Younger Partners Awarded Leasing Assignment for DFW-Area Office Asset

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 Brokers Sale of 160-Unit Apartment Complex in Irving

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.”

Development Depth: EDCs Protect Business, Encourage Growth During Pandemic

Success in the commercial real estate world has always been about the ability to evolve. Investors are constantly looking for what’s “next,” while developers keep an eye on what the market is asking for. Retailers need to know the trends that their customers will want. And economic development organizations must be able to pivot when their community indicates a change is needed. In so many ways, the COVID-19 pandemic has tested the evolutional capacity of EDCs throughout Texas and a number of them are passing with flying colors, helping the investors, developers and companies that call their towns home weather an incredibly challenging time. At the Greater Houston Partnership (GHP), the team shifted to a strategy of remote working, online meetings and virtual events in March, according to Craig Rhodes, senior director of regional economic development. “The traditional trade shows, conferences and outbound recruitment missions have been replaced with virtual industry roadshows, site consultant outreach and targeted business outreach activities,” he said. An example of that: GHP hosted a virtual business recruitment mission with Houston Mayor Sylvester Turner in October 2020 to connect with companies in Silicon Valley. The event followed up a successful delegation trip in 2019 meeting with California tech companies about the opportunities for growth in Houston. “The project pipeline has continued to stay active with new prospects considering relocations and expansions in the region. We have had multiple new projects announce this year including Amazon, Google Cloud and Greentown Labs,” said Rhodes. “We are currently tracking over 140 active projects in the pipeline, with manufacturing and logistics leading the industry sectors.” Similarly, the pandemic has changed operations for the City of Seabrook and its economic development arm, but economic development director Paul Chavez said his team is embracing the new normal. “We are utilizing new technologies and finding innovative and creative ways to communicate with prospects,” he said. In nearby La Marque, the EDC changed its focus from business attraction to business retention, delivering nearly $1 million in COVID Business Relief Grants to business owners. The funds helped keep the doors open after state-mandated closures had a profound impact on business owners of every kind, especially retail and restaurants. “Over and over, we’ve heard our business owners say that they wouldn’t have made it through the pandemic without our COVID Business Relief program. Rather than a big project slam dunk this year, we had hundreds of small businesses survive the 2020 COVID pandemic,” said Alex Getty, executive director of La Marque EDC. “That’s something we’re proud of and we’re in a great position heading into 2021.” There’s been no slowdown in prospect activity at all in Conroe, one of Houston’s fastest-growing suburbs. If anything, Conroe Economic Development Council executive director Danielle Scheiner said things are picking up, particularly for warehousing and logistics projects but also for manufacturing of consumer products. “We are still averaging 1,000+ homes a year with more and more sites in the early stages of development,” she said. Conroe’s EDC just celebrated the signing of its first occupant in the Deison Technology Park. VGXI, Inc., a manufacturer of plasmid DNA for vaccines and gene therapies, will move its headquarters to Conroe from The Woodlands. The state-of-the-art, 240,000-square-foot facility is expected to be operational in January 2022. “On the industrial side, we have five projects currently under construction in our two parks,” said Scheiner. “We still have some retail/commercial sites under construction, although I don’t anticipate any new ones starting anytime soon.” Retail, she expects, will be the sector hit hardest by the pandemic. Scheiner said many of Conroe’s local eateries and boutiques have held on so far, but they need the continued support of the community. In Seabrook, that’s exactly what customers have been doing. Sales tax revenue there has remained healthy, while other areas have taken hits. “Both retailers and restaurants in Seabrook offered and continue to offer services to meet the current needs of our residents and visitors. This in addition to our SEDC Emergency Business Retention Incentive has helped keep our economy strong,” said Chavez. The City Council’s planning and zoning commission is currently reviewing plans for a five-level, 170-room boutique hotel that would feature an extended stay complex of 76 guest suites. “Also included in the plan is a 23,700-square-foot conference center, 24,850 square feet of retail buildings for food beverage leases and a future proposed multifamily apartment building containing approximately 260 residential units,” Chavez said. “This development will be located with waterfront views of Clear Lake and only minutes away from I-45 and NASA Space Center.” Location, he points out, is as important as ever when discussing future development plans. “Being on Galveston Bay and Clear Lake with prime commercial property that fronts the water, Seabrook has numerous opportunities that are available for planned development,” said Chavez. “In a past survey when asked what makes Seabrook attractive and distinguishable from surrounding cities, the most repeated responses received from the community survey were: the waterfront, the potential for waterfront development, opportunities for water recreation (boating, fishing, etc) and coastal living.” The value of location is something La Marque EDC’s executive director also stressed. “COVID changed things but our position is as strong as ever. Our location along 45 and proximity to the Galveston-Kemah-NASA tourism market will continue to drive commercial development in our city,” Getty said. “Over the past decade our population has grown by more than 30 percent and we don’t see it slowing down as another new neighborhood development was approved by the City Council this fall.” La Marque’s EDC is also responding to business owners who are taking advantage of this time as an opportunity to renovate and improve their properties. “We’ve seen an uptick in business improvement grants, which is encouraging. We’re seeing everything from 50-year-old buildings getting facelifts to new signs and landscaping at some of our retail centers and even complete interior remodels in some of our local restaurants,” said Getty. Chavez agreed. “Businesses and developers continue to ask for feedback on the types of projects that would qualify for incentivizing,” he said, “and our track record shows that we are aggressive with coming up with deals that provide a solid return on investment for the community that also pushes the needle towards landing the project in Seabrook.” Prospective developers in Conroe are asking about anything that will help offset their overall cost of doing business, whether that be tax incentives or fast permitting approval. “Anything that allows them to operate more efficiently to help their bottom line,” said Scheiner. “They are interested in understanding how we approach incentives for jobs that might be working remotely. In our case, if the payroll is managed out of that facility, they can count those jobs regardless of whether they are working remotely or at the physical location.” Though the pandemic has certainly created challenges, Houston-area EDCs are stepping up to face those challenges in whatever way their communities need and will continue to do so to help businesses thrive.

