Lee & Associates–Houston represented the seller, and Joaquin Izquierdo with Walzel Properties LLC represented the buyer, Tranz Werk LLC.

HOUSTON—Lee & Associates–Houston represented Griffin Partners in an 823-square-foot industrial lease at 2001 Kirby Rd. Jill Nesloney and Chris Lewis of Lee & Associates–Houston represented the landlord, as well as the tenant, L3 Mineral Management.

KILLEEN, TX—The Woodmont Company has completed four leases totaling 105,851 square feet at Wendland Plaza, a 205,224-square-foot shopping center located at 901 S. Fort Hood St. These four leases bring the center to 85% occupied with one junior anchor opportunity remaining within the project. Conn's Home Plus will open a 45,000-square-foot store in 2018. Altitude Trampoline Park will open a 44,580-square-foot store in 2018. Dollar Tree will open a 10,500-square-foot store in 2018. Lumber Liquidator's will open a 5,771-square-foot store in 2018. Grant Gary and Dan Rebensdorf of the Woodmont Company represented the landlord, Killeen ATM LLC.

SPRING, TX—HFF announces the sale and acquisition financing for Stoneleigh on Spring Cypress, a 216-unit, garden-style apartment community in the northwest Houston suburbs. The HFF team marketed the property on behalf of the seller, Seneca Investments. Hayden Properties purchased the offering free and clear of existing debt. Additionally, the HFF debt placement team worked exclusively on behalf of the new owner to secure a fixed-rate acquisition loan through Freddie Mac's CME program. The securitized loan will be serviced by HFF, a Freddie Mac multifamily approved seller/servicer for conventional loans. Stoneleigh on Spring Cypress is located at 7215 Spring Cypress Rd.

TOMBALL, TX—Lee & Associates–Houston represented MAO Properties LLC in a 6,000-square-foot industrial lease at 22806 Commercial Ln. Clint Hankla of Lee & Associates–Houston represented the landlord.

TOMBALL, TX—Lee & Associates–Houston represented MAO Properties LLC in a 5,000-square-foot industrial lease at 22702 Commercial Ln. Clint Hankla of Lee & Associates–Houston represented the landlord, and Amanda Wisner with The Commercial Professionals LLC represented the tenant, Techsico LLC.

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NOT FOR REPRINT

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.