Southern Realty Trust Inc. committed $15 million to a $45 million senior bridge loan originated by TCG Real Estate for the refinancing of a seven-story Class-A retail property in the Galleria sector of Houston.

An affiliate lender on the TCG Real Estate platform committed the remaining $30 million. The project is a joint venture between John M. Scott III, an experienced leader and industry veteran in hospitality and leisure real estate, and WoodHouse, a luxury hospitality developer founded by Brady Wood.

Located at the intersection of two of Houston’s most desirable areas, Galleria and River Oaks, the Project is 100% fully-leased to an impressive mix of complementary, high-end lifestyle establishments: Park House Houston – a private social club offering extensive cultural programming, dining, socializing and working spaces; Ciel Restaurant – an upscale restaurant and lounge serving Japanese-French cuisine with live music and entertainment; and Fountain Life Longevity Center – a leading-edge healthcare facility co-founded by Tony Robbins that provides advanced AI diagnostics, regenerative medicine and restorative therapeutics

Chicago became the top city for apartment conversion projects in 2024, according to the latest research from RentCafe.

In an October Market Insights report, RentCafe said that the number of adaptive reuse projects — converting outdated commercial space, often office properties, into new uses — soared across the United States in 2024.

According to RentCafe, these adaptive reuse projects resulted in a record-setting 25,000 new apartment units last year. And Chicago overtook Manhattan to become the top city for commercial real estate conversion activity.

The number of apartments delivered from adaptive reuse projects in the United States last year was 50% higher than the units delivered the year before and double the number in 2022, RentCafe said.

RentCafe said, too, that a record-breaking 181,000 apartments are now being converted in adaptive reuse projects, with most of these units the result of office space conversions. That figure represents a jump of 19% from last year.

According to RentCafe, about 78,500 multifamily units are now being developed from makeovers of former offices, while an additional 35,800 new apartment units are coming from the redevelopment of former hotels.

While plenty of former office properties are being converted to apartment buildings, it’s actually outdated hotels that are seeing the most conversions to multifamily use. RentCafe said that of the 24,700 apartments completed through adaptive reuse projects in 2024, more than 9,100 came from repurposed hotels. That is an all-time high and is an increase of 46% from 2023.

Revamped office buildings added nearly 5,900 new apartment units across the country in 2024. This means that one in four new converted apartment units last year used to be an office.

Chicago ranked as the city with the most new apartment units from conversions last year, with 880 such units. Denver, Philadelphia, Dallas and Manhattan rounded out the top five.

Minneapolis ranked sixth with 574 new apartments resulting from conversions last year, while Detroit took the 10th space with 518 new units.

Marcus & Millichap closed the sale of Abrams Forest Shopping Center, a 24-unit retail strip in Dallas, Texas. 

Philip Levy, investment specialist in Marcus & Millichap’s Dallas office, had the exclusive listing to market the property on behalf of the seller and procured the buyer, both local Dallas-Fort Worth developers. 

Abrams Forest Shopping Center, built in 1971, comprises two adjacent multi-tenant buildings totaling 69,820 square feet, along with a separately parceled 13,013-square-foot, single-tenant building ground leased to CVS. The 7.77-acre property is shadow-anchored by a Walmart Supercenter that sees over 2.3 million annual visits. The center is 61 percent occupied with all tenants on triple-net leases and includes a mix of national and local retailers including Dollar Tree, AutoZone and T-Mobile. 

 JLL’s Capital Markets Group arranged a $1.2 billion refinancing package for NorthPark Center, a Class A++ super-regional shopping center in Dallas, Texas.

JLL represented the borrower, NorthPark Management Company, owned and controlled by the Nasher/Haemisegger family, in securing a $1.2 billion loan led by Wells Fargo, with Morgan Stanley and Goldman Sachs. The new financing will retire the existing mortgage, with all excess proceeds used to redeem the equity interests in the property and return full ownership back to the family.

Celebrating its 60th anniversary this year, NorthPark Center was originally developed in 1965 and has undergone continuous improvements and expansion. The 1.9 million-square-foot shopping, dining and cultural destination features more than 190 tenants, 75 of which are market exclusives. Major anchors include Neiman Marcus, Nordstrom, Macy’s, Dillard’s, Eataly and a 15-screen AMC theater. The center boasts an exceptional 98.6% occupancy rate and is recognized as one of the top five shopping destinations in the United States.

NorthPark Center is strategically located at the intersection of Northwest Hwy and US-75 in Dallas, providing exceptional accessibility and visibility, drawing visitors from throughout both the Dallas-Fort Worth metroplex and internationally. The center benefits from its proximity to affluent neighborhoods including Highland Park, University Park and Preston Hollow, as well as major employment in the Dallas market.

NorthPark’s collection of internationally acclaimed 20th and 21st century art turns shopping and dining into a world-class cultural experience. Comprised of over 50 works from the Nancy A. Nasher and David J. Haemisegger Collection and many works on loan from the Nasher Sculpture Center, as well as other museums and institutions. NorthPark’s rotating collection makes museum-quality art accessible to all. The shopping center’s public art program also presents exhibitions throughout the year from partnering artists, museums, universities, galleries and institutions.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Managing Director Timothy Joyce, Executive Managing Director Trey Morsbach and Director Matt Maksymec.

Adolfson & Peterson Construction (AP), a national, family-owned construction management and contracting company, started construction on phase two of Pacific Elm Properties’ multifamily adaptive reuse project at the iconic 50-story Santander Tower in Downtown Dallas. Located at 1601 Elm St., Santander Tower is in the heart of the Dallas Central Business District.

Phase two of Peridot Residences will add five floors and 105 one- and two-bedroom residences within this integrated mixed-use development. Upon completion, residents will experience the Peridot lifestyle of redefined urban living and working.

AP completed phase one of the project in October 2024, converting a total of 14 floors into 291 apartment units and amenity spaces. Pacific Elm, in collaboration with Mintwood Real Estate, redeveloped Peridot Residences from former office space into luxury multifamily housing.

Resident amenities include a swimming pool, dog park, fitness center, pickleball court and Pilates studio. The building also contains meeting rooms and lounges for community gatherings and events.

Pacific Elm, in collaboration with Mintwood Real Estate, WDG Architecture and Swoon the Studio among other consultants, has successfully created a true vertical mixed-use development with on-site dining options, a boutique hotel and luxury residences within one tower.

This project contributes to the current adaptive reuse trend across the country. Former non-residential buildings were converted into apartments at a rapid pace, with more than 12,700 units created, up 17.6% from 2022, according to rentcafe.com. According to the National Apartment Association, 55,000 adaptive reuse projects were noted, with the top cities being Dallas, Washington, D.C. and New York, among others, at the end of 2024.

Partners Real Estate arranged the sale of a 10,623-square-foot ambulatory surgery center at 2813 Smith Ranch Road in Houston, Texas.

Ryan McCullough, Partner and medical investment sales specialist, represented the seller in the transaction. The property is a fully equipped, turn-key ambulatory surgery center, strategically located to serve the growing healthcare needs of the Houston market.