Middle Market Digest: This Week in the South and Mountain Regions

The US economy has continued to thrive throughout the second quarter, a theme that will continue to play heavily during mid-term elections, according to Transwestern’s latest edition of the BRIEFING. “Thanks to a boost from year-end tax reform, we’ve witnessed stable, controlled growth throughout the first half of 2018,” said Tom McNearney, Transwestern chief investment officer. “With unemployment at an 18-year low and wages rising, we expect to see a slight rise in GDP later this year.”

This rosy picture, however, is tainted by signs of political volatility, most notably an Italian political crisis that sparked a global equity selloff and raised concerns over the future of the European Union. Also, potential retaliation to US tariffs on steel and aluminum from other nations may dampen trade relations. “All eyes are on the global stage, because actions can quickly change the course the US economy is enjoying,” McNearney says.—Lisa Brown

BY THE NUMBERS                                                                                                              

HOUSTON—Houston has experienced the most significant quoted rent growth of the top 10 national metros during the last dozen years, rising 43.4% to $27.73 per square feet, up from $19.34 per square foot in 2006, according to NAI Partners’ recently released market insight report on rent growth in the top 10 US metros. However, despite this increase, the Houston area is still a great value compared to the other similar-sized major US business markets. In New York City, average office rents are more than double of those in the Houston area.

NEWS AND NOTABLES

AUSTIN, TX—Accruent has acquired EMS Software. This is Accruent’s eighth company acquisition in the last 24 months. The move brings the workplace and campus management platform into Accruent’s expanding portfolio.

DENVER—JCR Capital announced the hire of Bryan Antman as managing director. Antman will co-manage JCR Capital’s fund investment team and focus on sourcing, underwriting and closing opportunistic investments.

FORT WORTH—Trademark Property Company has hired Clay Walton as vice president of leasing, Rob Buie as senior portfolio manager and Gary Carlton as corporate portfolio controller. Cornell Holmes has been promoted to vice president of asset management.

HOUSTON—Tim Gregory has joined JLL as senior vice president. He will focus on medical office building and ambulatory surgery center leasing. Gregory joins Chris Wadley, who JLL hired in March as the firm’s first Houston healthcare and life sciences practice lead.

HOUSTON—JLL has expanded its office agency leasing team with the addition of commercial real estate veteran Scott Fikes as senior vice president.

DEAL TRACKER

AUSTIN, TX—Arbor Town Square, a 33,086-square foot retail property located in the arboretum area adjacent to Costco, has sold. James H. Bell, first vice president investments in Marcus & Millichap’s Houston office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.

AUSTIN, TX—Senior Resource Group, an innovator in the retirement industry with senior living communities across the United States, has expanded its operations into Texas for its 33rd community; Maravilla at The Domain.

ARLINGTON, TX—Brownstone Village, a 9,827-square-foot retail property has sold. Philip Levy, senior managing director investments in Marcus & Millichap’s Dallas office and Chris Gainey represented the seller, an out-of-state owner.

CARROLLTON, TX—Transpere LLC leased 23,131 square feet at 1213 Trend Dr. Josh Barnes, Andrew Gilbert and Ben Wallace of Holt Lunsford Commercial represented the landlord, Stonelake Capital Partners. Jo Thompson of LaTerra Commercial LLC represented the tenant.

CARROLLTON, TX—Nationwide Auto Services Inc. leased 13,863 square feet at 1215 Trend Dr. Josh Barnes, Andrew Gilbert and Ben Wallace of Holt Lunsford Commercial represented the landlord, Stonelake Capital Partners. Rich Young Jr. of Rich Young Company represented the tenant.

DALLAS—Fleuron Enterprises renewed its 60,300-square-foot lease at 4030 La Reunion. John Gorman of Holt Lunsford Commercial represented the landlord, AEW Capital Management. Brant Landry of Landry Commercial represented the tenant.

DALLAS—Sky Chefs renewed its 23,120-square-foot lease at 601-611 Mockingbird Lane. Canon Shoults of Holt Lunsford Commercial represented the landlord, Crow Holdings.

DALLAS—M.A.N. Sports, LLC leased 20,551 square feet at 12150 Shiloh Rd. Josh Barnes and Ben Wallace of Holt Lunsford Commercial represented the landlord, Frontier Equity. Stephen Cooper with NAI Robert Lynn represented the tenant.

