Cascade Condominiums Sells Out in Record Time

With Sellout of Cascade Condominiums, Pearlstone Partners Continues Fulfilling the Increasing Demand for Residential Space in Austin’s Urban Core

AUSTIN, Texas—September 23, 2021. Austin-based Pearlstone Partners — a full-service real estate development firm with more than 100 years’ combined experience in the local real estate industry — touted its residential development Cascade Condominiums has completely sold out and shared an update on the project’s construction status. Prospect Real Estate is the exclusive listing agent for Cascade Condominiums located at the intersection of 25th Street and North Lamar Boulevard in historic Old West Austin.

“We began Cascade Condominium pre-sales last November and immediately saw a high level of interest, particularly among young professionals,” said Prospect Real Estate Vice President Denise Bodman. “Our predominant buyer mix also includes professionals who want to live closer to downtown, parents of students attending The University of Texas and investors.”

Bodman said the first Cascade contract was signed November 13, 2020, and the last market-rate unit sold in July 2021. February and April 2021 were the most active sales months, with 18 units sold in each. Ultimately, Prospect sold 103 market-rate Cascade Condominium residences within nine months — a year in advance of the project’s projected completion and all before the construction team had even begun framing. That is a record time frame for sellout of a development for both Pearlstone Partners and Prospect Real Estate.

“Construction of Cascade Condominiums is progressing steadily,” said Pearlstone Partners CEO Robert Lee. “The structural podium deck was completed in July, and the parking garage and first floor foundations have been installed. The construction team just began framing and will be going vertical with construction.”

Although all market-rate condominiums have been contracted, the sales team is still adding interested buyers to a waiting list; in the event a unit is returned to market, it will be offered to those on the waiting list first. The Cascade team is also keeping a waiting list for the project’s 12 affordable housing units, which will be offered for sale in spring 2022. Additionally, two office spaces are part of the Cascade development — a 1,960 square-foot space with four parking spaces, has pre-sold, and a second office space that will be purchased and held by the broker.

Located at 2500 Longview Street, Cascade Condominiums is situated just off the banks of its namesake, Shoal Creek, which was once called “Cascade Creek” by early Austin settlers. Cascade Condominiums Sells Out in Record Time Page 2 of 2 Condominiums encompasses 113 condominium residences and two commercial units. The development offers unobstructed parkland views and downtown skyline views from its rooftop terrace. Besides proximity to downtown and city parks, Cascade residents will enjoy a fitness center, an elaborate courtyard pool with a cascading water feature and clubhouse, a thoughtfully conceived community co-working space, and securely controlled gated parking.

The architectural partner for Cascade Condominiums is Mark Hart Architecture, of Austin. The general contract is Bartlett Cocke.

Due to unprecedented market conditions and the extremely low single-family home inventory, Pearlstone Partners has seen an increasing demand for residential homes in the urban core. Over the past couple of years, Pearlstone has been fulfilling this demand with close-in projects like Cascade Condominiums, Natiivo Austin, HŌM Condominiums, Vesper, Axiom East and Parkside at Mueller.

“We were drawn to the Cascade site by its setting in a historic, cherished part of the city, just at the western edge of downtown, as well as its proximity to major thoroughfares and a host of shopping, dining and entertainment amenities,” said Lee. “We knew these factors would be a big draw for our target market, but we were still stunned by how fast these homes sold out. When you really hit the mark with a project, it’s very gratifying.”

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About Pearlstone Partners

Founded by Robert Lee and Bill Knauss, Pearlstone Partners is a real estate development firm with more than 100 years of combined experience in the Austin real estate market. Pearlstone Partners’ comprehensive approach to identifying land development opportunities has led the company to the forefront of some of Austin’s most successful real estate trends. The firm’s focus on developing innovative solutions to promote long-term growth in local communities has resulted in more than $200 million in locally developed real estate and more than $400 million actively invested in residential, commercial, and mixed-use projects. Recent and upcoming projects include Natiivo Austin, HŌM Condominiums, Axiom East, Cascade Condominiums and Parkside at Mueller. To find out more, visit www.pearlstonepartners.com.

About Prospect Real Estate

Prospect Real Estate is a boutique family-owned and operated residential real estate firm focusing on Austin’s evolving urban core with 40 years of experience in the city’s residential market. Prospect is keenly attuned to local real estate trends and is proud to offer what’s next, now. The firm focuses primarily on providing the best urban living experience with opportunities that are attainable for a broad demographic. Its agents have their fingers on the pulse of Austin, with exclusive access to a new-build inventory that is unavailable anywhere else. For more information, call (512) 640-1881 to schedule an appointment, email info@prospectrealestate.com or visit //www.prospectrealestate.com.

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CBRE National Partners Bbrokers Sale of Industrial Park in North Austin

CBRE National Partners announced the sale of Harris Ridge Business Center (Harris Ridge), a Class A+, industrial park located at 1100 East Howard Lane in Austin. TA Realty purchased the 387,838-sq.ft. five-building asset from HPI Real Estate Services for an undisclosed price.

