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

Housing is a topic in almost every real estate seminar these days. But, help is on the way. The US will create an additional 1.5 million new households this year, according to a report released today by Marcus & Millichap. Elevated apartment construction during the past several years will be a critical factor in meeting the nation’s housing needs with 335,000 new apartment units slated for delivery this year.—Lisa Brown

BY THE NUMBERS

AUSTIN, TX—The Austin office market vacancy rate stands at 9% nearing the end of the second quarter, with year-to-date net absorption at 332,000 square feet and deliveries at 1.3 million square feet, according to NAI Partners Austin office monthly market snapshot for May 2018.         

SAN ANTONIO, TX—The San Antonio office market vacancy rate rose to 10.1% nearing the end of the second quarter—up 10 basis points from 10% at the end of May, according to NAI Partners San Antonio office monthly market snapshot for May 2018.

NEWS AND NOTABLES

DALLAS—Westmount Realty Capital LLC announces that Steve Wolff has joined the company as senior director–industrial acquisitions. Wolff will play an integral role in growing Westmount’s industrial portfolio by seeking out investment opportunities in Texas and the Southwest.

FORT WORTH—Grant Huff has been promoted to vice president in Transwestern’s Fort Worth office. Huff is active in all types of property transactions in the Fort Worth and Tarrant County markets, including acquisition, sales and tenant representation.

HOUSTON—The Houston District Council of the Urban Land Institute has appointed Abbey Roberson as the incoming Houston District Council Chair effective July 1, 2018. Roberson, who will serve as the first female chair for ULI’s local council, succeeds Bill Odle, principal, TBG Partners, who is completing his two-year term.

HOUSTON—Lisa Feeley has joined Transwestern as vice president, specializing in project and construction management. She joins Transwestern’s national healthcare advisory team, which has grown to become the country’s largest dedicated healthcare team, operating from 19 cities and including more than 130 members. With more than 30 years of experience, Feeley will support tenant improvement projects and business development efforts for healthcare and life sciences projects.

HOUSTON—InterLinc Mortgage Services is adding three new Texas branches in Dallas, Greenville and Laredo. With this latest addition come 23 mortgage professionals who possess decades of industry experience and produce an annual total of $180 million in residential mortgage loans. This addition marks another significant milestone in InterLinc’s progress toward increasing annual production to $3 billion by 2020. Moreover, it will expand the company’s presence in Dallas and places InterLinc on the map in Greenville and Laredo.

OKLAHOMA CITY—InterLinc Mortgage Services welcomes a large group of experienced and well-connected mortgage professionals in its latest move toward strategic growth. Previously known as the “Red Rock Group,” these employees expand InterLinc’s branch operations in Oklahoma, Arkansas and Texas. The largest of the new InterLinc branches are located in Oklahoma City and Tulsa.

SAN ANTONIO, TX—Perch has officially launched its home selling and buying marketplace in the San Antonio market. Perch is a digital platform to make it easier for local homeowners to sell a home without the hassle and uncertainty of a traditional home sale. Perch provides sellers with a market-price offer in 24 hours, with the ability to close at a time of the seller’s choosing–any weekday during a 14- to 60-day period.

DEAL TRACKER

AUSTIN, TX—NAI Partners Austin recently arranged a 6-acre land sale at 8503 Wall St. NAI Partners’ Tim Laine, a broker in the company’s Austin office, and Travis Land of the company’s Houston office, teamed up to represent the seller M & J Damman Properties LP in the transaction.

AUSTIN, TX—Hunt Mortgage Group provided a $12.66 million first mortgage bridge loan to enable the acquisition and renovation of a multifamily property. The property is a 160-unit garden-style multifamily property that was built in 1984.

AUSTIN, TX—A three-property single-tenant portfolio totaling 143,963 rentable square feet and 21.3 acres has sold. Vincent Knipp and Ryan Wolf, senior associate in Marcus & Millichap’s Dallas office, had the exclusive listing to market the portfolio on behalf of the seller, a private developer. The buyer, a private investor, was procured by Bill Rose, senior managing director investments in Marcus & Millichap’s San Diego office.

AURORA, CO—The Confluent Center 70 was sold for $15.725 million to LBA Realty of California. The industrial property was developed by Denver-based Confluent Development. CBRE’s Jeremy Ballenger and Tyler Carner represented Confluent in marketing the building for sale and lease. CBRE’s Kyle McClure also aided in leasing efforts.

DENVER—Transwestern brokered the sale of two multifamily properties totaling 76 units for a combined $9.5 million, a record-setting price in Brighton for vintage assets. Senior vice president Tom Wanberg and vice president John Blackshire represented the seller, Brighton Terrace Apartments LLC, in the transactions. Crestone Apartments and Phoenix Apartments were purchased by 29th Street Management LLC.

DENVER—In a record-setting transaction, Savills Studley structured a sale/leaseback of California Casualty’s Colorado Springs’ facility at 1650 Telstar Dr. The 120,000-square-foot building was purchased for $23.2 million, the highest price per square foot ever achieved for an office building of this type in this submarket. Simultaneously, the insurance provider signed a long-term lease for the building.

HOUSTON—NXT Capital provided a $10 million first mortgage loan to refinance a 133-unit class-A apartment community. The property offers convenient access to the Westchase Business District and The Galleria Shopping Mall. Community amenities include a swimming pool, sundeck and grilling stations, as well as a resident lounge and fitness center.

HOUSTON—Arundo Analytics signed a lease expansion for a total of 8,881 square feet at 1600 Smith St. JLL’s Jessica Ochoa, Bubba Harkins and John Pruitt represented the landlord, Brookfield Property Partners, in the transaction. Bill Boyer of CBRE represented the tenant.

HOUSTON—The Southwest Two Pack, a 412-unit two-property multifamily portfolio, has sold. Jennifer Campbell and Will Balthrope of Marcus & Millichap’s IPA represented the local seller and procured the Florida-based buyer, One Real Estate Investment LLC. The properties are Airport Gardens, a 172-unit asset constructed in 1982, and Airport Landing, a 240-unit community constructed in 1983.

RICHARDSON, TX—KeyBank Real Estate Capital has originated a $21.4 million Fannie Mae, first mortgage loan for Madison at Melrose Apartment Homes. The 200-unit multifamily property was built in 1995 and is comprised of 14, two-story buildings situated on 11.2 acres. Caleb Marten of Key’s Commercial Mortgage Group arranged the fixed-rate financing with a 10-year term, five-year interest-only period and 30-year amortization schedule. The loan will be used to refinance existing debt.

BUILDING BLOCKS

AUSTIN, TX—Sackman Enterprises Inc. and Starryland USA announced the topping out of 70 Rainey, the luxury high-rise condominium project located in the heart of Austin’s Rainey Street Historic District.

COLORADO SPRINGS, CO—Soul Community Planet announced the opening of its first SCP Hotel after a nine-month $6 million renovation. The 98,000 square-foot 176-room property, located at the base of the majestic Pikes Peak, is in its final stages of renovation with a soft opening scheduled for June 27.