Dalfen Industrial Expands East Dallas Footprint with Acquisition of Peachtree Distribution Center

Dalfen Industrial has acquired Peachtree Distribution Center from Clarion Partners at 17745 Lookout Road in the east Dallas suburb of Mesquite, Texas. Terms of the deal were not disclosed. Constructed in 2001, the property is a 396,750-square-foot, cross-dock, multi-tenant distribution facility within a minute drive of I-635—the loop around Dallas—as well as I-30, I-80 and the Mesquite Airport. The property includes 68 docks, ample car and trailer parking space and is 100 percent leased to three internationally recognized tenants–Dal-Tile Corp., Parker-Hannafin Corp. and Bronco Orora. “This acquisition is squarely within our strategy of focusing on infill in key markets,” said company president and chief investment officer, Sean Dalfen. “Dallas-Fort Worth has one of the strongest industrial markets in the nation, and the East Dallas Mesquite submarket is one of the best due to location, workforce and proximity to major highways.” The East Dallas Mesquite industrial submarket is a longstanding transportation center and is home to one of Dallas-Fort Worth’s major intermodal hubs for industrial development, attracting the undeniable attention of institutional investors and large-cap companies. “Adding Peachtree to our other two properties in the submarket (as well as one large property under development), Dalfen views this submarket as a perfect last mile location to service the rapidly growing north and east Dallas suburbs,” said Kevin Caille, market officer for Dalfen. With this acquisition, Dalfen Industrial currently owns and operates over 4.4 million square feet of last mile industrial assets in Texas and over 24 million square feet nationwide.

