“Levant Kebab leased 2,830SF at 100 South Central Expressway in Richardson, TX for 8 years. Kat Morrison represented the landlord, Hartman Income REIT.”
Category: Focus November – 20
Shoes4Less, LLC Secured Retail Space from Hartman Income REIT
“Shoes4Less, LLC leased 2,880SF at 5332 Walzem Road in San Antonio, TX for 5 years. Kat Morrison represented the landlord, Hartman Income REIT.”
Investors Purchase 1111 Fannin Office Tower in Downtown Houston
JLL Capital Markets completed the sale of 1111 Fannin, a 17-story, 428,629-square-foot office tower located in the heart of Houston’s central business district. JLL represented the seller and procured the buyers, Triten Real Estate Partners and Taconic Capital Advisors. Terms of the deal were not disclosed. “We are very excited to close on this opportunity with Taconic,” said Scott Arnoldy, managing partner at Triten Real Estate Partners. “1111 Fannin represents one of the best redevelopment opportunities in downtown Houston. The project is well-located within the CBD, has direct access to the tunnel system and is steps away from an incredible slate of amenities, including Discovery Green, the Four Seasons Hotel and the Green Street development. More importantly our basis will allow us to offer a completely unique experience at a dramatic discount to current market rents. It’s also an attractive option for any user looking to control their own environment.” “We have selected HPA Architecture out of Chicago to help us conceptualize the possibilities of the building,” Arnoldy said. “HPA has worked on notable creative office developments and re-developments across the country including HQ buildings for two of the big five tech companies nationally. We look forward to working with HPA to design an experience that will meet the rapidly changing needs of the market.” 1111 Fannin, which is 100 percent leased to a single investment-grade tenant, features a podium-style design with center-core floor plates that average 31,500 square feet. On-site amenities include a conference center, card key access, 24/7 security and an attached parking garage. The property has direct access to Houston’s tunnel network, which features more than seven miles of underground, climate-controlled walkways with retail and dining amenities. Additionally, the property’s location in the heart of Houston’s CBD affords it quick access to a variety of amenities and attractions, including The Shops at Houston Center, The George R. Brown Convention Center, Market Square, Minute Maid Park and the Toyota Center. 1111 Fannin also has direct access to Houston’s highway system as its centrally located between Interstates 10, 45 and 69, providing connectivity to the greater Houston area. The JLL Capital Markets team representing the seller was led by senior managing director Dan Miller, senior director Martin Hogan and analyst Ethan Goldberg.
Breaking Down Austin’s $460 Million Bond for Bike Lanes, Trails, Sidewalks and More
By Jack Flagler | 3:00 PM Nov 25, 2020 CST | Updated 2:59 PM Nov 25, 2020 CST
Project Connect, the $7.1 billion plan to revamp public transit in Austin, was not the only transportation decision city voters made Nov. 3. More than two-thirds of voters—276,137 out of 411,794—elected to approve Proposition B, which provides $460 million in bond funding for transportation projects broken down into nine different categories. Unlike Project Connect, which takes effect immediately, Proposition B will not affect homeowners’ tax bills for 2021. Instead, it will be phased in over years until it is fully levied in 2026. Once it fully takes effect, the owner of a median-valued $361,000 home would pay an extra $72 annually in tax dollars. The largest category of funding will go toward major capital improvements, which include redesigning Congress Avenue and paying for construction of a bridge over the Longhorn Dam along Pleasant Valley Road that will connect the two sides of the Ann and Roy Butler Hike and Bike Trail. Additionally, the bond provides a combined $200 million to fund bikeways, sidewalks and urban trails. While no timelines have been established for individual projects, the goal is to finish all bond-funded projects in six years, according to the office of District 8 Council Member Paige Ellis—one of the leaders of the effort on the dais. Click to read more at www.communityimpact.com.
Real Estate Firms Adapt To COVID, Prepare For Post-Pandemic Era
We find ourselves at an intriguing juncture in the novel coronavirus pandemic’s evolution. Just as promising vaccines burst into prominence, promising a brighter post-COVID era, we also stand at the dawn of a predicted unprecedented surge in COVID infections, bringing what’s sure to be a concomitant spike in hospitalizations, ICU stays and deaths. “It’s going to get a lot worse before it gets better,” seems the understatement of the autumnal season. Given all the uncertainty, this could be an opportune moment to capture a snapshot of the real estate industry’s response, as seen through the lens of several widely disparate trends and developments. Coral Gables, Fla.-based development, investment and property management firm Codina Partners proved visionary in rolling out its “Codina Cares” signature program to its South Florida and Texas properties just as COVID’s impact seemed to wane in early summer. As if certain a second wave would grip the nation in the months ahead, Codina implemented a number of measures at the commercial properties of its Downtown Doral mixed-use community in west Dade County. Click to read more at www.forbes.com.
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Gross-ups and COVID: Alpha Office Escalations Solves Complicated Calculation Issues
With news of a potential vaccine on the horizon, the thought of returning to “life as normal” seems more possible than ever. However, the pandemic may have changed some of our behavior permanently, specifically impacting how we think about the safety of our work environment. “For the first time in my life, I find myself unconsciously counting to twenty every time I wash my hands, which I now do more often than ever before,” said Bill Brownfield, Counselor of Real Estate (CRE), Certified Commercial Investment Member (CCIM) and co-author of The Escalation Handbook for Office Buildings with Larry Mayerhofer, CPA. “Extrapolate that behavioral change out to include many millions of office employees and you can quickly conclude that some, probably a lot, will want to work in offices that have an office version of the proverbial Good Housekeeping Seal of Approval.” As a result, Brownfield said many office owners and managers are executing new and/or expanded operational protocols designed to improve air quality and safety so tenants will feel comfortable when they return. “Most of their operational adjustments have been implemented by now and are becoming normal daily routines for cleaning, security and social distancing,” Brownfield said. “Some have made capital investments in HVAC upgrades, touchless technologies, UV lighting and other preventive strategies.” In many cases, those operating expenses can be allocated on a pro-rata basis to a property’s tenants, along with their base rent, via escalations. But because leases so often vary, calculating the appropriate share for each tenant accurately can be a challenge. “We know that owners and property staff care deeply about doing the right thing. But the scope of responsibilities for property managers and accountants has expanded so much over the past two decades that they have little time for deep dives. They’re pedaling as fast as they can, so they need new tools to automate and speed up work processes,” said Brownfield. Click to read more at www.rednews.com.