Holt Lunsford Commercial Investments with long-time partner Principal Asset Management announces the completion of Gateway Crossing Logistics Park. The 127-acre master-planned business park is located at 1220-1228 Sage Hill Parkway in Forney, Texas.

Featuring the latest in Class-A industrial design, Gateway Crossing consists of three state-of-the-art buildings totaling more than 1.7 million square feet of leasable space. The first (and largest) building makes up 1,024,549 square feet of space while building two totals 473,397 square feet and building three spans 254,940 square feet.

Strategically located east of the Dallas-Fort Worth area along Highway 80 and near I-20, Gateway Crossing is purpose-built to meet the demands of modern logistics and distribution operations. The park features LEED-certified buildings, a private four-lane road with advanced queuing capabilities, isolated employee parking, and 185-foot truck courts with trailer parking. Additional highlights include dedicated guardhouse locations for security and infrastructure tailored for large-scale industrial operations. All three buildings were specifically designed to service heavy power requirements with the ability to provide 12,000 amps for building one.

Holt Lunsford Commercial will oversee leasing efforts for the business park, which offers proximity to retail and dining amenities, making it an ideal location for both employees and businesses. All buildings are equipped with move-in-ready spec suites and dock packages that allow for immediate access and operational use. Additional features include ESFR sprinkler systems, reinforced slabs with full vapor barriers, LED warehouse lighting, premium finishes such as whitebox warehouse walls, and enhanced safety features at all overhead doors.

With unencumbered access via Gateway Boulevard from Highway 80, Gateway Crossing provides seamless connectivity to Dallas-Fort Worth’s expansive transportation network. The park is also situated within a deep labor pool, with more than 1.3 million workers located within a 35-minute commute.

KBS closed the sale of Fountainhead Tower, a 179,932-square-foot Class-A office property in the Northwest submarket of San Antonio, Texas.

Home to a mix of regional and national tenants, the property was sold to a partnership organized and managed by  SynerMark Properties Inc., a full-service real estate investment and services firm based in Austin, Texas.

KBS implemented an extensive multimillion-dollar renovation in 2017. On-site amenities include an exterior courtyard garden with a golf putting green with music and wifi, on site security, digital directories, a deli, high-quality outdoor seating areas with natural landscape, and Texas limestone accents, a new conference center that provides tenants with access to refreshments, flat screen TV for presentations, and option for large conference table or training table configurations. The amenities package also includes bike storage and an on-site bank.

Fountainhead Tower is located approximately 10 miles northwest of downtown and just minutes from the San Antonio International Airport. The building sits on a 5.6-acre parcel beside the I-10 Freeway close to the 410 Loop for easy accessibility. An adjacent five-level, 627-space parking garage accompanies the property.

Todd Mills, executive managing director, and Hunter Mills, director of Cushman & Wakefield represented KBS in the sale transaction.

Attorneys Bruce Fischer, Howard Chu, and Tina Ross, and paralegal, Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County and Texas offices represented KBS as legal counsel in the disposition.

San Antonio, Texas-based Escalera Capital, the newly restructured evolution of MLSA Ventures, is an investment company with a unique, vertically integrated ecosystem from three operating subsidiaries: Presidian Hospitality, Source Strategies and Mulberry Realty Partners.

With the successful raise and ongoing deployment of Fund 1 as a proof of concept and preparations underway for the launch of Fund 2, Escalera Capital is doubling down on its mission to deliver extraordinary outcomes to investors and communities.

“Our transformation into Escalera Capital represents the next chapter of growth,” said Bobby Magee, Managing Partner. “We know this integrated model is not just about efficiency—it’s about creating a seamless pipeline of opportunities that we can scale with each fund.”

Vertically Integrated to Maximize Value Creation

Escalera Capital’s unique structure sets it apart in the private equity landscape. By uniting its operating companies under a shared vision, the firm benefits from synergy across capital formation, acquisition, development and management. The firm’s data-driven approach, coupled with its extensive acquisitions and operational, ensures that each fund builds on the success of the last, creating a cycle of growth that benefits investors, partners, and communities alike. This integrated approach positions Escalera Capital to adapt swiftly to market opportunities.

“The creation of Escalera Capital marks a significant milestone and a natural progression,” said Charles Leddy, Managing Partner. “Bobby and I were originally investment bankers, so we are naturally looking at the real estate industry with innovative investment and execution strategies in mind. With our experienced leadership team, dedicated associates, innovative investment approaches and purpose-driven mindset, the future is bright for Escalera Capital.”

