Author: Sarah

However You Describe it, There’s No Cooling Down the Texas Land Market

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“White hot.” “Very active.” “Extremely strong.” “Unparalleled.”

Ask Texas land brokers about what the market is like today and you’ll get colorful descriptions that boil down to one thing: competitive conditions even those with decades of experience haven’t witnessed in their career.

“I’ve never seen the market as a whole have this much momentum in synergy and velocity,” says broker Rex Glendenning, Owner of REX Real Estate. “Over the past four decades, certain sectors of the market have been extremely hot, but I’ve never seen all the different sectors of the real estate industry have the type of momentum we have here right now.”

Glendenning, who started REX back in 1987, thinks the post-pandemic development cycle may have pushed markets such as Dallas-Fort Worth and Austin a whole cycle ahead.

“What may have taken six to eight years has happened in two or three years,” he explains. “Families are moving to Texas. New companies and corporations are building their headquarters here.” Click to read more at www.rednews.com.

Houston-area Retail Strip Center Acquisition Financed

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JLL Capital Markets announced today that it has arranged acquisition financing for Harper’s Trace Center, a fully leased, 12,928-square-foot retail strip center in the Houston-area community of Conroe.

JLL worked on behalf of the borrower, Austin-based Door Capital Partners, to place the five-year, fixed-rate non-recourse acquisition loan with Woodforest National Bank.

Completed in 2017, Harper’s Trace Village is triple net leased to a diverse, synergistic mix of tenants, including Subway, SuperCuts, Papa John’s, Greenpath Pharmacy, 242 Animal Hospital and Friendly Dentists, along with a popular wireless provider. An adjacent, non-owned Starbucks and O’Reilly Auto Parts help drive traffic to the property, and a Chick-fil-A will be opening next door.

Harper’s Trace Village is positioned on 1.27 acres at 10161 Highway 242 in Conroe, a northern suburb of the Houston MSA. The property is within a popular retail corridor and surrounded by residential neighborhoods that house nearly 85,000 residents earning an average annual household income of $108,968. Additionally, the property is across the street from a new 102,000-square-foot H-E-B grocery store.

According to JLL Research’s United States Retail Outlook Q1 2022 report, smaller-sized retailers are currently driving demand for neighborhood and strip centers. Vacancy compressed 110 basis points year-over-year ending the first quarter of 2022 to 6.0%. Rents rose 1.4% during the quarter and 4.6% over the previous year.

The JLL Capital Markets Debt and Advisory team representing the borrower was led by Senior Director CW Sheehan, Managing Director Michael Johnson and Analysts Hunt Wood and Matt Ctvrtlik.

Colliers Sells ±22 Acre Development Opportunity in Conroe, Texas

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Houston, June 16, 2022 – Colliers is pleased to announce the sale of ±22 acres located at 10594 League Line Road in Conroe, Texas. The buyer, 10594 League Line Investment LLC, was represented by Tom Dosch, David Marhsall, George Notte and Tim Dosch of Dosch Marshall Real Estate. Michelle Soderberg and Tom Condon, Jr. of Colliers represented the sellers, Mark and Janet Blott, and Henry and Betty Blott, in the transaction.

The ±22 acre development opportunity is adjacent to The Woodlands Hills by Howard Hughes, a new ±2,500 acre master planned community development. The property is situated within the Willis ISD school district with utilities available through City of Conroe. The buyer indicated they acquired the property for investment. https://localusteama.colliers.com

1,500-Acre Riceland Community Coming to Mont Belvieu

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Riceland, a new 1,500-acre master-planned community located in Chambers County just outside of Houston, will break ground this month. Trez Capital provided financing in the amount of $25 million to family-owned developer Michael S. McGrath of McGrath Real Estate Partners, for phase one of this master plan community. The Riceland development plans to deliver 4,500 homes upon completion.

“We’re pleased to provide financing for Riceland, a new master-planned destination that will attract families of all stages of life due to its natural setting, heritage, extensive amenities and its location just outside Houston,” said Trez Capital Vice President John Sullivan. “The fact that Mont Belvieu is only 35 minutes away from Downtown Houston and is along the recently opened Grand Parkway/SH99 eastern sections makes it easily accessible to the northern Houston metro area and a desirable place to live. Houston has grown exponentially the last couple of years. Over the past 12 months, the city has added 118,000 jobs and is one of the strongest markets in the U.S. for new housing and job growth.”

Mont Belvieu is in one of the fastest growing counties in the state. It features small-town living, a family-centric community and the city is surrounded by nature. The city is host to Barbers Hills Independent School District (ISD) which has an A rating from the Texas Education Agency and received a score of eight from GreatSchools. McGrath Real Estate Partners is working closely with the city of Mont Belvieu to ensure that the development complements and enhances the small-town feel that residents already enjoy.

Riceland will feature resort-style pools, a fully stocked 10-acre lake with fish camp, and multiple parks along with 30 miles of hiking and biking trails. Designed as a highly walkable neighborhood, Riceland will integrate seamlessly into the existing Mont Belvieu community. The centerpiece of the community is a town center that will also act as a downtown for Mont Belvieu.

Riceland draws on the history of the land and is built on land grants made in the early 1800s. The land has been lived on by the same family for almost two centuries. The family’s ancestors received two land grants from Mexican President Antonio Lopez de Santa Anna in 1830 when Texas was still a part of Mexico.

Marcus & Millichap Facilitates the Sale of a 13-Acre Parcel of Land in Sherman

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Marcus & Millichap announced the sale of Sherman Heights Land Development, a 13 acre multifamily zoned parcel of land located in Sherman.

David Fersing, Nick Fluellen and Bard Hoover, investment specialists in Marcus & Millichap’s Dallas office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, an out of state developer, was also secured and represented by Mr. Fersing, Mr. Fluellen and Mr. Hoover, will build a 250+ unit Class-A garden apartment community on the site. Sherman Heights Land Development is located at 1400 FM1417 in Sherman.

TruAmerica Multifamily Debuts Build-for-Rent Development Division

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TruAmerica Multifamily has launched a Build-For-Rent development division to build townhome and single-family rental communities in suburban submarkets. Veteran BFR executive Mitch Rotta has joined the firm as senior managing director to lead the new division.

The initial roll-out of TruAmerica’s in-house BFR platform will be in high-growth Southwest, Southeast and Texas suburban markets, which represents about 60% of the firm’s $16.1 billion multifamily portfolio.

“The changing demographics of the U.S., the ongoing affordability-challenges and credit qualification standards of homebuying for Americans has led to a steep decline in home ownership rates, but the desire to live in a home remains high,” said chief executive officer and founder Robert Hart. “BFR is a natural extension of our workforce housing platform because it complements the same demographics that make up our Class-B multifamily strategy. It provides yet another housing option for working-class Americans who can’t afford to own a home or would just prefer to rent.”

Rotta has been involved in the BFR space for the majority of his career, most recently with Tricor Homes, a build-for-rent construction operator and builder. As Director of New Construction and Executive Vice President of Acquisitions, he oversaw the entire lifecycle of the firm’s build-for-rent program from land acquisition through vertical construction.

Previously, Rotta acted as a consultant to a wide variety of BFR investors and operators, assisting them with site planning, design, budgeting, scheduling, equity and debt, and financial modeling.

TruAmerica will focus on communities with townhomes ranging in size from 1,200 to 1,500 square feet and single-family homes between 1,800 to 2,200 square feet with rents affordable to working class American families.

“As we grow our investor fund business, our BFR platform will be yet another avenue for our existing LPs to invest in the TruAmerica brand,” said Noah Hochman, Co-Chief Investment Officer and Head of Capital Markets.