JLL Capital Markets arranged the refinancing for The Albright, a brand-new 261-unit luxury apartment community in Austin, Texas.

JLL represented the borrower, ParkProperty Capital, to secure a floating-rate loan through ACRE.

The Albright represents one of Austin’s newest and highest-quality apartment communities, having been delivered in 2024. The five-story mid-rise property features 261 meticulously designed units with an average size of 876 square feet, comprising studios, one-bedroom, two-bedroom and three-bedroom layouts. Units showcase premium finishes including granite countertops, designer ceramic tile backsplash, stainless steel appliances, wood-style plank flooring, nine-foot ceilings, smart locks and light switches and walk-in closets.

The community offers resort-style amenities, including a resort-style pool, 24-hour fitness center, co-working spaces, gaming area with pool table, rooftop sky deck with views overlooking Austin, outdoor entertainment area with grill and kitchen, enclosed pet park, pet wash station, bike room, package room and parking garage.

Located at 8528 Burnet Rd. in Austin’s rapidly growing North Central submarket, the property provides residents with unparalleled connectivity to Austin’s major economic and entertainment hubs. The property sits at the convergence of multiple major thoroughfares, with MoPac Expressway just three minutes away, US-290 seven minutes away, I-35 eight minutes away and US-183 three minutes away. This strategic positioning places residents within easy reach of downtown Austin, the University of Texas campus and the Texas State Capitol, all located six to seven miles south.

The property benefits from its proximity to The Domain, Austin’s premier mixed-use development located just two miles away. Often referred to as Austin’s second downtown, The Domain encompasses 1.8 million square feet of high-end retail space and serves as a major employment center housing corporate offices for technology giants, including Meta, Indeed, Amazon, Expedia, IBM and Charles Schwab.

The JLL Capital Markets team was led by Elliott Throne, Josh Odessky and Jayme Nelson.

GTIS Partners LP acquired a 26-acre industrial site in the Great Southwest submarket in the Dallas Fort Worth, Texas, MSA. GTIS will develop in-house an approximately 442,000-square-foot Class-A cross dock facility that can be demised to provide leasing flexibility to prospective tenants.

The development, also known as Remington 30, is centrally located in the GSW industrial submarket, one of the oldest submarkets in the metroplex with limited land available for new construction given its age and the presence of wetlands. Remington 30 sits south of the Dallas Fort Worth Airport and provides quick access to I-30, a primary east/west thoroughfare connecting Dallas and Fort Worth, and President George Bush Turnpike (PGBT) Toll Road, a major north/south artery that provides access to the northeast residential markets as well as other major arteries such as I-20. 

High-quality tenants including FedEx, Pepsi Co, Office Depot, Penske, and GE Appliances are located nearby Remington 30 as, amongst other drivers, its location provides access to the strong Dallas Fort Worth labor pool.

Remington 30 will target the bulk segment (defined as 250,000-500,000 SF) of the industrial market, where demand for newer product remains strong in GSW. The eight bulk buildings in the GSW submarket that delivered between 2018-2023, representing 2.8 million SF, have 0% vacancy. The bulk product segment has outperformed the submarket with positive net absorption over the last 12 months.

Brennan Investment Group acquired a more than 1.29-million-square-foot industrial portfolio of 16 buildings in Northwest Houston currently owned by Innovex, a global leader in subsea oil and gas equipment manufacturing.

Located within a master-planned business park, the campus’ 16 buildings have unit sizes ranging from 11,000 to 450,000 square feet across 126 contiguous acres.

Constructed between 1999 and 2018, the buildings were designed for manufacturing operations, offering HVAC-equipped warehouses, bridge cranes, heavy power, IOS yards, above-standard clear heights, and wide column spacing to accommodate diverse industrial requirements.

The site offers exceptional connectivity across the greater Houston region. Surrounded by a robust and growing population and a dense industrial ecosystem—more than 780 manufacturing businesses are within a five-mile radius—the location provides immediate access to a growing labor pool and a constrained supply of heavy industrial space.

This transaction is representative of Brennan’s strategic focus on acquiring functional industrial assets in key U.S. markets, primarily from corporate owner-users, and enhancing them through targeted capital improvements to attract a diversified tenant base and generate long-term value creation.

Tax deferral is one of the most powerful strategies for real estate investors, but not all provisions of the Internal Revenue Code (IRC) work the same way.

Two sections in particular, Section 1031 and Section 1033, are often confused. Both allow you to defer capital gains, but their circumstances and requirements differ dramatically. Knowing which section applies can mean the difference between a smooth deferral and a costly tax bill.

Section 1031
Most investors are familiar with Section 1031, the like-kind exchange provision. It applies when you voluntarily sell a business-use or investment property and reinvest the proceeds into another like-kind real property. To qualify:

• The transaction must be voluntary, meaning you chose to sell.
• An accommodator, such as a Qualified Intermediary (QI), must hold the sale proceeds. You cannot take possession of the funds.
• You have strict deadlines: 45 days to identify replacement property and 180 days to complete the purchase.
• Replacement property must be real estate held for business or investment purposes.

