Transwestern Real Estate Services’ San Antonio healthcare services team completed the sale of 1763 Medical Way, a single-story medical office building totaling 8,055 square feet in New Braunfels, Texas. Transwestern vice president Licia Shreves and associate James Murry represented the seller, APZ Investments LLC. “The COVID-19 pandemic prompted investment interest in smaller assets from users considering owning their real estate and capitalizing on stabilized properties to provide extra cash flow,” said Shreves. “With interest rates down and pent-up demand for this asset type, owners are motivated to sell while conditions remain favorable.” Located in the rapidly growing city of New Braunfels, the Class B, multi-tenant building was 67 percent leased at the time of sale. Built in 2019, 1763 Medical Way offers superior accessibility that fit the needs for a user purchase. Leben Holdings acquired the property and will move its new private dermatology practice into the remaining space, bringing the building to 100 percent occupancy. “Physicians continue to re-evaluate their office space needs due to COVID-19 and the debt market,” said Murry. “We’ll see more owner-occupier transactions in 2021 as private practices consider the value of owning their real estate and establishing new revenue streams.” The New Braunfels medical office market vacancy rate sits at 34.5 percent, compared to the five-year average of 33.1 percent. Comprised of approximately 480,000 total square feet, the New Braunfels medical office market has seen over 169,000 square feet of new construction projects deliver in the last 27 months, presenting a great opportunity for users to lease quality space.
JLL’s capital markets team has been named to market for sale a 14.7-acre development site in the Pearl/Museum District of San Antonio, Texas. Centrally located one mile from downtown San Antonio, 2.5 miles from Alamo Heights and just a few blocks from the Riverwalk, the site is ideal for a variety of asset classes. The development site is immediately across Broadway to the east of Pearl, an iconic mixed-use development offering upscale residential living, eclectic retailers, popular eateries and office space that is home to Fortune 500 companies and major regional employers. Additionally, the site benefits from its location just two blocks from the world-famous San Antonio Riverwalk. The linear park is a popular attraction for local San Antonio residents and tourists alike. The site has excellent roadway access with a central location at the confluence of Highway 281, Interstate 35 and Broadway Street. The JLL Capital Markets team representing the seller for this offering is led by managing directors Davis Adams and Chuck King, along with senior managing director Michael Swaldi and director Garrett Gilleland. “This is a generational opportunity to acquire a site that offers scale, along with an irreplaceable location in a proven area of success for the highest quality residential, office, hospitality, restaurant, retail and entertainment development projects,” said King. “The availability of this site and the ability to develop it to its maximum potential will draw local interest and new interest from investors, companies and residents from across the nation and beyond further defining San Antonio as a world class city.” “The owners have retained JLL for our national and international reach. We are seeking a developer or investor that recognizes the significance of this opportunity and has the financial resources and vision to capitalize on the full potential of the development site,” said Adams. San Antonio has seen impressive and expanding economic activity in recent years and is currently the second fasting growing city in the country. Approximately 120 people move to San Antonio each day and the population of 1.6 million is anticipated to double by 2040, many of those being millennials. The city has been ranked as No. 1 America’s Next Boom Town by Forbes, a Tech Hotspot by Inc., and a Top 5 for Economic Performance by Brookings. New residents are drawn to the competitive cost of living which is currently 13.1 percent less than the U.S. average, the healthy job market and low business costs.
RESOLUT RE recently closed six retail leases in Texas. The deals included transactions in the Austin, Houston and Dallas-Fort Worth markets. ATI Physical Therapy has leased 2,008 square feet at South Congress Station (9000 S Congress Avenue, Austin). Michael Noteboom and Joey Mendez of RESOLUT RE represented the landlord. Travis Lawrie of CBRE represented the tenant. Boost Mobile has leased 1,400 square feet at Countryside Place (1420 Wells Branch Pkwy W, Pflugerville, Texas). Michael Noteboom and Joey Mendez of RESOLUT RE represented the landlord. J & A Advanced Family Dental has expanded by 1,221 square feet at Kyle Crossing (5940 Kyle Pkwy, Kyle, Texas). Andrew Perkel and Michael Noteboom of RESOLUT RE represented the landlord. Fit Body Boot Camp has leased 2,996 square feet at Shops at Woodbridge (7900 Woodbridge Pkwy, Sachse, Texas). Brian Sladek and Chris Flesner of RESOLUT RE represented the landlord. Samuel Hartley of RESOLUT RE represented the tenant. Tone Shop Guitars has leased 3,451 square feet at 3220 W. Southlake Boulevard in Southlake, Texas. Gavin Fite of RESOLUT RE represented the tenant. Keith Conlon, Allie Beth Allman, and James Keoughan of Allie Beth Allman & Associates represented the landlord. Leaf Communications has leased 4,410 square feet at Pinehill Business Center (9000 Clay Road, Houston). Brian Clayton of RESOLUT RE represented the tenant. Carter Thurmond of Transwestern represented the landlord.
