Rosewood Property Company and equity partner Barings have broken ground on The Gilman, a Class-A multifamily community in the Las Colinas neighborhood of Irving, Texas.

Set on 6.86 acres in the heart of Las Colinas off Highway 114, The Gilman will feature 370 apartment homes with a modern, transitional architectural design with sweeping views of The Nelson Golf & Sports Club. Residences offered will be a mix of studios, one bedroom, two bedrooms and three bedrooms. Apartment homes will range from 615 square feet studios to 1,460 square feet in the three-bedroom apartments. The multifamily community is expected to be completed by early 2027.

The Gilman will feature top-of-market amenities for the residents such as: a clubroom, formal living rooms, co-working offices, a TrackMan golf simulator, a top-level sky lounge overlooking the golf course, three outdoor courtyards, a resort pool, dog park and dog spa and an expansive two-story fitness center.

The Gilman is part of an 18-acre master-planned development by Rosewood, which includes townhomes being built by David Weekley and boutique office spaces by Savannah Developers. The site holds historical significance as the location of Las Colinas’ first office building and is being reimagined as a vibrant, mixed-use community.

It’s a big jump: The number of apartments set to be converted from office spaces has soared from 23,100 in 2022 to a record-setting 70,700 in 2025, according to the latest research from RentCafe.

RentCafe in its Feb. 10 Market Insights report said that office conversions now make up nearly 42% of the nearly 169,000 apartments planned from future adaptive reuse projects.

This is good news for the office sector. It’s no secret that older, outdated office spaces are struggling to attract tenants. By removing these buildings and converting them to offices, owners can gain some relief from high vacancy rates.

Conversions can also help with the shortage of apartment units that many cities across the country face.

The problem? Not many office properties are good candidates for conversions to multifamily. Conversions are expensive, and many office buildings don’t come with floor plates that lend themselves to conversion. Others are in locations that don’t make sense for multifamily.

Still, RentCafe reported that office-to-apartment conversions are increasing in popularity, with 2025 set to reach a record-breaking milestone of almost 71,000 multifamily units in the pipeline.

While office properties make up the greatest share of future conversions, other property types are slated for conversion to new uses, too.

RentCafe reported that hotel properties make up 22% of future planned conversions, while factories make up 11% and warehouses 6%.

The number of upcoming office-to-apartment conversions totaled just 23,100 units in 2022 before doubling to 45,200 in 2023. This growth continued in 2024 when the pipeline of future office-to-apartment conversions reached 55,300, RentCafe said.

New York leads the country with an office-to-apartment pipeline of 8,310. In the Midwest, Chicago leads the way with a pipeline of 3,606 apartments set to be converted from offices. And in Texas, Dallas leads the way with 2,725 office-to-apartment conversions in the pipeline.

Minneapolis has a pipeline of 1,873 planned apartments, while Cincinnati’s stands at 1,753 and Kansas City, Missouri’s, at 1,676. In Cleveland, the pipeline is at 1,619, while it stands at 1,294 in Omaha.

JLL Capital Markets completed the sale of Yellow Door Storage – Northgate, a 520-unit self-storage facility in the Greater Dallas Fort Worth-area community of Denton, Texas.

JLL marketed the property on behalf of the seller, NorthBridge Realty Holdings, and procured the buyer, Extra Space.

Completed in 2022, Yellow Door Storage – Northgate is a Class A facility featuring ground floor climate-controlled units, drive-up units, 24-hour video surveillance and an on-site office. The 65,600-square-foot property is currently 55.8% occupied.

Yellow Door Storage – Northgate is located at 3020 E Sherman Dr. in the rapidly growing community of Denton. The population within a one-mile radius of the facility has grown over 7.5% in the last two years and is projected to continue its upward trend, providing long-term stable demand for self-storage space. Denton is also home to the University of North Texas and Texas Woman’s University, which are additional demand drivers for the asset.

The JLL Capital Markets team representing the seller was led by Managing Directors Steve Mellon and Brian Somoza and Directors Adam Roossien and Matthew Wheeler.

Searching for positive news in the commercial real estate industry? Take a look at investor demand for multi-tenant commercial properties.

Northmarq reported that investors sunk $53.9 billion in multi-tenant commercial properties during the fourth quarter of last year. That’s an increase of 36.8% from the third quarter and meant that in all of 2024 multi-tenant properties saw $166.9 billion worth of sales.

That final year-end tally beat 2023’s by 2.9%.

Of course, not all commercial sectors attracted as much attention from investors. Northmarq reported that the industrial sector accounted for $22.8 billion of investment sales in the fourth quarter, representing a quarterly jump of 31%.

In what many might consider a surprise, office transactions increased by more than 60% in the fourth quarter of last year when compared to the third, reaching $19 billion. That number is lower than what the office sector had seen during its strongest quarters, but it is the strongest performance for this struggling sector since the third quarter of 2022.