Think of Section 1031 as a structured strategy. It is elective, precise, and heavily dependent on compliance with timelines and procedures.

Section 1033
Section 1033 applies in very different situations. Known as the “involuntary conversion” provision, it covers dispositions of property that is taken, sold under threat, or destroyed without your consent. Examples include condemnation by a city for a public project, seizure through eminent domain, theft, or destruction in a fire, flood, or natural disaster.

Key points about 1033:

• The transaction is somewhat involuntary, meaning you may not wish to sell, but due to outside events or forces, you are compelled to sell.
• An accommodator is not required; you may receive proceeds directly and still qualify if you reinvest properly by acquiring a suitable replacement property.
• The timelines are longer and more flexible: generally, two years to reinvest, though some real property condemnations allow three years, and federally declared disaster areas may permit even longer.
• The general rule is that replacement property must be “similar or related in service or use,” which can be a stricter test than the “like-kind” standard under 1031.

Think of Section 1033 as a safety net. It recognizes that you did not choose to dispose of your property and provides more time, but it also imposes tighter rules on what qualifies as replacement property.

An exception to the “similar or related in service or use” of 1033

If you lose your property through theft, or in a storm or natural disaster, and receive an insurance payout, the rules require the replacement property to be the same or very similar to the lost property.

Interestingly, if you have commercial real estate property (not inventory) that is disposed of through government seizure (or threat thereof), eminent domain, or condemnation, an exception to the rule reverts to the more flexible “like-kind” standard that is used under Section 1031.

Key differences between 1031 and 1033

Investors often blur the line between 1031 and 1033, but the distinctions matter:

• Voluntary vs. Involuntary: 1031 is elective, 1033 is imposed by outside forces.
• Identification and Timing: 1031 requires 45-day and 180-day deadlines; 1033 timelines are not as clear; generally, two years from the last day of the year in which the disposition event occurred, and sometimes the timelines extend even longer under certain conditions, like condemnation.
• Role of an accommodator or Qualified Intermediary: Mandatory in 1031, not required in 1033.
• Replacement Property Rules: “Like-kind” under 1031 versus “similar or related in service or use” under 1033, unless it is condemned commercial real estate that is eligible for the more preferential “like-kind” standard.
• Proceeds: An investor cannot touch the funds under 1031. Under 1033, you can hold your own proceeds, but you must acquire a qualifying property of equal or greater value to defer taxable gain.

Real-world examples

• If you voluntarily sell a rental duplex to another investor, and you purchase a fourplex, then 1031 may apply with the facilitation of a Qualified Intermediary.
• If the city condemns your warehouse to make way for a highway expansion, then 1033 may apply if you acquire replacement property of equivalent value within three years.
• If you swap raw land for a retail mall, then 1031 may apply.
• If a fire destroys your bowling alley property and insurance pays out a claim, then 1033 may apply if you use those insurance proceeds to purchase a property of similar or related use. . .such as another bowling alley.

Why it matters for investors

Misclassifying your situation can lead to missed deadlines, improper handling of funds, or unnecessary tax exposure. If you assume 1031 applies when your property was condemned, you might follow timelines that are unnecessary. On the other hand, if you treat a voluntary sale as 1033, you could end up with a taxable event you were not expecting.

Final takeaway

Section 1031 and Section 1033 are both powerful tax deferral tools, but they are not identical. Understanding the main difference, voluntary exchange versus involuntary conversion, is essential. Work closely with a Qualified Intermediary or tax advisor early in the process to confirm which section applies. That step can safeguard your equity, protect your tax deferral, and keep your investment strategy firmly on track.

Jeff Peterson is a Minnesota attorney and former adjunct professor of tax law. He serves as President of Minneapolis-based Commercial Partners Exchange Company, LLC, where he facilitates forward, reverse, and build-to-suit 1031 exchanges nationwide. Jeff regularly collaborates with attorneys, accountants, and real estate professionals on exchange strategies. Reach him at 612-643-1031 or JeffP@CPEC1031.com or on the web at www.cpec1031.com.

The net lease sector remains one of the most resilience commercial real estate asset classes. That was evident during the Fall Net Lease Summit held by Texas REDnews and REjournals Sept. 25 at the Sheraton Dallas Hotel by the Galleria.

The event featured the top names in the net lease business. They shared their expertise with the big crowd, discussing the resiliency of net lease assets, the bright future this sector is poised to see and the challenges that the industry is working through.

The summit also provided plenty of networking opportunities. Attendees had the chance to catch up on the business, discuss recent deals and share their thoughts on the state of the market with their fellow attendees.

Sean Hostert with the Net Lease Observer podcast kicked off the summit with his keynote speech.

The summit’s first session, the State of the Net Lease Market: Optimism Ahead Amid Evolving Market Dynamics panel, focused on both the positives and challenges in today’s net lease sector. Speakers said that the net lease sector’s future continues to look bright despite the country’s economic challenges. Speaking during this panel were Jerry Hopkins, Executive Managing Director, Net Lease Capital Markets, Newmark; Stephen Preston, Chairman & CEO, FrontView REIT; Gordon Whiting, Managing Director, Founder and Co-Head Net Lease Real Estate strategy, TPG Angelo Gordon; Boyd Borjiet, Vice President, Investments, W. P. Carey Inc.; and Coler Yoakam, Senior Managing Director, Corporate Capital Markets and Single Tenant Net Lease, JLL, the panel’s moderator.