With more than 800 employees and $400 million in assets under management, Escalera Capital’s organizational structure integrates four main subsidiaries:

• Presidian Hospitality is known for its award-winning hotels across Texas and Colorado, as well as its unique hands-on, purpose-driven approach to develop, acquire and operate experiential hotel properties.
• 50 years ago, SourceStrategiesbegan as a small pen-and-paper research provider. Today, it is a digital and dynamic powerhouse in Texas, holding roughly a 50% market share for hotel feasibility studies in the state. Recently, it launched its first digital product, offering valuable real-time data to hospitality industry stakeholders.
• Mulberry Realty Partners is an asset class-agnostic commercial property management company that vertically integrates across industrial, retail, and other asset classes. Through Mulberry Realty Partners, Escalera Capital can maintain operational control, drive efficiencies and enhance value creation across a diverse portfolio of properties.
• Formerly known as Presidian Cares, the Escalera Foundation is a nonprofit organization focused on serving both Escalera Capital associates and the broader San Antonio community through health equity and early adult education. Escalera Foundation is a driving force behind Hope Lodge San Antonio, which will provide housing and resources to cancer patients and their caregiver who come to San Antonio for treatment in the San Antonio Medical Center.

Escalera Capital has more than a 25% internal rate of return on its diverse investment strategies executed over the past several years. Examples of recent and ongoing projects with transformational outcomes include:

• The Assembly Hall at La Villita: sits at the heart of San Antonio’s past, present and future. Designed by the legendary O’Neil Ford, La Villita Assembly Hall is renowned for its architectural ingenuity, featuring an inverted dome roof and “bicycle-wheel” design—Texas’s first of its kind. In mid-2025, Escalera Capital will begin thoughtful renovations on the 44,993-square-foot, bilevel venue to create a new experiential destination on the San Antonio River Walk that will also serve as a welcoming draw into La Villita Historic Village and Hemisfair Civic Park.
• Estancia del Norte at the San Antonio Airport was once a prominent San Antonio hotel, the La Mansion Del Norte, that lost much of its former charm through brand changes and a build-up of deferred maintenance. Estancia del Norte is now

celebrated as one of San Antonio’s top hotels, serving as both a tourist destination and a beloved local event venue in the heart of the airport market.

• The Springs Resort and Spa: is a geological marvel known for its hot springs on the San Juan River in Pagosa Springs, Colorado. The resort is now recognized annually as the top geothermal wellness resort in the United States.

Salt Lick at The Sycamore: the first phase of a 121-acre project at Highway 290 and Luckenbach in the Texas Wine Country will break ground in early 2025. This experiential retail development will establish a new destination in the Texas Hill Country, where visitors experience Texas through great food, beverage, music and authentically Texas retailers.

“We are excited to move into this next horizon of growth as Escalera Capital,” said Leddy. “I am incredibly thankful for the hard work that our team has put in to reach this milestone. I am confident that we have many more impactful projects ahead of us that will benefit our San Antonio and Central Texas communities for generations to come.”

Newcor Commercial Real Estate closed the sale of a 3-acre parcel at 1625 W. Loop South in the Galleria market of Houston.

The property, which was formerly a hotel, was sold by KB Houston Galleria and acquired by KNA Partners.

Bob Banzhaf, founder and chief executive officer of Newcor, represented the seller in this transaction.

The buyer was represented by Meredith Cullen with Newmark and Sam Arnold with Cullen Properties.

A continuation of the data center construction boom? That’s what JLL is predicting for this year.

According to JLL’s 2025 Global Data Center Outlook, data center development is projected to accelerate at an unprecedented rate this year to meet surging demand.

JLL’s report also highlights how AI is driving the need for more powerful and efficient infrastructure, another factor spurring on the accelerated pace of data center development.

The hyperscale and colocation segments alone are expected to see 10 gigawatts (GW) of new data center projects breaking ground worldwide in 2025, with 7 GW of this construction likely reaching completion before the start of next year, JLL reported.

Based on current trends in construction and planned developments, the global data center market is anticipated to grow at a compound annual growth rate of 15% through 2027, with potential to reach 20%.

While this is good news for the commercial real estate industry, this rapid growth poses challenges, including supply-demand imbalances and constraints in electricity infrastructure.

“The pace of AI innovation is not slowing down, and the data center industry must continue to adapt,” said Jonathan Kinsey, JLL EMEA Lead and Global Chair, Data Centre Solutions, in a statement. “AI’s transformative power demands have already reshaped our world, yet its most significant and enduring effect may lie in how we rise to meet the substantial energy demands required to fuel this technological revolution. The results will fundamentally reshape data center design and operation.”

Higher rack density and advanced cooling technology

At the heart of the AI boom lies the rapid evolution of semiconductor technology. Over the past two years, advances in graphics processing units (GPUs) have enabled higher rack densities, now ranging from 40 kilowatts (kW) to 130 kW per rack, according to JLL’s report. Future chips are projected to require up to 250 kW per rack, something that will require advanced cooling solutions.