Hewlett Packard Enterprise Relocates Global HQ to Texas

AUSTIN, TX – Governor Greg Abbott today announced that Hewlett Packard Enterprise (HPE) will relocate its global headquarters to Spring, Texas from San Jose, California. The headquarters will be located in a new state-of-the-art campus that will open in early 2022, building upon the company’s established presence in the state of Texas. The company’s headquarters relocation to the Houston area holds the potential to add additional jobs to its already robust presence in Texas in the coming years. HPE already has a significant presence across Texas, with locations in Austin, Plano, and Houston — the latter of which is home to more than 2,600 employees and is the company’s largest employment hub. HPE currently operates major product development, services, manufacturing, and lab facilities in Houston and Austin. HPE is a global enterprise information technology company that helps customers drive digital transformation by unlocking value from all of their data. Built on decades of re-imagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions, with a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. The company was founded in 2015 following the separation from HP, Inc. It is currently ranked 109 on the list of Fortune 500 companies. “We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region,” said Governor Abbott. “Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone. That is because Texas offers the best business climate in the nation. Our low taxes, high quality of life, top-notch workforce, and tier one universities create an environment where innovative companies like HPE can flourish. We look forward to a successful partnership with HPE, as together we build a more prosperous future for Texas.” “As we look to the future, our business needs, opportunities for cost savings, and team members’ preferences about the future of work, we are excited to relocate HPE’s headquarters to the Houston region,” said Antonio Neri, CEO of HPE. “Houston is an attractive market to recruit and retain future diverse talent and where we are currently constructing a state-of-the-art new campus. We look forward to continuing to expand our strong presence in the market.” “HPE’s headquarters relocation is a signature moment for Houston, accelerating the momentum that has been building for the last few years as we position Houston as a leading digital tech hub,” said Bob Harvey, president and CEO of the Greater Houston Partnership, the economic development organization serving the Greater Houston area. “Houston has long been a hub for global innovation and offers leading tech companies a deep bench of digital and corporate talent to drive success. We are excited HPE leadership recognized this, and look forward to welcoming the headquarters team to Houston.” “It’s a smart relocation move for HPE to come to Texas, bringing their Corporate Headquarters to North Harris County! These are great 21st century jobs for Texans,” said Senator Paul Bettencourt. “As one of the State Representatives for the Spring area, I am elated that Hewlett Packard Enterprise has chosen to relocate their new Global Headquarters to Spring. New business growth such as this is one of the primary economic drivers to look forward to in an area that will see tremendous job creation, providing new innovation and opportunity for our communities. HPE’s “state-of-the-art” facility will add another jewel to the crown that is our community and our home. With the impact this year of COVID on our local businesses, the addition of a world class technology headquarters will be a welcome indication of a brighter future,” said Representative Sam Harless. In addition, Governor Abbott released a video to celebrate the announcement.

Source: Office of Governor Greg Abbott

Rastegar Acquires Office in Affluent West Lake Hills to be the Company’s Global Headquarters

Espirit Office Building to Feature Design Elements Addressing Health and Wellness

Austin, TX – December 2, 2020 – Rastegar Property Company, a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Southwest United States, announced today the acquisition of the Espirit office building, located at 515 S. Capital of Texas Hwy in West Lake Hills, one of the wealthiest zip codes in all of Austin. The two-story, 29,685 square foot office building that features single level subgrade parking will be the global headquarters for Rastegar Property Company as well as other businesses looking to take advantage of the prestigious location that is just under seven miles from downtown Austin and 14 miles from the Austin-Bergstrom International Airport. Located in the heart of West Lake at the intersection of Bee Caves and Highway 360, Rastegar and the businesses that will lease space in the building will benefit from being able to offer convenient employment opportunities to the neighborhood’s affluent residents while taking full advantage of the various restaurants, shopping and other amenities in the area. “While many have cooled on office real estate, we believe the Espirit building provides Rastegar Property Company with an innovative opportunity to get our hands on a property located in one of Austin’s premier neighborhoods,” said Ari Rastegar, Founder and CEO of Rastegar Property Company. “As human beings, we’re communal by nature and need human interaction to be our most productive, which is why we are confident that there will be a welcomed return to the office post pandemic, with added health and wellness elements that address the concerns brought on by COVID-19.” The health and wellness of both employees and tenants is a core value of Rastegar Property Company, and the Espirit office building will be designed and maximized for the post-COVID world. Sitting on 2.39 acres will allow Rastegar to build outdoor workstations that take advantage of Austin’s favorable climate while the latest technology and materials will be used throughout the building to keep employees and other tenants safe and healthy. “The building has great bones in a terrific, easily accessible location. This will enable us to transform the space into one of the most sought-after boutique offices in West Lake,” said Hunter Floyd, Director of Design and Development at Rastegar Property Company. “Design will also focus on the post COVID environment by adding outdoor amenities, enhanced air filtration systems, touchless entries and exits, and common touchpoints, like railings and elevator buttons, could feature antimicrobial materials like copper.” About Rastegar Property Company Rastegar Property Company is a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Southwest United States. Rastegar and its affiliates have co-invested in or directly own and operate over 13.8 million square feet of real estate across projects in 13 states and 38 cities. The firm specializes in acquiring complex or undervalued assets with opportunities to create value through repositioning, redevelopment, and/or improved operational efficiencies.