Category: Deals & Announcements

DWG Capital Partners Acquires Austin Industrial Property Net Leased to Austin Iron

Posted on by Sarah

DWG Capital Partners (DWG), a private commercial real estate investment firm led by President Judd Dunning, has completed the acquisition of 9606 Old Manor Road, a single-tenant, 10,500-square-foot facility in Austin. It has been fully net leased to custom architectural and structural steel fabricator, Austin Iron, since 2014.

Founded in 2011, Austin Iron works with leading commercial and residential contractors, architects and designers in a state that has undergone a massive surge in development. A swell of big tech relocations has created an influx of job opportunities and rising demand for homes.

“The addition of this industrial asset to our portfolio is in line with our strategy of intelligent investment,” said Dunning. “Austin continues to perform as one of the nation’s strongest industrial markets with consistently elevated metrics and a strong pipeline for growth. We are thrilled to have been able to secure local financing to acquire this well-positioned asset with value-add opportunity.”

Dunning secured fixed-rate acquisition financing from First Bank Texas. Drew Boroughs and Andrew Gross of Matthews Real Estate Investment Services represented the private seller.

Austin was recently ranked as the nation’s strongest jobs market in a report by The Wall Street Journal and Moody’s Analytics. 9606 Old Manor Road is located between two of East Austin’s biggest employers, electric car giant Tesla, and global engineering powerhouse, Applied Materials. According to Dunning, the property adds a lower risk industrial asset with limited downside to DWG’s diverse portfolio of NNN properties located in primary and tertiary markets across the U.S.

“We look forward to continuing to serve investors with our value-add and sale-leaseback approach to effective investment and plan to triple our portfolio targeting industrial acquisitions of $3 million to $15 million in the coming 12-24 months,” said Dunning. “Backed by strong local lenders, we see opportunity for growth through partnerships with American businesses that form the backbone of the nation’s economy.”

Since opening an outpost in Texas last year, DWG has doubled down on growing its portfolio, adding Texas purchases like the following sale-leasebacks: a 124,417-square-foot flex industrial site in Longview and a 35,835-square-foot light industrial property in Columbus occupied by private equity firm-backed The Theut Company, a division of Denver Glass Interiors (DGI).

Olive Tree Affordable Housing Advances $25M Capital Improvement Program in Houston

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Olive Tree Affordable Housing, an affiliate of Olive Tree Holdings, a mission driven private investment company focusing on value-add multifamily projects in dynamically growing markets across the United States, today announced its plans for a $25 million, full-scale capital improvement program at The Life At Grand Oaks in Houston,. With improvements currently underway, the 556-unit affordable multifamily complex’s modernization is on schedule to be completed mid-year 2023.

Interior upgrades across the 556-unit community include the implementation of new flooring, countertops and vanity tops, elevated lighting fixtures, new sinks with accompanying service lines to kitchen and bathroom areas, and HVAC replacements. To date, 177 residence upgrades have been completed, with an additional 64 units in progress. Exterior upgrades completed thus far include the resurfacing of the pool and deck amenity areas, parking lot and concrete walkway replacements, irrigation system and masonry repairs. In addition, Olive Tree Affordable Housing has invested $100,000 in upgraded security features throughout the complex, including the installation of high-resolution cameras and enhanced LED lighting, a panelized privacy wall along the complex’s exterior, and more.

Remaining rehabilitation efforts at The Life at Grand Oaks include the additions of new exterior siding and wood, fresh exterior painting, the installation of new windows and gutters throughout the complex, landing area and patio resurfacing, and the creation of an on-site dog park. The Life at Grand Oaks leasing office will additionally undergo interior upgrades as current and prospective residents look to visit and tour the community.

Built in 1982, The Life at Grand Oaks was acquired by Olive Tree Holdings in 2021. JPMorgan Chase provided $56 million in construction financing as well as a more than $45 million Fannie Mae Multifamily Tax-Exempt Bond (MTEB) permanent loan for the substantial capital improvement project, ensuring the project qualified for LIHTC equity through the utilization of tax-exempt bonds. The community consists of one and two-bedroom apartment homes reserved for those earning up to 60% of the area median income (AMI). Community amenities include a swimming pool, resident clubhouse, cyber room, on-site laundry center, playground, and picnic pavilion.

To date, Olive Tree Affordable Housing has preserved the affordability of over 4,000 units nationwide, including more than 865 within the Houston-metro area, totaling $125 million in development costs.

Electra Capital Funds Over $115 Million in Q2 2022

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Electra Capital, a boutique lender specializing in flexible, short-term multifamily financing solutions, has originated more than $115 million in the last 90 days on several value-add and ground-up multifamily properties located in major U.S. Sunbelt metros, including Dallas-Fort Worth.

“While the capital markets are trying to make sense of the Fed and the potential of value corrections in the multifamily marketplace, Electra Capital is prudently evaluating and closing high-quality transactions requiring senior debt and/or subordinate debt (mezzanine and preferred equity) for savvy sponsors that are active in the Sunbelt territories,” said Electra Capital CEO Sam Greenblatt. “Despite the volatility in the capital markets, multifamily fundamentals remain strong in several Sunbelt cities. We’re particularly optimistic about the in-migration and job growth trends in Orlando, Austin, San Antonio, Las Vegas, and Phoenix, which will support sustainable demand and rent growth for the foreseeable future.”