A San Antonio-based investment group has acquired the 65,460-square-foot Story Business Center in an off-market transaction, using 1031 exchange funds to snap up its second industrial flex property in DFW’s Las Colinas submarket. Sequin Court Plaza LP’s newest holding is a fully leased project set on nearly four acres at 3010 Story Road. W. in Irving, Texas. Jason Finch, market director of Dallas-based Bradford Commercial Real Estate Services, and Michael W. Spain, executive vice president and managing partner, represented the buyer in the direct deal. “The buyer was targeting the Las Colinas area because of its location and quality of buildings,” said Finch, who introduced Bradford’s longtime client to the acquisition opportunity. The seller is Americo Story LP, which owned the complex about three years. The just-sold project is strategically positioned on the east side of Dallas-Fort Worth International Airport, putting it on the doorstep of freeways running north, east, south and west. Prior to the sale, Finch and Spain had been leasing Story Business Center. Their lease-up immediately triggered Americo’s exit strategy. “I knew the buyer had 1031 exchange funds to invest, liked Las Colinas and wanted to buy industrial so I reached out to him,” Finch said. The deed changed hands 60 days later. Story Business Center, completed in 1986 and renovated in 2008, is leased to a cross-section of professional services for diverse commercial sectors. Its largest tenant is Tire Profiles, which leases 16,377 square feet for its headquarters and design teams. Sequin Court also owns the 103,054-square-foot Las Colinas Distribution Center 4 and 5, a Bradford-leased and managed project situated less than one mile from Story Business Center. “The buyer has just increased its DFW stake by more than 60 percent,” Finch said.
JLL’s capital markets team handled the sale of the 225-unit Broadstone Crossing Apartments in Austin. JLL worked on behalf of the seller to complete the sale to the buyer, Langdon Street Capital. “This is our second multi-housing acquisition in six months and we’re closing in on 500 units,” said Matthew Steinberg, director of acquisitions at Langdon Street Capital. “We plan on continuing to build our portfolio in a market that we believe has exponential growth.” Broadstone Crossing was built in 2006 and totals 225 units across 13 buildings. Prior ownership had renovated a portion of units’ interiors and made minor exterior improvements across the property. The property features a full suite of amenities including an on-site dog park, fitness center and pool. Broadstone Crossing is located at 12430 Metric Boulevard near Austin’s most prominent submarkets, including The Domain, touted as Austin’s “Second Downtown.” The property is also proximate to the North Burnet-Gateway and Parmer Tech Corridors, which are key economic and employment drivers to the area. The JLL capital markets team representing the seller was led by senior managing director Sean Sorrell and senior directors Joe Dowdle and Ryan McBride.
STREAM Capital Partners has arranged the sale and leaseback of two cold storage, food-production facilities in Dallas and San Antonio. The properties total 187,000 square feet. Chelsea Mandel of STREAM Capital Partners represented the seller in the transaction. The facilities are occupied by Surlean Foods, a leading custom food manufacturer of both raw proteins and cooked kettle items. Founded in 1979, the company is a third-generation, family-owned business. “Chelsea and her team did a great job,” said Daryl Scott, president of Surlean Foods. “This transaction provides additional capital allowing us to continue reinvestment into our business that has seen tremendous growth over the last 12 months.” Mandel has been very active in the cold storage sector and sees tremendous investor appetite for freezer/cooler, food-related facilities. She expects this trend to continue throughout 2021. “This was a terrific transaction to lead,” Mandel said. “My client now has a real estate partner to help facilitate the business’s growth, and the buyer added to its portfolio two high-quality, cold storage assets in growing industrial markets leased on a long-term basis to a premier tenant in the food manufacturing space.”