Next on the agenda was the Spotlight on Texas: Leading the Way in National Industrial Net Lease Expansion panel, with participants Scott Rohrman, Founder, 42 Real Estate; Zach Harris, Managing Director and Partner, TruCore Industrial; Tom Fishman, Executive Vice President, Acquisitions and Dispositions, Hillwood; Angie Wethington, Senior Director, Scannell Properties; and Jack Fraker, President, Global Head of Industrial and Logistics, Capital Markets, Newmark, who served as the moderator.

The Steady Streams: Retail and Medical Net Lease panel focused on two solid asset types in the net lesae sector. Speaking on this panel were Brad Motley, Partner, Trinity Real Estate Investment Services; Caroline Pinkston, Senior Director, Capital Markets, JLL; Elizabeth J. Randall, CCIM, President, Randall Commercial Group, LLC; Michael Fitzgerald, Head of U.S. Retail, Investments, W. P. Carey Inc.; Mark Manheimer, President and CEO, NETSTREIT; Dave Wirgler, Vice President, National Developer Services, Sands Investment Group; and moderator Toby Scrivner, Director, National Healthcare Group, Northmarq.

Closing the summit on the 1031 Exchange Trends: Navigating a Changing Landscape panel were participants Craig Brown, Esq., Senior Vice President, Regional Manager, Investment Property Exchange Services, Inc. (IPX1031); Greg Lehrmann, Attorney, Excel 1031 Exchange, LLC.; Brandon Balkman, Managing Director, Net Lease Capital LLC; Jared Morgan, CIO, Four Springs Capital; and Todd Phillips, CEO, Legacy Property Trust, the panel’s moderator.

Niche real estate types have long thrived in the broader industrial market, with categories such as cold storage and specialized manufacturing rising and falling in cycles. But in recent years, one of the fastest-growing subsectors has been industrial outdoor storage (IOS), according to CommercialCafe’s September National Industrial Report.

The sector’s growth has been fueled by its low costs and flexibility, offering solutions at a time when supply chain disruptions and shifting trade policy have pressured occupiers to maximize efficiency. As CommercialCafe says in its report, IOS facilities serve a range of uses, from overflow storage and vehicle parking to bulk material yards and infill locations, making them increasingly attractive to tenants and investors.

Supply, however, has not kept pace. Zoning constraints and the frequent redevelopment of IOS sites into higher-value properties have limited availability. That imbalance has driven rents sharply higher, according to CommercialCafe. Newmark reports that IOS rents have surged 123% since 2020, with inland hubs such as Memphis, Atlanta and Phoenix among the hottest markets.

Historically, most IOS properties have been privately held with non-standardized pricing. But institutional players are beginning to take a larger stake. PwC estimated the IOS market at about $200 billion in 2023, with $1.7 billion raised that year alone. Since then, activity has accelerated.

This year, Peakstone Realty Trust acquired a 51-asset IOS portfolio for $490 million, while Barings and Brennan Investment Group launched a joint venture targeting $150 million in IOS investments. Realterm also purchased a 13-property portfolio for $277 million. Analysts expect the asset class to become increasingly institutionalized, with standardized pricing models and growing confidence among lenders.

Still, challenges remain. As CommercialCafe says in its report, local governments and residents often push back against IOS developments, constraining supply even as new demand drivers emerge. Analysts note that future growth could come from the storage needs of technologies such as drone delivery systems and autonomous trucks.

The broader U.S. industrial market remains solid. CommercialCafe reported that in-place rents reached $8.66 per square foot in August, up three cents from July and 6.1% higher year-over-year. Developers are also pressing ahead: 338.3 million square feet of industrial space is under construction nationally, representing a projected inventory increase of 1.6%. By the end of August, 205.4 million square feet had already been delivered this year.

Manufacturing projects represent 28% of the pipeline, though they have accounted for just 14% of new starts since early 2023, according to CommercialCafe. That’s because manufacturing facilities take longer to complete than logistics projects, keeping them in the pipeline longer. After peaking in 2024, new manufacturing development has slowed considerably. Between 2021 and 2024, about 200 million square feet of space broke ground, but starts so far this year total less than 20 million square feet.

The slowdown is reflected in investment data. The U.S. Census Bureau reported annualized manufacturing construction spending of $223.1 billion in July 2025, down 7% from the record set in August 2024. Even so, spending remains more than triple its 2020 levels.

Industrial property sales reached $43.2 billion through August, averaging $137 per square foot. Notable deals include LG’s $2 billion buyout of GM’s stake in their Ultium Cells battery plant in Lansing, Michigan. The 2.8-million-square-foot facility is set to produce electric vehicle batteries, though GM has scaled back EV production amid softer demand.

Still, momentum in the EV sector persists. Toyota recently placed a $1.5 billion battery order, and GM continues to back plants in Ohio and Tennessee.