Electra Capital’s recent transactions in Texas include:

A $21.45 million preferred equity investment on a four-property, 952-unit apartment portfolio located in Dallas. The sponsor – a three-time repeat client – plans to make significant improvements to the common areas, as well as upgrading the individual units, and adding in-unit washers and driers.

An $18.6 million mezzanine loan for the Ashland Green Portfolio, a three-property, 936-unit portfolio in the Dallas-Fort Worth metro area. The sponsor’s business plan includes making significant improvements to the common areas, as well as upgrading the individual units, including adding in-unit washers and driers.

Thompson Realty & Trez Capital Developing New 50Ac Mixed-use Development in Flower Mound

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Thompson Realty Capital, LLC, in partnership with Trez Capital, announced plans for a new 50-acre mixed-use development located at the southeast corner of FM 2499 and Lakeside Village Parkway in the town of Flower Mound. The first phase of the project includes a four-story, 200-unit, garden-urban mix, multifamily community and 15,000 square feet of retail with space for three restaurants, as well as a 60,000-square-foot office building with one level of underground parking. The development will include approximately 20 acres of public parks, open space and more than 2.5 miles of trails on site.

The multifamily community will feature stainless steel appliances, elevators, faux hardwood floors and top-of-the line finishes. It will also include a private fitness center, concierge services, resort style pool and a community dog park.

This project is a part of Trez Capital’s joint-venture partnership program which provides experienced developers like Thompson Realty Capital with equity financing for value-add and ground-up developments in key markets with strong population, employment and GDP growth.

McAdams will handle civil engineering and landscape architecture for the project. Other architects for the mixed-use project include: Cross Architects – multifamily; GSO Architects – retail; and Alliance Architects – office. Bill Dahlstrom of Jackson Walker served as the zoning attorney.

Thompson Realty Capital and Trez Capital have seven other multi-family projects currently under construction in Texas totaling 2,100 units.

The new development is within proximity to Grapevine Lake, has direct access to FM 2499 and is only 5.3 miles from DFW Airport. The property is scheduled to break ground in Fall 2022 with phase one completion slated for 2022.

Disrupt Equity Acquires 369-Unit Apartment Community in Austin

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Disrupt Equity recently announced the closing of Array Apartments, a 369-unit Class-B+ multifamily asset in Austin.

Array Apartments was built in 1973 and features 369 one- to three-bedroom units. Current ownership has upgraded 100+ units with white cabinetry, white and black speckled granite countertops, and stainless steel/black appliances. Disrupt Equity has identified Array Apartments as well positioned to capitalize on a substantial and proven value-add strategy to renovate 100+ remaining classic units, as well as elevate another 100+ units to a higher level fit and finish and upgrading and the property’s amenity package to cater to the high-tech young professional demographic to capture the additional rent premiums that the fully renovated units at Array are already recognizing.

The Array Apartments community offers a variety of resident amenities, including a resident clubhouse, yoga studio, spin room, fitness center, business center, sport court, two resort-style swimming pools, two bark parks with dog wash, on-site laundry facilities, courtyard, bike racks, and barbecue/picnic areas.

The property is located on Burton Drive between Riverside Drive and Oltorf Road, a quick access to I-35, which provides unmatched accessibility to the Austin Central Business District, one of Austin’s most desirable areas with unlimited nearby entertainment and dining options. Oracle’s 27-acre corporate headquarters is five minutes from Array where it operates a 560,000 square-foot campus and is home to over 6,000 employees. Additional employers in the area include Austin-Bergstrom International Airport, Austin Energy, and Tokyo Electron.

The Property’s submarket holds bullish demographics and submarket rent growth/ The median home price in the 78741 zip code has increased 29.5% year-over-year, creating unprecedented demand for more attainable rental options. Rent growth over the previous 12 months for the Southeast Central submarket totaled a staggering 29%, and the occupancy in the submarket is now 95%.

The asset will be managed by Disrupt Management, Disrupt Equity’s in-house multifamily property management firm that currently manages over 500 units in the Austin market.

Avison Young Tapped by BAUER Group to Market 79-Ac Class-A Industrial

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Avison Young’s Drew Coupe and Dawson Smith who are both out of the firm’s Houston office have been tapped to market NorthStar Industrial Park, a Class-A industrial redevelopment project located at 100 FM 3083 in Conroe, Texas. The 79-acre site, which currently encompasses five manufacturing and warehouse buildings totaling just under 200,000 square feet, was formerly the U.S. headquarters of The BAUER Group’s subsidiary, NEORig. As part of its efforts to maximize the value of its former site, BAUER has also teamed up with DIBAG Industriebau AG, a German real estate developer that will provide additional consulting services and real estate expertise alongside Avison Young.

The BAUER Group, an international construction and machinery manufacturing concern with more than 110 subsidiaries in some 70 countries that provides services, machinery and products for ground and groundwater, has owned the Conroe property since beginning development of the park in 2009. BAUER’s business plan is to lease the five existing Class-A buildings as well as market opportunities for both distribution and manufacturing build-to-suit projects on the site’s 31.5 acres of excess land. Once built out, NorthStar Industrial Park could total up to 500,000 square feet of building space.

NorthStar Industrial Park is strategically located east of Interstate 45 with access from both Loop 336 and FM 3038 and is about one hour north of Houston. The greater Houston industrial real estate market continues to exhibit strong fundamentals, sitting at around 6% vacant today.