As GPUs become increasingly energy-intensive, thermal management is another pressing challenge. Liquid cooling is expected to become the standard for new developments, while immersion cooling will likely gain traction as GPUs surpass 150 kW, JLL said.

Despite the focus on AI, traditional workloads like data storage and cloud-based applications will continue to dominate demand through 2030, accounting for more than half of all data center activity, according to JLL’s research.

“While not every data center is or will be a specialized AI facility, all data centers can benefit from more energy-efficient operations and improved technology integration,” said Andrew Green, JLL Regional Data Center Practice Lead, Asia Pacific, in a statement.

Navigating power bottlenecks, exploring alternative energy

The demand for global data center energy could double during the next five years, driven by AI and rising consumption in developing regions, JLL said.

While data centers represent only about 2% of global electricity usage, their clustering in metropolitan areas creates power-transmission bottlenecks. Major markets like Northern Virginia, Tokyo and London are often impacted by delays in building substations and transmission lines, projects that can take four years or more to complete.

Developers are increasingly exploring alternative energy sources, such as natural gas and fuel cells, to mitigate these challenges. Large-scale nuclear power, including small modular reactors (SMRs), are also gaining attention as a scalable, carbon-neutral solution for high-performance computing applications. Although the commercial deployment of SMRs in the U.S. is unlikely before 2030, JLL does predict that these developments will eventually become more common.

“Data center developers evaluate markets based on the availability of power, land, connectivity and tax incentives,” said Andy Cvengros, JLL Co-Lead U.S. Data Center Markets, in a statement. “Transmission constraints are a significant hurdle, but innovation in energy solutions is helping the industry adapt.”

Record financing

In little surprise, investors remain interested in data centers because of the high demand for these centers and the strong returns investors are receiving when sinking their dollars into these properties.

JLL predicts that 2025 will be another record year for data center development financing, with trading volumes also expected to rise moderately.

“Data center activity has exploded in recent years, with demand largely focused on single-tenant ground-up construction,” said Carl Beardsley, U.S. Data Center Leader, JLL Capital Markets, said in a statement. “Significant barriers to entry, including high capital requirements and long development cycles, create opportunities for core investors to recapitalize single-tenant facilities.”

While mergers and acquisitions may slow, joint ventures are expected to increase, particularly in developing markets where local partnerships can navigate regulatory and political landscapes.

March 19, 2024 – CenterSquare Investment Management, in a joint venture with PAGEWOOD has acquired Gateway Industrial Commons, a 621,000 sf Service Industrial Portfolio located in the Northwest Submarket of Houston, TX. Comprised of 46 buildings spanning 9 properties, the Portfolio caters to a diverse array of service-oriented tenants and accommodates users of various sizes, with spaces ranging from 1,000-30,000 sf. Properties within the Portfolio feature 14’-15’ clear heights and an average office buildout of 19%. The Portfolio spans the Southern Brittmoore and Lower 290 corridors of Houston and is easily accessible via several major throughways including I-10, Beltway 8 and Highway 290.

This investment speaks to CenterSquare’s continued confidence in the Service Industrial sector, which remains ripe with potential opportunities for consolidation, optimization and long-term growth. These flexible spaces are tailored to ensure both versatility and accessibility and are equipped to meet the needs of a diverse array of tenants. New Service Industrial inventory remains limited, due to both high barriers to entry and rising construction costs, positioning sector fundamentals to remain favorable for the foreseeable future.

CenterSquare and PAGEWOOD intend to address deferred maintenance and make a range of capital improvements throughout the properties including concrete repairs, metal framing upgrades, new signage, painting building exteriors and executing make-ready tenant improvements. Additional property improvements, such as adding LED lighting and replacing HVAC with ecofriendly coolant, will be completed to ensure the Portfolio’s sustainability. With improved aesthetics and institutional management of operations, the Portfolio will be positioned to significantly increase the in-place rental rates to align with prevailing market rates and drive meaningful growth of net operating income.

“The acquisition of Gateway Industrial Commons reflects our unwavering confidence in the limitless opportunities within the Service Industrial sector,” stated Victoria Madrid, Vice President of Private Real Estate at CenterSquare. “Given the scarcity of new developments and rising costs of construction, this Portfolio is well positioned for success amidst prevailing market conditions. In collaboration with PAGEWOOD, we will enhance both the sustainability and profitability of the Portfolio, driving substantial growth and aligning in-place rental rates to meet market standards.”

“With our success in northwest Houston and the studied data science from our Lighthouse, Gateway Industrial Commons reinforces our commitment to the industrial sector and delivers industrial product at in-demand locations,” said Mat Volz, Managing Principal of PAGEWOOD. “We are excited to partner with CenterSquare on this unique portfolio and are confident it will deliver a dynamic, in-demand industrial product while enhancing the neighborhoods to which they belong.”