Bellomy & Co. announced the sale of A+ Storage in Mission, Texas. Mission is part of the McAllen-Edinburg-Mission and Reynosa-McAllen metropolitan areas in south Texas. The property consists of 169 units in 24,100 square feet. Bill Bellomy and Michael Johnson of Bellomy & Co. represented the Harlingen, Texas-based seller. They also represented the Lincoln, Nebraska based buyer. Terms of the transaction were not disclosed.
Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Parkwood Terrace, a 144-unit multifamily asset in Round Rock, Texas. Terms of the transaction were not disclosed. “The North Austin area continues to grow rapidly with new developments such as Apple’s $1 billion campus expansion, The District development, Indigo Ridge and the Kalahari Resort and Convention Center,” said Jordan Featherston, IPA senior associate. Featherston, along with IPA executive director Will Balthrope, IPA senior managing director Drew Kile, IPA senior associate Drew Garza and Kent Myers, first vice president investments with Marcus & Millichap in Austin, represented the seller, James Pinheiro. The buyer is Langdon Street Capital. “Five miles from Parkwood Terrace, Mark IV Capital and Gensler are working on a 65-acre office, residential, hospitality and retail project that will be the first of its kind in Round Rock,” said Myers. Built in 2000, the property is 1.1 miles from Interstate 35, which provides access to major employment and retail centers throughout the greater Austin area. Major employers in Round Rock and nearby include Apple Inc., Baylor Scott & White, Dell, Hewlett-Packard and State Farm. The 350-acre Kalahari Resort and Convention Center, which will feature the largest indoor water park in the United States, is scheduled to open this fall less than three miles from Parkwood Terrace. Click to read more at www.rejournals.com.
As Tesla made its first public pitch to bring its Cybertruck factory to Austin, Texas on Tuesday, the company faced concerns from citizens about its treatment of workers, the proposal’s impact on the local housing crisis, the need to give the automaker tax breaks, and most of all, CEO Elon Musk. About 45 residents of Austin and the surrounding area spoke about the factory deal on Tuesday at a virtual public meeting held by the Travis County Commissioners Court, the policy-making and administrative arm of the local government. Many objected to Musk’s behavior during the coronavirus pandemic, including how he reopened Tesla’s California vehicle factory in violation of a local health order, sued the county where the factory is located, and spread misinformation about the virus. Texas is currently experiencing a “massive outbreak” of COVID-19 cases, according to Gov. Greg Abbott. Tesla has spent the last few months soliciting offers for its next US factory from “nearly every state and governor East of the Rocky Mountains,” Rohan Patel, the company’s senior global director of public policy, said at Tuesday’s meeting. But Tesla is now focused on bringing the factory, which is where it will make the Cybertruck and Model Y SUVs bound for the East Coast, to two specific places: either Austin or Tulsa, Oklahoma. Click to read more at www.theverge.com.
Bellomy & Co. announced the sale of Texas Hills Storage in Lago Vista, Texas, 35 miles northwest of downtown Austin. The property consists of 192 climate, non-climate, and parking units in 28,500 square feet. In addition to self-storage rentals, there is also a packaging and shipping operation, retail sales, notary and dry-cleaning businesses on site. Bill Bellomy and Michael Johnson of Bellomy & Co. represented the Lago Vista, Texas-based seller. They also represented the Arlington, Texas-based buyer.
Bellomy & Co. announced the sale of Taylor Hutto Self Storage in Taylor, Texas. Taylor is thirty-three miles northeast of downtown Austin. The property consists of 501 climate, non-climate, covered boat and RV, and retail units in 60,605 square feet. The facility was 86 percent occupied. Bill Bellomy and Michael Johnson of Bellomy & Co. represented the Plainfield, Illinois-based seller. Bellomy & Co. is an Austin- and Houston-based commercial real estate firm with a team exclusively focused on the self-storage industry.
After suffering the greatest performance declines in the history of the U.S. lodging industry during 2020, the nation’s hotels will benefit from what is expected to be a relatively rapid economic turnaround in 2021 and 2022, according to the June 2020 edition of CBRE’s Hotel Horizons forecast report. By year-end 2020, the Austin-area hotel market occupancy level is forecast to decline to 40.4 percent, representing a 44.0 decline from 2019 levels. Average daily room rates (ADR) are estimated to fall to $103.13, which is a 28.4 percent decrease from 2019 levels. Resulting revenue per available room (RevPAR) falls from $103.89 in 2019 to $41.66 in 2020, a 59.9 percent decline. Looking forward, occupancies are expected to increase to the mid-60 percent levels by 2022, but not to the relatively high occupancy level of 72.1 percent experienced in 2019. Average daily rates are projected to have strong annual increases, but not surpassing 2019 levels until 2023. While RevPAR estimates show strong annual increases, RevPAR is not expected to surpass 2019 results until the third quarter of 2023. “Austin is a resilient market with many strong, diverse sources of room-night demand, but like the rest of the world, the lodging sector has been hit hard by the pandemic,” said Jeff Binford, managing director of CBRE Hotels South Central Division. “Once travel and social gathering restrictions can be safely lifted, Austin should see recovery more quickly than many other markets. Our expectation is the first wave of travel will be leisure travelers originating from reasonable driving distances, followed closely by business travelers. Groups, events and conventions may take a little longer before full recovery. Once travelers feel safe, many of the great Austin events will be back on the calendar.” Click here to read more at www.rejournals.com.