Randy Baird, Jonathan Bryan, Ryan Thornton and Eliza Bachhuber with CBRE National Partners arranged the transaction on behalf of the seller.

Centrally located in the fast-growing North Austin submarket, Harris Ridge consists of five industrial buildings that were constructed starting in 2008 with the final building delivering in 2021. The Portfolio is 100% leased to 11 tenants with an average suite size of 32,392 sq. ft. Harris Ridge is 1.5 miles from I-35 and is close to local demand drivers, including The Domain, a high-end, mixed-use retail, office and residential community.

“Austin has consistently been one of the fastest-growing cities in the country and there’s a tremendous demand from investors for industrial space in the region,” said Mr. Bryan, Executive Vice President with CBRE. “There was significant interest in Harris Ridge because of its location, Austin’s market fundamentals and the incredible rent growth projections in Austin, enabling ownership to grow NOI in the coming years.”

According to CBRE’s 2021 Americas Investor Intentions Survey, Austin is the No. 1 most preferred market in the Americas for commercial real estate investors. Investors in the survey demonstrated strong interest in Sun Belt markets, particularly those with favorable job and population growth prospects.

Developer Breaks Ground on Houston Area’s Largest Spec Industrial Building

TGS Cedar Port Partners, LP (TGS) today announced that it has broken ground on a 1.2 million-square-foot cross-dock warehouse. The spec building will be delivered to the Houston market 2nd quarter 2022. Currently, the building pad and first slab pour is complete. TGS has kept 100% equity in the project and partnered with Bank of Texas on construction loan financing.

Located at 6363 FM 1405, the distribution building will feature highly desirable amenities such as 40-foot clear height, 8” minimum slab, ring road around the entire building and truck court, LED warehouse lighting, ESFR sprinkler system, oversized truck courts, and ample parking for cars and trailer storage. The office space will be built to suit the tenant’s needs, but a 5,000 SF open layout spec office space will allow the tenant to quickly move into the space. Additional land has the ability to be fully fenced and utilized as an area for additional trailer parking, car parking and outside storage. The 1.2M SF building has the ability to accommodate over 1,000 trailer parking spaces and 1,500 car parking spaces.

The building is located in the booming, multi-modal TGS Cedar Port Industrial Park, ideally located for warehousing, distribution, and fulfillment operations. The building’s location on FM 1405 allows prime access to State Highway 99 (Grand Parkway), Interstate 10, State Highways 225 and 146, and the Port of Houston’s Bayport and Barbours Cut container terminals. Industry leaders such as Wal-Mart, Floor & Décor, IKEA, Home Depot, Niagara Bottling, Webstaurant, Ravago and Vinmar all have major distribution and fulfillment centers in TGS Cedar Port Industrial Park, taking advantage of the location and access to abundant, cost-effective labor.

Powers Brown Architecture is the architect on the project and E.E. Reed Construction L.P. is the general contractor. John Simons, Gray Gilbert, Chris Haro with NAI Partners are the leasing agents for the project.

TGS Cedar Port Industrial Park creates a unique logistics opportunity for users to operate in a prime Port location within one of the prominent industrial parks in America, particularly valuable at a time when suitable land positions in desirable areas have continued to become increasingly scarce. With the newly constructed segment of the Grand Parkway, park customers will be able to easily travel to and from the Port of Houston container terminals with no stoplights. Business Facilities 2021 Rankings Report recently ranked TGS Cedar Port #2, Industrial Park, in the U.S. as the largest U.S. Industrial Park with the best infrastructure.

TGS Cedar Port Industrial Park, located in West Chambers County near Houston, Texas, is the largest master-planned, rail-and-barge-served industrial park in the U.S. Situated across the Houston Ship Channel from Bayport and Barbours Cut Container Terminals, Cedar Port spans approximately 15,000 acres of land with over 10,000 total acres available for sale, lease, design-build, and build-to-suit developments. Sites are delivered “turn-key”—fully entitled with utilities, drainage, and detention. The Park is both barge-served and is dual-served by the Union Pacific and the BNSF railroads. Cedar Port can accommodate developments from 5 acres to more than 1,500 acres and currently has over 18 million square feet of industrial and manufacturing warehouses that are either existing or under construction.

Steptoe & Johnson PLLC Commit to 14,000-Square-Foot Lease in Dallas’s Ross Tower

Savills arranged a multiyear lease transaction on behalf of client Steptoe & Johnson PLLC. The law firm will occupy approximately 14,000 square feet on the 32nd floor of Ross Tower, located at 500 North Akard Street in downtown Dallas.