DALLAS—BZO Custom Wheels LLC sold its 157,909-square-foot building at 3061 W. Saner Ave. to an undisclosed buyer. Chris Volke with Texas Overland Company LLC represented the seller, BZO Custom Wheels, LLC. Ryan Boozer with Stream Realty Partners represented the buyer.

DENVER—ARA, A Newmark Company, announces the $12 million sale of Jux (short for juxtaposition), a 30-unit multifamily asset in the heart of the Capitol Hill neighborhood. The record-setting price-per-unit of $400,000 is the highest ever paid for a boutique apartment building in central Denver. Director Robert Bratley and associate director Marcus Griffin represented Endurance Real Estate Partners, a Denver-based real estate investment and development company, in the sale to an undisclosed New York-based real estate investment group.

DENVER—Holliday Fenoglio Fowler LP announces financing totaling $172.845 million for five apartment communities comprising 1,534 units in the Denver and Houston metropolitan areas. The HFF team worked on behalf of the borrower, Advenir Inc., to secure the seven-year, fixed-rate loans in five separate transactions through Freddie Mac’s CME program.

FLOWER MOUND, TX—Investment Property Exchange Services Inc. purchased a 10,000-square foot retail building and a 53,000-square-foot pad site at 500 Flower Mound Rd. for an undisclosed amount. Transwestern principal Lester Day represented the seller, Conyad LP, in the transaction.

FORT COLLINS, CO—SunTrust Banks Inc. announced that Evan Hom, managing director in SunTrust CRE’s New York office, originated a $5 million 10-year term loan with five years interest-only, followed by a 30-year amortization schedule with Fannie Mae for the acquisition of College 830.

FORT WORTH—PPH Fort Worth I LLC has sold 919-923 Alston Ave., a 3,867-square-foot office building, to 919 Alston LLC for an undisclosed price. Transwestern principal Kirk Kelly negotiated the sale on behalf of the seller.

FORT WORTH—Zephyr Rail sold 9.78 acres of land at 850 Railhead to 850 Railhead LLC for an undisclosed price. Transwestern principals Jeff Givens and Todd Hawpe represented the buyer in the transaction. George Curry of JLL represented the seller.

FORT WORTH—WAFFL and Friends Ventures LLC has signed a new lease for 17,760 square feet of industrial space at 4711 Vermont Ave. Transwestern principal Todd Hawpe represented the tenant in the transaction. Nathan and Gary Vassuer of Vassuer Commercial Real Estate represented the landlord, Hudgins Companies.

FORT WORTH—Bronson Chiropractic Clinic extended its lease for 2,730 square feet of office space at 5521 Bellaire Dr. South. Transwestern principal Kirk Kelly represented the landlord in the transaction.

HOUSTON—NAI Partners recently arranged the sale of 5800 North Course Dr., a 78,450-square-foot office building in Houston’s Westchase submarket. Jon Silberman, managing partner of NAI Partners, represented seller Smiley Properties in the sale of 5800 North Course Dr.

RICHARDSON, TX—Long Range Systems leased 16,093 square feet at 1155 East Kas Dr. Josh Barnes and Ben Wallace of Holt Lunsford Commercial represented the landlord, Adler Realty Services.

SAGINAW, TX—RSG Products Inc. has signed a new lease for 24,540 square feet of industrial space at Saginaw DC Industrial Park, 440 West Ln. Transwestern principals Jeff Givens and Todd Hawpe represented the tenant in the transaction.

SAN ANTONIO—Holliday Fenoglio Fowler LP announces $31 million in financing for two San Antonio apartment communities totaling 636 units–Brynwood Apartments and Sereno Park Apartments. The HFF team worked on behalf of a joint venture between Western Wealth Capital and an MDC Realty Advisors USA Inc.-managed fund to secure two separate five-year floating-rate loans through a national bank.

SUGARLAND, TX—Transwestern has completed 26,259 square feet of new office leases at One Sugar Creek, a 193,998-square-foot class-A office building at 1 Sugar Creek Center Blvd. Transwestern senior managing director Doug Little, senior vice president Louann Pereira and senior associate Matthew Seliger are providing leasing services on behalf of Equus Capital Partners.