JLL Capital Markets arranged financing for Hanover Autry Park and Hanover Parkview, two luxury multi-housing properties in Houston.

JLL represented the borrowers, Hanover Company and Lionstone Investments, to arrange the five-year, fixed-rate loans from accounts managed by KKR for both respective properties to refinance their existing construction loans that JLL sourced in December 2019.

Hanover Autry Park and Hanover Parkview are part of the transformative 14-acre master planned development located off Allen Parkway on the doorstep of River Oaks.  These complexes, both completed in 2022, offer an array of community amenities, including resort-style pools, outdoor grilling areas, social lounges with entertaining kitchens, state-of-the-art fitness centers, and rooftop lounges with indoor/outdoor bars offering picturesque views of downtown Houston.

Hanover Autry Park, located at 811 Buffalo Park Dr., is a 23-story high-rise with 324 units and nearly 23,000 square feet of ground floor retail. The residential portion is currently 92% occupied.

Hanover Parkview, located at 3737 Cogdell St., is a 421-unit midrise apartment building, with 24,000 square feet of ground floor retail. The residential portion is currently 95% occupied.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Directors Cortney Cole and Colby Mueck, Senior Director Laura Brown and Analysts Davis Burnett and Scot Sarlin.

JLL Capital Markets closed the sale of Atrium Crest, a six-story, 107,529-square-foot office building in Clear Lake, Texas.

JLL represented the seller, Fullerton Properties, and procured the buyer, who was represented by Patrick Hill of Colliers.

Atrium Crest is located at 18333 Egret Bay Blvd. in Clear Lake, a community in southeast Houston that is home to NASA’s Johnson Space Center, driving both aerospace employment and tourism. In addition to NASA, southeast Houston has a diverse economic base comprising companies in medical, technology, logistics, tourism and the booming petrochemical industry. The 4.23-acre site is convenient to Interstate 45, providing access north to Houston and south to Galveston Island. Additionally, the Port of Houston is just a short drive from the property, which is the busiest container port on the Gulf Coast.

Renovated in 2004, Atrium Crest has a flexible layout that can accommodate a wide variety of users and space requirements. The property is currently 79% leased to a variety of tenants.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Director Marty Hogan.

The office market has long been a struggling commercial sector. But one bright spot had been lab space: Investors and tenants alike craved life sciences and lab space. Now even this slice of the office sector is struggling.

CommercialEdge, in its September office report, said that investor appetite for lab space has crated after this sector’s peak following the pandemic.

In 2022, the country saw $6.2 billion in life science sales across 62 properties. These sales came with an average price of $890 a square foot. Those are strong numbers.

But in 2023? Sales volume in the life sciences sector fell to $1.8 billion over just 20 transactions. Properties traded at a lower $631 per square foot, too. And so far in 2024, CommercialEdge has logged just three sales of life science properties in the country.

The news isn’t all bad, though. CommercialEdge says that some of this lessened demand is a result of a building boom in the life sciences sector. Since the start of 2020, 33.5 million square feet of lab space has been delivered across the country, and an additional 26.4 million square feet are currently under construction.

CommercialEdge researchers predict that once the excess space in this sector is filled, investors and tenants will again flock to life sciences and lab space. As CommercialEdge says, most life science work remains immune to remote and hybrid work. The company predicts, too, that venture capital dollars should flow again to the life sciences space as interest rates fall.

Because of these factors, CommercialEdge says, life science should remain one of the top-performing office subsectors over the long run.

“Oversupply isn’t a unique problem within the office sector, but there is currently too much space in life sciences due to recent deliveries,” said Peter Kolacyznski, director of CommercialEdge, in a statement.

“Unlike traditional office space, the long-term fundamentals for life sciences remain solid,” Kolaczysnki said.”Still, it will take longer than originally anticipated for the space to be absorbed, as these projects are delivering into markets with more availabilities.”

Overall, the national office vacancy rate stood at 19.4% in August, according to CommercialEdge. That is up 200 basis points on a year-over-year basis. Vacancy rates have risen in almost every market during this time, CommercialEdge said.

A total of 22,823 square feet of recent leasing activity has been arranged at Centre II, a three-story, 54,696-square-foot office building just south of downtown Austin, Texas.

The five deals include a combination of new leases and renewals that were signed over the past six months.

Casey Ford with CBRE in Austin represented the landlord, SRC, in all lease negotiations.

Located in Austin’s Southwest submarket at 3101 Bee Cave Rd., Centre II was acquired by SRC in 2022. The property features ample parking, newly renovated common areas, easy access to major thoroughfares and local restaurants, and beautiful views of downtown Austin.

The property has attracted tenants from various industries, including facilities services, recruitment, financial advisories and legal. The largest lease recently signed was a renewal from Abaco Systems, a computer hardware manufacturer headquartered in Huntsville, Alabama. The company occupies 11,049 sq. ft. at Centre II.

 JLL Capital Markets announced today it secured the refinancing for Denton Distribution Center, a recently delivered, Class A industrial park in Denton, Texas – one of Dallas-Fort Worth’s fastest-growing industrial submarkets.

JLL represented Billingsley Company to secure the fixed-rate loan, which was used to refinance the construction debt.

Denton Distribution Center features two cross-dock industrial assets that are 451,384 square feet and 448,386 square feet, respectively. The property is currently fully leased to a total of five tenants – all on long-term leases. Additionally, the park features top-of-the-line functionality with 32-foot clear heights and flexibility to attract multiple different user types with suite sizes ranging from 60,000 square feet to more than 250,000 square feet.

Its strategic location on Highway 380, just west of Interstate-35, provides unrivaled accessibility to the Dallas-Fort Worth metroplex, leveraging southbound I-35 W (Fort Worth) and I-35 E (Dallas) for seamless connectivity. Furthermore, going northbound on I-35 provides direct access to multiple major population centers including Oklahoma City, Kansas City and Minneapolis. Setting itself apart from neighboring regions, the location also provides low mill rates and affordable workforce housing, making it attractive to operate businesses in the area.

The development and leasing of Denton Distribution Center was led by George Billingsley of Billingsley Company.

The JLL Debt Advisory team was led by Dallas Office Co-Head and Senior Managing Director Campbell Roche, Director Kristi Leonard and Analysts Jordan Buck and Aaron Craig.

Hopewell Development, in collaboration with MBK Industrial Properties, celebrated the groundbreaking of Lakeside Business Center, a new industrial development in the Flower Mound, Texas, area.

Scheduled for completion in the summer of 2025, this project will introduce two Class-A distribution warehouses totaling 123,910 square feet to the submarket. 

These new buildings will be available for sale and lease through Lee & Associates.

The development is located on the southeast corner of the prominent intersection of Lakeside Parkway and Gerault Road. Hopewell Development acquired the land for this project in January 2024 through an off-market deal sourced by Alex Wilson.