Steptoe & Johnson is currently in a strategic expansion mode, and the award-winning law firm is growing many existing offices and boosting its presence nationally including throughout North Texas. Steptoe & Johnson is a longtime client of Savills Managing Director Corporate Lesa Nickelson French and Managing Director Ric Kanatzar, who represented the law firm in its search.

“Steptoe & Johnson is quickly expanding, and for its first Dallas office, it sought a centrally located building that offered the flexibility for future growth,” said Nickelson French. “Ross Tower was selected as it provides the firm opportunities to create an effective office environment and modern workplace, cultivate the firm’s culture, and safely meet and interact with clients, all within the heart of downtown Dallas.”

Ross Tower is a 45-story, Class A office tower ideally situated in the Dallas Art District. The tower recently completed a multimillion-dollar renovation of its lower concourse, including upgrading its two-story lobby, tenant lounge, and conferencing center. The building is near numerous restaurants, high-end hotels, and prominent recreational and cultural attractions such as Uptown and Klyde Warren Park.

Gensler will oversee the office’s design, and the location is slated to open in the first quarter of 2022. Ross Tower was represented by Hunter Lee, Ben Cuzen, and Luke Aviles of HPI Real Estate.

“We are pleased to welcome Steptoe & Johnson to the building and look forward to being a part of its continued growth in Dallas,” said Aviles. “The walkability and extensive amenity base of Ross Tower will serve as an ideal location for the firm.”

Steptoe & Johnson PLLC is a law firm nationally recognized for its strengths in energy law with more than a century of know-how in the areas of business, labor and employment, and litigation. Steptoe & Johnson has over 370 lawyers and other professionals practicing in 18 offices in Colorado, Kentucky, Ohio, Pennsylvania, Texas, and West Virginia.

S2 Capital Acquires 1,235-Unit Portfolio from JLB Partners in Dallas

S2 Capital completed the purchase of four contiguous class-A multifamily properties from JLB Partners in Dallas this week. The acquisition, totaling a combined 1,235 units, is part of the company’s larger plan of acquiring high-end multifamily assets throughout DFW and the surrounding MSAs.

NorthMarq’s Dallas investment sales team of Taylor Snoddy, managing director, James Roberts, senior vice president and Phillip Wiegand, senior vice president brokered the sale.

“JLB built a great community, and we jumped at the opportunity to own these assets,” said Scott Everett, Founder and CEO of S2 Capital. “We are very excited to partner with Pennybacker Capital in such a great location for our 28th deal together, and are big believers in Dallas long term.”

Pennybacker Capital is a long-term equity partner with S2.

“These trophy assets have an irreplaceable location within Dallas,” Roberts said. “The seller did a great job in developing a truly unique 1,235-unit community. This was a good fit for the buyer as they continue to add more class-A assets to their extensive portfolio.”

The portfolio is comprised of:

· The Ash at the Branch: The 402-unit multifamily property is located at 4646 Amesbury Drive in Dallas, Texas. It was constructed in 2017.

· Cedar at the Branch: The 321-unit multifamily property is located at 4606 Amesbury Drive in Dallas, Texas. It was constructed in 2020.

· Live Oaks at the Branch: The 196-unit multifamily property is located at 4670 Amesbury Drive in Dallas, Texas. It was constructed in 2014.

· Teak at the Branch: The 316-unit multifamily property is located at 4601 Amesbury Drive in Dallas, Texas. It was constructed in 2015.

This portfolio is well-positioned in one of the most exciting areas that Dallas has to offer. It is located next to some of the best restaurants and most desirable neighborhoods in Dallas, including to Highland Park, Greenville, Knox Henderson, and Uptown. Residents will also have direct access to a 30+ mile trail system and the Dallas CBD is less than a 15-minute drive away.

These beautiful class A apartments also offer high-end interior finishes including with granite and quartz countertops, hardwood floors, stainless steel energy-efficient appliances, and custom cabinetry with glass front displays.

The transaction marks nearly $2 billion in closings between NorthMarq and S2 Capital, including the sale of six properties totaling more than 2,000 units in the Dallas and Fort Worth MSA’s. This market, according the NorthMarq’s Q2 DFW Multifamily Market Report, continues to lead the country in multifamily transaction activity. Strengthening property fundamentals supported a 30 percent spike in sales velocity during the second quarter, with transactions occurring throughout nearly every submarket. This trend is expected to continue, with investor appetites for area multifamily assets forecasted to remain elevated, supporting further sales velocity. NorthMarq’s Dallas Debt/Equity team of Jeffrey Erxleben, executive vice president/executive managing director, Lauren Bresky, senior vice president, and Loren Hiekenfeld, vice president, arranged acquisition financing for the properties through its relationship with a debt fund. The transaction was structured with a three-year, interest-only term. “NorthMarq explored multiple options including debt funds and bridge-to-SASB,” Erxleben said. ‘Ultimately the borrower elected to go with a debt fund we sourced, as they offered the best combination of proceeds and rate among the debt funds.”