Office in San Antonio “Ok” and not sliding too much; 15% vacancy citywide, with average rents $21.85 down from $22.50 this time last year; robust development market; tenants beginning to return to offices
Some landlords working with tenants on short-term renewals to build tenant goodwill, and to retain them.
The hybrid work from home and office model is here to stay, although the productivity metric for this formula is not fully known yet.
Company culture is “at the office” and it is especially important to for new hires to interact with peers and senior employees as they learn and absorb the company culture.
When pandemic recedes, we will be quick to return to old habits and dense environments, office and social; in 18-24 months we will be back to normal here
8% unemployment in S.A.
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.
Cavaness Insurance Agency, LLC leased 2,180SF at 14110 N. Dallas Parkway for 5 years. Steven Wilkerson with Search Commercial Healthcare & Office Real Estate Services represented the tenant and Noah Burns represented the landlord, Hartman Income REIT.
Lument provided a $21.5 million Freddie Mac unfunded forward commitment loan to facilitate the substantial renovation of Jackie Robinson Memorial Apartments, an affordable multifamily property in El Paso, Texas. Lument is the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group. “By combining the Freddie Mac unfunded forward loan with tax credit equity and other soft funding sources, we were able to put in place an attractive debt structure to help improve these much-needed affordable apartments,” said Josh Reiss, director at Lument. Originally built in 1975, Jackie Robinson is a 186-unit, 4 percent low-income housing tax credit (LIHTC) community in the Housing Authority of the City of El Paso (HACEP) portfolio. As part of the transaction, the property will receive Section 8 assistance that will facilitate the conversion to long-term, project-based voucher rental assistance. Subsequently, all 186 units will be restricted to tenants earning income at or below 60 percent area median income. The $21.5 million Freddie Mac loan features a low, fixed-interest rate, 18-year term with three years of interest only, and a 35-year amortization schedule. The forward commitment term will be 30 months with one six-month extension. Jackie Robinson will undergo substantial interior and exterior construction, including a gut renovation of all residential units, from new drywall to new kitchen appliances. In addition, exteriors will be improved with new windows and doors, repaired or replaced roofs and new stair towers. Construction began in October 2020 and is expected to be complete within 24 months. Reiss and the Lument team have financed over 960 units in partnership with HACEP, totaling $41 million. Since 2015, the team has financed over $565 million in RAD transactions for a total of approximately 6,500 units.
Younger Partners has been exclusively awarded the leasing assignment for the Atrium on Collins, 1701 N. Collins in Richardson, Texas. The 109,000-square-foot property is located in the thriving Richardson/Plano submarket with easy access to three major thoroughfares. The leasing efforts will be led by Younger Partners’ Kathy Permenter, Garrett Marler and Masen Stamp. “1701 N. Collins provides a professional atmosphere for any size tenant from 400 to 12,000 square feet,” Permenter said. “Tenants will enjoy the floor-to-ceiling windows, ready-to-go spec suites and easy access to US Highway 75, Interstate Highway 635 and George Bush Turnpike (US Highway 190).” “The property has been remodeled, creating lighter, brighter renovated common areas,” said Marler. “Thus, making it an attractive option with a classic design and modern feel. 1701 N. Collins offers tenants access to a building conference room and Foodbsy delivery service. Additionally, there are numerous restaurants and retail services along nearby Campbell Road.” The building offers 4/1,000 parking with covered spaces available. In addition to its central location and nearby amenities, there is monument and building signage available.
CBRE announced the sale of Monterey Apartments, a 160-unit multifamily community located at 700 S. Story Road in Irving, Texas. Plano-based Elmstone Group purchased the property in 2016 and sold the asset to Texas-based Beazworkz Investing for an undisclosed sum. Built in 1971, Monterey Apartments was 73 percent occupied at the time of sale with most units in classic condition. This provided a rare opportunity for investors to purchase an underperforming property in occupancy and collections, giving them the ability to make significant upgrades to increase their rental income. “We were able to conduct a very quick, precise marketing process that was able to attract immediate interest with strong offers,” said Chris Deuillet, senior vice president with CBRE. “We are thrilled we were able to leverage our network to make this another successful sale for the owners, who we have worked with before on numerous occasions.” Deuillet and William Hubbard with CBRE capital markets’ investment properties in Dallas represented the seller. “As on previous occasions, Chris Deuillet and the CBRE team helped make this sale progress very smoothly,” said Steven R. Gould with Elmstone Group. “We were able to lean on their knowledge of the market and the key players in it, helping us get us the best price for this asset.”