The retail sector saw $12 billion in investment sales volume in the fourth quarter. That quarter was its strongest performance in more than a year, according to Northmarq.

Northmarq reported that cap rates for multi-tenant investments rose modestly at the end of 2024, increasing by four basis points to an average of 7.05%. This, though, marks the highest average cap rate in more than a decade.

Private investors were active in 2024, with Northmarq reporting that they accounted for 55% of the buyer pool for multi-tenant commercial properties last year. Private investors were particularly busy in the retail sector, accounting for 63% of the assets traded in this sector.

Institutional buyers accounted for 22% of the overall investment sales market, focusing mostly on industrial multi-tenant properties. REITs, which favored office and retail properties, accounted for 11% of multi-tenant investment sales in 2024.

Buoyed by this good news, Northmarq predicted an even stronger 2025 for the multi-tenant market. Northmarq says that investors in this space should continue to favor industrial and e-commerce-related assets.

Dallas-based Younger Partners Investments sold three restaurant land parcels at the Midlothian Towne Crossing shopping center in Midlothian, Texas, in the Dallas-Fort Worth market.

YPI acquired the 99%-leased retail center in December 2023.

The parcels sold include Chili’s Bar & Grill at 2250 FM 663, McDonald’s at Hwy 287 and FM 664, and Chick-fil-A at 2010 FM 663. CBRE’s Jared Aubrey and Michael Austry represented YPI in the sale to undisclosed buyers.  The sale prices were not disclosed.

Midlothian Towne Crossing features 147,161 square feet of retail space on 34 acres at the southeast corner of the FM 633 and Highway 287 intersection in Midlothian, about 25 miles south of Dallas.

Built in 2019, Chili’s is located on a 1.69-acre pad site and has a 10-year lease. The restaurant features a dedicated curbside pick-up, ample parking and excellent ingress and egress along FM 663. The site pad that McDonald’s occupies also has a long-term lease. Built in 2022 on 1.07 acres, the corporate location includes a double drive-thru, abundant parking and excellent ingress/egress. Chick-fil-A was built in 2018 on a 1.73-acre pad site with a 20-year lease.  The quick-service restaurant has two drive-thru lanes with indoor seating and ample parking. Chick-fil-A is the third largest fast-food restaurant chain in the U.S.

The Class-A power center, anchored by Kroger, is comprised of several national brand tenants including Ross, Burkes Outlet, Petco, Ulta Beauty and Famous Footwear serving as junior anchors. Additionally, there is a complementary 65,656 SF of shop space offering a mix of retail, service and restaurant tenants.

“Midlothian Towne Crossing is anchored by the 13^th most visited Kroger in Texas, which shows the viability of the power center and these pad sites,” said Aubrey, senior vice president with CBRE’s Private Capital Investment group.

Midlothian Towne Crossing is surrounded by 9,938 planned or under-construction single-family homes and 513 planned or under-construction multifamily units within a five-mile radius of the property, according to Esri 2022.

JLL Capital Markets announced today that it has arranged the sale of Retreat at Mesa Hills, a 752-unit multi-housing community in El Paso, Texas.

JLL worked on behalf of the seller, JRK Property Holdings.

Retreat at Mesa Hills, located at 945 South Mesa Hills Dr., offers a prime location just off the I-10 in the sought-after Upper West Side of El Paso. Situated on an expansive site, the property provides convenient access to abundant retail and employment centers, including the Shoppes at Solana, Sunland Plaza, the University of Texas at El Paso, The Hospitals of Providence and the El Paso CBD.

El Paso, Texas is a diverse and growing city with a population of over 690,000 as of 2023, making it the 6th largest metropolitan area in Texas and the 23rd largest city in the U.S. The area boasts strong economic drivers, including the University of Texas at El Paso, Fort Bliss Army Base and robust international trade activity. Known for its strategic location on the U.S.-Mexico border, El Paso is a major hub for foreign trade, processing over $122 billion in annual trade volume and more than 30 million border crossings.

Retreat at Mesa Hills, completed in multiple phases since 1995, is a well-maintained Class-A asset featuring 752 units in a low-density, aesthetically pleasing two-story design. The community offers a mix of one-, two- and three-bedroom units ranging from 538 to 2,127 square feet. Residents enjoy resort-style amenities including three swimming pools with a relaxing tanning deck and private cabanas, a well-equipped fitness center, two illuminated tennis courts, two sand volleyball courts, a Starbucks WiFi café, a lavish clubroom, a game room and a state-of-the-art media theater, contributing to its strong occupancy.

JLL Capital Market’s Investment and Sales Advisory team representing the seller was led by Managing Director Steven Hahn Jr., Senior Director Art Barnes, Senior Managing Director Roberto Casas and Vice President William Jennings.