Emerging Trends in Logistics and
• We can’t be angry about the COVID pandemic and its interruptions of our business lives, and we have to accept where we are and move forward; some sectors are down, some are flat, and some are way up.
• The multifamily and industrial sectors for example are way up, and are very attractive to lenders, although underwriting is more careful and conservative than before; some trophy office buildings are able to secure financing as well; lower LTVs, some non-recourse loans still, but also loans with initial recourse that burns off as the project reaches stabilization; some lenders prefer Texas loans.
• There are lenders in the market still willing to look at all property types, and now that many have worked through their forbearance requests from earlier in the year, they are looking to put out money through new builds and acquisitions and refinancing…although much more conservatively than pre-COVID; new development loans tend to favor multifamily; some of the big national banks have dropped out of the construction loan market. Click to read more at www.rednews.com.
• As multifamily, retail and office “feel the pain,” industrial is holding up well, and accelerating, as e-commerce continues expansion; investors are transferring their attention to industrial from these other sectors
• Companies are bringing back manufacturing from Asia to the U.S. and to Mexico, which is much closer to DFW; companies are coming here from California; labor costs in Mexico now approximate those in China, as China’s economy has strengthened
• Distribution and heavy manufacturers seem strong, but some light manufacturers are seeing stress
• DFW is strategically located in the middle of the country, is in the central
time zone, is one day’s drive from Mexico and Port of Houston, and it is “the” hottest industrial market in the country, and some say “the world;” DFW has a super freeway network and good general accessibility
• Manufacturers wanting to “near-shore” from China to Mexico are hampered from the difficulty of business travel to MX during COVID
• After a pause with the onset of COVID, investment deals are do-able and cap rates are back to where they were at the start of the year
• Loans are available at an average of 60 percent LTV, with lenders requiring ample debt service coverage—however, low leverage requires more expensive equity and mezzanine money
Click to read more at www.rednews.com.
There’s been a lot of talk that the industrial market—particularly that segment serving e-commerce companies—is proving to be resilient to the economic damage wrought by COVID-19. Two Texas markets are helping lead the way as the country forges a path forward during the pandemic. New research by Transwestern suggest that there remained strong demand for large scale industrial space across the country during the first half of
the year. This demand is revving the engines of development, investment and leasing activity. Transwestern indexes the health of the national industrial market by tracking deal velocity and construction activity in 11 growth regions. Dubbed the “Elite 11,” these markets are perennial targets
for both global investors as well as the most sought-after locations for big-box distribution users, lastmile logistics, e-commerce and manufacturing
companies. Two Texas markets, Dallas-Fort Worth and Houston, make Transwestern’s Elite 11, along with Atlanta, Chicago, Lehigh Valley (PA), New Jersey, Northern California, Seattle, South Florida, Southern
California and Washington/Baltimore. These core markets are proving that this is one asset class that can’t be beaten by the pandemic. “Many sectors of the real estate market have been put on pause since March—but not the industrial real estate sector, which continues to flourish,” said Transwestern’s Matt Dolly, director of research. “Prior to the pandemic, the core markets led investment activity, and this movement has only intensified in recent months.” Click to read more at www.rednews.com.
HOUSTON – October 28, 2020 – Levey Group, a commercial real estate investment and development company, has sold 1.42 acres fronting on North Houston Rosslyn for future retail development to Rosslyn Retail Development, LLC out of Northwest Place Industrial Park II (NWP2). NWP2 is Levey’s Class-A, master-planned, 8-acre business park in Houston’s prime, near northwest submarket. The park’s private drive interconnects West Little York Road, and North Houston Rosslyn providing convenient truck ingress and egress. The park currently features one 64,850-square-foot building that has 36,350 square feet available for lease. The building features attractive storefront entrances, 32’ clear height, dock-high loading and grade-level access ramps. In addition, there is a 2-acre parcel fronting on West Little York Road with all utilities directly to the site available for sale or build to suit.
Levey Group is a commercial real estate investment and development company. Clients include companies needing office, manufacturing, laboratory, warehouse and distribution space in Houston and the surrounding areas. For more information, please visit the company’s website at www.leveygroup.com.
Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of The Destino, a 192-unit apartment property in Grand Prairie, Texas. MBP Capital traded the asset for an undisclosed sum to a buyer represented by Capital Vision Management LLC. “Dallas-Fort Worth, the nation’s fourth-largest metropolitan area, offers competitive advantages for businesses, and consequently multifamily assets in Grand Prairie have historically experienced exceptional occupancy and rent growth,” said Drew Kile, IPA senior managing director. Kile and IPA’s Will Balthrope, Joey Tumminello, Grant Raymond, Asher Hall and Al Silva, senior managing director in Marcus & Millichap’s Fort Worth, office represented the seller and procured the buyer. “The Destino has achieved strong revenue growth in the trailing 12 months through improved operations and the implementation of a value-add program,” said Tumminello. The Destino is 17 miles from the Dallas-Fort Worth International Airport, and 20 miles from the Dallas and Fort Worth central business districts. The property is surrounded by major employers such as Lockheed Martin, General Motors, Poly-America, American Airlines and the Great Southwest Industrial Park. The Arlington Entertainment District, Texas Live!, Globe Life Park, AT&T Stadium, Six Flags, and Lone Star Park are all nearby. “Optimally located in the epicenter of the Metroplex, The Destino gives the new owner an opportunity to continue the proven success of the interior upgrade program begun by previous ownership,” said Silva. Built in 2000 on 11 acres, the three-story, garden-style community has many amenities including covered parking, detached garages and a resort-style pool.
The RMR Group Inc. announced that Everi Games Holding Inc. recently signed a full-building, five-year lease extension at 206 Wild Basin Road in Austin. The two-story, 51,000-square-foot office building is part of an office park totaling more than 118,000 square feet. The property is managed by The RMR Group, who were represented in the transaction by Kevin Granger and Matt Frizzell of Cushman & Wakefield. Everi Games Holding Inc. was represented by Diana Holford and Austin Trees of JLL. “We are proud that Everi Games Holding Inc. has renewed its lease at 206 Wild Basin Road, which underscores RMR’s commitment to providing excellent customer service and our flexibility to accommodate our tenants’ needs,” said Marc Krohn, senior area director, The RMR Group. Situated on 2.6 acres with ample green space, 206 Wild Basin Road is in close proximity to Texas State Highway Loop 360, offering access to Austin’s central business district and the Greater Austin Metropolitan area. The Wild Basin Wilderness Preserve, which contains over 227 acres of trails and green space, is adjacent to the property.